Toyota To Focus More On Carbon Credits And Capture Than On EVs

Toyota To Focus More On Carbon Credits And Capture Than On EVs - Carbon Herald
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Ted Ogawa, the CEO of Toyota North America, delivered an interesting statement, in which he said the company would prefer to buy carbon credits than ramp up EV production, in order to meet market demand. 

Ogawa believes that EVs (electric vehicles) will make up only 30% of the US car market in 2030, in contrast to the above 50% suggested by the International Energy Agency (IEA). 

Namely, in a recent report, the IEA revealed that EVs were already enjoying a 20% share of all new car sales last year, which is a significant increase from their 14% share in 2022. 

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The dramatic rise in demand suggests EVs will account for well beyond 50% of new vehicle sales by the end of the decade. 

Toyota, however, has a different opinion on the matter, believing demand for new electric vehicles in 2030 to reach 30%, as shared in an interview with Automotive News.

But, Ogawa went on to say, if by that time the Environmental Protection Agency (EPA) has set a regulation for car maker fleets to be 50% EV, Toyota will look into carbon credits to bridge any gap between what is required and what the actual market demand is. 

Ogawa did take care to underline the fact that the Japanese automotive giant is by no means opposed to EVs, and, on the contrary, is ‘excited by’ them. 

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But it does not see EVs as the single possible decarbonization pathway, and this becomes apparent with one of the company’s latest developments – a combustion engine that captures CO2 emissions. 

Just last week, news broke that Toyota is testing specialized air filters that can absorb part of the CO2 emitted from fossil-fuel powered cars. 

As of now, the novel solution is only successful at capturing very low amounts of the greenhouse gas, but the automotive manufacturer is determined to keep refining this and other possible ways to slash emissions and transition to a greener future. 

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