Automotive Supply Chain Decarbonization as a Driver for Carbon Accounting and Vice Versa

Increasing rates of emission-free driving will significantly reduce use phase emissions of cars (Scope 3 downstream). As a result, the carbon footprint of car manufacturing (Scope 3 upstream) will increasingly determine the carbon impact of automotive manufacturers and define their ability to contribute to the targets of the Paris Agreement. In the absence of meaningful decarbonization measures, the supply chain of battery electric vehicles (BEV) can have a carbon impact twice as high as that of a conventional product. The automotive supply chain is one of the most complex in worldwide industry, and so within a functioning, internationally applied carbon accounting framework thousands of companies must be able to share information reliably and credibly. This also has policy implications. The established technical logic of automotive regulations (setting maximum emission values, banning and prescribing technologies, etc.) will fail in the face of this new and complex challenge. Therefore, the established and proven mechanisms of financial steering need to be utilized, and carbon accounting must be at its core.