The government held an emergency meeting to review how the European Union's(EU) planned carbon border tax will impact domestic industries.

During the meeting presided over by Vice Industry Minister Park Jin-kyu on Thursday, officials and companies in the steel and aluminum industries discussed countermeasures to the carbon border adjustment mechanism(CBAM).

The CBAM is a part of the EU's carbon emissions reduction plan, which levies taxes linked to the EU emissions trading system(ETS) on imports based on the amount of carbon used to make the product.

With the domestic steel and aluminum industries expected to be adversely affected, the government plans to continue urging the EU to ensure that the new system does not violate world trade regulations.

Officials will also provide tax breaks and financial support to the affected industries.

The CBAM is planned to take effect in January 2023 for the steel, cement, fertilizer, aluminum and electricity industries and expand to all sectors after a three-year transition period.