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Life Cycle Emissions: EVs vs. Combustion Engine Vehicles

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Life Cycle Emissions: EVs vs. Combustion Engine Vehicles

Life Cycle Emissions: EVs vs. Combustion Engine Vehicles

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on real assets and resource megatrends each week.

According to the International Energy Agency, the transportation sector is more reliant on fossil fuels than any other sector in the economy. In 2021, it accounted for 37% of all CO2 emissions from end‐use sectors.

To gain insights into how different vehicle types contribute to these emissions, the above graphic visualizes the life cycle emissions of battery electric, hybrid, and internal combustion engine (ICE) vehicles using Polestar and Rivian’s Pathway Report.

Production to Disposal: Emissions at Each Stage

Life cycle emissions are the total amount of greenhouse gases emitted throughout a product’s existence, including its production, use, and disposal.

To compare these emissions effectively, a standardized unit called metric tons of CO2 equivalent (tCO2e) is used, which accounts for different types of greenhouse gases and their global warming potential.

Here is an overview of the 2021 life cycle emissions of medium-sized electric, hybrid and ICE vehicles in each stage of their life cycles, using tCO2e. These numbers consider a use phase of 16 years and a distance of 240,000 km.

Battery electric vehicle Hybrid electric vehicleInternal combustion engine vehicle
Production emissions (tCO2e)Battery manufacturing510
Vehicle manufacturing 9910
Use phase emissions (tCO2e)Fuel/electricity production261213
Tailpipe emissions 02432
Maintenance 122
Post consumer emissions (tCO2e)End-of-life -2-1-1
TOTAL 39 tCO2e47 tCO2e55 tCO2e

While it may not be surprising that battery electric vehicles (BEVs) have the lowest life cycle emissions of the three vehicle segments, we can also take some other insights from the data that may not be as obvious at first.

  1. The production emissions for BEVs are approximately 40% higher than those of hybrid and ICE vehicles. According to a McKinsey & Company study, this high emission intensity can be attributed to the extraction and refining of raw materials like lithium, cobalt, and nickel that are needed for batteries, as well as the energy-intensive manufacturing process of BEVs.
  2. Electricity production is by far the most emission-intensive stage in a BEVs life cycle. Decarbonizing the electricity sector by implementing renewable and nuclear energy sources can significantly reduce these vehicles’ use phase emissions.
  3. By recycling materials and components in their end-of-life stages, all vehicle segments can offset a portion of their earlier life cycle emissions.

Accelerating the Transition to Electric Mobility

As we move toward a carbon-neutral economy, battery electric vehicles can play an important role in reducing global CO2 emissions.

Despite their lack of tailpipe emissions, however, it’s good to note that many stages of a BEV’s life cycle are still quite emission-intensive, specifically when it comes to manufacturing and electricity production.

Advancing the sustainability of battery production and fostering the adoption of clean energy sources can, therefore, aid in lowering the emissions of BEVs even further, leading to increased environmental stewardship in the transportation sector.

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Ranked: The Most Carbon-Intensive Sectors in the World

Comparing average Scope 1 emission intensities by sector according to an analysis done by S&P Global Inc.

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Ranked: The Most Carbon-Intensive Sectors in the World

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on real assets and resource megatrends each week.

Ever wonder which sectors contribute the most to CO2 emissions around the world?

In this graphic, we explore the answers to that question by comparing average Scope 1 emission intensities by sector, according to an analysis done by S&P Global Inc.

Defining Scope 1 Emissions

Before diving into the data, it may be useful to understand what Scope 1 emissions entail.

Scope 1 emissions are direct greenhouse gas emissions from sources that are owned or controlled by a company, such as their facilities and vehicles.

Source: U.S. Environmental Protection Agency

Scope 1 emissions can do a good job of highlighting a company’s environmental footprint because they represent the direct emissions related to manufacturing or creating a company’s products, whether they are tangible goods, digital software, or services.

Scope 2 and 3 emissions, on the other hand, encompass the indirect emissions associated with a company’s activities, including those from a company’s purchased electricity, leased assets, or investments.

Ranking the Carbon Giants

According to S&P Global’s analysis of 2019-2020 average emissions intensity by sector, utilities is the most carbon-intensive sector in the world, emitting a staggering 2,634 tonnes of CO2 per $1 million of revenue.

Materials and energy sectors follow behind, with 918 tonnes and 571 tonnes of CO2 emitted, respectively.

SectorSector ExplanationScope 1 CO2 emissions per $1M of revenue, 2019-2020
UtilitiesElectric, gas, and water utilities and independent producers2,634 tonnes
MaterialsChemicals, construction materials, packaging, metals, and mining918 tonnes
EnergyOil and gas exploration/production and energy equipment571 tonnes
IndustrialsCapital goods, commercial services, and transportation194 tonnes
Consumer staplesFood, household goods, and personal products90 tonnes
Consumer discretionaryAutomobiles, consumer durables, apparel, and retailing33 tonnes
Real estateReal estate and real estate management31 tonnes
Information technologySoftware, technology hardware, and semiconductors24 tonnes
FinancialsBanks, insurance, and diversified financials19 tonnes
Communication servicesTelecommunication, media, and entertainment9 tonnes
Health careHealth care equipment, pharmaceuticals, biotechnology, and life sciences7 tonnes

S&P Global also reveals some interesting insights when it comes to various industries within the materials sector, including:

  • Cement manufacturing exhibits an extremely high level of Scope 1 emissions, emitting more than double the emissions from the utilities sector (5,415 tonnes of CO2 per $1M of revenue)
  • Aluminum and steel production are also quite emission-intensive, emitting 1,421 and 1,390 tonnes respectively in 2019-2020
  • Relatively lower-emission materials such as gold, glass, metals and paper products bring down the average emissions of the materials sector

Given these trends, a closer look at emission-intensive industries and sectors is necessary for our urgent need to decarbonize the global economy.

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