Sustainability Climate Change

In historic agreement, car companies agree to stop selling fossil fuel vehicles by 2040

Story at a glance

  • The announcement came during COP26, a global climate summit happening in Glasgow, Scotland.
  • Over 10 major car manufacturers made the announcement and were joined by governments, states, cities and investors around the world.
  • The U.S. and China did not sign on to the agreement.

Over 10 major car manufacturers pledged to transition all sales of cars and vans to 100 percent zero emissions by 2040 and the declaration was joined by major countries, states and cities across the world.

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The announcement was made Wednesday during COP26, a global climate summit happening in Glasgow, Scotland, and was signed off on by Ford, General Motors, Volvo, Mercedes-Benz and a handful of other car manufacturers. The U.K., Canada, New Zealand and other governments from around the world co-signed on the agreement. 

Other players involved in global transportation industries, like fleet owners and operators, financial institutions and investors, also pledged to work with car manufacturers to achieve 100 percent zero emission car sales by 2040.

“We will work together to overcome strategic, political, and technical barriers, accelerate the production of zero emission vehicles and increase economies of scale, to make the transition faster, lower cost, and easier for everyone,” the announcement said.


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The pledge is a significant development, as cars, trucks and buses account for 16 percent of the world’s carbon emissions. The International Energy Agency estimated that if gas-powered cars are transitioned out completely by 2035, the world could achieve a carbon neutral state by 2050. 

Noticeably absent from the announcement however was the U.S. and China, two of the largest global markets for the sale of cars, according to the International Energy Association. Some of the largest global car manufacturers like Honda, Toyota and BMW also did not sign on to the commitment.

According to Financial Times, BMW defended its decision not to sign on to the pledge because, “There remains considerable uncertainty about the development of global infrastructure to support a complete shift to zero emission vehicles, with major disparities across markets.”

However, some had choice words for those that did not sign on to the agreement. Helen Clarkson, the chief executive of Climate Group, said, “For those organisations notably absent – the climate cannot wait for you to get onboard with zero-emission vehicles. It’s time to get out of the slow lane before you miss the exit,” according to The Guardian

Despite President Biden declining to sign on to the major announcement, some major U.S. states and cities did join. The states of California and Washington are listed as signatories along with the city of San Francisco, Seattle, Atlanta and Ann Arbor, Mich. 


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