Volkswagen’s Roadmap to Becoming CO2-neutral

Mar 25, 2021

Alongside a number of other companies, the Volkswagen Group (VW) has set a target for achieving climate neutrality. Volkswagen aims to become a carbon neutral group by 2050 and has set interim targets for the years 2025 and 2030. By 2025 Volkswagen seeks to reduce carbon emissions of cars as well as light commercial vehicles by 30% compared to 2015. By 2030, greenhouse gas emissions from not only the use of vehicles, but also from production will be reduced by 30% compared to 2018.

These targets are to be achieved through three steps: reduce, convert, and compensate. To achieve climate neutrality the overall energy consumption needs to decline, and CO2 emissions need to be effectively reduced. For a clean power supply a conversion to renewable energy sources is to be reached. Unavoidable emissions will be compensated.

The Volkswagen Group has already published a number of measures in support of the above-described targets. Along the value chain, all CO2 emissions will be analyzed and recorded. A new CO2 fund with an annual budget of EUR 25 million will support projects that reduce emissions within the group. Additionally, a decarbonization index has been developed as an indicator on the path to climate neutrality. In terms of electromobility, VW wants to increase the sales of electric vehicles to 20-25% of total sales. In China, the group will invest EUR 15 billion in electromobility.

According to Science Based Targets initiative, Volkswagen’s goals are consistent with keeping global warming to below 2°C. A report from NewClimate Institute from September 2020 however states that information released to the public is insufficient to judge the climate impact of Volkswagen’s carbon neutrality pathway.

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