A meaningful transition to the circular economy will require players along the automotive value chain to establish a common language. To that end, this report proposes a taxonomy based on two primary measures – carbon and resource efficiency – and identifies key transformation pathways to circularity. This comprehensive and future-looking framework can help improve both materials and use-phase efficiency in the automobile sector, increasing circularity and dramatically reducing carbon emissions.

This report was published by the World Economic Forum in collaboration with Accenture Strategy, as part of the Circular Cars Initiative (CCI) – a partnership formed by WBCSD and the Forum to accelerate the sustainability transformation of the automotive industry. The report is the second of three framework reports developed by CCI to help the sector and its regulators better understand automotive’s new sustainable future.