are at a substantial advantage on that front — they’re so much more efficient in converting produced energy into vehicle power that even in coal-heavy grids like China’s they’re more efficient than the gasoline equivalent.
The differences from one country to another, however, are substantial.
If you use a proxy for a high-emissions grid like those in China or India, the picture changes substantially. A car with its battery made in China and charged up in Poland, where coal makes up about two-thirds of the electricity mix as it does in China and India, puts out 193 grams per km.
An essential element of the climate potential of electric vehicles
is that they’re able to switch to lower-carbon fuels over the course of their lifetimes, as heavily-emitting power plants are disconnected from the grid and replaced with renewables. That process is likely to be quite rapid in developed countries — but in the two countries where Tesla
hopes to catch the next leg of growth, China and India, it’s going to be unusually slow.
As a result, the more cars Tesla sells in China and India, the more the intensity of its emissions — the emissions per vehicle sold, or per dollar of revenue — will rise.
Perhaps this doesn’t matter. Any electric vehicle sold anywhere in the world is likely substituting for one powered by petrol or diesel. What the climate needs is for the market share of battery-powered vehicles to increase vis-a-vis conventional ones. If that means a lot get sold in markets where the immediate greenhouse benefits are lesser than they are in the US and Western Europe, it’s still, on balance, a plus.
Even so, this is the sort of information the climate-focused investors who’ve driven Tesla’s stock price so high ought to be given, so they can make their own decisions about how their shareholdings reflect their own emissions-reduction commitments.
That’s not the case at Tesla. Not only does it not disclose the Scope 3 emissions (those dominated by emissions from the cars it sells), it doesn’t even lay out Scope 1 (from on-site power consumption) or Scope 2 (from purchased electricity). Nor does it disclose its electricity consumption, and its behaviour indicates that, for all the rhetoric, this isn’t exactly a priority.
Four years after production started at its Gigafactory battery plant in Nevada, the solar panels that were to cover its roof and help make it independent of Nevada’s gas-fired grid are still only gradually being added.
Companies that make products to accelerate the transition to clean energy while providing scrappy documentation of their own carbon footprint may be better than the alternative — ones that provide exemplary historic disclosures but only the vaguest assurances about how their net-zero commitments are going to be met.
Still, a clean-energy business with a market cap roughly equivalent to the S&P 500’s entire oil and gas sub-index should be capable of producing the information to help investors make their own minds up. Tesla’s slapdash emissions disclosure is a stain on an otherwise impressive record. A company that thrives on the power of the sun shouldn’t hide the footprint of its own operations in shadow.
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