Polestar and Rivian Initiate Report That Shows Car Industry to Overshoot IPCC 1.5-Degree Target by More Than 75% Without Urgent Action

Polestar (Nasdaq: PSNY) and Rivian (Nasdaq: RIVN) have collaborated on a ‘Pathway Report' which concludes that the automotive industry is set to overshoot the IPCC’s 1.5-degree pathway by at least 75% by 2050. The two pioneering EV makers initiated the report in response to the climate crisis. The report, which uses existing, open-source data to model the current trajectory for emissions stemming from the car industry, was carried out by global management consulting firm Kearney.

Passenger vehicles currently account for 15% of all greenhouse gas (GHG) emissions globally.¹ The IPCC has stated that all GHG emissions need to be reduced by 43% by 2030, and the report makes clear that the automotive industry is far off track, and, alarmingly, will have spent its full CO₂e budget already by 2035 without urgent action.

Despite the gloomy outlook, the report suggests that the car industry still has a chance to get on track. By redirecting resources and focus, the industry can rapidly build the momentum required to remain in line with the Paris Agreement. The Pathway Report focuses on the current decade and outlines immediate, clear actions that car manufacturers can take between now and 2030, including some that can be triggered immediately.

The data presents a pathway based around three key levers. Lever 1 looks at the speed at which fossil fuel-powered cars need to be replaced by electric cars but points out that this alone will not be enough. A lot more work will be required for levers 2 and 3:

• Increasing renewable energy in power grids
• Reducing greenhouse gas emissions in the manufacturing supply chain

Pulling just one or two levers in isolation will be insufficient and only reduce the overshoot. Collective action from automakers is needed on all three levers, in parallel, at a global level. Firstly, the industry must accelerate the transition to electric vehicles by investing in manufacturing capabilities, as well as implementing a firm end date for fossil fuel car sales globally. Secondly, build out renewable energy supply to global grids that enable EV's to reach their full potential through green charging. Thirdly, decarbonize the manufacturing supply chains for these vehicles through switching to low carbon materials, and investing in renewable energy solutions for supply chains.