South Korea’s trade ministry has called for revisions to the European Union’s Carbon Border Adjustment Mechanism (CBAM), set to fully launch in 2026, warning it could impose undue burdens on exporters. In a letter to Wopke Hoekstra, the EU’s new commissioner for climate and clean growth, trade minister Ahn Duk-geun stressed the need for “fair and non-discriminatory” implementation, citing concerns about compliance costs and data transparency for non-EU companies.

The ministry has been in talks with the EU since 2021, pushing for protections for exporters, including streamlined emissions reporting and safeguards for sensitive corporate data. During CBAM’s transitional phase, which began in Aug. 2023, the EU allowed exporters to submit emissions data directly to EU authorities, reflecting some of South Korea’s proposals.