KGM Builds Emissions Tracking for Auto Parts Supply Chain Ahead of EU CBAM Expansion

South Korea's KG Mobility has signed an MOU with carbon management firm Fushi Partners to track embedded emissions across its auto parts supply chain. The move comes ahead of the EU's planned expansion of the Carbon Border Adjustment Mechanism to auto parts in 2028. Since July, KGM has run a pilot calculating emissions for steel and aluminum parts used in vehicles exported to Europe, including material inputs, process energy use, and supplier origin documents. Under CBAM, importers must buy certificates based on the carbon emitted during production. If companies do not submit actual emissions data, the EU applies default values with markups of 10% in 2026 and 30% from 2028 onward. KGM says it will extend the pilot method across its entire supply chain and link the data to CBAM certificate cost management. The challenge is that auto parts supply chains have multiple tiers, so verifying supplier data down to lower levels is essential to avoid paying higher certificate costs.