Nature Positive Role of the Automotive Sector

The nature-positive transition can also present enormous opportunities for companies in this sector. The Forum’s Future of Nature and Business report estimated that a full nature-positive transition in the global economy could create $10.1 trillion of annual business opportunities by 2030. More specifically, estimates show that undertaking the priority actions for the automotive sector could unlock more than $960 billion in value by 2030 for businesses operating across the sector’s value chain. In particular, the circular economy transition represents the majority – $860 billion – of this potential value. See Figure 8 and Table 3 for more information. There may also be other business opportunities that present themselves for the sector that were not covered in this sizing approach. Notably, the opportunity associated with transitioning product portfolios from ICE vehicles to BEVs and other alternative solutions included under priority action 3 was not considered in the original analysis and is therefore not covered in this sizing. BloombergNEF has estimated that global EV markets represent a cumulative $8.8 trillion opportunity from 2023 to 2030, equivalent to over $1 trillion per year, assuming a linear growth rate.142 Conversely, it will take time for companies to begin to realize savings on materials from the scale-up of circularity as the ecosystem evolves, and there may also be negative countereffects (i.e. new car sales could decrease as circularity and new business models are scaled-up across the value chain). Business opportunities for the automotive sector by 2030 ($, billion) FIGURE 8 Drive cross-sector collaboration on standards and transparency, infrastructure and policyConserve and restore nature with Indigenous Peoples and local communitiesTransform product offeringAvoid and reduce impacts from materialsAvoid and reduce impacts from operationsTotal*889 967 6410 3 0 1 2 3 4 5 *Additional opportunites may exist not covered in this analysis. Total business opportunities are estimated gross value unlocked, with potential losses due to future circular economy (e.g. net fewer cars sold). 27 Nature Positive: Role of the Automotive Sector