Volvo Cars Signs Auto Industry Pledge for Zero Emissions by 2040

(Bloomberg) -- Volvo Car AB committed to an auto-industry pledge that aims to see carmakers phase out fossil fuel-powered vehicles by 2040, and five years earlier in leading markets.

The Swedish firm will join with government leaders and rivals to sign the so-called Glasgow Declaration on Zero Emission Cars and Vans at the COP26 climate summit Wednesday, it said in a statement.

“Our plan to be a pure electric car maker by 2030 is one of the most ambitious in the industry, but we can’t realise zero-emission transport by ourselves,” Volvo Chief Executive Officer Håkan Samuelsson said in the release. “So I am pleased to stand side by side here in Glasgow with industry colleagues and government representatives.”

While Ford Motor Co., General Motors Co. and Daimler AG signed the deal, other major automakers have been reluctant to commit. Volkswagen AG, BMW AG and Toyota Motor Corp. were among those missing. Concerns include the reluctance of key governments to join and the patchy development of charging infrastructure.

Volvo, which listed in Stockholm last month but remains partially owned by China’s Zhejiang Geely Holding Group, expects more than half of its global sales to be fully electric by 2025, according to the statement.

The Swedish company, whose models include the XC90 and XC60 SUVs, has also introduced an internal carbon price of 1,000 kronor ($116) for every ton of carbon emitted across its value chain, a step it said represents a world first.

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