SBTi launches public consultation on net-zero transition for automotive industry

The Science Based Targets initiative (SBTi) has launched a public consultation on its draft Automotive Sector Net-Zero Standard

The Science Based Targets initiative (SBTi) has launched a public consultation on its draft Automotive Sector Net-Zero Standard, which aims to accelerate the decarbonisation of the automotive industry.

The proposed standard represents a ‘comprehensive framework’ for the automotive sector, the SBTi said, with the industry responsible for more than 20% of global man-made greenhouse gas emissions.

The draft Standard builds on the broader Corporate Net-Zero Standard Version 2 and introduces specific criteria for the automotive sector, including updated requirements for all scopes of emissions – direct, indirect, and supply chain (Scopes 1, 2, and 3). It also builds on the SBTi’s Land Transport Guidance, which was published in March 2024.

‘Practical and workable’

The 60-day public consultation process invites stakeholders to shape a final Standard that is ‘practical and workable but also ambitious and rigorous’, the SBTi noted.

Feedback is encouraged on six key areas, including alignment with the draft Corporate Net-Zero Standard V2; a new aggregated emissions indicator to track and combine relevant emissions for manufacturers of new vehicles; new criteria requiring companies to increase their low-emission vehicle sales share; regional emissions pathways; criteria for auto parts manufacturers aimed at reducing emissions from the material sourcing process; and additional guidance on emissions calculation.

The Standard would apply to automakers producing more than 10,000 vehicles annually, as well as parts manufacturers earning at least 20% of revenue from automotive components. Firms below these thresholds could choose to use either this Standard or the broader Corporate Net-Zero Standard V2 to set their own net-zero targets and ‘demonstrate credible climate leadership’, the SBTi noted.

‘A substantial role to play’

“Decarbonising the road transport sector is a crucial component of meeting our global net-zero goals, and the automotive sector has a substantial role to play as providers of new vehicles,” commented Karl Downey, head of sector standards at the Science-Based Targets initiative.

“The transition to net-zero provides an abundance of opportunity for industry innovation and attractive offers for customers. The feedback we receive from stakeholders will ensure that the final Automotive Sector Net-Zero Standard enables automakers and auto parts manufacturers to make ambitious and practical greenhouse gas reductions and helps them seize the opportunities of electrification – building resilience and greater efficiency while maintaining competitiveness in a rapidly transforming market.”

The consultation process runs until 11 August. Read more here.

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