Gyeongnam signs five-party pact to help exporters with EU carbon border rules
In short
Gyeongnam province and four other organisations signed an agreement on 6 October to help local exporters respond to the European Union's Carbon Border Adjustment Mechanism. The five parties will cooperate on CBAM information and training, consulting, and support for calculating, managing and verifying carbon emissions. Yonhap reported that 206 companies in the region directly exported CBAM-covered goods to the EU as of June, mostly steel and aluminium exporters.
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Gyeongnam province and four partner organisations signed a memorandum of understanding on 6 October at the Gyeongnam Provincial Office to help regional exporters respond to the European Union's Carbon Border Adjustment Mechanism, Yonhap reported. The signatories are Gyeongnam province, the Gyeongnam Chamber of Commerce and Industry Council, the Korea SMEs and Startups Agency, Korea Management Association Consulting and the Korea Standards Association. Under the agreement, the five organisations will cooperate on CBAM information and training, consulting, and support for calculating, managing and verifying carbon emissions. Newsis reported in its headline that the province is supporting exporters' response to CBAM. [ 1 , 2 ]
Each organisation was given a role. The province coordinates the cooperation system and plans and adjusts joint projects, the chamber of commerce and industry council identifies companies that need CBAM-related support and gathers on-site views, and the Korea SMEs and Startups Agency provides information on support programmes. Korea Management Association Consulting supports CBAM response training and consulting for companies, while the Korea Standards Association is responsible for training on calculating carbon emissions. [ 1 ]
CBAM requires exporters to the EU of carbon-intensive items — steel, aluminium, cement, fertiliser, electricity and hydrogen — to bear costs corresponding to the carbon emissions generated during production. Yonhap reported that, as of June, 206 companies in the Gyeongnam region directly export CBAM-covered goods to the EU. By item, 167 companies export steel, 16 aluminium, 21 both steel and aluminium and 2 other items; by area, 73 are in Changwon, 72 in Gimhae and 33 in Yangsan. [ 1 ]
The documents do not state the budget for the support, how many companies it will reach or when it begins. [ 1 , 2 ]
Why it matters
CBAM requires exporters of carbon-intensive goods such as steel and aluminium to the EU to bear costs corresponding to the emissions generated in production, so regional manufacturers face new compliance work. The agreement assigns provincial bodies and support agencies roles in education, consulting and emissions verification, which matters to the 206 Gyeongnam companies the province counts as directly exporting covered goods. The documents do not state a budget or schedule for the support.
Key facts
- Gyeongnam province, the Gyeongnam Chamber of Commerce and Industry Council, the Korea SMEs and Startups Agency, Korea Management Association Consulting and the Korea Standards Association signed a memorandum of understanding on 6 October at the Gyeongnam Provincial Office. [ 1 ]
- The five organisations agreed to cooperate on CBAM information and training, consulting, and support for calculating, managing and verifying carbon emissions. [ 1 ]
- Under the agreement, the province coordinates the cooperation system and plans and adjusts joint projects, the chamber identifies companies needing support and gathers on-site views, the Korea SMEs and Startups Agency provides programme information, Korea Management Association Consulting handles CBAM training and consulting for companies, and the Korea Standards Association handles emissions calculation training. [ 1 ]
- CBAM requires exporters to the EU of carbon-intensive items — steel, aluminium, cement, fertiliser, electricity and hydrogen — to bear costs corresponding to the carbon emissions generated in production. [ 1 ]
- As of June, 206 companies in the Gyeongnam region directly exported CBAM-covered goods to the EU. [ 1 ]
- By item, 167 companies export steel, 16 aluminium, 21 both steel and aluminium, and 2 other items. [ 1 ]
- By area, 73 of the companies are in Changwon, 72 in Gimhae and 33 in Yangsan. [ 1 ]
- Newsis reported in its headline that Gyeongnam province is supporting local exporters' response to the EU Carbon Border Adjustment Mechanism. [ 2 ]
Confirmed by several sources
- Gyeongnam province is supporting local exporters in responding to the EU Carbon Border Adjustment Mechanism. [ 1 , 2 ]
- Five organisations signed a cooperation agreement on 6 October for that support. [ 1 ]
- The cooperation covers CBAM information and training, consulting, and carbon emissions calculation, management and verification. [ 1 ]
Still unclear
- The budget, the number of companies to be assisted and the start date of the support programmes are not stated. The documents describe the scope of cooperation but give no figures or schedule.
- Most of the specifics, including the list of signatories, their individual roles and the company counts, appear in only one account. Single-source details that a second outlet does not address.
- The article text provided for document 2 concerns an unrelated subject and only its headline addresses this agreement. The content of that document could not be used to check the details of the agreement.