SBTi Consults on Automotive Net-Zero Standard Covering 20 Percent of Global Emissions

The Science Based Targets initiative launched a public consultation on its draft Automotive Sector Net-Zero Standard on 12 June 2025, with the feedback window running until 11 August 2025. The standard applies to automakers producing more than 10,000 vehicles annually and parts manufacturers deriving at least 20 percent of revenue from automotive components.

SBTi's draft Automotive Sector Net-Zero Standard introduces a comprehensive emissions reduction framework covering scopes 1, 2, and 3 for automakers and automotive parts manufacturers. Key innovations include a new aggregated emissions indicator for vehicle manufacturers, criteria requiring companies to increase their low-emission vehicle sales share, regional emissions pathways reflecting economic and market differences, and updated requirements for auto parts manufacturers to target material sourcing and manufacturing emissions. The standard aligns with the draft Corporate Net-Zero Standard V2 and builds on the SBTi's Land Transport Guidance published in March 2024.

The automotive sector generates over 20 percent of global man-made greenhouse gas emissions and faces compounding climate-related risks across its supply chains. India's rapidly growing automotive industry—home to major manufacturers and a significant supplier base—is directly implicated by the scope 3 requirements embedded in the standard, particularly those targeting emissions from material sourcing. Indian automakers seeking access to international capital markets and supply chain partnerships with European or North American original equipment manufacturers face increasing pressure to demonstrate credible climate target alignment.

The consultation invited all stakeholders, including companies, policymakers, investors, academics, and civil society, to submit feedback. Following the consultation, SBTi will revise the draft before publishing an updated version for pilot testing and a second public consultation. Karl Downey, Head of Sector Standards at SBTi, said the transition to net-zero offers significant opportunities for automotive innovation and customer value, and that the final standard will help companies build resilience and maintain competitiveness in a rapidly transforming market.

Key figure — Over 20% of global man-made greenhouse gas emissions from the automotive sector