Held a meeting to respond to the UK’s carbon border adjustment system
Promote joint public-private preemptive response
Plan to utilize existing EU system response experience
Editor
On the 14th, the Ministry of Trade, Industry, and Energy held an industry meeting on the UK's carbon border adjustment system.
This meeting was prepared to listen to industry opinions on the design of the UK's carbon border adjustment system, which is scheduled to be implemented in 2027, and to discuss joint response measures.
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| A man walks through Greenwich Park as a polluted fog hangs over the London skyline. (Photo = Reuters) |
The UK has included seven items, including steel, aluminum, cement, fertilizer, hydrogen, ceramics, and glass, as items subject to the carbon border adjustment system, and plans to pursue legislation after receiving opinions from stakeholders by June 13. As of 2023, Korea is exporting $300 million worth of steel to the UK, which corresponds to 98% of the export value of the seven applicable items.
Our industry estimates that the additional response burden will not be significant as the UK's carbon border adjustment system is largely similar to the European Union's carbon border adjustment system, while the burden of reporting and paying quarterly emissions and the immediate implementation in 2027 is expected to increase. Some concerns were raised, including the lack of an adaptation period.
Shim Jin-soo, Director of New Trade Strategy Support, who presided over the meeting on this day, said, “In addition to the European Union, other countries such as the UK are also reviewing or introducing measures such as the carbon border adjustment system, raising concerns for our export companies.” He added, “Our companies can operate in a fair environment. “We will actively consult with and respond to regulatory agencies from the early stages of system design so that we can compete,” he said.
The Ministry of Trade, Industry, and Energy will continue to monitor trends in the carbon border adjustment system in major countries such as the European Union and the United Kingdom and share them with the Korean industry while continuing to respond follow-up by raising our position on the issue based on close communication with the industry.
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