THE SCIENCE BEHIND OUR CLIMATE CHANGE STRATEGY Throughout this report, we refer to Ford’s climate goals as “science-based” because they are based on the science of climate stabilization. Focused On An Objective Outcome A science-based approach gives us an objective, long-term goal focused on an environmental outcome – the stabilization of carbon dioxide (CO2) in the atmosphere. Below, we discuss what stabilization means, how we use “glide paths” to align our product plans with emission reductions, how our CO2 model works and how we use it in our planning. Committed To Doing Our Part Our climate change strategy is based on a commitment to do our share to stabilize atmospheric CO2 at 450 parts per million (ppm), because that is the level that many scientists, businesses and government agencies have concluded may help to forestall or substantially delay the most serious consequences of climate change (see graph below). Atmospheric CO2 concentrations have already reached approximately 402 ppm.1 650PPM: 2.4 - 5.5°C 600 ss ne as l ua To assess the “share” of reductions required of new LDVs compared to other emissions sources, we used a simplifying assumption of the same percentage CO2 emission reductions across all sectors and industries. We then calculated the emission reduction levels for LDVs over time to develop “CO2 glide paths” for the LDV sector. The glide paths take into account regional differences in vehicle size and fuel consumption, government regulations and biofuel availability. Industry-Average CO2 Glide Paths2 us 500 450PPM: 1.4 - 3.1°C 0PPM n at 45 zatio bili Sta 400 300 200 1950 Our scientists then calculated the CO2 emission reductions required of new light-duty vehicles (LDVs) up to the year 2050 for a range of CO2 stabilization levels and different regions of the world, based on projections of vehicle sales and scrappage. si Bu 550PPM: 1.9 - 4.4°C 1900 Automotive Sector “Glide Paths” 2000 2050 2100 2150 Calculating “Our Share” Stabilizing atmospheric CO2 emissions at 450 ppm will be incredibly challenging and will require major coordinated efforts by all sectors of the economy, industries, governments and consumers around the world. How did we figure out what is “our share” in this stabilization commitment? First, we developed a science-based model of global CO2 emissions from different industries and regions. To develop the model, our researchers modified the Sustainable Mobility Project model (developed by the International Energy Agency) and combined it with global CO2 emission-reduction pathways for varying levels of atmospheric CO2 stabilization (as described by the Model for the Assessment of Greenhouse Gas Induced New Light-Duty Vehicle Gasoline-Equivalent Tank-To-Wheels CO2 G/KM Atmospheric CO2 Concentration (PPM) 700 Climate Change, developed by the U.S. National Center for Atmospheric Research). 250 200 150 100 50 2010 North America 2015 2020 China 2025 Latin America 2030 OECD Europe By following the 450 ppm CO2 glide paths, the automotive and fuel industry would reduce global well-to-wheels absolute CO2 emissions by about 450 million metric tons (a reduction of 14 percent)3 between 2010 and 2030. Ford’s share is estimated to be about 1 percent of the global LDV fleet’s emissions. For the LDV sector to meet the 450 ppm limit, all automakers must reduce their LDV emissions by the proportion prescribed by the CO2 glide paths. Although the initial (current) CO2 emissions rate varies considerably by region, to provide the significant emission reductions needed, all regions need to move toward similar targets. We have shared our thinking behind the development of industry-average CO2 glide paths with interested stakeholders and have received positive feedback, as well as external recognition in using climate science to set our CO2 targets. We have also published the methodology in the peer-reviewed scientific literature.3 Translating CO2 Glide Paths into Technology Plans and Vehicle Targets Having developed the sector glide paths, we applied the methodology to Ford’s new vehicles in all of our major operating regions – and also to develop CO2 reduction targets for our facilities. For example, our Sustainable Technology and Alternative Fuels Plan – and the technology and product actions it spells out – is based on options developed through this modeling exercise. Our CO2 model is not intended to provide “the answer,” but rather a range of possible vehicle and fuel solutions that contribute to a pathway to CO2 reductions and, eventually, climate stabilization. In the absence of certainty about future regulations, the glide paths provide a guide for long-term product development planning. However, they serve as an approximate guide rather than a precise limitation, and they are roughly consistent with the overall trajectory of existing and proposed fuel economy and vehicle CO2 regulations in a number of markets4. Delivering Long-Term Reductions We caution that while our product development plans are based upon delivering long-term reductions in CO2 emissions from new vehicles that are similar to those shown for the industry-average glide paths, we anticipate that the year-over-year reductions will vary somewhat from the glide paths. In some years the reductions will be greater than those shown in the glide paths, and in other years they will be less. That is because delivering on these targets will be dependent to a large degree on market forces that we do not fully control (e.g., changes in energy prices and changes in the mix of vehicles demanded by the consumers in the markets in which we operate). Furthermore, our product strategy is based on multiple inputs, including regulatory requirements, competitive actions and technology plans. Reviewing and Refining Our Model We review our alignment with the stabilization glide path annually. Because of the long-term view of the model, we only update the assumptions and input data in the CO2 model glide paths on a five-year basis. In 2012 we completed the first update since the glide paths were implemented. As part of this review, we assessed our glide path analysis methodology and incorporated new forecasts for vehicle sales and the latest data on the CO2 intensity of fuels. The adjustments to glide paths based on these changes were minor. In 2017 we will be finalizing our second update, evaluating and incorporating the state-of-the-science, findings from IPCC assessments, and the recent COP21 Paris agreement. Between major updates, we conduct sensitivity studies to understand the effect of global changes, such as economic conditions, biofuel availability, or regulations, on the glide paths. In other CO2 modeling efforts, we have explored which combinations of vehicle and fuel technologies might be most cost-effective in the long-term stabilization of atmospheric CO2 concentrations. Specifically, we developed a detailed description of light-duty vehicles in a model of global energy use for 2010 to 2100. Several technology cost cases were considered. We found that variation in vehicle technology costs over reasonable ranges led to large differences in the vehicle technologies utilized to meet future CO2 stabilization targets. We concluded that, given the large uncertainties in our current knowledge of future vehicle technology costs, it is too early to express any firm opinions about the future cost-effectiveness or optimality of different future fuel and vehicle powertrain technology combinations.5 This conclusion is reflected in the portfolio of fuel and vehicle technologies that are included in our sustainability strategy. We believe the model will provide valuable insights into cost-effective mobility choices in a future carbon-constrained world. As climate science, alternative fuels and technologies advance, we are considering a number of ways to refine and adjust our science-based CO2 targets in future updates of the model. We are considering how best to modify the model to include emissions other than CO2 and to recognize the fact that costeffective actions across different economic sectors are needed to address climate change. 1. E. Dlugokencky and P. Tans, NOAA/ESRL (www.esrl.noaa.gov/gmd/ccgg/trends/) accessed May 2016. 2. The E.U. and China glide paths were developed based on the New European Driving Cycle (NEDC), and the North America and Latin America glide paths were developed based on the Federal Test Procedures (FTP), which are the testing requirements used by governments in these regions to assess the emission levels of car engines and/or fuel economy in light-duty vehicles. 3. S.L. Winkler, T.J. Wallington, H. Maas and H. Hass, “Light-Duty Vehicle CO2 Targets Consistent with 450 ppm CO2 Stabilization,” Environ. Sci. Technol. (2014). 4.We note that, while the glide paths can provide a framework for assessing regulatory proposals at a high level, our ability to comply with specific GHG regulations hinges on the details of the regulatory program in the context of the relevant market. 5.M. Grahn, E. Klampfl, M. Whalen and T.J. Wallington, “Sustainable Mobility: Using a Global Energy Model to Inform Vehicle Technology Choices in a Decarbonised Economy,” Sustainability, 5, 1845–1862 (2013).
© Copyright 2026 Paperzz