Volvo Cars makes breakthrough with its first climate-neutral plant in China

  • Volvo Cars achieve climate-neutral status at Taizhou plant in China through biogas transition
  • Transition expected to reduce over 7,000 tonnes of CO2 emissions annually
  • Part of Volvo’s broader goal for global climate-neutral manufacturing operations by 2025

Volvo Cars adopts biogas to propel its first climate-neutral plant in China

The Taizhou manufacturing plant in China is now Volvo Cars’ first climate-neutral facility in the country. The plant is expected to cut over 7,000 tonnes of CO2 emissions annually by transitioning to biogas.

This reduction, though modest compared to Volvo’s total emissions of 43 million tonnes, contributes towards the company’s broader goals. Volvo aims to achieve climate-neutral manufacturing operations globally by 2025 and ultimately reach net zero greenhouse gas emissions by 2040.

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Javier Varela, Chief Operating Officer and Deputy CEO at Volvo Cars, commented:

“We’re acting fast when viable climate-neutral energy alternatives become available. The switch to biogas at our Taizhou plant demonstrates how each of our manufacturing locations across the globe is developing its own climate-neutral energy mix, based on what’s available in the region.”

Before the transition, the Taizhou plant already relied on climate-neutral electricity, with 40% generated from on-site solar panels. This percentage is set to increase. The remaining 60% of grid-sourced electricity also comes from solar power. By adopting biogas for heating, the Taizhou facility joins Volvo’s Torslanda plant in Sweden as the company’s second climate-neutral car production site globally.

Volvo Cars recently unveiled an expanded sustainability strategy, setting ambitious goals for the years ahead. The new target of achieving zero greenhouse gas emissions by 2040 builds upon the previous aim of climate neutrality by the same year. The strategy prioritises emissions reduction efforts over carbon removal methods and extends to Volvo’s supplier network, encouraging alignment with sustainability objectives.

Since the launch of its first sustainability strategy in 2019, Volvo Cars has made substantial progress towards its climate action targets. Alongside reducing CO2 emissions through the adoption of 74% climate-neutral energy, the company continues to advance its overall CO2 reduction goals.

Volvo’s achievement of a climate-neutral manufacturing plant in China underscores its commitment to environmental stewardship and innovation. By embracing sustainable practices, Volvo is driving positive change towards a greener future.

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