Otis Singleton
A recent report by InfluenceMap has brought to light the lobbying strategies of some of the world's largest automakers, revealing that many companies are actively sabotaging the transition to electric vehicles (EVs). This analysis, which covers seven key regions and 15 of the largest global automakers, highlights the negative impact of industry pressure on climate policies, even in countries with strong environmental legislation in place, such as the US and Australia. With the exception of Tesla, all the analyzed automakers have advocated against policies promoting electric vehicles, and their production forecasts fall short of the International Energy Agency's target of a 66% EV market share by 2030. This raises concerns about the potential delay in adopting more sustainable transportation options and the possible consequences for global warming mitigation efforts.
| Characteristics | Values |
|---|---|
| Companies sabotaging transition to electric vehicles | Nearly all major car companies |
| Location of companies | Japan is the worst |
| Companies with positive climate advocacy | Tesla, Mercedes Benz, and BMW |
| Companies with negative climate advocacy | Toyota |
| Companies with unclear climate advocacy | All except Tesla |
| Reasons for sabotage | Japan has large proven reserves of hydrogen and almost no oil reserves |
| Impact of sabotage | Global climate targets are at risk |
| Lobbying strategies | Increasing new vehicle emissions thresholds, re-categorizing luxury SUVs as "light commercial class" |
| Security concerns | Risk of China using vehicle telemetry for spying and firmware updates for sabotage |
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What You'll Learn
- A recent report by InfluenceMap suggests that car companies are sabotaging the transition to electric vehicles
- Toyota is the lowest-scoring company in the analysis, opposing climate regulations promoting battery electric vehicles
- Tesla is the only company found to have positive climate advocacy aligned with science-based policy
- Japan-based companies are the worst offenders, pushing for hydrogen as an alternative fuel source
- The US and Australia's climate policies have been weakened due to industry pressure from automakers
A recent report by InfluenceMap suggests that car companies are sabotaging the transition to electric vehicles
A recent report by InfluenceMap, a think tank that produces "data-driven analysis on how business and finance are impacting the climate crisis," suggests that car companies are indeed sabotaging the transition to electric vehicles. The report, titled "Automakers and Climate Policy Advocacy," provides an analysis of the anti-EV lobbying activities and climate policy engagement strategies of 15 of the world's largest automakers across seven key regions: Australia, the EU, Japan, India, South Korea, the UK, and the US.
According to the report, the lobbying strategies employed by these automakers are putting global climate targets at risk and threatening the transition to electric vehicles. InfluenceMap found that all 15 automakers, except Tesla, have actively advocated against at least one policy promoting electric vehicles. Ten of the fifteen showed a particularly high intensity of negative engagement, with Toyota being the lowest-scoring company. This is despite the fact that Toyota led the market for hybrid vehicles, and it is clinging to this lead rather than embracing the next stage of climate-cutting auto evolution.
The report also highlights that the industry's own EV production forecasts fall short of the International Energy Agency's (IEA) updated 1.5°C scenario of 66% EV market share by 2030. Only three of the fifteen companies—Tesla, Mercedes Benz, and BMW—are forecast to produce enough electric vehicles to meet this target. This indicates that the car companies are not doing enough to support the transition to electric vehicles and are instead prioritizing their own interests over global climate goals.
Furthermore, the report reveals that even in countries with significant climate legislation, such as the US and Australia, the ambition of these policies has been weakened due to industry pressure. This suggests that car companies are using their influence to shape policies in their favor, potentially hindering the transition to electric vehicles and undermining efforts to address climate change.
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Toyota is the lowest-scoring company in the analysis, opposing climate regulations promoting battery electric vehicles
A report by the think tank InfluenceMap analyses the climate policy engagement strategies of fifteen of the largest global automakers in seven key regions. The report reveals that all fifteen automakers, except Tesla, have actively advocated against at least one policy promoting electric vehicles. Toyota is the lowest-scoring company in this analysis, driving opposition to climate regulations promoting battery electric vehicles.
Toyota has been a laggard when it comes to all-electric vehicles, choosing to invest more heavily in hybrids and hydrogen fuel cell vehicles. The company has used its lobbying power to promote anti-climate policies and has undermined climate action by opposing the UK government's ban on internal combustion engines by 2030 and car fuel economy standards in the US. Toyota has also opposed legislation that would establish tax credits for all EVs, as the tax credit for union-made cars would be higher than for cars manufactured by non-union workers, like those made by Toyota.
Toyota has even sided with the Trump Administration in their legal fight against California imposing stricter emission regulations. The company has warned the new US federal government against promoting all-electric vehicles, despite promoting its own aspiration to become carbon neutral. This has led to pressure from investors for Toyota to change its lobbying practices.
Toyota's opposition to climate regulations promoting battery electric vehicles is likely due to its decision to bet on hydrogen fuel cells over EVs, causing the company to lose ground to competitors in the market for battery-powered cars. As a result, Toyota is actively fighting against proposals to boost EVs, including lobbying against proposed investments for EVs and related infrastructure.
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Tesla is the only company found to have positive climate advocacy aligned with science-based policy
A non-profit think tank, InfluenceMap, has released a report detailing how nearly all major car companies are actively sabotaging the transition to electric vehicles (EVs). The report, titled "Automakers and Climate Policy Advocacy", analyses the anti-EV lobbying activities of 15 of the world's largest automakers across seven key regions: Australia, the EU, Japan, India, South Korea, the UK, and the US. It highlights how these companies are using lobbying strategies to put global climate targets at risk and water down ambitious climate policies.
Among the 15 automakers analysed, only Tesla was found to have positive climate advocacy aligned with science-based policy. Tesla scored a B in the report, while the other 14 companies received grades of D or D+. Toyota, in particular, was the lowest-scoring company, actively opposing climate regulations promoting battery electric vehicles in multiple regions.
Tesla's electric vehicles burn no gasoline or diesel, resulting in zero carbon emissions from its products. This aligns with the international ambition to limit human-caused warming to 2°C. However, Tesla has been criticised for its lack of transparency and disclosure of information regarding its overall climate impact management. In 2018, the company scored a zero on climate management due to its non-disclosure of criteria set out by the Transition Pathway Initiative (TPI).
Despite this criticism, Tesla stands out as the only company with positive climate advocacy among the analysed automakers. Its advocacy for science-based policies and commitment to zero-emission vehicles are steps in the right direction for the industry. However, it is important to note that even Tesla faces challenges, such as issues with chargers in some locations, which can create obstacles for customers.
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Japan-based companies are the worst offenders, pushing for hydrogen as an alternative fuel source
A recent report by InfluenceMap has shed light on the anti-EV lobbying activities of 15 of the world's largest automakers. The report reveals that these companies are actively sabotaging the transition to electric vehicles, putting global climate targets at risk. Among these automakers, Japan-based companies are the worst offenders, with Toyota leading the opposition to climate regulations promoting electric vehicles.
Japan has a strong strategic emphasis on hydrogen as a next-generation energy source and is a global leader in hydrogen technology development. Japanese companies are actively involved in hydrogen supply chain projects and are pioneering the application of hydrogen technology across various sectors, including transportation and heavy industry. For example, Kawasaki Heavy Industries has successfully completed projects to transport liquefied hydrogen and has developed the world's first liquefied hydrogen receiving terminal.
The Japanese government is also playing a significant role in promoting hydrogen energy. The Tokyo Metropolitan Government has increased its budget for hydrogen-related initiatives, aiming to support the proliferation of commercial fuel cell vehicles and the development of large-scale hydrogen stations. Japan has the largest fleet of hydrogen refueling stations in the world, and the government provides financial support for their construction and operation.
While hydrogen is touted as a clean and abundant energy source, there are challenges to making it economically viable. Hydrogen takes up more space than fossil fuels, and producing and storing it at scale requires substantial energy and infrastructure. Additionally, Japan is currently focused on fossil fuel-based hydrogen supply chains, which may not be the most sustainable option in the long term.
In conclusion, while Japan is at the forefront of hydrogen technology development and is actively pushing for hydrogen as an alternative fuel source, its efforts may be influenced by the country's automotive industry's resistance to the transition to electric vehicles.
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The US and Australia's climate policies have been weakened due to industry pressure from automakers
The US and Australia are two of the seven key regions analysed by the independent think tank InfluenceMap in their report on how business and finance are impacting the climate crisis. The report found that even in countries where major climate legislation has recently passed, such as the US and Australia, the ambition of these policies has been weakened due to industry pressure from automakers.
In the US, the industry group Alliance for Automotive Innovation successfully drove calls to weaken proposed GHG emission standards. This is an example of how automakers have employed their industry associations to aggressively push back on ambitious climate rules globally. Every automaker included in the study, except Tesla, remains a member of at least two of these groups, with most automakers being members of at least five.
In Australia, the New Vehicle Efficiency Standards announced in March 2024 were watered down following intense advocacy from the Federal Chamber of Automotive Industries (FCAI). The final policy is estimated to result in a 50% reduction in emissions by 2029, rather than the 60% reduction initially proposed. This is another instance of automakers employing their industry associations to push back on ambitious climate rules.
Of the fifteen companies analysed, only Tesla was found to have positive climate advocacy aligned with science-based policy. The remaining fourteen companies, including Toyota, the lowest-scoring company, actively advocated against at least one policy promoting electric vehicles. The negative advocacy strategies of automakers are driving the climate crisis, and without an immediate change, they will continue to weaken and delay climate rules globally.
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Frequently asked questions
A 2024 report by InfluenceMap found that nearly all major car companies are actively sabotaging the transition to electric vehicles (EVs) and threatening global climate targets.
Companies are using lobbying strategies to oppose climate regulations and promote fossil fuel-based vehicles. For example, the FCAI lobbied the government to re-categorise luxury SUVs as "light commercial" vehicles, which increases new vehicle emissions thresholds.
The report by InfluenceMap analysed the climate policy engagement strategies of 15 of the largest global automakers in seven key regions. Of these, all except Tesla actively advocated against at least one policy promoting electric vehicles. Toyota and Japanese automakers were found to be the worst offenders, with intense negative engagement.
Companies may be sabotaging the transition to protect their existing business models and maintain profits from fossil fuel-based vehicles. For example, Toyota has led the market for hybrid vehicles and is now opposing the shift to electric vehicles to maintain its market position.
Governments and policymakers can implement stronger climate regulations and policies to support the transition to electric vehicles. Additionally, consumers can choose to support companies that are actively advocating for and investing in electric vehicles, such as Tesla.
