The Road Ahead: A policy research agenda for automotive circularity

The report argues that while electrification reduces use-phase emissions, materials and production emissions for electric vehicles (EVs) are poised to grow to 60% of life-cycle emissions by 2040. It advocates for a 'circular car' approach that maximizes resource efficiency through closed-loop recycling, extended vehicle lifespans, and a shift toward mobility-as-a-service (MaaS). The document identifies batteries, aluminium, and steel as the primary materials requiring decarbonization and suggests adapting existing policy tools—such as low-emission zones, synthetic credit markets, and feed-in tariffs—to incentivize circularity. It also examines the roles of key regulatory bodies in the European Union, China, and the United States in implementing these transitions.

• Materials and production emissions are expected to become the dominant part of a vehicle's carbon footprint as the world shifts to electric vehicles (EVs), rising from roughly 20% of current life-cycle automotive GHG emissions to 60% by 2040.
• Decarbonizing automotive materials requires urgent focus on batteries, aluminium, and steel (BAS materials), which together account for more than three-quarters of emissions. While many abatement options may be economical by 2030, high-cost transitions like hydrogen-based steel production will require carbon taxes to be viable.
• Mobility-as-a-service (MaaS) and pooled mobility can reduce both use-phase and materials emissions by increasing the passenger kilometres achieved per unit of fuel and material, thereby spreading the high carbon and financial costs of EV production across more users.
• Extending the operational life of EVs is a critical climate priority because they have higher upfront manufacturing emissions than internal combustion engine (ICE) vehicles but significantly lower use-phase emissions when powered by clean electricity.
• The report suggests adapting existing policy tools to promote circularity, including the use of 'synthetic markets' or regulatory credit markets (similar to CAFE credits in the US and China) to target virgin resource consumption or emissions in materials like steel and plastics.
• China's ability to achieve automotive sustainability is heavily constrained by its electricity mix, as its reliance on coal increases the carbon intensity of both the use phase and materials production across the value chain.

APA

World Economic Forum (2020). The Road Ahead: A policy research agenda for automotive circularity. http://www3.weforum.org/docs/WEF_A_policy_research_agenda_for_automotive_circularity_2020.pdf

Chicago

World Economic Forum. The Road Ahead: A policy research agenda for automotive circularity. 2020. http://www3.weforum.org/docs/WEF_A_policy_research_agenda_for_automotive_circularity_2020.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=The Road Ahead: A policy research agenda for automotive circularity |date=December 2020 |url=http://www3.weforum.org/docs/WEF_A_policy_research_agenda_for_automotive_circularity_2020.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2020road, author = {{World Economic Forum}}, title = {{The Road Ahead: A policy research agenda for automotive circularity}}, institution = {World Economic Forum}, year = {2020}, month = dec, url = {http://www3.weforum.org/docs/WEF_A_policy_research_agenda_for_automotive_circularity_2020.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }