IBK Investment & Securities Signs MOU to Respond to EU Carbon Border Adjustment Mechanism

IBK Investment & Securities announced on the 24th that it has signed a memorandum of understanding (MOU) with NAMU EnR to respond to the European Union (EU) Carbon Border Adjustment Mechanism (CBAM) and to strengthen cooperation in carbon markets.

Industrial Bank of Korea Investment & Securities headquarters.

The EU CBAM is a mechanism under which the EU calculates greenhouse gas emissions generated in the production process of imported products with high emission intensity, such as steel, aluminum, cement, and fertilizers, and imposes corresponding costs.

This agreement was promoted to systematically manage the risks faced by domestic companies stemming from the strengthening of global environmental regulations, including the CBAM, and to enhance their response capabilities.

The two companies will collaborate in various areas, including: sharing and jointly analyzing domestic and overseas carbon market information; establishing response strategies for the EU CBAM; brokering spot and futures trades of emissions allowances and carbon credits both on and off exchanges; and co-hosting forums and seminars related to carbon markets.

IBK Investment & Securities plans to leverage its market experience and network from a financial investment perspective, while NAMU EnR will utilize its specialized research capabilities and data analytics-based insights, so that together they can provide market participants with accurate analysis and practical response strategy services.

NAMU EnR is a company that offers specialized research services focused on global emissions allowance market analysis, financial engineering, and pricing, and on the 2nd it developed the first simulator in Korea capable of analyzing EU CBAM-related costs and risks.

A representative of IBK Investment & Securities said, "As global carbon regulatory environments are tightening, collaboration between financial institutions and specialized companies in the carbon and energy markets will play an important role in alleviating companies' actual burdens and helping them secure competitiveness," adding, "Building on this agreement, we will contribute to creating a sustainable environmental and energy finance ecosystem."