KG Mobility partners with Husi Partners to manage EU carbon emissions

KG Mobility (KGM) has signed a memorandum of understanding with carbon management specialist Husi Partners to establish a carbon emissions management system for its supply chain. This initiative aims to prepare for the European Union’s Carbon Border Adjustment Mechanism (CBAM), which is expected to expand its scope to include certain automotive parts by 2028.

The partnership focuses on creating a framework to calculate carbon emissions for individual parts and building a foundation to collect and verify production data from suppliers. By managing these data points, KGM intends to mitigate the financial impact of CBAM certificate costs. If actual emission data is not provided, the EU applies default values, which are subject to increasing surcharges that could reach 30% after 2028.

KGM has already conducted pilot testing since July, collecting data on material inputs, energy usage, and origin documentation from major suppliers of steel and aluminum used in vehicles exported to Europe. The company plans to expand this calculation system across its entire supply chain to enhance export competitiveness.