The automotive industry is expected to miss its climate goals by 75 per cent, a study backed by electric vehicle makers Polestar and Rivian has said.
The industry will dramatically overshoot the Intergovernmental Panel on Climate Change's target to try to limit the average global temperature increase to 1.5ºC above pre-industrial levels by 2050 if car makers do not take action, the study said.
“Electrification alone is not the solution. Even if every car sold in the world tomorrow would be electric, we are still on track to overshoot,” Polestar and Rivian said in their Pathway report.
The companies said they had invited the world's leading car makers to a round table and briefing discussion.
The report, which was released on Wednesday, suggests three “levers” to have a chance at achieving the target by 2050.
They are a firm end date for selling fossil-fuel cars and investing more in manufacturing capabilities of electric cars; the creation of more green charging options by investing in renewable energy supplies to global grids; and a focus on more sustainable supply chains.
Climate goals have been at the forefront of car makers' priority for the past decade as customers become increasingly sustainability-conscious, with the recent energy crisis and war in Ukraine underscoring the importance of accelerating the green shift.
Swedish car maker Volvo Cars is among those that have pledged ambitious goals, promising that by 2030 it will sell only electric cars.
It also plans on reducing emissions across its entire value chain, aiming to become a climate-neutral company by 2040. Other car makers have similar goals.
Despite the will of car makers to make the shift, geopolitical and macroeconomic conditions have continued to make life difficult for the industry, with higher costs, component shortages and supply chain issues continuing.
Rivian is one of the companies that has struggled with a production ramp-up for its vehicles and has been squeezed further as EV market leader Tesla cut its prices.
In early February, Rivian said it would lay off 6 per cent of its workforce in an effort to cut cost.
Automotive suppliers are also struggling with coping with the additional costs for making their components sustainable to meet car makers' sustainability goals.
