By Victoria Waldersee

BERLIN (Reuters). Several car and truck manufacturers, from Volkswagen (DE) to Nissan (OTC) and Ford, have adopted the idea that reducing carbon emissions should be a core tenet in their business plans.

Do they do enough? Their goals remain far from the reality, according to research. However, the jury is still out as to whether the automakers are the cause.

Some believe carmakers should make sure their fleets are carbon-neutral regardless of what the situation is. However, some companies contend that they cannot transition to electric vehicles (EVs), because it depends on circumstances beyond their control.

Boston Consulting Group released a report last week stating that by 2030, at least 90% of passenger cars will be electrified and 70% must become electric trucks to achieve climate targets. It is echoing Greenpeace.

However, among the major brands of auto, only a few, including Geely’s Volvo or VW’s Bentley, have established goals for 100% electric vehicle production. Most argue that it is impossible to take complete responsibility for the transition without market conditions that will allow them to be profitable.

Daimler is a German luxury carmaker.

We will be the first to lead. It is realistic to transform 100% of the market before 2030. “It would be a stretch,” Daimler CEO Ola Kaellenius said to Reuters. He also stated that he hoped countries and regions could do their part at the COP26 summit, by coordinating their plans for electric car rollouts.

Just one obstacle is the charging infrastructure. The International Energy Agency estimates that the automotive industry accounts for about 18% global carbon emissions and climate neutrality.

Other options include getting rid fossil-fuel cars off the road, reducing carbon emissions from battery production and building storage systems to store renewable energy for electric car charging.

Too Little, too Late?

According to research from the International Council on Clean Transportation, global CO2 emissions due to vehicles will rise despite carbon reductions policies being adopted by both governments and automakers.

It said that if the policies discussed are implemented, then the growth trajectory will stabilise but not fall. This is due to growing population and economic activity in emerging market countries.

While electrified vehicles accounted for one fifth of all European cars sold last quarter, that figure is just 2% in the United States. In less developed markets, like Latin America or Southeast Asia, EVs make up a smaller percentage of the sales.

Also, governments and automakers need to find ways of assisting labour unions concerned that a fast shift to EVs could lead thousands of people out of work.

German unions are demanding Stellantis’ plans for Opel plants be clarified, while Joe Biden in the United States is under pressure by the United Auto Workers union to increase state support for the EV transition.

A spokesperson from BMW Germany stated that “there are many factors involved…we try to project realistic pictures.” We will have to review our climate goals if some conditions are fundamentally changed.”

CARBON EMITTER

Most vehicle emissions are not due to the production process. They come more from the fuel that powers it, whether it is petrol or electricity.

According to company calculations, electric vehicle production is also an important carbon emitter. A Volkswagen ID.3 produces nearly twice as much emissions in its manufacturing phase than a diesel equivalent.

Carmakers invest more money in batteries that are environmentally friendly, but it’s much more difficult to manage the sources of electricity used in electric cars.

Automakers like VW and Tesla (NASDAQ:) are growing their offering of residential storage systems for clients to power vehicles through mechanisms like solar panels on their roofs – but the question of who is responsible for sourcing and distributing energy in public spaces is more contentious.

Even though automakers may invest in charging stations for public vehicles, the ongoing storage problems of renewable energy can force providers to use coal to satisfy short-term demands, just as volatility in energy markets shows.

Lobby groups like the Alliance for Automotive Innovation (USA) and the European Automobile Manufacturers’ Association (European Automobile Manufacturers’ Association) have encouraged states to invest into renewable-based charging infrastructure. These investments can range from private-private investments to full state funding.

Some environmental groups claim that the reliance on tax payer funds would be unfair, since it would benefit owners and car companies more than public transportation spending.

Research has shown that diesel and gas vehicles still on the road after 2030 pose a problem. They will cause an increase in emissions, which is beyond what’s required by the Paris Agreements.

Even if half of all new cars sold in 2035 were zero emission – which climate goals set by BMW, General Motors (NYSE:) and Nissan would account for – some 70% of vehicles on roads would still be burning fossil fuels, Boston Consulting has said.

“Even the most advanced economies fighting climate change are likely to fail to meet their decarbonization targets.”