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[HanaLoop] HanaLoop launches comprehensive climate regulation response solution for businesses adapting to EU Carbon Border Adjustment Mechanism (CBAM) “Providing tailored carbon management solutions, including support for the first report submission due in January of the coming year”

January 8, 2024

HanaLoop, established in August 2021, is an environmental partner dedicated to fostering a healthier planet through the use of innovative digital technologies. The company offers digital co-pilot services for achieving carbon neutrality, encompassing advanced management and analysis of carbon activity data, goal establishment, economic evaluation of reduction strategy scenarios, and the linking of public reporting and certification services for sustainable operations of businesses and institutions. All of these services are facilitated through the company’s cloud-based carbon management platform, Hana.eco. HanaLoop’s mission is to address the needs of both the Earth and the company’s customers, contributing to the creation of a sustainable net-zero ecosystem.

In the midst of the rapidly escalating global climate crisis, there is a growing emphasis on mandatory environmental regulations that affects business activities, including the reduction of carbon emissions. Furthermore, there is a growing emphasis on strengthening disclosure obligations within the International Financial Reporting Standards (IFRS), particularly in relation to reporting on carbon emissions. Additionally, the requirements for submitting Carbon Border Adjustment Mechanism (CBAM) certificates are becoming more stringent. In October, the European Union initiated a pilot program for a proposed tariff regulation aimed at levying charges on significant imports of steel, aluminum, and cement, with the determination of tariffs based on the carbon emissions associated with these products. In accordance with the program, countries exporting products to the EU, including South Korea, are required to submit their first report on the carbon emissions of European exports made in the last three months (October to December 2023) by January of the upcoming year.

The anticipated annual impact on Korean exporters resulting from the implementation of CBAM, is estimated at approximately 500 billion Korean won. Non-compliance with deadlines and reporting regulations may lead to fines ranging from 10 to 50 Euros per ton and potential export bans.

As a response, HanaLoop will offer carbon management training to companies obligated to address Carbon Border Adjustment Mechanism (CBAM) requirements whether within Korea or internationally. Additionally, the company will undertake comprehensive carbon-related support tasks, including measuring and managing carbon emissions in the production process, generating reports, and implementing a systematic management system. This initiative is aimed at enhancing customers’ competitiveness in compliance with carbon-related regulations.

Hye-yeon Kim, CEO of HanaLoop, emphasized, “With international regulations on carbon emissions increasing in strength, it is imperative for Korea to promptly adopt corresponding measures.” She further stated, “We are committed to delivering tailored carbon management solutions to companies seeking effective carbon management. Moreover, we will actively collaborate with businesses to facilitate the integration of eco-friendly management systems within their operations.”

The Hana.eco carbon management solution is currently being embraced by companies with obligations under the Emission Trading Scheme and Target Management System, as well as small and mid-sized enterprises addressing CBAM requirements. Additionally, the solution is playing a key role in enhancing energy efficiency in buildings. HanaLoop’s strategic vision includes entering the North American market next year with its climate regulation response solution and establishing trust with customers and partners as a strategic digital partner in implementing climate regulations and carbon neutrality strategies.

[Summary]

HanaLoop is working towards creating a healthier planet with innovative digital technologies. By addressing the needs of both its customers and the Earth, HanaLoop is actively contributing to the formation of a globally sustainable net-zero ecosystem. HanaLoop provides carbon management services for businesses and organizations through its cloud-based carbon management solution, Hana.eco. This platform enables the monitoring and management of carbon emissions, facilitating services to help entities respond to climate regulations. Specifically, HanaLoop offers comprehensive carbon management solutions tailored for carbon-intensive industries grappling with the Carbon Border Adjustment Mechanism (CBAM), which entered a transitional initial phase in October. HanaLoop collaborates closely with companies to assist them in navigating and competing effectively within the evolving carbon regulatory landscape.

Person in charge: Kim Hye-yeon

info@hanaloop.com