Land Transport
Transport emissions account for a quarter of global CO2 emissions, and land transportation is responsible for around three quarters of these. Companies in this sector are encouraged to set science-based targets using the SBTi Land Transport Guidance. The SBTi is now developing a standard specifically for automotive companies.
Guidance for the land transport sector
Why take action?
Emissions from the transport sector have increased at the fastest rate of all end-use sectors, tied with industry. It is critical for this sector to rapidly reduce emissions to help keep global temperature rise to 1.5°C.
Developing a target-setting standard for companies in the land transport sector
In March 2024 the SBTi published an updated guidance for land transport vehicles, including a new method for automakers to set 1.5°C emissions reduction targets.
For the first time, this updated guidance aligns automakers’ largest source of emissions - scope 3 category 11 ‘use phase’ i.e. those from driving sold vehicles - with 1.5°C. It also includes a commitment to work towards the phase out of new Internal Combustion Engine (ICE) cars and vans by 2035 in leading markets including but not limited to Europe, China, USA, Canada, UK, South Korea, Japan and Australia, and globally by 2040, or earlier per local regulations. Companies may demonstrate this commitment by signing the international Zero Emission Vehicles (ZEV) Declaration.
Now, as a next step, the SBTi is evolving the relevant elements of the Land Transport Guidance into an Automotive Standard to align with its Corporate Net-Zero Standard and incorporate best available practices for the sector to decarbonize. The development process will include an in-depth review of the existing automotive section in the Land Transport Guidance, criteria and methodologies.
Read the SBTi Automotive Standard Terms of Reference (TOR) to learn more about this project.
Aligning the land transport sector with 1.5°C
The Land Transport Guidance sets out a compilation of SBTi’s current target-setting criteria and recommendations found across existing documents for land transport, and includes a new method for automakers to set 1.5°C emissions reduction targets.
As the Automotive Standard develops, land transport companies, i.e. those dedicated to passenger and freight transport activities via road and rail, can set targets for their scopes 1 and 2 emissions using SBTi’s cross-sector methodologies and general criteria. Companies in any sector with large land transport emissions in their value chain can use the Sectoral Decarbonization Approach (SDA) Transport Tool to set scope 3 targets covering their subcontracted transport emissions. The SDA Transport Tool is a technical resource to model science-based targets for direct and indirect transport emissions. The tool is focused on land transportation for passenger and freight activities and it provides best practices for science-based target setting.
The SDA Transport Tool is available to assist companies with modeling scope 3 targets only. This tool is not applicable for companies that own and/or control transport operations nor automakers setting scope 3 category 11 targets. These companies should use the Corporate Near-Term Tool.
Near-term targets can be calculated using the scope 3 tab in the SBTi Corporate Near-Term Tool, where well-to-wheel absolute emissions for the lifetime of the vehicles sold within the base year, across the entire vehicle portfolio, shall be entered. Long-term targets must also be set and can only be validated in accordance with the SBTi’s Corporate Net-Zero Standard Criteria using the Corporate Net-Zero Tool.
This project is being developed by the SBTi. Stakeholder involvement is possible via the following groups:
Expert Advisory Group (EAG): Composed of technical experts from corporates, finance, academia, research, government, non-profit and multilateral organizations, interested in setting science-based targets and contributing to the project execution. EAG members provide technical advice over the duration of the project. This volunteer advisory role informs the development of practical and ambitious standards.
In line with its Standard Operating Procedure for the Development of Standards, from May 29 to July 17, the SBTi called for experts with deep understanding of global climate change mitigation and science-based target setting to apply to the EAG for this project. Applications are being reviewed. The EAG members will be listed on this page once selected.
Public consultation: Both industry and non-industry representatives will be able to provide feedback on each project component through a public consultation process. These opportunities will be promoted on the SBTi website, newsletter and social media platforms.
With the publication of the updated Land Transport Guidance and new criteria for automakers, the SBTi lifted the temporary pause on the validation of targets from automakers, enabling companies in this sector to set 1.5°C-aligned near- and long-term targets to cut scopes 1, 2 and 3 emissions, including category 11 ‘use of sold products’. The pause was implemented because of the lack of a pathway to align scope 3 category 11 emissions with 1.5°C, which has now been resolved. These emissions represent the largest share of automakers' emissions.
Automakers with commitments that expire up to six months from the release of the updated Land Transport Guidance must submit targets within those six months. Companies in this sector that have set targets thus far will remain compliant, but are encouraged to recalculate them to increase ambition.
- SDA Transport Tool
- SBTi Land Transport Guidance
- SBTi Automotive Standard Expert Advisory Group Terms of Reference
- SBTi Automotive Standard Terms of Reference
Companies are invited to familiarize themselves with the SBTi cross-sector resources, including the Getting Started Guide for Science-Based Target Setting, followed by reviewing the requirements of target setting in the Corporate Near-Term Criteria for near-term targets or the Corporate Net-Zero Standard Criteria for net-zero targets. To understand these requirements in more depth, companies should then review the Procedure for Validation of SBTi Targets, use the Corporate Near-Term Tool and the Corporate Net-Zero Tool to begin developing targets, and use the Criteria Assessment Indicators (CAI) document to ensure its science-based targets submissions are in line with the SBTi criteria, the Land Transport Guidance and the GHG Protocol Accounting Standards.
Background Resources
