Even if millions of people buy battery-electric
vehicles, automakers could still fall short of hitting goals set
under the Paris Agreement on climate change. On the eve of COP28, a
new S&P Global Mobility analysis shows how other
decarbonization efforts can help OEMs reach those
targets.
Passenger vehicles contribute a substantial 16% to global
greenhouse gas emissions. Reducing CO2 emissions at the tailpipe
has been a key pillar of OEM climate strategy. But even when
substituting EVs for internal combustion, the auto industry likely
will have to explore additional sustainable pathways – including
net carbon-neutral production, sustainable supplier transformation,
and material reuse and recycling.
At present, most car manufacturers are embracing a
target-setting process that aligns with the goals of the Paris
Agreement, and this approach is guided by the Science Based Targets
initiative (SBTi). Under this framework, targets are considered
science-based when they align with the latest findings in climate
science — with the primary objective of achieving the Paris
Agreement's goals. These goals are centered on limiting global
warming to no more than 1.5 degrees C above preindustrial
levels.
Read our full report 'How automaker decarbonization efforts can
reach Paris Agreement targets'
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