Forging Ahead

The report argues that while electrification reduces use-phase emissions, material production will account for over 60% of automotive life-cycle emissions by 2040. Using a carbon abatement model, it finds that a significant portion of these emissions—66% for ICEVs and 97% for BEVs—could be abated by 2030 at no net material cost increase. The analysis highlights steel and batteries as the primary areas for decarbonization, suggesting hydrogen-based direct reduced iron (DRI) and electric arc furnaces (EAF) as a more plausible path for steel than carbon capture and storage (CCS). To realize these gains, the report proposes a 'lead, share, follow' collaboration framework and the establishment of an Automotive Circularity Board to coordinate efforts in vehicle design, recycling, financing, transparency, and capability-building.

• Material production emissions are projected to become the dominant source of automotive life-cycle emissions as the industry shifts to electric vehicles. While materials currently account for 18–22% of ICEV life-cycle emissions, they are projected to surpass 60% by 2040 if production emissions are not reduced.
• A significant portion of material emissions can be abated by 2030 without increasing net material costs. Specifically, the model suggests that approximately 66% of material emissions for a representative ICEV and 97% for a BEV could be decarbonized at no net cost increase.
• Steel and batteries represent the highest decarbonization potential due to their share of vehicle weight and emissions. For steel, the report identifies hydrogen-based direct reduced iron (DRI) with electric arc furnaces (EAF) as a more plausible pathway than carbon capture and storage (CCS), with levelized costs of $420–450/t steel compared to $520–550/t for the CCS route.
• Battery decarbonization primarily depends on the transition to low-carbon electricity. Shifting production to regions with a low-carbon grid mix could abate 1.5–1.8t CO2, roughly half of current battery-associated emissions.
• The report proposes a 'lead, share, follow' strategic framework for industry collaboration. 'Lead' involves active investment in competitive advantages like closed-loop recycling; 'Share' involves collective action for large-scale infrastructure like hydrogen supply chains; and 'Follow' involves adopting solutions developed in other industries, such as pyrolysis for plastics.
• To coordinate these efforts, the World Economic Forum and the Circular Cars Initiative intend to create an Automotive Circularity Board (ACB). This consortium would focus on five key enablers: vehicle design (e.g., design for disassembly), recycling (avoiding downcycling), financing (unlocking funding for capital projects), transparency (standardized GHG reporting), and capability-building.

APA

World Economic Forum (2020). Forging Ahead. http://www3.weforum.org/docs/WEF_Forging_Ahead_2020.pdf

Chicago

World Economic Forum. Forging Ahead. 2020. http://www3.weforum.org/docs/WEF_Forging_Ahead_2020.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Forging Ahead |date=December 2020 |url=http://www3.weforum.org/docs/WEF_Forging_Ahead_2020.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2020forging, author = {{World Economic Forum}}, title = {{Forging Ahead}}, institution = {World Economic Forum}, year = {2020}, month = dec, url = {http://www3.weforum.org/docs/WEF_Forging_Ahead_2020.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }