Global auto industry gets serious about cutting carbon emissions

Automakers, suppliers, labor unions and governments may debate the best and fastest ways to mitigate emissions of this greenhouse gas and blunt its impact on the global climate. But there is one matter few disagree on, and the Toyota boss best sums up that zeitgeist: “Carbon is our enemy.”

Not long ago, the industry paid little attention to such buzzwords as “carbon neutrality” and “net zero.” Today, no boardroom PowerPoint presentation or corporate mission statement is complete without a plan of action for slashing carbon emissions from global operations.

Virtually every business and industry is focused on cutting carbon. But the transportation sector, which churns out 27 percent of U.S. greenhouse gas emissions and is the largest contributor to global warming, bears a special responsibility to spearhead the drive.

Carbon-cutting pledges from carmakers, suppliers and governments worldwide typically eye a 2050 timeline for zeroing out the amount of the greenhouse gas let loose into the atmosphere.

Advocates say achieving that target is necessary if the world is to have any hope of limiting Earth’s mean temperature increase to under 2 degrees Celsius (3.6 degrees Fahrenheit) by midcentury as outlined under the 2015 Paris Agreement on fighting climate change.

The movement has been galvanized by government regulation, international accords, shareholder activism, environmental campaigns and, in many instances, simply by the need to cut long-term costs, improve efficiency and stay competitive. The efforts hinge on a mix of reducing activities that emit carbon, switching to renewable energies and recycling as much as possible.

The urgency is most palpable in the auto industry’s rush to EVs.

In the U.S., where pioneer Tesla dominates the segment, EVs account for nearly 7 percent of light-vehicle registrations, rocketing up from just over 1 percent in 2019, according to data from Experian.

By the end of this year, about half of new-car buyers in the U.S. could at least find an EV at the price and size they want, and from their favored brand, J.D. Power predicts.

The EPA’s recent proposal to impose its strictest-ever limits on tailpipe emissions could further accelerate the mainstreaming of EVs. Under the plan, the agency projects that EVs could account for up to 67 percent of new light-duty vehicle sales in the 2032 model year.

But as Toyoda’s approach highlights, EVs are only one path to the solution. Other technologies also may play important roles in zapping carbon output from tomorrow’s vehicles. That could include using hydrogen in combustion engines and also fuel cell vehicles, as well as synthetic e-fuels and even biofuels.

Debate still rages over which is the best road to cutting carbon. Strategies vary according to technologies, cost, infrastructure and regional needs. EVs might catch on quickly in markets such as the U.S. or Europe, for instance, but much slower, if at all, in places such as India or Africa.

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