Automotive industry CEOs committed to decarbonising transport

Recently, a lot has been made about how automotive emissions, carbonised gases, particulate matter have contributed to climatic changes. Incidences of the Volkswagen emissions scandal and banning diesel cars in Delhi are just some of the examples of the chaos around the impact of vehicles on our environment.

The World Economic Forum, a Swiss non-profit organisation, released a joint declaration from 13 top CEOs and presidents of automotive industry, pledging to decarbonise automotive transport.

The declaration included the likes of Koji Arima, president and CEO, Denso Corporation; Mary Barra, CEO, General Motors Company; Volkmar Denner, chairman of board of management, Robert Bosch GmbH; Mark Fields, president and CEO, Ford Motor Company; Carlos Ghosn, chairman and CEO, Renault-Nissan Alliance; Dr Pawan Goenka, executive director and group president (AFS), Mahindra & Mahindra; Neeraj Kanwar, vice-chairman and MD, Apollo Tyres; Martin Lundstedt, president and CEO, Volvo Group; Sergio Marchionne, CEO, Fiat Chrysler Automobiles; NV Alex Molinaroli, chairman, president and CEO, Johnson Controls; Wolf-Henning Scheider, chairman of the management board and CEO, Mahle Group; Jean-Dominique Senard, CEO and managing general partner, Michelin Group and Xu Heyi, chairman, Beijing Automotive Group (BAIC).

“Access to clean, safe and affordable automotive transportation is no longer the preserve of a privileged few. Whether it enables economic growth or simply allows people to connect with each other, mobility is key to our ability to function as a society, even though it has impacts on our environment,” read the declaration.

The CEOs also announced to catalyse combined action and initiatives from the automotive sector, policymakers and stakeholders to deliver solutions and innovations in their products, services, operations and policies that maximise the benefits of mobility while mitigating the impact to the environment.

The declaration mentioned five challenges and opportunities for sustainable automotive transportation:

1. Oil dependency: Automotive transport is 94% dependent on petroleum-derived fuel and 64% of the world’s annual petroleum consumption is used for transportation.

2. Strains of rapid urban motorisation: Urbanisation, coupled with strong population growth in certain regions, will add almost 3 billion people to cities by 2050, by which point two-thirds of the world’s population will be urban dwellers. Cities around the world are expected to face increasing demand for urban transport, with forecasts suggesting a 260% increase in demand on current levels by 2050. This necessitates action to address congestion and increasing vehicle travel worldwide, especially in urban areas.

3. Contribution to climate change: Road transport accounts for around 17% of energy-related CO2 emissions globally, but 12% of CO2 emissions in Organisation for Economic Co-operation and Development (OECD) countries. Between 2015 and 2030, 80% of the increase of road transport CO2 emissions is expected to come from non-OECD countries.

4. Adoption of new technologies: Notwithstanding substantial investments already made in new technologies (and commitment to continue accelerating those efforts), many technologies to reduce fuel consumption and increase the ability for safe, sustainable mass mobility – whether already available or in development – will need to achieve commercial viability and consistent government support.

5. Accessibility and affordability: To accrue benefits from sustainable solutions and new technologies, they need to become affordable for consumers in all regions.

The declarants further extended an open offer to interested stakeholders to work with them to co-design tangible actions that are appropriate for their jurisdictions to achieve the collective goal of de-carbonising the transportation sector.

Also read: "Banning diesel vehicles in Delhi a harsh move"