Vice Commerce Minister Park Jung-sung / Yonhap
The trade ministry held a gathering with representatives from the auto, residence home equipment and metal sectors Thursday to debate responses to the European Union’s (EU) plan to implement the Carbon Border Adjustment Mechanism (CBAM) subsequent 12 months, officers mentioned.
The EU is about to levy tax on carbon-intensive items imported to the area, reminiscent of metal, aluminum, cement and fertilizers, beginning on Jan. 1, and plans to increase its carbon border levy to different gadgets, together with auto elements, fridges and washing machines, starting in 2028.
Below the brand new scheme, exporters to the EU should calculate the carbon emissions related to their merchandise and report it to the importers to allow them to buy CBAM certificates based mostly on these emissions.
“We are going to fastidiously evaluate whether or not the latest announcement on the growth of things relevant (underneath CBAM) may act as a commerce barrier in disguise (to Korean firms),” Vice Commerce Minister Park Jung-sung mentioned, vowing continued communications with the industries over the matter.
The ministry mentioned by means of continued consultations with the EU, the beginning of CBAM certificates gross sales has been postponed to 2027 from subsequent 12 months and exemption standards have been made for firms buying and selling with small-sized importers within the EU.
