Head of German Auto Association VDA: EU CO2 reduction for cars should be reduced to minus 90% instead of 100%

Head of German Auto Association VDA: EU CO2 reduction for cars should be reduced to minus 90% instead of 100%

The BMW Group has been at the forefront of the automotive industry's transition to a more sustainable future. In a recent statement, the Head of the German Auto Association (VDA) suggested that the EU's CO2 reduction targets for cars should be revised to aim for a reduction of minus 90% instead of 100%. This proposal comes as the BMW Group continues to implement its circular economy strategy and reduce CO2 emissions.

The BMW Group's commitment to sustainability is evident in its goal to reduce CO2e emissions by 90% by 2050 compared to 2019 levels. This ambitious target encompasses every aspect of its value creation, from the supply chain and in-house production to vehicle usage. The company is increasingly using renewable energies in production, electrifying its vehicle fleet, and integrating green energy and secondary raw materials into its supply chain [1].

The circular economy is a key focus in BMW Group’s strategy. By using secondary materials, the company not only cuts CO2e emissions but also reduces geopolitical risks and dependency on primary raw materials. The BMW Group follows the principle of "Design for Circularity," ensuring that its products are developed with the circular economy in mind and contain a significant proportion of secondary materials. Additionally, the company is reducing the diversity of materials used in its products and prioritizing those that are easy to reuse and separate for recycling [1].

BMW Group's Recycling and Dismantling Centre (RDC) has been instrumental in advancing parts and materials recycling. The RDC has been developing and trialing relevant processes for over 30 years and supports key advancements in the industry. The RDC's findings are regularly incorporated into product development, and its expertise is shared with a global recycling industry network [1].

The BMW Group's production processes are particularly resource-efficient. Waste and water consumption per car produced have been reduced year-on-year, and almost all waste is recycled and reused. The company aims to reduce CO2e emissions from its value chain by 90% by 2050, with a milestone of at least 40 million tonnes of CO2e reductions by 2030. The electrification of its vehicle fleet is a significant factor in achieving these reductions, with fully electric vehicles accounting for 15% of global sales in 2023 and 17.4% in 2024 [1].

The BMW Group's commitment to sustainability and the circular economy is reflected in its stringent criteria for contract awards, particularly in the supply chain. Since 2021, green energy has been mandatory for both direct and indirect suppliers, and battery cell suppliers are required to use 100% energy from regenerative sources. The company's in-house production also emphasizes energy efficiency and the use of renewables, with all purchased energy sourced from renewable providers since 2020 [1].

In summary, the BMW Group's commitment to reducing CO2 emissions and transitioning to a circular economy is commendable. Its strategies and initiatives, if successful, could significantly contribute to the EU's overall CO2 reduction targets and set a benchmark for the automotive industry.

References:
[1] BMW Group. (n.d.). Sustainability: Circular Economy. Retrieved from https://www.bmwgroup.com/en/sustainability/circular-economy.html