For a long time, global supply chains operated under the principle of “low-cost and high-speed.” However, as the climate crisis accelerates and international society strengthens carbon emission regulations, supply chains now face a new condition for survival. Simply producing cheaply and quickly is no longer enough to access markets.

In particular, the 'European Union (EU)' is preparing to implement the 'Carbon Border Adjustment Mechanism (CBAM)', which is transforming the rules of global trade. Starting in 2026, this system will verify the carbon emissions of energy-intensive products such as steel, cement, aluminum, electricity, and fertilizers, and impose costs on excess emissions. Already, 'ArcelorMittal', a global steelmaker, has introduced hydrogen-based steelmaking processes at its Belgian plant to prepare for this regulation. On the other hand, Turkish steel companies, unable to adapt in time, have reduced their exports to Europe and shifted to markets in the Middle East and Africa.

Consumer pressure is also intensifying. Millennials and Gen Z, who prioritize eco-friendly consumption, use the 'carbon footprint' of products as a purchase criterion, in addition to price and quality. A French fashion brand once marketed itself as “eco-friendly,” but it was later revealed that it used chemical dyeing processes. It was quickly accused of “greenwashing,” and its sales plummeted. Such cases warn that companies risk losing consumer trust unless they strengthen sustainability throughout their supply chains. Ultimately, decarbonization has become not an option but an 'essential mandate'.

Decarbonization is impossible without innovation in manufacturing. Manufacturing accounts for about 40% of global energy consumption and over 30% of greenhouse gas emissions. Thus, restructuring factories and production lines is at the core of climate response.

First, 'the transition to renewable energy' is accelerating.

* 'GE Appliances' has installed large-scale solar panels on the roofs of its U.S. factories, supplying 30% of production power internally.

* 'BMW' powers its assembly lines in Leipzig, Germany, with wind energy, and uses 3D printing technology to reduce material waste by 30%.

* 'Samsung Electronics' has achieved 100% renewable energy use at its semiconductor plant in Texas, U.S., and saved more than six million tons of water annually by adopting recycled water in its processes.

Second, 'energy efficiency' has become a key priority.

* 'Toyota', through its “Eco Factory” program, introduced IoT-based energy management systems, reducing average electricity consumption at its Japanese factories by 20%.

* AI-based 'predictive maintenance' combined with IoT sensors in smart factories lowers failure rates and significantly reduces unnecessary energy waste.

Third, the 'use of sustainable materials' is expanding.

* Bio-based plastics are emerging as alternatives to fossil fuel–based plastics. 'LG Chem' has pledged to use one million tons of recycled plastic raw materials (PCR) by 2030.

* In construction, eco-friendly concrete is being adopted, while in the automotive sector, lightweight alloys and recycled aluminum are increasingly used.

In this way, manufacturing is entering decarbonization through three pillars: renewable energy, efficiency, and sustainable materials.

The 'fashion industry' and the 'electronics industry' are playing pioneering roles in supply chain decarbonization.

The fashion industry is responsible for about 10% of global carbon emissions, making it one of the world’s largest polluters. In response, global brands are making bold shifts:

* 'H\&M' has installed solar systems in production bases in Vietnam and Bangladesh, while increasing the share of eco-friendly fabrics.

* 'Inditex (ZARA)' has pledged to convert 100% of its products to eco-friendly fabrics by 2030. Some stores already operate on building energy supplied by solar and geothermal systems.

* 'Patagonia' has converted more than 80% of its fabrics to recycled fibers, with most factory energy supplied by solar power.

The electronics industry is also moving rapidly:

* 'Apple' has declared it will achieve carbon neutrality across all products and its entire supply chain by 2030. It requires suppliers to submit renewable energy usage reports, and those who fail to comply are excluded from its supply chain.

* 'TSMC' has installed renewable energy power plants at its Taiwan headquarters and is investing billions of dollars toward achieving carbon neutrality by 2050.

* 'Samsung Electronics' operates a “Green Partnership Program” with its suppliers and has set a goal to achieve net-zero emissions at its global sites by 2040.

For both fashion and electronics, supply chain decarbonization has become the 'core of brand value', simultaneously building consumer-friendly images and securing actual competitiveness.

The acceleration of decarbonization is also propelled by 'international regulations and pressure from capital markets'.

* The 'EU CBAM' has already reshaped the strategies of exporters. Turkish steelmakers are cutting back on exports to Europe and redirecting to the Middle East and Africa, where regulations are weaker.

* The 'U.S. Inflation Reduction Act (IRA)' provides subsidies and tax benefits only to companies in sectors such as electric vehicles and batteries that meet eco-friendly standards. As a result, 'Hyundai Motor and Kia' have built electric vehicle production plants in Georgia to qualify for U.S. subsidies.

* Japan introduced a “Green Transformation (GX) Guarantee” system in 2024 to encourage climate response investments, while China has made “green supply chain management” mandatory to boost the global competitiveness of its companies.

Financial markets exert strong pressure as well.

* 'BlackRock' announced it would no longer invest in companies that fail to submit carbon reduction targets.

* Norway’s sovereign wealth fund, one of the world’s largest pension funds, divested from more than 100 carbon-intensive companies as of 2023.

Consumers are also major drivers of this change. Products deemed environmentally unfriendly often become targets of boycotts on social media, leading to rapid deterioration in brand reputation. If accused of greenwashing, companies face not just reputational harm but also direct declines in sales.

Thus, under the triple pressures of regulation, investment, and consumers, companies inevitably turn toward decarbonization—reshaping the 'competitive order' of global industries.

As one of the world’s top ten manufacturing powers, Korea is directly exposed to the shockwaves of global supply chain reorganization. Its core industries—steel, petrochemicals, automobiles, and semiconductors—are energy-intensive, making them especially vulnerable to stricter carbon regulations, which can directly undermine export competitiveness.

Yet Korea also holds a 'strategic opportunity' to turn this challenge into an advantage.

* 'POSCO' is developing hydrogen-reduction steelmaking technology called “HyREX,” with plans to operate a pilot plant by 2030.

* 'Hyundai Motor' is expanding its lineup of electric and hydrogen vehicles and is building an eco-friendly smart factory in Ulsan powered by solar and fuel cell energy.

* 'LG Chem' has pledged to significantly increase the use of recycled plastics, aiming to use one million tons of PCR by 2030.

The government is also responding. Korea operates its own Emissions Trading System (K-ETS) and has pledged to reduce national greenhouse gas emissions by 40% from 2018 levels by 2030. However, given that small and medium-sized enterprises lack the resources to meet these new regulations, government support is urgently needed. Establishing 'joint supply chain response systems', supporting ESG certifications, and providing subsidies for carbon reduction efforts are essential.

Ultimately, Korea’s manufacturing sector must go beyond simply evading regulations and instead turn 'eco-friendly technology into a new export weapon'. When approached as an investment in future competitiveness rather than a cost, decarbonization becomes the foundation for Korea to seize leadership in the new global industrial order.

The EU CBAM will expand its coverage beyond steel and cement to include consumer goods such as electronics and textiles. Other regions, including the U.S. and Japan, are expected to adopt similar carbon border measures, creating a near-universal framework for trade based on carbon intensity.

Large corporations will increasingly form exclusive partnerships only with suppliers that meet renewable energy and ESG standards. By 2030, being part of a “green-certified” supply chain will be a prerequisite for participation in global trade.

Renewable energy will account for more than half of total industrial electricity consumption in advanced economies by 2035, driven by declining costs of solar, wind, and hydrogen.

Countries that adapt quickly—such as South Korea, Germany, and parts of Southeast Asia—will emerge as winners in green manufacturing, while late adopters may face exclusion from high-value global supply chains.

By the mid-2030s, consumers will demand carbon labeling on almost all major products. Companies with transparent, low-carbon supply chains will dominate premium markets, while high-carbon producers will be relegated to low-margin segments.