Q1. Is this just an attempt to gain some green credentials?
A1. No. Land Rover has always fully recognised it has a part to play in addressing climate change and its CO2 offset programme is implemented in conjunction with the broader sustainability strategy, which includes a joint £800 million investment in e_TERRAIN TECHNOLOGIES. Its contribution will be significant with 3,000 engineers based at JaguarLandRover's head quarters in Gaydon in Warwickshire playing a key role in developing environmentally innovative solutions. This is a fully evaluated and comprehensive offset programme that will help to minimise our overall impact on the environment. It will be administered independently by a highly respected CO2 offset provider, 'ClimateCare', and overseen by a Governance Committee.
Q2. What exactly does the offset programme involve?
A2. The programme has two key elements. Firstly, Land Rover will offset the CO2 emissions from its manufacturing assembly operations for all vehicles built (so a global approach), and secondly from 2008, along with customers from 2006, customers of all new Land Rover vehicles sold in Austria, Belgium, the Netherlands, France, the Middle East, Norway and Sweden will pay to offset the CO2 emissions produced by their vehicle, calculated on the certified CO2 emissions level for each Land Rover model and based on 45,000 miles (equivalent 15,000 miles of annual use). more markets are planned for 2009. The programme is administered independently by a highly respected CO2 offset provider, ClimateCare, and involves a mixed portfolio of offset projects:
- Renewable energy – such as wind or solar to replace fossil fuel use
- Energy efficiency – this reduces the amount of fuel needed
- Technology change – developing and rolling out new technologies
Q3. Why is Land Rover rather than any other brand leading this?
A3. Land Rovers are by definition the most capable off road vehicles and as such the technology and design makes them inherently heavier than saloon vehicles. We are committed to improving the environmental performance of our vehicles, from reducing tail pipe emissions to the use of light weight materials as shown on our LRX concept vehicle. With the launch of Stop/Start technology on Freelander 2 TD4_e, this is the first example of e_TERRAIN TECHNOLOGIES, making TD4_e the most fuel efficient Land Rover to date. Since these technologies take time to roll out, Land Rover supports a global approach to offsetting CO2 which balances out those emissions from assembly and the first 45,000 miles of use.
Q4. What do you mean by 'a comprehensive offset programme'?
A4. The majority of funding will go towards real environmental technologies that can be introduced in different places or communities to reduce CO2 emissions – such as wind turbines or solar power. There will also be projects to prevent energy being wasted and increase the pace of technological change through investment in the development of new technologies. Land Rover is offsetting both manufacturing and enabling customers to offset their own emissions, which makes the programme the largest and most comprehensive of its kind.
Q5. Shouldn't Land Rover be addressing the real problem – the emissions from vehicles?
A5. Land Rover has reduced emission levels with each successive model in their range. CO2 emissions from the all new Freelander 2 are 11% lower on the petrol derivative and 5% lower for the diesel derivative than the previous model. The CO2 offset programme is part of Land Rover's overall approach to reducing emissions. In March we revealed the Land_e technology concept, which contains a number of environmental product innovations we are working on for Land Rover vehicles of the future. The Land_e technologies would cut CO2 emissions by 30% and achieve 50 mpg on a Freelander sized vehicle. We are also working on other technologies, which shall be announced. All of this should also be seen in the context of Ford's announcement in July of a £1bn investment in environmental technology across the Ford and PAG range. Land Rover engineers will play a key role in developing that technology.
Q6. So what exactly is the CO2 offset you hope to achieve?
A6. We have estimated that our pilot programme could achieve an offset of around 2 million tonnes of CO2 through the pilot – the equivalent of the CO2 emissions from 125,000 average UK homes over the same period. This calculation is based on official figures from DEFRA and the UK Census.
Q7. How much will it cost Land Rover?
A7. The offset of CO2 from manufacturing facilities represents a significant investment by Land Rover, totalling around £3 million (over 2 yrs and 4 months). For the customer it will represent between £85 and £165, depending on model.
Q8. Could Land Rover actually use the customer contributions to fund further product development?
A8. No. The whole scheme will be independently administered by a highly respected CO2 offset provider as mentioned above and they will ensure the funds raised are spent appropriately on suitable projects.
Q9. Is Land Rover doing this because it's cheaper than investing in technology to improve their products?
A9. This is not cheap, nor is it an alternative. We are investing significant sums to help minimize our impact on the environment and fully supporting Ford Motor Company's £1bn investment in environmental technologies across all brands, including the Premier Automotive Group brands.
Q10. How does Land Rover calculate the cost, in monetary terms, of offsetting CO2?
A10. The emission levels have been verified by our carbon offset provider. The price of a CO2 offset is dependent on many factors such as the project type, for example renewable energy or technology change. Our scheme will have a balanced portfolio of projects, to ensure a good mix of CO2 reductions and sustainable development whilst managing risks for project delivery.
Q11. Can you give examples of some of the projects in the programme?
A11. Under the CO2 offset scheme, the contribution made by Land Rover and its UK customers will fund projects that reduce emissions globally. As well as making savings in greenhouse gases, the projects also have wider benefits to the local communities and environment too.
Examples of the type of project being developed from ClimateCare’s general portfolio: Distributing efficient cooking stoves in Honduras; installing wind turbines in Karnataka in India; installing energy efficient lighting in Kazakhstan.
Q12. There is no mention of tree planting. Why is that?
A12. The projects are chosen by our CO2 offset provider, ClimateCare, and are designed to be the most effective means of delivering CO2 offsets. All the projects will stop CO2 emissions at source rather than sequester or ‘soak it up’ through trees.