EU flag / AP-Yonhap

Korea's industry ministry said Friday it has agreed with Japan to work closely to ensure the European Union's Carbon Border Adjustment Mechanism (CBAM) does not act as a trade barrier.

The two countries discussed the agenda during a meeting in Seoul amid efforts to expand cooperation in industrial environmental policies, according to the Ministry of Trade, Industry and Energy.

CBAM calls for levying an import charge on steel, cement, electricity, fertilizer, aluminum and other related items equivalent to their carbon emissions during production.

The policy is set to be fully implemented at the start of 2026.

"With countries around the globe moving to adopt carbon-related regulations, expanding coordination with like-minded nations, including Japan, can bolster Korea's industrial competitiveness and minimize negative impacts on exports," a senior ministry official said. (Yonhap)