First Domestic EU CBAM Verification Body Accredited, Easing Exporters' Burden

Korea Standards Association Becomes Korea's First CBAM Verification Body Accredited by Italy's National Accreditation Body
Carbon emissions can now be verified domestically without relying on overseas bodies... Cost savings expected

For the first time, a domestic verification body has been accredited to verify compliance with the European Union's (EU) Carbon Border Adjustment Mechanism (CBAM). Until now, Korean exporters had to rely on overseas bodies to verify their carbon emissions because no EU-accredited verification body operated in Korea. They will now be able to obtain verification domestically, which is expected to ease the cost burden and reduce concerns about the disclosure of sensitive production information.

The Ministry of Trade, Industry and Energy and the Ministry of Climate, Energy and Environment announced on November 12 that the Korea Standards Association had become the first domestic body to receive EU CBAM verification accreditation from Italy's national accreditation body, Accredia, on November 5.

The CBAM imposes charges based on carbon emissions generated during the production of carbon-intensive products exported to the EU. It currently applies to six product categories: steel, aluminum, cement, fertilizers, electricity, and hydrogen. Following a preparatory period of more than two years, it took full effect in January this year.

Companies exporting products to the EU must have their reported carbon emissions verified by a verification body accredited by the national accreditation body of an EU member state. If emissions are not verified, default values, which are generally set higher than actual emissions, may be applied, increasing companies' carbon cost burden. Verifying actual emissions is therefore important for reducing costs over the long term.

Until now, companies had difficulty obtaining domestic emissions verification because no CBAM verification body in Korea had been accredited by an EU member state. With the Korea Standards Association now officially accredited, carbon emissions can be verified in Korea in accordance with EU standards.

This accreditation is the result of combining the expertise of a domestic verification body with joint support from relevant government agencies. The Ministry of Climate, Energy and Environment established a cooperation framework with Italy's national accreditation body and supported the participation of Korean technical experts in the accreditation assessment. It also provided CBAM capacity-building training for verification auditors under the Emissions Trading Scheme.

The Ministry of Trade, Industry and Energy supported trade negotiations by requesting an expedited assessment of domestic verification bodies in meetings with the European Commission's Directorate-General for Taxation and Customs Union and by regularly conveying requests from Korean bodies to the EU. Two other domestic verification bodies receiving government support are currently undergoing additional accreditation assessments.

The government expects the use of domestic verification bodies to deliver tangible benefits for exporters by reducing costs and protecting information. Using overseas verification bodies can entail additional expenses, such as auditors' accommodation costs. The government says that using bodies with a strong understanding of domestic industrial sites can also minimize confusion during assessments. In particular, the burden of providing overseas bodies with sensitive information about companies' production processes during carbon emissions verification is expected to ease.

Kim Janghee, Director for New Trade Strategy Support at the Ministry of Trade, Industry and Energy, said, "This accreditation is significant because it establishes a foundation for Korean exporters to have their emissions verified quickly in Korea. We will actively support the remaining verification bodies, including those currently under assessment, in obtaining accreditation as soon as possible, and continue consultations with the EU."

This content was produced with the assistance of AI translation services.