South Korea has requested the European Union to acknowledge its carbon credit certification system concerning the EU’s newly introduced Carbon Border Adjustment Mechanism (CBAM), aiming to mitigate additional burdens on businesses. The appeal was made by South Korea’s first vice finance minister Kim Byoung-hwan during discussions with Gerassimos Thomas, a senior official in the Directorate-General for Taxation and Customs Union at the European Commission. CBAM imposes import charges on products like steel, cement and aluminum, based on their carbon emissions during production.

During the meeting in Seoul, Kim emphasized the importance of addressing climate challenges through mechanisms like the CBAM but cautioned against imposing undue financial strain on companies. He advocated for the EU’s recognition of South Korea’s carbon credit system to prevent double taxation for Korean businesses. Thomas indicated that the EU would consider South Korea’s position and pledged to maintain ongoing dialogue.