The world faces an ever-widening gap between current levels of greenhouse gas emissions and the reduction in levels that must be met in order to mitigate the worst impacts of global climate change. As documented by the United Nation’s Emissions Gap Report 2021, the world is currently on track to reach an average temperature rise of 2.7°C, well over the target of 1.5°C. In a globalized, predominantly capitalist economy, the incentives for sustainable growth and profit are often at odds with environmental sustainability.
Decarbonization actions in the global automotive industry The global transport sector is responsible for 14%, or 7 billion tons, of greenhouse gas emissions (Intergovernmental Panel on Climate Change, IPCC). As the world’s governments, societies, and economies push towards decarbonization to mitigate the worst effects of climate change, the automotive industry must engage with this global mandate.
Keys to this industry’s current response are:
- Power Purchase Agreements (PPAs) – automobile manufacturers ensure the use of renewable energy through PPAs with their utilities.
- Energy Reduction and Reuse – industrial internet of things (IIoT) technologies help optimize operations to reduce energy use and loss and reduce downtime. Leading global automotive manufacturers, including GM, Honda, Volkswagen, Ford, Toyota, and Nissan, have taken important steps towards PPAs and energy reduction and reuse. Successfully deploying initiatives towards decarbonization, however, requires an acknowledgement and embrace of complexities and challenges within the current state of the industry.