This project analyses the impacts of the European Union’s Carbon Border Adjustment Mechanism (CBAM) on South Korea’s industrial sectors, with a primary focus on steel and the potential expansion to the petrochemicals industry. It also explores strategic responses to support industrial low‑carbon transformation and enhance competitiveness. 

As the EU CBAM, which places a carbon price on emissions-intensive imports into the EU, enters full implementation in 2026, export-oriented and emissions-intensive economies like South Korea face growing transition risks. This creates a critical window for Korea to turn emerging trade pressures into opportunities, accelerating the transition to low-carbon industry and strengthening long-term industrial competitiveness. 

To inform Korean policymakers and industry stakeholders and position decarbonisation as a viable and nationally relevant strategy, NewClimate Institute assesses CBAM impacts on Korea’s steel and chemical sectors using the CLIMTRADE tool. The project will:

• Produce two targeted policy briefs tailored to policymakers and industry stakeholders, including evidence-based recommendations to help future-proof Korean industries against CBAM.

• Engage Korean policymakers and industry representatives through roundtable discussions during the UN Climate Week and K-GX Week in April 2026 to share insights and support informed decision-making. 

The project is implemented in partnership with NEXT group for a one-year period, from November 2025 to October 2026.