The Ministry of Climate, Energy and Environment of Korea has announced an intensive support program to help domestic exporters comply with the European Union’s Carbon Border Adjustment Mechanism (CBAM), which is being fully implemented from this year. The initiative aims to assist companies in calculating and reporting their carbon emissions, a requirement for continued access to the EU market. The support includes on-site visits and personalized one-on-one consulting to guide companies through every step of the compliance process. This approach is designed to address the practical challenges faced by exporters and strengthen their competitiveness in the global market.
The policy directly impacts Korean companies exporting products such as steel, aluminum, fertilizers, cement, hydrogen, and electricity to the EU. From 2028, the scope will expand to include downstream industrial products like machinery, vehicles, and home appliances. Both large corporations and small- to medium-sized enterprises (SMEs) are eligible for support, with particular attention given to those struggling with the initial implementation of the new requirements. The Korea Environment Corporation, under the climate ministry, is responsible for delivering the consulting services and will select 100 companies for tailored assistance in 2024.
The support program is currently accepting applications until April 26, 2024, for the ‘2026 EU CBAM Consulting Support for Companies.’ In 2024, 100 business sites will be chosen for direct consulting, continuing the ministry’s efforts that previously aided 160 companies between 2024 and 2025. The EU CBAM requires exporters to calculate and verify the carbon emissions of their products and submit this information to EU importers. Starting in 2025, EU importers of Korean goods must purchase certificates corresponding to the carbon emissions of imported products, potentially increasing costs for Korean exporters. Detailed information and application procedures are available on the Korea Environment Corporation website and through a dedicated consultation hotline.
Frequently asked questions include: What is the main challenge for Korean exporters under the EU CBAM? The key challenge is accurately calculating and verifying product carbon emissions to meet EU requirements. Who can apply for the support program? Both large companies and SMEs exporting to the EU are eligible, especially those needing help with initial compliance. Where can companies get more information? Details are available on the Korea Environment Corporation website and through their consultation hotline.
Korea’s climate ministry is taking a strategic and practical approach to help exporters adapt to the EU’s Carbon Border Adjustment Mechanism. By providing hands-on consulting and expanding support to both large corporations and SMEs, the government is addressing the most pressing compliance challenges. The emphasis on accurate emissions calculation and verification is timely, as cost burdens are set to increase. This initiative will likely strengthen the competitiveness of Korean exporters in the EU market and support a smoother transition to new climate regulations.