Håkan Samuelsson, Chief Executive of Volvo Cars, recently signed the Glasgow Declaration on Zero Emission Cars and Vans together with government and industry leaders at the UN Climate Change Conference COP26. Unveiled at COP26 to mark World Transport Day, the Glasgow Declaration is a commitment by industry leaders and governments to phase out fossil fuel vehicles in key markets by 2035 and globally by 2040. To reduce the carbon footprint Even faster, Volvo Cars also announced the introduction of an internal CO2 tax of SEK 2 (€1.000) for every tonne of CO100 emissions across the company, in line with its ambition to become a carbon neutral company by 2.
“Our plan to be a fully electric vehicle manufacturer by 2030 is one of the most ambitious in the industry, but we cannot achieve zero-emissions transport on our own, so I am delighted to be here in Glasgow with industry colleagues and representatives from the government can sign the statement. The time for climate action is now."
With the introduction of the internal CO2 tax, Volvo Cars is the first car manufacturer to act and already apply such a CO2 pricing mechanism in all its activities. The price is also significantly higher than what is recommended by organizations such as the International Energy Agency. The company is consciously striving to future-proof its organization and stay ahead of regulation as the company anticipates and supports the introduction of carbon taxes by more governments in the coming years.
Under the scheme, each future model will undergo a 'sustainability test' and a CO2 tax will be imposed for every tonne of expected CO2 emissions over the car's entire life cycle. The goal is to ensure that even under strict carbon pricing, each model is cost-effective, by steering project, purchasing and manufacturing decisions towards the most sustainable option on the table.
“A global and fair price on carbon emissions is crucial if the world is to achieve its climate ambitions and we all need to do more. We believe that forward-thinking companies should lead the way by adopting an internal carbon tax. Evaluating future cars for their CO2-adjusted profitability, we expect to accelerate actions that already help us identify and reduce carbon emissions."
The company has also decided to significantly increase financial transparency, giving the financial community greater insight into the success of its electrification strategy and its overall transformation. Starting in 2022, Volvo Cars will publish individual financial performance figures for its electrical and non-electric activities with each quarterly report. Those numbers will include sales volumes, revenues, profits, margin development and share of capital expenditures for each business. Volvo Cars.
Photo above: Volvo Cars image bank.
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