US automaker General Motors (GM) plans to produce only zero-emission light-duty vehicles by 2035 as part of an effort to become a carbon-neutral company.
GM today said it will focus on transitioning its portfolio to zero-emission vehicles (ZEVs), will source more renewable energy and will purchase carbon offsets to achieve its goal of becoming carbon neutral by 2040.
"General Motors is joining governments and companies around the globe working to establish a safer, greener and better world," GM chief executive Mary Barra said. "We encourage others to follow suit and make a significant impact on our industry and on the economy as a whole."
GM's plans include offering 30 all-electric models globally by 2025. The company is investing $27bn in electric and autonomous vehicles in the next five years — up by 35pc from the amount planned before the Covid-19 pandemic.
The company said it will work with stakeholders to build out necessary charging infrastructure to help accelerate electric vehicle use. As it transitions to ZEV-only production, GM said it will continue to increase fuel efficiency of its internal combustion engine vehicles "in accordance with regional fuel economy and greenhouse gas regulations."
GM worked with the Environmental Defense Fund (EDF) to develop a "shared vision of an all-electric future."
"EDF and GM have had some important differences in the past, but this is a new day in America — one where serious collaboration to achieve transportation electrification, science-based climate progress and equitably shared economic opportunity can move our nation forward," EDF President Fred Krupp said.
GM's pivot away from internal-combustion engines comes as US President Joe Biden prepares to aggressively push for electrification of cars and trucks, including by setting more aggressive fuel economy standards for new vehicles.
The announcement also comes two months after the automaker pulled out of a lawsuit seeking to stop California from setting tailpipe CO2 standards that are tougher than the federal rules issued by the administration of former president Donald Trump.
California, which accounts for roughly half of all US electric vehicle (EV) sales, is also planning to require the sale of only ZEV model cars by 2035.
Biden is also seeking funding to build 500,000 electric vehicle charging stations, and yesterday he signed an executive order that attempts to leverage the government's massive purchasing power to support the development of US-made electric vehicles.
Biden's order does not say what percent of the government's 650,000-vehicle fleet should become electric, instead telling the White House Council on Environmental Quality to come up with a plan to buy "clean and zero-emission vehicles." That language would still allow purchases of conventional vehicles, which now account for more than 99pc of the government's fleet.
Oil industry groups are fighting the administration's push to encourage EVs, which they say should have to compete against conventional vehicles without subsidies or preferential policies. The oil sector has focused on the environmental toll of extracting minerals needed for EV batteries to downplay the green credentials of electric vehicles.
"The internal-combustion engine on a lifecycle basis, when you look at the totality of environmental impacts, can compare quite favorably both on a greenhouse gas basis and the entire footprint from mining and production to disposal," American Fuels & Petrochemical Manufactures regulatory affairs senior vice president Derrick Morgan said today.
GM also said today that it will source 100pc renewable energy to power its US sites by 2030 and will look to purchase carbon offsets to help with its emissions-reduction efforts.
While the shift to ZEV production and renewable energy are the company's priorities, "if the time comes when we need to purchase offsets we will look into all options and will certainly choose those that have a combination of verified impacts and the highest returns for the investments we make," the company told Argus.
Companies are becoming increasingly discerning on which offsets they purchase to help meet their carbon neutrality goals.
GM also signed the Business Ambition Pledge for 1.5⁰C, a campaign led by the Science Based Targets Initiative.
