South Korea and Japan's reaction to EU CBAM

The Korea International Trade Association (KITA) requested that offshore manufacturing companies be allowed to submit data directly to the CBAM registry to protect confidentiality, and asked to be allowed to proceed with the adoption of the Korea Emissions Trading Scheme (K-ETS) standard to calculate embodied carbon emissions and eliminate transitional penalties.

The Japan Iron and Steel Federation (JISF) pointed out that only importers are required to submit data on carbon emissions. At the same time, EU steelmakers do not need to, which violates the WTO's principle of non-discrimination. Offshore companies submit data every quarter, which is difficult to enforce.