Korean steel industry braces for EU carbon border tariffs
Posted : 2021-07-11 16:53
Carbon border adjustment measure scheduled to take effect in 2023
By Kim Hyun-bin
The European Union's (EU) carbon border adjustment measure (CBAM) is expected to take a toll on local steel and petrochemical companies, with the Korean government scrambling to brainstorm countermeasures before the new measure takes effect in 2023.
The measure is aimed at increasing tariffs on imported goods based on the level of carbon content, in an effort to slash carbon emissions and reduce their impact on climate change. The measure will mark the world's first tax on carbon contained in traded goods. It will be applied heavily to the production of steel, which emits large amounts of greenhouse gases relative to other industries.