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The Internal Combustion Engine Bubble

Current auto industry planning is not aligned with a 1.5°C compatible carbon budget and might result in millions of vehicles manufacturers can’t sell

How car manufacturers exceed carbon budgets

How car manufacturers exceed carbon budgets

The internal combustion engine (ICE) needs to be phased out, and the vehicle fleet needs to be electrified to make road transport compatible with the Paris Agreement’s goal of limiting warming to 1.5°C. However, just how fast this transition must happen, what it means for the auto industry and whether the companies’ planning delivers what is needed to comply with the 1.5°C goal remains unclear. This report aims to shed light on these questions. It defines the number of ICE vehicles that could still be sold within a 1.5°C carbon trajectory and projects the auto industry’s ICE sales based on the assessment of four major manufacturers’ plans – Toyota, Volkswagen, Hyundai / Kia and General Motors – and quantifies the overshoot.

56 | A4

6.37 MB


Media Briefing for the report is available here.