Korea expedites transition to low-carbon structure over EU's carbon tax scheme
The EU recently decided to implement the Carbon Border Adjustment Mechanism that calls for levying an import charge on steel, cement, electricity, fertilizer, aluminum and other related items equivalent to their carbon emissions from production. The scheme will be in full implementation starting in 2026 after a transition period set to begin in October 2023. During a meeting of ministers in charge of economic affairs, the Seoul government decided to extend support for technology development of low-emission production methods, such as carbon capture and storage and hydrogen-using process, according to the industry ministry. It also decided to expand the basis for measuring, reporting and verifying carbon footprints, and beef up financial support for green projects. The measure is feared to negatively affect Korea’s steel expors, in particular, as coal-burning blast furnaces, which cause greater carbon emissions, accounted for nearly 70 percent of the country’s total steel production as of last year.