The European Union is expanding its Carbon Border Adjustment Mechanism (CBAM) to include downstream products like machinery, electronics, and auto parts. This shift moves the carbon tax burden beyond raw materials like steel and aluminum to finished goods, creating new financial risks for exporters. South Korean small and medium enterprises are now racing to establish carbon accounting systems. With the phase out of free emission allowances and the expansion of covered items, companies must track supply chain emissions to remain competitive in the EU market.
