Future Steps
Response to Global Climate Change
Having achieved its targets for fiscal 2005, Honda established the following new objectives:Global Climate Change
Global climate change is a problem that cannot be solved by regional efforts. Rather, it requires the concerted efforts of industry, government and the private sector on a global basis to reduce CO2 emissions from human activity.Increasing Demand for Mobility
Currently, developed and developing countries differ in terms of the quality of mobility.For people to lead more affluent lives, improving the quality of mobility is indispensable. However, demand for mobility, including vehicles, is predicted to increase continuously in the future.
Higher Product Efficiency: Improving Average Fuel Economy throughout the World
Internal-combustion engines will remain the primary power source for mobility at least until around 2020, and we think it critically important to improve their efficiency and fuel economy.Each region, such as the United States and Europe, demands that automakers improve the average fuel economy of their products (such as U.S. Corporate Average Fuel Economy, or CAFE). As described earlier, however, every country needs to implement joint measures to deal with global climate change. Accordingly, Honda has decided to set targets to improve the fleet average fuel economy of each product line, shifting from a regional view to a global view and from a focus on categories by weight and model to a focus on all products, thereby advancing beyond its traditional concept of improving fuel economy by region.
Higher Efficiency in Production: Reducing CO2 Emissions from the Manufacturing of a Single Product
In addition, we will improve the efficiency of our production process around the world. To this end, we have decided to set out a target for reducing per-unit global average CO2 emissions from manufacturing.
Covering Most of the Product Lifecycle by Setting Targets for Products and Production Activities
CO2 Emissions from the Lifecycle of a Vehicle (Estimated Using the Honda LCA System)
Honda, by setting global targets for its products and production activities, believes that it is possible to control at least 80 percent of CO2 emissions from the lifecycle of a Honda product.
2010 CO2 Reduction Target
Honda’s goal is to be a company that creates products with the lowest CO2 emissions at manufacturing plants with the lowest CO2 emissions. To meet this goal, we have set out new global CO2 reduction targets for our products and production activities and plan to promote relevant measures.Honda is the first company in the automobile industry to announce a global CO2 reduction target for products as well as for the manufacturing of products

Regions covered
| Automobiles | Japan, North America, Europe, Asia, Oceania, China, and Central America, and South America (covering approximately 90 percent of the worldwide sales of Honda products) |
| Motorcycles | Japan, North America, Europe, Thailand, India, China, Indonesia, Vietnam, Brazil, the Philippines, Malaysia, and Pakistan (covering approximately 90 percent of the worldwide sales of Honda products) |
| Power equipment | All countries and regions, covering 100 percent of the worldwide sales of Honda products (excluding outboard engines) |
| Production | A total of 72 domestic and overseas Honda companies that assemble vehicles, including Honda Motor Co., Ltd., and major parts companies (covering nearly 100 percent of the Honda Group’s consolidated subsidiaries and major affiliates that assemble vehicles) Please refer to the list of companies targeted in the “Global Environmental Data (Production Domain)” |
Measures for Achieving the CO2 Reduction Target
Honda will implement the following measures as its strategy to achieve its 2010 CO2 reduction target.Development of Technology to Be Used in Engines Minimizing CO2 Emissions
Automobiles >Reference
Hybrid technology is an important technology to reduce CO2 emissions. In addition to the development of this technology, Honda will continue to make further developments in conventional gasoline engines and will introduce highly efficient clean diesel engines into the market. By fully utilizing the characteristics of various environmental technologies in an optimal manner, we will realize the greatest effect in globally reducing CO2 emissions from Honda automobiles in a comprehensive manner.• Gasoline-powered vehicles: Improve fuel economy by introducing more advanced VTEC systems and variable cylinder management systems
• Hybrid vehicles: Enhance Honda hybrid technology for small vehicles
• Diesel-powered vehicles: Expand the use of diesel engines for midsize and large vehicles
Motorcycles >Reference
We will be incorporating new engine technologies by the end of fiscal 2010, such as broadening the use of electronically-controlled fuel injection (FI) technology to include a greater number of models, and introducing super-low friction engines and variable cylinder management systems.• Electronically-controlled fuel injection (FI) system: Equip the majority of Honda’s worldwide motorcycle fleet with FI technology.
• Super-low friction engine: Improve fuel economy by approximately 13 percent compared with the current level
• Variable cylinder management system: Improve fuel economy by approximately 30 percent compared with the current level
Power Equipment >Reference
For all engine models, we will reduce fuel consumption (CO2 emissions) by improving the combustion system so that it will also achieve, cleaner exhaust emissions.Developing Fuel Cell Vehicles That Do Not Emit CO2
Fuel Cell Vehicles >Reference
We will enhance the development of fuel cell vehicles that have the cleanest performance, emitting no CO2 or harmful substances. We are now developing a new fuel cell vehicle that we plan to release within three years.Entering the Solar Cell Business to Generate Energy without CO2 Emissions
Solar Cells >Reference
As the first automaker to enter the solar cell business, we will contribute to the reduction of CO2 emissions by manufacturing and selling a clean energy source without the use of fossil fuels.Manufacturing Products with the Lowest CO2 Emissions at Plants with the Lowest CO2 Emissions
Production Domain >Reference
As in the past, Honda will continue its energy saving efforts at its production sites and make necessary capital investments for the introduction of solar panels and natural-gas systems. In the United States, Honda plans to start operations at a new auto production plant in 2008. This plant will feature state-of-the-art production systems and will have the lowest environmental footprint of all Honda automobile plants in the region. Honda is thus promoting CO2 emissions reduction at all its plants throughout the world.


