Globally, road vehicles are the largest contributors to the transportation sector’s emissions and they account for approximately 12% of all GHG emissions in 2023. Halfway through the critical decade for climate action, the Climate Corporate Responsibility Monitor 2025 finds that the automotive sector’s near and longer-term emission reduction targets remain highly inadequate. Under these circumstances, it is of absolute importance to rethink net-zero and carbon neutrality targets – by setting specific emission targets and substantiating them with concrete measures – and aligning them with 1.5°C- compatible emission pathways for the transport sector.
Emission reduction targets for 2030 remain critically insufficient.
Beyond 2030, carbon neutrality and net-zero pledges are not substantiated through specific emission reduction commitments and lack overall transparency.
Phase-out targets for internal combustion engines remain inconsistent and vaguely formulated.
Progress in increasing the electric vehicle sales shares shows a mixed picture, leading to uncertainty on how car manufacturers intend to meet their 2030 sales targets that are in line with a 1.5 compatible pathway.
Sectoral key transitions – apart from a few commitments to purchase near-zero steel and aluminium – such as improving EV efficiency and reducing batteries lifecycle emissions, remain highly neglected by both companies and standards.
“The impact of the automotive industry on global GHG emissions requires strong efforts to reduce emissions. However, the road transport sector’s emission reduction targets remain highly inadequate. It is imperative for companies to reshape their climate strategies by setting tangible emissions reduction commitments and simultaneously acting on key sector-wide transitions to substantiate their targets.”
Edoardo Pavia – Policy Expert at Carbon Market Watch
Credible phase-out timeline
Companies should set regionally differentiated and transparent – as well as interim – phase-out targets for internal combustion engines across all markets, clearly communicate adjustments and disclose progress achieved annually.
Emission reduction targets
Set absolute emission reduction targets for 2030 across the entire value chain and rethink long-term net zero targets by setting specific emission reduction targets that are aligned with the 1.5 emission pathways for the transport industry.
Net-zero steel and aluminium
Companies must set credible targets for the procurement of near-zero steel and aluminium, alongside long-term offtake and pre-purchase agreements with steel makers.
Batteries’ emission footprint
Companies should set specific targets and measures to reduce the emission footprint of batteries used in electric vehicles, since they represent the largest share of carbon emission associated with manufacturing.
You can find more information about the 2025 Corporate Climate Responsibility Monitor methodology here.
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