Ahead of the European Union (EU) implementing carbon regulations, An Deok-geun, Minister of the Ministry of Trade, Industry and Energy, sent a letter of congratulations to Executive Vice President Wopke Hoekstra on the inauguration, conveying concerns from our government and industry.
According to the Ministry of Trade, Industry and Energy on the 15th, Minister An sent a congratulatory letter to Executive Vice President Hoekstra on the occasion of the new EU Commission's launch, conveying concerns about the carbon border adjustment mechanism scheduled to be fully implemented in Jan. 2026.
The carbon border adjustment mechanism refers to a measure imposing taxes on estimated carbon emissions from the production process of products exported to the EU from countries with lax greenhouse gas emission regulations.
Minister An requested cooperation to ensure that the carbon border adjustment mechanism was not applied discriminatorily to non-EU corporations based on international trade norms from the initial introduction of the system.
Since the EU announced the implementation plan for the system in 2021, the Ministry of Trade, Industry and Energy has continuously held the 'European Union Carbon Border Adjustment Mechanism Task Force,' industry meetings, briefings, and operated a help desk.
According to the Ministry of Trade, Industry and Energy, our opinions on the protection of sensitive corporate information and emission calculation methods for each production process have been actively reflected. In the recently announced implementation bill, our request was also reflected, allowing export corporations to directly submit relevant information to the registry without going through importers within the European Union.
A representative from the Ministry of Trade, Industry and Energy noted, "We will continue to enhance our response efforts to minimize the impact of the EU's carbon regulations on our exports," adding, "We will strengthen joint responses with countries in similar positions to enhance global negotiation power."