SEOUL, Jan. 15 (Korea Bizwire) — South Korea’s major export companies may have to bear a significant financial burden if the European Union (EU), the United States and China introduce a proposed carbon border tax in 2023, a Seoul bureau of environmental activist group Greenpeace said Thursday.
According to a report revealed by Greenpeace Seoul, South Korea’s major industries in the areas of steel, oil, fuel cells and automobile manufacturing may have to pay about US$530 million per year if these countries introduce a carbon border tax in 2023.
The carbon border tax refers to a trade tariff that is applied when countries with loose regulations on carbon dioxide emissions export goods and services to countries with strong regulations.
The EU announced plans to introduce a carbon border tax in 2023, while the upcoming Biden administration in the U.S. is expected to pursue eco-friendly policies similar to those of the EU.
The report calculated that the annual cost imposed on South Korean companies by the EU and the U.S. as a carbon border tax could rise further to $619 million and $296 million, respectively, by 2030.
“The response to climate change has passed the declaratory stage and is now entering the phase of applying substantial restrictions such as carbon border taxes.” said Kim Ji-seok, a climate and energy specialist at Greenpeace Seoul.
J. S. Shin (firstname.lastname@example.org)