Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Volvo Cars has increasingly positive engagement with climate regulations in 2023-25, with some exceptions. The company has positive top-line communications on climate and has supported an EU 2035 zero-emissions CO2 target while appearing to have more negative engagement on US climate policies.
Top-line Messaging on Climate Policy: Volvo Cars had positive top-line communications on climate policy. In its 2024 Annual and Sustainability Report, published in March 2025, Volvo Cars supported GHG emissions reductions in line with 1.5 degrees and the goals of the Paris Agreement. Volvo Cars’ CEO, Jim Rowan also broadly supported the implementation of the European Green Deal in a Industry for 2035 joint letter, published in September 2024.
Engagement with Climate-Related Regulations: Volvo Cars supported an EU 2035 zero-emissions CO2 target and opposed an e-fuels loophole that would likely weaken the regulation in a March 2023 joint letter and comments from Volvo Cars’ CEO Jim Rowan. The company's CEO further supported the 2035 target and advocated against a 2026 review in a Industry for 2035 joint letter, published in September 2024. In a March 2025 Automotive News Europe article, Rowan opposed the EU Commission’s proposed measures to weaken the 2025 CO2 standard by allowing average compliance over 2025-27, and criticized the European Automobile Manufacturers Association’s efforts to weaken the policy.
In the US, in July 2023 regulatory comments, Volvo Cars appeared unsupportive of stringent 2027+ GHG emissions standards for light and medium-duty vehicles, advocating to maintain flexibilities like off-cycle and air conditioning credits that would reduce the policy’s stringency. In Australia, in a May 2023 consultation submission, Volvo Cars subsidiary Polestar supported an ambitious fuel efficiency (CO2) standard for light-duty vehicles in line with US/EU markets before, or by 2030, and against flexibilities like multipliers that would weaken the policy’s stringency. More negatively, in a June 2023 Go Auto article, Volvo Cars Australia’s managing director appeared to advocate for lower stringency fuel efficiency (CO2) standards.
Positioning on Energy Transition: In a May 2023 quote Volvo Cars CEO, Jim Rowan, called on G7 leaders to accelerate the clean energy system transition, including by urgently decarbonizing power. An October 2023 joint We Mean Business letter, signed by Volvo Cars also advocated for a full global phase-out of unabated fossil fuels, removing fossil fuel subsidies, and for the urgent decarbonization of the power sector.
Volvo Cars CEO Jim Rowan also strongly supported a 2035 ICE phase-out date in March 2023 comments, and opposed last-minute attempts to weaken the target through the inclusion of ICE vehicles running on e-fuels. Volvo Cars further supported a 2035 EU ICE phase-out date, advocated against the inclusion of e-fuels and supported the expansion of charging infrastructure in its 2023 Annual and Sustainability Report, published in March 2024. In a February 2024 earnings call, Rowan maintained support for the 2035 target, but advocated for hybrid and plug-in hybrid vehicles to play a role in the transition to electrification. Volvo Cars also directly advocated for mandatory targets to facilitate the transition of corporate fleets to zero emissions vehicles in July 2024 feedback to the EU’s Greening Corporate Fleets Initiative. In the US, Volvo Cars supported electrification targets in the EPA’s proposed GHG emissions standards for light- and medium-duty vehicles with minor exceptions in July 2023 regulatory comments.
Industry Association Governance: Volvo Cars provides an incomplete disclosure of its global industry associations memberships in a May 2024 position paper. The company has not published an industry association review. Volvo Cars CEO was previously a European Automobile Manufacturers Association (ACEA) board member, however Volvo Cars left ACEA at the end of 2022 due to a reported misalignment with its climate advocacy.
Volvo Cars is a member of the Alliance for Automotive Innovation and the Federal Chamber of Automotive Industries (FCAI), which have negative engagement with climate policy in the US and Australia respectively. Volvo Cars is also a member of the Society of Indian Automobile Manufacturers and the Society of Motor Manufacturers and Traders (SMMT), which have both positive and negative engagement on climate policy in India and the UK respectively. More positively, Volvo Cars is a member of the Electric Vehicle Council, the Japan Climate Leaders Partnership, the European Union Chamber of Commerce in China, SmartEN, E-Mobility Europe and the Corporate Leaders Group which have active, positive engagement on climate policy in Australia, Japan, China and the EU respectively.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q2 2025.