Global car industry emissions are 50% higher than reported

According to a new report by Transport & Environment, new car emissions worldwide are on average 50% higher than what car manufacturers report in their official figures.

Unlike other industries, where most of a product’s emissions are created during the production of the product, cars continue to pollute throughout their lifetime.

According to the results of the report, Huyndai-Kia’s car emissions are 116% more than the reported data, while BMW’s by 91%. It is followed by Toyota with 69%, Mercedes with 62%, the Renault-Nissan-Mitsubishi alliance with 61% and VW with 58%.

It is worth pointing out that car manufacturers as a whole have used selective data to reach a lower emissions rate. For example, Toyota bases its lifetime average emissions on 100,000 km, while most car manufacturers derive the data using ideal driving conditions, which are not actually possible.

These data are changing and car manufacturers will be asked to get closer to reality by publicizing real results. Thus, in 2023 it is expected to become mandatory to report emissions during the entire time that the car is in motion, recording to a large extent the reality of emissions. This will force automakers to change their emissions data, while also expected to force them to try to reduce emissions further to avoid heavy fines.

For green investments to be effective, we need accurate data. Automakers are trying to lower the emissions of their cars during their life cycle. This makes a mockery of the green claims of car manufacturers,

said Luca Bonaccorsi, director of sustainable finance at Transport & Environment.

According to official research, one euro invested in a car company finances essentially the same amount of carbon as one euro in an oil company. According to estimates by Transport & Environment, car manufacturers pollute almost as much as oil companies, per euro invested in them.

Oil companies emit 5,000 tonnes of CO2 equivalent per €1 million invested on average. Automobile manufacturers, on the other hand, emit 4,500 tons of CO2 equivalent per 1 million euros they invest. But that’s just the average. Some car manufacturers actually emit significantly more tonnes of CO2 than diesel ones. For example, the Renault Nissan Mitsubishi alliance emits nearly 10,000 tCO2e per million euros, and Honda, Ford, VW, Stellantis and Hyundai emit more than the average of BP, Shell and Exxon.

This is a problem for automakers that want to remain viable for those interested in ethical investment. According to Morningstar, an American financial firm, 50% of all new financial products could fall into the environmental, social and governance category by the end of 2022.

Bonaccrosi added:

According to official disclosures, one euro invested in a car company finances essentially the same amount of carbon as one euro in an oil company.

This should be a wake-up call for the financial industry. Asset managers who want to avoid a carbon bomb should start dumping car companies that continue to sell polluting cars.

Source: by

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