Jungjingong Supports SMEs in Responding to CBAM

Recruitment of Participating Companies for SME CBAM Response Infrastructure Construction Project

The Small and Medium Business Corporation announced on the 26th that it is recruiting participating companies for the ‘2024 Small Business CBAM Response Infrastructure Construction Project’ to support export-oriented small businesses in responding to the EU CBAM (Carbon Border Adjustment Mechanism).

The ‘Small Business CBAM Response Infrastructure Construction Project’ is a new initiative this year that supports everything from calculating to verifying emissions for CBAM-targeted products. The EU CBAM is a type of tariff system that imposes costs on companies exporting six items?steel, cement, electricity, fertilizer, aluminum, and hydrogen?to the EU, based on the carbon emissions generated during the product manufacturing process.

This regulation has been fully enforced since October last year, with a transition period until 2025 during which only emission reporting is mandatory. However, starting in 2026, obligations such as emission verification and the purchase and submission of CBAM certificates will be added, making prior preparation for CBAM-targeted companies more important than ever.

Small and Medium Business Corporation

The Small and Medium Business Corporation supports export-oriented small businesses in promptly responding to CBAM regulations by calculating inherent emissions through consulting with specialized institutions and providing credible verification reports through qualified verification bodies.

The support targets manufacturing small businesses currently exporting or planning to export CBAM-targeted items to the EU. Director Kang Seok-jin stated, “Practicing carbon-neutral management is no longer a crisis but a new management strategy to strengthen corporate competitiveness,” adding, “As an institution leading carbon neutrality for small and medium ventures, the Small and Medium Business Corporation will continue to actively support proactive responses to rapidly changing climate regulations.”