
Driving Ambitions: The Business Case for Circular Economy in the Car Industry
In this report, the Circular Cars Initiative (CCI), in collaboration with Accenture, put forward the business case for a circular economy in the automotive industry.
With the engagement of 30 global value chain players – the Circular Cars Initiative (CCI) – is rapidly accelerating the transition to circular manufacturing and business models within the automotive industry.
Context: The automotive industry, which currently contributes over 10% of industrial emissions, must embrace life cycle decarbonization to meet the goal embodied in the Paris Agreement’s net-zero target. To date, decarbonization has focused on electrifying vehicles. But electrification is not the sole answer to the decarbonization challenge. The automotive industry must also tackle emissions embedded in vehicle materials – which will grow in importance in tandem with electrification. The growing market share of battery-electric vehicles (BEVs) – and the greener energy mix required to power them – will increase materials’ share of automotive life-cycle emissions in both relative and absolute terms. Therefore, the time to shift to circularity in automotive is now – when huge investments into the emerging electric mobility ecosystems are taken. Circular Economy measures, including vehicle sharing, smart charging, refurbishing, repurposing, and recycling, are effective measures to lower lifecycle environmental footprints and costs. However, creating business value from circularity is challenging for most solutions today, as they require further industry alignment and joint development of standards. Therefore, cross-value chain partnerships and collaboration are crucial.
Our approach: The Circular Cars Initiative (CCI) connects stakeholders from the entire automotive ecosystem for aligning on and implementing circularity principles with the goal of total life-cycle emissions minimization. The overarching goal is to facilitate the transition towards an automobility system that is firmly grounded within a 1.5°C scenario.
SHAPE THE DIALOGUE
INFORM DECISIONS
DRIVE COLLABORATION
In this report, the Circular Cars Initiative (CCI), in collaboration with Accenture, put forward the business case for a circular economy in the automotive industry.
This report presents main policy interventions linked to specific EU "lock-in moments" – major policy revision processes – that will set the benefits of a circular automotive industry in ...
The report is the last of three framework reports developed by the Circular Cars Initiative to help the sector and its regulators better understand automotive’s new sustainable future.
The report is the second of three framework reports developed by the Circular Cars Initiative to help the sector and its regulators better understand automotive’s new sustainable future.
While cars may never be fully carbon neutral, the automotive industry can significantly reduce its carbon footprint by adopting a high degree of circularity to deliver economic, societal ...



