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EVs won’t be enough for automakers to hit Paris climate targets. What can OEMs do?
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'
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.