Creating Dedicated Officials for Global Environmental Regulations

The government will appoint dedicated public officials for global environmental regulations. This is to effectively respond to intensifying major countries' environmental regulations, such as the Carbon Border Adjustment Mechanism (CBAM) and the anticipated carbon tax under the second term of the Donald Trump administration.

On the 18th, the government approved the "Ministry of Environment and its affiliated agencies organization amendment" containing this content at the Cabinet meeting held at the Government Complex in Jongno-gu, Seoul. According to the amendment, the Ministry of Environment will establish a director-level position of International Cooperation Officer under the Planning and Coordination Office. The International Cooperation Officer will lead one division (International Cooperation Division) and two teams (International Environmental Agreements Team and International Development Cooperation Team).

Regarding the organizational restructuring, the Ministry of Environment stated, "We will proactively respond to the rapidly changing international environment, such as the deepening climate crisis and strengthening carbon trade barriers," and added, "We focused on enhancing South Korea's international status and influence by playing a leading role in international environmental negotiations."

The top priority task for the International Cooperation Officer is expected to be CBAM. CBAM is a type of carbon tax imposed by the European Union (EU) on imported products, charging costs equivalent to the carbon emissions generated during product manufacturing. Although the regulation was implemented in 2023, this year is a pre-assessment period. When the regulation is fully applied from 2026, industries subject to it?such as steel, aluminum, fertilizer, hydrogen, cement, and power sectors?will be significantly affected.

Responding to environmental regulations from the Trump administration is also a key issue. The U.S. administration has, conversely, raised concerns about other countries' environmental regulations. The Korea Trade Barriers Report prepared by the U.S. Trade Representative (USTR) last year pointed out that South Korea's unclear standards on automobile emissions act as obstacles to market entry. The American Chamber of Commerce in Korea (AMCHAM) also cited South Korea's carbon emission regulations, RE100 policy, and greenhouse gas emission regulations as non-tariff barriers in its report last year. Recently, the possibility of a carbon tax has even been mentioned.

The International Cooperation Officer will also carry out international cooperation tasks. They will engage in cooperative activities with multilateral environmental forums such as the United Nations (UN), the Group of Twenty (G20), and the Organisation for Economic Co-operation and Development (OECD). They will also handle follow-up tasks such as managing the implementation of international environmental agreements and accords. Furthermore, to secure the international competitiveness of domestic companies, they will strengthen the sales capabilities of green industries. New overseas climate and environmental projects will be systematically supported throughout the entire process of discovery, contracting, negotiation, and financial investment.

The International Environmental Agreements Team is responsible for international norms in climate and environmental fields, such as the United Nations Framework Convention on Climate Change and the Convention on Biological Diversity. They also handle the establishment and coordination of trade policies in the environment and sustainable development sectors, as well as bilateral and multilateral trade negotiations. The International Development Cooperation Team plans and manages international development cooperation projects in the environmental sector, such as Official Development Assistance (ODA) projects, and promotes cooperative projects with multilateral development banks (MDBs) and international financial institutions.