Plans to achieve net-zero emission by 2040
January 28, 2021
One of the world’s largest automakers, General Motors said it plans to phase out all gas-and-diesel powered vehicles by 2035 and achieve net-zero emission by 2040.
The automaker added it will boost investment in electric and autonomous vehicles by $7 billion within the next five years than its initial planned $20 billion that was announced earlier in 2020. The investment will go towards expansion and production of Ultium battery technology and creation of green jobs in Michigan, Ohio and Tennessee.
GM’s latest ambitious announcement Thursday comes on the heels of the unveiling of the U.S. government—the Biden-Harris administration’s climate change agenda to tackle climate crisis at home and abroad.
The Detroit, Michigan-based automaker also said it has also signed the United Nations’ Global Compact’s Business Ambition Pledge for 1.5⁰C, a global movement of top major businesses and executives committing to the ambitious goals of the Paris Climate Agreement to limit the global carbon emission to 1.5⁰C.
Speaking about the company’s latest move to curb its global carbon emissions, GM Chairman and Chief Executive Officer, Mary Barra, said in a statement, “General Motors is joining governments and companies around the globe working to establish a safer, greener and better world. We encourage others to follow suit and make a significant impact on our industry and on the economy as a whole.”
GM, which has production plants in Egypt, plans to sell 30 EV models globally by mid-decade and 40 percent of the company’s U.S. models offered will be battery electric vehicles by the end of 2025.
The company said more than 50 percent of its capital spending and product development team will be devoted to electric and electric-autonomous vehicle programs. And in the coming years, GM plans to offer an EV for every customer, from crossovers and SUVs to trucks and sedans.
GM is currently the world’s 10th largest offtaker of renewable energy. The company’s products constitute 75 percent of carbon emissions related to its commitment, which it plans to address by sourcing 100 percent renewable energy to power its U.S. sites by 2030 and global sites by 2035, which represents a five-year acceleration of the company’s previously announced global goal.
GM plans to invest in carbon credits or offsets to mitigate its effects on the environment by assessing credit and offset solutions in the future. The company recognizes that offsets must be used sparingly and should reflect a holistic view of mitigating the effects of climate change and helping people thrive around the world.