1st VM Kim Meets with Director-General for Taxation and Customs at European Commission
First Vice Minister Byounghwan Kim met with Gerrassimos Thomas, Director-General for taxation and customs at the European Commission on November 15 to discuss the EU’s Carbon Border Adjustment Mechanism (CBAM) and Base Erosion and Profit Shifting (BEPS).
While 1st VM Kim acknowledged the EU’s efforts for climate change adaptation, including the CBAM, he stressed that such efforts should not impose unnecessary burdens on businesses. In particular, as Korea has a stringent emissions trading scheme, he has requested the EU recognize the carbon prices already paid domestically by companies and the validation results from Korean accredited agencies so as to alleviate the double burden on Korean companies.
Director-General Thomas spoke highly of the excellence of Korea’s emissions trading system and accreditation institutions. He expressed his commitment to take into account the opinions of the Korean government and businesses in decision-making and invite Korea to join the Commission expert groups as an observer. Furthermore, with the EU CBAM being in the transition phase ahead of its official implementation, he assessed that the information provided by the Korean government and companies will be useful for the future legislation of implementing acts.
Last but not least, VM Kim and Director-General Thomas shared their views on the need for pushing forward the Two-pillar Solution driven by the G20’s Inclusive Framework (IF) on the basis of mutual understanding on its significance.
The government will make best efforts to proceed with meaningful consultations with the EU going forward to minimize burdens on Korean companies in environmental and trade legislative processes being pursued by the EU.
Please refer to the attached files.