On the 22nd, at the Grand Conference of the Federation of Korean Industries in Jung-gu, Seoul, Minister Oh Young-joo of the Small and Medium Business Administration is giving a welcoming speech at the ‘EU CBAM Response Small and Medium Enterprise Support Announcement Meeting’. The Small and Medium Business Administration announced the ‘EU CBAM Response Small and Medium Enterprise Support Plan’ based on these contents at the meeting held in Jung-gu, Seoul.
CBAM (Carbon Border Adjustment Mechanism) is a system that obligates EU-bound exports of carbon-intensive products such as steel, aluminum, fertilizers, hydrogen, cement, and electricity to purchase certificates equivalent to the carbon emissions generated during the production process. The EU CBAM was piloted starting from October 2023 and will be fully implemented in 2026 after a transition period of about two years until 2025.
Last year, a total of 1,850 EU export companies were subject to CBAM, of which 1,358 were small and medium-sized enterprises, accounting for 74% of the total. However, many small and medium-sized enterprises do not perceive the urgency of CBAM and carbon neutrality and are passive in their responses. In response to this, the Small and Medium Business Administration analyzed export volumes, industries, and product categories to develop customized support measures for small and medium-sized enterprises to effectively respond to CBAM.
The Small and Medium Business Administration focuses on 355 small and medium-sized enterprises with export volumes exceeding 100 million won to support the process of measuring and calculating carbon emissions per product unit and the issuance of verification reports using the EU Emission Trading System (ETS) verification agency. For all EU export small and medium-sized enterprises, specialized courses on CBAM including methods for measuring and calculating carbon emissions will be provided through education and training programs. Additionally, support will be provided for facility conversion for carbon reduction, financing, and guarantees to strengthen capabilities to respond.
Furthermore, a dedicated platform will be expanded and established to provide comprehensive information on global carbon regulation trends, support programs, and other carbon neutrality-related information. Plans are in place to reduce the burden of emission calculation and verification through national-level carbon regulation consultations to reflect the opinions of small and medium-sized enterprises.
Minister Oh Young-joo of the Small and Medium Business Administration emphasized the necessity for companies to actively respond to global carbon neutrality trends for survival and growth, turning these trends into opportunities for companies. He expressed hope that businesses would actively respond in collaboration with the government.