Major automakers undermine global climate goals, report reveals

A new report has revealed that nearly all major car companies undermine global efforts to prevent catastrophic climate change. According to InfluenceMap's Automakers and Climate Policy Advocacy report, the world's largest automakers are employing lobbying strategies that undermine global climate targets and hinder the transition to electric vehicles. The analysis examines the anti-EV lobbying activities of 15 major automakers across seven key regions worldwide, utilising industry-standard data from leading providers of automotive data, analysis, and insights to forecast electric vehicle production.

InfluenceMap's recent findings highlight a dual concern within the automotive industry: automakers must catch up to the International Energy Agency's 2030 target for electric vehicle (EV) market share and actively impede the transition. Japanese automakers, in particular, are flagged as the least prepared for this shift, demonstrating significant strategic engagement against it.

This global report is a continuation of InfluenceMap's reputable 2023 revelation of the Federal Chamber of Automotive Industries (FCAI) efforts to undermine pro-EV policies in Australia. Through Freedom of Information requests, these covert lobbying efforts were exposed, further illuminating the industry's resistance to sustainable transportation initiatives.

The world's leading database of corporate and industry association lobbying of climate policy around the globe, InfluenceMap's recent findings highlight a dual concern within the automotive industry: automakers must catch up to the International Energy Agency's 2030 target for electric vehicle (EV) market share and actively impede the transition. Japanese automakers, in particular, are flagged as the least prepared for this shift, demonstrating significant strategic engagement against it.

This global report builds upon InfluenceMap's 2023 revelation of the Federal Chamber of Automotive Industries (FCAI) efforts to undermine pro-EV policies in Australia. These behind-the-scenes lobbying endeavours came to light through Freedom of Information requests, shedding further light on industry resistance to sustainable transportation initiatives.

Aside from Tesla, only Mercedes and BMW have EV production forecasts that align with the IEA’s updated 1.5°C scenario, which requires 66 per cent of all new car sales to be EVs by 2030. The report indicates that Toyota, with a Performance Band score of D, remains the lowest-scoring company and is actively opposing climate regulations in various regions.

According to the report, in regulatory comments submitted in 2023, Toyota pushed for weakening GHG emissions standards in the US and Australia. It opposed stringent zero-emission vehicle mandates in Canada and the UK. Globally, in 2023-24, several climate policies for light-duty vehicles have been weakened due to industry pressure. This includes the US greenhouse gas emission standards and Australia’s fuel efficiency standards.

The report indicates that auto industry lobby groups are undermining policies to reduce carbon emissions from passenger vehicles. An analysis of climate policy advocacy in seven key regions—Australia, the EU, India, Japan, South Korea, the UK, and the US—reveals that auto associations are at the forefront of efforts to delay and dilute essential climate regulations for light-duty vehicles.

The Alliance for Automotive Innovation has spearheaded opposition to the US's stringent fuel economy (CAFE) and greenhouse gas (GHG) emissions standards. Similarly, in Australia, the Federal Chamber of Automotive Industries (FCAI) has orchestrated a strategic campaign to weaken fuel efficiency standards.

The study reveals a significant finding: except for Tesla, every major automaker is a member of at least two groups. Most automakers are part of at least five such associations globally, indicating a widespread and coordinated effort within the auto industry to influence climate policies.

AL Circle's industry-focused report, "Global Aluminium Industry Outlook 2024," clearly indicates that aluminium demand will be driven largely by the transportation sector, with EVs playing a major role.

Global aluminium usage in transportation by end-use, 2023 (%)
 Total usage: 27.5 million tonnes

The transportation industry exhibited a commendable performance, especially in the realm of lightweight and electric vehicles (EVs), where aluminium played a pivotal role. The surge in fuel efficiency and emission reduction demand was a driving force behind this positive trend. Nonetheless, the demand, although notable, fell short compared to previous years in well-established markets and encountered obstacles in certain developing economies attributable to inflation and interest rate hikes.

Aluminium usage in the transportation sector stood at 27.5 million tonnes in 2023, and demand is likely to reach 28.2 million tonnes in 2024. Passenger cars are the single largest user segment of aluminium amongst other transport sectors, and the rise of EVs also plays a crucial role.