Shadia Nasralla and William James by Simon Jessop

GLASGOW (Reuters – Swedish automaker Volvo stated Wednesday that it set a price of carbon emissions for its operations in Sweden of 1000 Swedish crowns ($116.30 a tonne), as part of an effort to guarantee sustainability of all future projects.

The company announced the decision at the global climate negotiations in Scotland, where it was part of an initiative to eliminate fossil fuel vehicles. It stated that it deliberately set a high price for “future-proof” to ensure its own sustainability.

At the COP26 negotiations, negotiators are working to finalize rules for creating an international carbon market. Simply put, this would let some countries pay other countries to reduce their carbon emissions. This is done with the purpose of raising much-needed money for green projects across the globe.

Volvo stated that this was its first attempt to make the automaker climate-neutral by setting such a price throughout its entire operations. This price represents twice the cost of carbon currently being traded in the EU’s carbon trading system.

Every new vehicle project will undergo a sustainability sense-check, with a carbon price for the entire life of the car to make sure it is profitable, even if the government sets a higher price.

“A global and fair price on CO2 is critical for the world to meet its climate ambitions, and we all need to do more,” Björn Annwall, chief financial officer, said in a statement.

“We strongly believe progressive companies should take the lead by setting an internal carbon price. By evaluating future cars on their CO2-adjusted profitability, we expect to accelerate actions that will help us identify and reduce carbon emissions already today.”

Volvo joined the Glasgow Declaration on Zero Emission Cars or Vans on Wednesday with Ford (NYSE:) and peers. This declaration aims to eliminate internal combustion engines from production by 2040.

($1 = 8.5987 Swedish Crowns