EU Carbon Border Adjustment Mechanism Prompts Government Support for Exporters

As the European Union's Carbon Border Adjustment Mechanism (CBAM) takes effect this year, South Korean exporters of steel, aluminum, and other related products are ramping up their responses. The government is accelerating its support measures to minimize confusion and enhance the capacity of these companies.

On June 23, the government held the '2026 Second Joint Government Briefing on EU CBAM Response' at the Busan Chamber of Commerce and Industry, in collaboration with the Customs Service, the Ministry of Trade, Industry and Energy, the Ministry of Climate, Energy and Environment, and the Ministry of Small and Medium Enterprises and Startups. They announced the latest implementation regulations and practical response strategies.

CBAM is a system that imposes costs on carbon emissions generated during the production of imported goods. After a transition period from October 2023 to the end of last year, the definitive period began in January 2024. Consequently, companies exporting applicable items such as steel and aluminum to the EU must prepare systematically for obligations related to emissions calculation and verification.

In particular, following the EU's announcement of detailed criteria for emissions calculation methods in December 2023, domestic companies are now required to reflect these changes in their actual operations. Industry experts believe that the ability to manage carbon information will be a key factor in determining future export competitiveness.

The briefing covered trends in EU emissions verification, methods for calculating embedded emissions by product, and practical response measures for companies. For those unable to attend in person, the Korea Institute of Industrial Technology's National Clean Production Support Center provided a live stream on its official YouTube channel, with a replay available afterward.

The government plans to offer one-on-one customized consultations for pre-registered companies to address on-site challenges arising during the CBAM response process.

The Customs Service will distribute a 'EU Item Classification Pre-Assessment Guidebook' to help companies verify whether their export products fall under CBAM. Since the applicability of CBAM is determined based on item numbers used in the EU import customs process, accurate classification is crucial.

Additionally, to assist small and medium-sized enterprises struggling with emissions calculations, the government will enhance and distribute its self-developed emissions calculation program, 'CBAM-PASS,' for free. This program will incorporate the content of the EU's definitive period implementation regulations.

The Ministry of Trade is providing consultations through a dedicated CBAM help desk, while the Ministry of Climate is promoting support for calculating embedded emissions by product and tailored consulting for business sites.

The government intends to continue expanding cooperation among relevant agencies and support measures to secure the export competitiveness of domestic companies in line with the strengthening global environmental regulatory trends.

Han Min, Director of the International Customs Cooperation Bureau at the Customs Service, stated, "This year is a critical time for small and medium-sized enterprises exporting to the EU to prepare for the full implementation of CBAM. We will continue to support companies in accurately understanding the system and establishing effective response frameworks."