The transport sector is recognized as a significant and rapidly growing contributor to global emissions, equaling the industrial sector in its pace of increase. To effectively combat climate change and limit global warming to 1.5°C, a swift and substantial reduction in emissions from this sector is essential.
SBTi Guidance Paving the Way for Land Transport Decarbonization
In a move to accelerate this critical decarbonization, the Science Based Targets initiative (SBTi) released updated guidance in March 2024 specifically for Land Transport vehicles. This guidance outlines the SBTi’s criteria and recommendations for setting ambitious emissions reduction targets within the land transport industry. A key highlight of this updated guidance is a new methodology tailored for automakers, enabling them to establish 1.5°C-aligned targets for emissions reduction.
This updated framework marks a significant step forward by aligning automakers’ most substantial emissions source – scope 3 category 11 emissions, which originate from the use phase of sold vehicles – with the ambitious 1.5°C warming limit. Furthermore, the guidance underscores a commitment to phasing out new internal combustion engine (ICE) cars and vans by 2035 in leading global markets, including Europe, China, the USA, Canada, the UK, South Korea, Japan, and Australia, and worldwide by 2040, or even sooner where local regulations dictate. Companies can formally demonstrate this commitment by endorsing the international Zero Emission Vehicles (ZEV) Declaration.
Evolving Towards an Automotive Standard for Land Transport
Building upon this crucial guidance, the SBTi is now in the process of developing a comprehensive Automotive Standard. This standard will be derived from the existing Land Transport Guidance, aligning it with the overarching Corporate Net-Zero Standard and incorporating the most effective decarbonization practices for the automotive sector. The development will involve a thorough review of the current automotive section within the Land Transport Guidance, along with its associated criteria and methodologies, ensuring a robust and impactful standard. Detailed information about this project can be found in the SBTi Automotive Standard Terms of Reference (TOR).
Setting Science-Based Targets for Land Transport Emissions
While the Automotive Standard is under development, companies within the land transport sector, encompassing passenger and freight transport via road and rail, can already take action. These companies can establish targets for their scope 1 and 2 emissions by utilizing SBTi’s cross-sector methodologies and general criteria. Moreover, businesses across all sectors with significant land transport emissions within their value chain can leverage the Sectoral Decarbonization Approach (SDA) Transport Tool to set scope 3 targets that encompass their subcontracted transport emissions.
The SDA Transport Tool serves as a valuable technical resource for modeling science-based targets for both direct and indirect transport emissions. Specifically focused on land transportation for passenger and freight activities, this tool provides best practices to guide companies in setting effective science-based targets. It’s important to note that the SDA Transport Tool is designed to assist companies primarily with modeling scope 3 targets and is not applicable for companies managing their own transport operations or automakers setting scope 3 category 11 targets. These entities should instead utilize the Corporate Near-Term Tool. Near-term targets can be calculated using the scope 3 tab within the SBTi Corporate Near-Term Tool, inputting well-to-wheel absolute emissions for the lifetime of vehicles sold within the base year across their entire vehicle portfolio. Furthermore, long-term targets are required and must be validated in accordance with the SBTi’s Corporate Net-Zero Standard Criteria, utilizing the Corporate Net-Zero Tool.
