Life Cycle Assessment:
Good for the Planet, Good for the Auto Industry
Cars are an indispensable part of modern life. We
depend on them to transport us to work, bring food andgoods to our homes and take us where we want, when
we want to go there. Cities are planned around them,families budget for them, portions of our days are spentin them, and some of us even give them names. Few
other machines inspire such emotional resonance, but
our collective love affair with cars has come at a cost.
From the 1960’s, most major developed countries
began to introduce legislation to reduce automobile
emissions in response to growing human health andenvironmental concerns1. Many pollutants weresignificantly reduced by the removal of lead fromgasoline, the addition of catalytic converters, andincreased efficiency through advances in power traintechnology2.

Automotive GHG Regulations and Vehicle
Lightweighting
For a typical gasoline-powered vehicle roughly 85% of
GHG emissions come from the fuel cycle with theremaining 15% caused by vehicle production anddisposal5. Increasing fuel economy reduces tailpipe
emissions and common engineering solutions include
more efficient powertrains, better aerodynamics andvehicle light-weighting. Correspondingly the automobile
industry is under significant pressure to meet GHG
emission standards in Europe, the U.S., and Canada,
and fuel economy standards in Japan, China, andSouth Korea.6 However, current regulatory approaches
are problematic for one important reason:

Unintended Consequences
However, greenhouse gas (GHG) emissions remain amajor unresolved issue because of their contribution toclimate change3.
In response to this very real threat, policy makers acrossthe world are implementing regulations in an attempt tocurb the GHG emissions released by automobiles into
our environment4.

Light-weighting, for instance, is a costly venture forOEMs. Many low-density materials are expensive andadapting for their use often requires factory retooling an added financial burden. While the use of light-weightmaterials reduces use-phase emissions, the primary
production of light-weight materials is typically very GHG
intensive7. If the increase in production emissions isgreater than the decrease in use-phase emissions,vehicle light-weighting actually increases total emissions- an unintended consequence.

A Hole in the Tailpipe Regulation
Almost all current legislation focuses exclusively on‘tailpipe’ or use-phase emissions. Tailpipe considers
the GHG emissions caused solely by the combustion offuel. Use-phase considers emissions from the entire fuelcycle - both production and consumption of fuel.

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Refer to Annotation #7 for further explanation of comparison on avehicle component (functional unit) basis.

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Tailpipe-only regulation mayincrease vehicle production
costs and GHG emissions.

Unintended Consequences are more common than you think.
Corporate Action:
In the 1920s, Tetra-Ethyl Lead (TEL) started being used
as anti-knock, which enabled the design of more
powerful and fuel-efficient engines.
Unintended consequence: Catastrophic levels ofatmospheric lead pollution.
Public Policy Response: Ban leaded automotive fuels.

Corporate Action:
In the 1930s, Chlorofluorocarbons (CFCs) started being used
as non-toxic, non-reactive alternatives to toxic and flammable
refrigerants and propellants, such as ammonia,
chloromethane, and sulfur dioxide.
Unintended consequence:
Dramatic depletion of the stratospheric ozone layer.
Public Policy Response:
Phase out CFCs through the Montreal Protocol.

Public Policy Decision:
In 2005 the USA created a Renewable Fuel Standard(RFS) as part of its Energy Policy Act (EPAct).
Potential unintended consequence:
In some cases biofuel production and use might havehigher fossil energy demand and GHG emissions thanfossil fuels.

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A Better Way – LCA
A better way of measuring automotive GHG emissions
is by using life-cycle assessment (LCA), which takes
into account all of the emissions created during the lifeof a product from raw material production to productend-of-life.

Tailpipe-only regulation will become increasingly
inadequate as the auto industry moves forward, limiting
design choices and increasing production costs forOEMs whilst failing to fully account for automotive GHG
emissions.

Tailpipe-only regulation will limit
design choices
and increase production costs for OEMs.
The Auto Industry Is Already Utilizing LCA

Only when a vehicle’s total life cycle emissions areaccounted for can a true picture of its environmental
impact emerge. An LCA approach allows manufacturers
to make design choices based on true environmental
impact and economic value.
A primary driver of vehicle costs are materials, and a
primary cost of materials is the energy is takes to makethem. Energy is closely correlated with CO2 emissions,so from an LCA perspective the lower cost solution isfrequently the lower CO2 solution. Low-carbon fuels
and innovations in drive-train technology are changing
the ratio between emissions created during vehicle
production and use.
While a typical gasoline-powered vehicle currently emits
only around 15% of its GHG in production, the use ofcellulosic ethanol or a shift towards battery or hybrid
electric vehicles would dramatically increase the shareof vehicle production emissions8. For a battery electricvehicle powered entirely by renewable electricity, vehicle
production emissions could account for as much as
85% - a complete reversal of the current figures9.

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LCA is not news to the auto industry. Independent oflegislation many manufacturers are already using life
cycle thinking and LCA, recognizing its importance andeffectiveness in product and process design.
In 2002, Honda implemented LCA Data andManagement Systems, since it regards “LCA as avital tool for environmental impact assessment.”10

Toyota actively carries out LCA in the development
stage of new technology and has made thedecision not to use carbon fiber because the highGHG emissions released during its production
outweigh the GHG savings from mass reduction.11

Volkswagen and Mercedes use LCA forenvironmental product design and issue
environmental certificates or commendations inaccordance with the relevant ISO-standards.12

Ford routinely uses LCA and has begun to require
carbon footprint data from its suppliers.13



Nissan’s 2010 green initiative incorporates LCA for
all new models.14

AIAG (Automotive Industry Action Group) has
developed carbon footprinting requirements in theautomotive industry as part of its supply chain
objectives.15



Ricardo issued a recent study emphasizing theshortcomings of regulating tailpipe CO2 and theimportance of LCA in determining automotive GHG
emissions.16

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In short, LCA-based regulation will help to:Truly decrease GHG emissions and otherenvironmental impacts across the entire vehicle life
cycle without the risk of unintended consequences.

Keep costs down for OEMs by allowing themgreatest flexibility in designing lowest-cost, lowestemission vehicles.

Make sure that GHG regulation is consistent withthe way the car industry thinks about environmental
management and product design.

LCA-based regulation is better forthe environment,and better for the auto industry.
Environmental Regulatory Agencies Support Life
Cycle Thinking
Many environmental agencies around the world support
life cycle assessment, including the EuropeanCommission which calls it “the best framework forassessing the potential environmental impacts ofproducts currently available.”17 Today, LCA and lifecycle-based GHG accounting are mature assessment
tools with global standards.18 Nonetheless, life-cyclebased environmental regulation is in its infancy and notwithout significant challenges. There are someexamples of legislation with a life cycle perspective,
such as California’s Low Carbon Fuel Standard19, but
environmental regulators and policy makers need moreencouragement to pursue this more frequently andconsistently.

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The Road to LCA-Based Regulation –What You Can Do
The support of the auto industry will be critical inbringing about the required legislative changes. There isvarying awareness of LCA amongst lawmakers but
regulations using this approach are yet to be adopted.
Some regulatory bodies may already be aware of LCA,
but daunted by the task of switching from use-phaseonly to LCA-based regulation. In order to be influential,there is a need to:
Substantiate that use-phase-only legislation is creating
an unforeseen problem
Explain how LCA-based regulation can solve thisproblem
Demonstrate how it is feasible to create LCA-based
regulation

Communicating with Policy Makers
Effective engagement of governmental bodies requires
careful planning and strong, persuasive
communications. Legislators will have specific concernsthat need to be addressed, and the right informationneeds to be available and accessible in order to make acompelling case for including LCA in future regulations.
An automotive LCA strategy folder containing key
presentations, case studies and interactive tools areavailable to all OEM’s to assist in this endeavor. Pleasecontact Kate Hickey at khickey@worldautosteel.org toobtain a copy.

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Annotations
1

A good overview and further literature is given in “The Automobile and the Environment in American History” by Martin V. Melosi(http://www.autolife.umd.umich.edu/Environment.htm)
2

Air Quality Trends – Lead (available on http://www.epa.gov/air/airtrends/lead.html); Air Quality Trends – Ozone (available onhttp://www.epa.gov/airtrends/ozone.html); Air Quality Trends – NO2 (available on http://www.epa.gov/airtrends/nitrogen.html);
Automobiles and Carbon Monoxide, U.S. EPA, Fact Sheet OMS-3, January, 1993

3

Light-Duty Automotive Technology, Carbon Dioxide Emissions, and Fuel Economy Trends: 1975 Through 2010, EPA-420-S-10-002,
November 2010
4Regulation (EC) No 443/2009 in the European Union, the new Codes of Federal Regulation 40 CFR Parts 85, 86, and 600; 49 CFR
Parts 531, 533, 536, 537 and 538 in the United States

5Life cycle assessments of passenger vehicles consistently find that vehicle production, including all upstream processes, makes up
10-20% of life cycle GHG emissions. Due to their better fuel economy, diesel versions of a given model have higher contributions ofvehicle production than gasoline versions. The other main factors that decide whether vehicle production contributes closer to 10% or20% to life cycle GHG emissions are vehicle class, material composition of the vehicle, and the assumed total driven life time distance.
For an unspecified gasoline-powered light duty vehicle, 15% vehicle production contribution is the most likely value. Here are a few
example calculations from literature:
Samaras & Meisterling (2008) EST 42, 3170-3176:
Vehicle production: 8,500 kgCO2eq ($13,500 1997 producer price of a Toyota Corolla in the CMU EIO-LCA model)

kgCO 2 eq
liter 0.08
 240,000km  57,025kgCO 2 eq (87% of total)
liter
km
kgCO 2 eq
liter(2.3  0.67)
 0.08 200,000km  47,520kgCO 2 eq (85% of total)
literkm

Fuel cycle:(2.3  0.67)

Environmental Certificate Mercedes-Benz C-Class (2007):
Vehicle production and recycling (no recycling credits): (6,400+300) kgCO2 = 6,700 kgCO2
Fuel cycle: 43,800 kgCO2 (86.7% of total)
Passat: Environmental Commendation – Detailed Version (2009):
Vehicle production contribution of the diesel models varies from 18% to 21%.
Vehicle production contribution of the gasoline models varies between 13% and 18%.
Assumed total driven life time distance is 150,000 km.
6Passenger Vehicle Greenhouse Gas and Fuel Economy Standards: A Global Update, An F, Gordon D, He H, Kodjak D, Rutherford D,International Council on Clean Transportation (ICCT), 2007. Global Vehicle Fuel Economy and GHG emissions Regulations for Lightand Heavy-duty Vehicles, German J, ICCT, Presentation at MIIT Workshop, Beijing, China, April 14, 2011.

7

The sources for the cradle-to-gate GHG emission data for primary material production are: The 2010 inventory data from the World
Steel Association; Life Cycle Assessment of Aluminium: Inventory Data for the Primary Aluminium Industry, Year 2005 Update, 2007,
International Aluminium Association; Tharumarajah A & Koltun P (2007) Is there an environmental advantage of using magnesium
components for light-weighting cars?, Journal of Cleaner Production, 15(1007-1013); Ramakrishnan S & Koltun P (2004) Globalwarming impact of the magnesium produced in China using the Pidgeon process, Resources Conservation & Recycling, 42(49-64);
Materials Selection in Mechanical Design, M. F. Asby, 2005, Third Edition, Elsevier; Eco-profiles of the European Plastics Industry,
2005, Boustead I for Plastics Europe. For the GHG implications of automotive material substitution see, for example, Geyer R (2008)
Parametric assessment of climate change impacts of automotive material substitution, EST, 42(18) 6973-6979.

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Different density of materials is taken into consideration and is included in the mass of the component. Then, CO2emissions are calculated on the basis of the amount of material used to produce the part.
Refer to “Example Illustration” in this footnote for an explanation of how ‘functional unit’ values are calculated. However,GHG emissions measurement of a product that is produced from these materials must account for the actual total amountof material used to make the final component. The completed component is called the ’functional unit’.

The functional unit (component) must have the same performance characteristics (strength, stiffness, crash energy
absorption, etc.) no matter from which material it is made. The ‘material’ GHG emissions for the component are thencalculated by multiplying the value for the CO2e/kg (previous chart) times the actual weight of material to make the part.
CO2 in material production should be compared not by material weight (kg) but by parts with taking different material
density into consideration.
Example illustration:
To illustrate the Life Cycle Assessment (LCA) calculation of the ‘material’ portion of a typical automotive component, let us
use the mid-range CO2e values for the materials in the above chart and then multiply those CO2eq values by the actual
weight of material that is required to make the component. The amount (weight) of each different material needed for acomponent with the same performance is, of course, determined by the design of the component. For this illustration weuse example assumptions about the weight of each material required to make components with different material and thesame performance. See table:
Functional Unit
Material used
CO2e/kg(kg)CO2eqConventional (mild) steel
2.3x
100=230
Advanced High Strength Steels (AHSS)
2.3x
75=
173
Aluminium
11.3x67=757
Magnesium
46.0x
50=2300
Carbon FRP
22.0x
45=990This functional unit comparison can be illustrated in the following chart:

Data source: UCSB Greenhouse Gas Materials Comparison Model 2012www.worldautosteel.org

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8

See for example Samaras C & Meisterling K (2008) EST 42(9) 3170-3176.
See also Nissan’s life cycle CO2 emission calculations for its LEAF (verified by Japan Environmental Management Association forIndustry (JEMAI)): Using a total driven distance of 100,000km, roughly one third of total life cycle emissions are from the fuel cycle, i.e.
electricity production, delivery and use. For a total driven distance of 200,000km, the fuel cycle would thus make up 50% of totalemissions. (information can be found at http://www.nissan-global.com/EN/ENVIRONMENT/CAR/LCA/)

9Geyer R, Stoms D, Kallaos J, Photovoltaics offer Land-efficient Low-Carbon Sun-to-Wheels Transportation, unpublished.
In 2002, Honda implemented LCA Data and Management Systems, since it regards “LCA as a vital tool for environmental impactassessment.” (Honda Corporate News Release, June 12, 2002, available at http://world.honda.com/news/2002/c020612.html)
10

11

Toyota’s Eco-Vehicle Assessment System (Eco-VAS), its main tool to assess environmental impacts from vehicles, is based on LCA.
(see, e.g., http://www.toyota-global.com/sustainability/environmental_responsibility/)

12

VW’s environmental management and strategy is based on a life cycle perspective, and LCAs plays a “key role in reliably achieving
the objectives of Volkswagen’s Environmental Policy.” Volkswagen also issues LCA-based environmental commendations of its cars inaccordance with the relevant ISO-standards (VW Sustainability Report 2010 pp.44/45)
According to its 2011 Sustainability Report, environmentally responsible product development at Daimler is based on a life cycle
perspective and comprehensive LCA. Mercedes also issues LCA-based environmental commendations of its cars in accordance withthe relevant ISO-standards (Daimler Sustainability Report 2011 pp.52/53)
13According to Ford’s Sustainability Report 2010/11, Ford’s main tool for environmental assessments is called Product Sustainability
Index (PSI) and is based on LCA.
14
Nissan states that “to effectively cope with today's environmental challenges, we need comprehensive assessments of the actual
impact of Nissan vehicles on the global environment. We have adopted an LCA method […]”. (quote is from http://www.nissanglobal.com/EN/ENVIRONMENT/CAR/LCA/)
15

AIAG Supplier Guidance for Estimating GHG emissions for OEMs, Version 1.4, OHS-11, 2010, available on http://www.aiag.org.

16

Preparing for a Life Cycle CO2 Measure, Ricardo Report RD.11/124801.4 for Low Carbon Vehicle Partnership, 20 May 2011.

17

Quote from “Integrated Product Policy: Building on Environmental Life-Cycle Thinking”, COM(2003) 302 final, Brussels, 18.6.2003,
p.10.

18

ISO 14040 Environmental management -- Life cycle assessment -- Principles and framework (Revision of ISO 14040:1997, ISO14041:1998, ISO 14042:2000 and ISO 14043:2000) ISO 14044 Environmental management -- Life cycle assessment -Requirements and guidelines (Revision of ISO 14040:1997, ISO 14041:1998, ISO 14042:2000 and ISO 14043:2000)
PAS 2050:2011, Specification for the assessment of the life cycle greenhouse gas emissions of goods and services, The British
Standards Institution (BSI), London, UK. Greenhouse Gas Protocol: Product Life Cycle Accounting and Reporting Standard, WorldResources Institute (WRI) and World Business Council on Sustainable Development (WBCSD), September 2011.
19

Quote from paragraph 4. of California’s Executive Order S-01-07: “The LCFS […] shall be measured on a full fuels cycle basis […]”.
LCFS stands for Low Carbon Fuel Standard.

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