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How large companies like Volvo Cars can use their influence to drive climate friendly policy

Car manufacturers have a clear responsibility to shift their own products towards enabling carbon neutral transports. But they also have a responsibility to show policymakers what is needed from them in order to push and enable car manufacturers to transition into zero emission transports.
Lobby groups have a crucial role to play in the global decision-making process by giving a joint voice to a multitude of actors, and by being part of the right groups Volvo Cars can use their position as one of the leading global car manufacturers to ensure that car companies around the globe are given the opportunity to reduce their emissions as fast as possible.
Together with 27 other companies, Volvo Cars signed a joint letter earlier this year appealing to EU lawmakers to introduce an end date for fossil-fuelled cars and vans in Europe. By mandating that all cars after 2035 need to run on zero-emission fuels, the EU can send a strong message to investors and businesses making electric cars more competitive and attractive in the market, which will accelerate the transition to carbon neutral transports. This appeal was heard and in June, the European Parliament agreed on a target of 100% reductions in emissions from cars and vans by 2035 with a milestone target of 55% reductions for cars and 50% for vans by 2030 (compared to 2021).
Volvo Cars joined 27 companies in a joint letter appealing for a 2035 end date for fossil fuels in light vehicles. Image from Transport & Environment.
Volvo Cars joined 27 companies in a joint letter appealing for a 2035 end date for fossil fuels in light vehicles. Image from Transport & Environment.

This is excellent news, and shows that when companies work together, they can make real progress happen. The decision was followed by disappointment however, when the EU’s largest car lobby group ACEA announced that "any long-term regulation going beyond this decade is premature at this early stage." This statement shows a severe lack of ambition when we sorely need to move even faster, and Volvo Cars subsequently chose to leave ACEA stating that their “sustainability strategy and ambitions are not fully aligned with ACEA’s positioning and way of working at this stage”. The world of business needs to keep the pressure on policymakers to push for net zero faster, in the short and long term.
Companies need to increase their presence in groups that accelerate the climate transition, and not in the ones that delay it. For example, Volvo Cars joined the SteelZero initiative and the body that launched it, Responsible Steel, earlier this year - a steel industry-wide standard and certification body. The presence in the group has a clear purpose - committing to a demand for fossil-free steel will help drive funding to the existing net zero steel projects, and accelerate a crucial innovation to making cars carbon neutral. The coming months will show what coalitions and groups are formed in the run-up to COP27 to make sure that we keep upping the pace of the climate transition.
Volvo Cars has joined the SteelZero Initiative to demonstrate demand for net zero steel.
Volvo Cars has joined the SteelZero Initiative to demonstrate demand for net zero steel.

To wrap up this article, I want to highlight the requests that the Global Director for Sustainability at Volvo Cars, Stuart Templar, expressed at the We Don’t Have Time STHLM+50 Climate Hub in June when asked what he wants to see from policy makers this year:
  • Set a clear global end date to phase out fossil fuel cars globally by 2040
  • More consumer incentives to make electric vehicles more attractive when compared to fossil vehicles. We need to reach at least price parity through tax reductions or other similar measures
  • Significant investments in public charging infrastructure
  • More electric vehicles in public procurement, as this sends strong demand signals to manufacturers and investors
This article was written by Adam Wallin, We Don’t Have Time
  • Evangeline Wanjiru

    51 w

    These companies should be at the forefront

    1
    • Edwin wangombe

      80 w

      I agree... With the influence that these companies have it would be very easy to achieve the goals and targets for curbing climate change

      3
      • Markus Lutteman

        80 w

        Volvo Cars is showing some very important climate courage. Keep going in the direction!

        • Christina Carlmark

          80 w

          I agree: Companies need to increase their presence in groups that accelerate the climate transition!

          6
          • Adam Wallin

            81 w

            Thanks for giving me the opportunity to highlight this perspective, lobbying is incredibly important to push the global transition so every large scale actor has a responsibility to do more!

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