This Nov. 10 article corrects the Volvo Cars headline paragraphs 1, 4, and 8.

Shadia Nasralla and William James by Simon Jessop

GLASGOW, (Reuters) – Swedish carmaker Volvo Cars announced Wednesday that it has set a price for carbon emissions of its operations at 1,000 Swedish crowns ($116.30 per tonne). This is part of efforts to make future projects sustainable.

As part of an international climate initiative, it announced its decision to join a global effort to ban fossil fuel vans and cars. The company stated it had set a very high price in order to be “futureproof.”

Negotiators are working to finalize rules that will create an international market for carbon at the COP26 meetings. It would permit some countries to make payments to others for reducing their emissions, with the goal of generating much-needed funds to fund green projects all over the globe.

Volvo Cars stated that this was its first price setting for its entire operations. It is part of Volvo Cars’ goal to become climate neutral by 2040. 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 believe that progressive companies must take the initiative to set an internal carbon cost. Future cars will be evaluated on CO2-adjusted profitability. This will allow us to speed up actions that can help reduce carbon emissions.

Volvo Cars joined the Glasgow Declaration of Zero Emission Cars or Vans along with Ford Motors (NYSE) on Wednesday. The goal is to stop internal combustion engines from being produced by 2040.

($1 = 8.5987 Swedish crowns