With the full implementation of the European Union's Carbon Border Adjustment Mechanism (CBAM) this year, the government is stepping up efforts to enhance the capacity of domestic small and medium-sized enterprises (SMEs) in the export sector. Support includes reducing practical burdens faced by companies in calculating and verifying carbon emissions, as well as establishing response infrastructure and providing consulting services.
On the 2nd, the government held the '13th Joint CBAM Government Briefing Session for 2026' at the Cheonma Art Center of Yeungnam University in Gyeongsan, Gyeongbuk Province, with participation from the Ministry of SMEs and Startups, the Ministry of Trade, Industry and Energy, the Ministry of Climate and Environment, the Korea Customs Service, and related institutions.
CBAM is a system that imposes costs on carbon-intensive products exported to the EU, equivalent to the carbon emissions generated during their production. It currently applies to six categories: steel, aluminum, cement, fertilizers, electricity, and hydrogen. After a transition period from October 2023 to the end of last year, the definitive phase began in January of this year.
Accordingly, domestic exporting companies must calculate and verify carbon emissions generated during the production process and apply relevant regulations to actual export operations.
This briefing session will be divided into two parts: “Understanding the CBAM System” and “Sharing Practical Cases.” The first session will explain the overall system, including key details of the finalized CBAM period, response methods, carbon emission calculation techniques, and verification processes.
In the second session, a small or medium-sized enterprise (SME) that proactively responded to CBAM will share its process of establishing a response system, current status, and future strategies. A real-world case study will also be introduced, demonstrating how a company built a CBAM response system during EU exports and leveraged it to enhance export competitiveness.
Alongside the briefing, the government is expanding programs to support SMEs in practical responses. Last month, a total of five sessions were conducted, combining theoretical CBAM education with hands-on training where employees of SMEs calculated carbon emissions themselves.
The government is also recruiting participants by the 15th for the “SME CBAM Response Infrastructure Construction Project,” which supports SMEs exporting CBAM-targeted products to the EU by funding the installation of carbon emission measurement equipment and verification costs. Additionally, consulting services are being provided to calculate emissions for CBAM-targeted products at production sites, along with dedicated consultation channels for businesses.
Kim Dae-hee, Director-General of SME Policy at the Ministry of SMEs and Startups, stated, “2026 will be a critical year for EU-exporting companies to thoroughly prepare for the full implementation of CBAM,” adding, “We will actively support companies to accurately understand the system and establish effective response mechanisms.”
The government plans to continue monitoring EU regulatory changes, such as potential expansions of CBAM applicability, and negotiate with the EU to reduce corporate burdens. Simultaneously, it will persist in strengthening domestic companies' self-reliant response capabilities.
