Climate Policy Engagement: Volkswagen receives a grade of C- in InfluenceMap’s assessment of corporate engagement on climate change policy, indicating positive and negative engagement with Paris-aligned policy.
Forecasted 2030 Production: 57% of Volkswagen's light-duty vehicle production in 2030 is forecast to be electric vehicles (51% battery electric vehicles (BEVs), 6% plug-in hybrids, and 0% fuel cell electric vehicles (FCEV)). This compares negatively to the IEA’s 1.5°C scenario, which estimates that 66% of all car and van sales must be electric (BEV, PHEV or FCEV) by 2030 to meet a 1.5°C global temperature goal.
Climate Lobbying Overview: Volkswagen is strategically engaged with European, UK and US climate regulation in 2021-23. As well as its advocacy becoming more negative in 2023, Volkswagen’s positions on global internal combustion engine (ICE) phase-out targets and zero-emission vehicle (ZEV) mandates appear to be misaligned among its various subsidiaries. Volkswagen has opposed the US federal light-duty GHG emissions standard and corporate fuel economy (CAFE) standard, while taking a more mixed position on the EU’s CO2 standards and Australia’s fuel efficiency standard.
Volkswagen's full climate policy engagement profile is available here.
Internal decarbonization targets: Volkswagen has set a target of achieving "climate neutrality" by 2050, with interim targets of reducing GHG emissions from production and use of vehicles by 30% by 2030 (2018 baseline). The company also plans to reduce the greenhouse gas emissions of its passenger cars and light commercial vehicles by 30% over the total life cycle compared with 2015. Additionally, it has set a BEV sales target of 70% of European and 50% of Chinese and US sales volumes by 2030 and the Volkswagen Brand in October 2022 committed to only produce battery electric vehicles in Europe by 2033.
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Volkswagen's forecasted fleet composition by technology: The IEA determined in its 2023 1.5C road transport scenario that 66% of all light-duty vehicle sales must be electric (battery electric vehicles, fuel cell electric vehicles and plug-in hybrids) by 2030 to meet the Paris Agreement’s 1.5°C goal. Globally, Volkswagen’s 2030 production forecast is misaligned with the IEA’s scenario. In 2030, Volkswagen is forecast to produce 57% electric vehicles (51% BEVs, 6% PHEVs and 0% FCEV), 21% ICE-powered hybrids and 22% combustion engine.
Volkswagen's forecasted vehicle size: Larger vehicles are a significant cause of increased GHG emissions from road transport, with smaller vehicles across different technologies generally producing fewer emissions. Volkswagen’s 2023 combined percentage proportion of SUVs and light commercial vehicles is approximately 51%, however this proportion is projected to increase to 54% through 2030.
Volkswagen's electric vehicle production compared: 57% of Volkswagen’s vehicles produced in 2030 are forecast to be electric (battery electric vehicles, plug-in hybrids or fuel cell electric vehicles), compared to an average of 53% for all automakers.
