This post was originally published on this site
Passenger vehicles will account for about 7% of global carbon emissions in 2020, and as carbon costs increase this could seriously impact automakers’ bottom line, according to Morgan Stanley.
“In a world where the price of carbon emissions rises, the impact of such numbers on financial results and investment performance may be significant,” Morgan Stanley auto analyst Adam Jonas said in a note to clients Wednesday.
Owen Richards | The Image Bank | Getty Images
“While this process may take time and auto & auto related firms may have any number of strategies to adapt their fleets … we believe investors cannot be too early in assessing the exposure as a starting point,” he added.
Morgan Stanley estimates that passenger vehicles will emit 3.8 gigatons of carbon dioxide worldwide next year, or 7% of total emissions.
