Korean exporters can now get carbon emissions verified at home for EU market

South Korean exporters subject to the EU's Carbon Border Adjustment Mechanism can now have their carbon emissions verified domestically, cutting costs and simplifying procedures.

The Ministry of Trade, Industry and Energy and the Ministry of Climate, Environment and Energy announced Thursday that the Korean Standards Association received accreditation from Italy's national accreditation body on Wednesday as the first domestic EU CBAM verification body.

CBAM, which took full effect in January this year, imposes costs on carbon-intensive products — including steel, aluminum and cement — exported to the EU based on the volume of carbon emitted during production.

Exporters must have their emissions verified by a body accredited by an EU member state's national accreditation authority. Without such verification, companies are charged based on a default value that is typically set higher than their actual emissions.

Companies that had struggled due to the absence of a domestic CBAM verifier are expected to see reduced costs and less confusion through the Korean Standards Association's verification services. The burden of sharing sensitive production data with overseas verification bodies will also ease.

The government said the accreditation was the result of coordinated support from related ministries. The Ministry of Climate, Environment and Energy built a cooperative framework with Italy's national accreditation body to allow domestic technical experts to participate in the accreditation review, while the Ministry of Trade, Industry and Energy urged the EU's Directorate-General for Taxation and Customs Union to expedite the review of domestic verification bodies.

The government also plans to support the expansion of domestic CBAM verifiers. Two additional verification bodies are currently undergoing the accreditation review process.

In addition, the government plans to continue consultations with the EU and support companies through joint government briefings, business consulting services and dedicated help desks.

Jeong Seon-hwa, the ministry's director general for climate and energy policy, said the accreditation would provide meaningful, practical help for exporters in reducing their cost burden and obtaining verification smoothly. "We will provide the necessary information and spare no effort to ensure that our companies' carbon reduction efforts are properly recognized in the EU," Jeong said.

Kim Jang-hee, director general for new trade strategy support at the Ministry of Trade, Industry and Energy, said the accreditation laid the groundwork for domestic exporters to have their emissions verified quickly at home. "We will actively support the remaining verification bodies, including those currently under review, in obtaining accreditation as soon as possible, and will continue consultations with the EU," Kim said.