Even as automakers and suppliers struggle with the effects of a severe economic downturn, the global movement to reduce greenhouse gas emissions continues to gain momentum. Internationally, key negotiations on a post-Kyoto agreement will take place in 2009 and 2010. In Europe, regulations to limit tailpipe emissions in the passenger vehicle fleet to 130 grams CO2 per kilometer will take effect as early as 2013, with other regions likely to follow. In North America, the Obama administration is signaling that it intends to tackle climate change vigorously.

Politicians and policymakers are increasing their focus on carbon dioxide (CO2) emissions from passenger vehicles with reason: these vehicles are a highly visible source of greenhouse gases that has the potential to continue growing steadily through 2030 and beyond. “well-to-wheel” carbon emissions from these vehicles accounted for about 7 percent of global greenhouse gas emissions in 2006. Unabated annual carbon emissions from passenger vehicles are, however, projected to climb more than 54 percent by 2030, reaching 4.7 gigatonnes (Gt) CO2e that year. Underlying this growth is a large expected increase in the number of vehicles on the road – from 730 million to more than 1.3 billion over this period. The growth in carbon emissions contrasts sharply with reductions of up to 50 percent that will be needed, according to the Intergovernmental Panel on Climate Change (IPCC), to stabilize atmospheric concentration of CO2 at 450 parts per million – the amount estimated as necessary to prevent average global temperatures from rising by more than 2.0 to 2.4 degrees centigrade.

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