In 2015, the Paris Agreement was adopted, setting an overarching goal to hold “the increase in the global average temperature to well below 2°C above pre-industrial levels” and to pursue efforts “to limit the temperature increase to 1.5°C above pre-industrial levels.” To achieve this, 145 countries including Japan pledged to reduce greenhouse gas emissions in order to reach net zero by 2050. “Net zero emissions” means the total amount of emissions minus the amount of absorption should equal zero, otherwise called ”carbon neutral.” To achieve this goal, governments and private companies are taking various initiatives.

Renewable energy is energy that after use can be regenerated in a relatively short period. Unlike fossil fuels, renewable energy is generated from solar, wind, geothermal, hydroelectric, and biomass, which do not deplete resources and can be repeatedly used indefinitely. Japan’s share of electricity generated from renewable energy sources was approximately 19.8% in FY2020*. The reality, the amount of electricity generated by renewable sources fluctuates according to the season and weather conditions, so traditional forms of power generation, such as thermal power generation, are still needed.

Honda’s Initiatives

Electrification of automobiles is often considered as battery electric vehicles (BEVs), which run on electricity alone. In fact, electrification also refers to vehicles that use electricity as part of their power source. In addition to BEVs, there are hybrid electric vehicles (HEVs), which run on an electric motor powered by a battery and a gasoline engine, and plug-in hybrid electric vehicles (PHEVs), which can be charged from an external power source. Vehicles equipped with fuel cells, which generate electricity through a chemical reaction between hydrogen and oxygen, are called FCEVs (Fuel Cell Electric Vehicles).

Honda’s Initiatives

In 2023, the number of new electric vehicles sold worldwide totaled 27.5 million, including 10.6 million BEVs (Battery Electric Vehicles) and 16.9 million HEVs (Hybrid Electric Vehicles). Since 2019, growth has been rapid, with sales increasing more than 1.3 times every year, due to the promotion of environmental policies by governments, growing interest in sustainability, and the expansion of EV lineups by automakers. This trend is expected to continue in 2024, with EV sales expected to increase in the coming years.

Global EV (BEV/HEV) sales trend

FCEVs are attracting attention as the ultimate clean vehicles, more so than electric vehicles. FCEVs are equipped with fuel cells that generate electricity, through a chemical reaction between hydrogen and oxygen, to power the motors that drive the car. The chemical reaction does not generate any CO2. Hydrogen is inexhaustible and easily available. Hydrogen, which can be used not only as fuel for automobiles but also for various other purposes such as powering households, is attracting attention as a next-generation clean energy source.

Honda’s Initiatives

Honda will continue its challenge to realize a carbon neutral society.