Volvo Cars announced an ambitious plans aiming to reduce its lifecycle carbon footprint per car by 40 per cent between 2018 and 2025.

This is the first, tangible step towards Volvo Cars’ ambition of becoming a climate neutral company by 2040.

The plan represents actions in line with the global Paris climate agreement of 2015, which seeks to limit global warming to 1.5 degrees Celsius above pre-industrial levels.

Volvo Cars’ 2040 ambitions go beyond addressing tailpipe emissions through all-out electrification. It will also tackle carbon emissions in its manufacturing network, its wider operations, its supply chain and through recycling and reuse of materials.

As a near term step towards its 2040 ambition, Volvo Cars is implementing a set of immediate measures in its efforts to reduce the company’s lifecycle CO2 footprint per car by 40 per cent between 2018 and 2025. At that point in time, the company also aims for its global manufacturing network to be fully climate neutral.

To realize the significant 40 per cent reduction of its CO2 footprint per car by 2025, the company has devised a number of ambitions for different parts of its operations. The previously communicated goal of generating 50 per cent of global sales from fully electric cars by 2025 is a prominent one, which would result in a 50 per cent reduction in tailpipe carbon emissions per car between 2018 and 2025.

Other short-term ambitions include a 25 per cent reduction of CO2 emissions related to its global supply chain by 2025, a 25 per cent share of recycled plastics in new Volvo cars by 2025 and a 25 per cent reduction of carbon emissions generated by the company’s overall operations, including manufacturing and logistics.

As of this year, every new Volvo launched will be electrified and the company today also launches its first fully electric car, the XC40 Recharge. Starting with the XC40 Recharge, Volvo Cars will disclose the average lifecycle carbon footprint of each new model.

The XC40 Recharge is the first car in Volvo Cars’ new Recharge car line. Recharge will be the overarching name for all chargeable Volvos with a fully electric and plug-in hybrid powertrain.

Buyers of 2021 model year hybrids will be able to claim a refund for their electricity costs during the first year of ownership based on power consumption data extracted from Volvo’s app for Apple and Android smartphones.

Volvo will start producing its first EV late next year and price it to compete with Tesla Inc.’s Model 3, which starts at about $39,000 but has been selling on average for roughly $50,000.