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Carbon-based circular economy

Mercedes-Benz joins the “Renewable Carbon Initiative”.

October 07, 2025 – Mercedes-Benz is the first automotive company to join the “Renewable Carbon Initiative” (RCI), marking a pioneering step towards fossil-free vehicle components.

Founded by the nova-Institute, the initiative brings together industry leaders from the chemical, energy and automotive sectors. Together, they share a common goal: to completely replace fossil-carbon sources with renewable alternatives derived from biomass, CO₂ utilisation, and recycling.

Strategic partnership with industry leaders including

Against the backdrop of growing public awareness of the need to reduce fossil resources and promote more sustainable alternatives, joining the “RCI” fits seamlessly into Mercedes-Benz’s commitment to responsible resource use. The focus here is on supporting the strategic pillar “Resource Use & Circular Economy”, which goes far beyond individual products. Together with partners such as BASF, Covestro, Michelin, Continental and WWF, the brand with the three-pointed star aims to develop innovative solutions for a carbon-based circular economy while eliminating the use of fossil resources.

Pilot projects planned for 2026

Concrete pilot projects are already planned for 2026. Mercedes-Benz is exploring carbon capture and utilisation for automotive plastics, bio-based carbon sources for components, and circular carbon solutions. These measures support the implementation of the sustainable business strategy and contribute to resource conservation, circularity and decarbonisation.

Joining the ‘Renewable Carbon Initiative’ is an important step in driving the transition to renewable carbon sources and working with strong partners to develop innovative, fossil-free solutions.

Ulf Zillig
Vice President Group Research, Sustainability and RD Functions, Mercedes-Benz AG

By joining the “RCI”, Mercedes-Benz is purposefully expanding its circle of strategic partners to include innovative start-ups and leading institutes, further strengthening its innovation network for sustainable solutions across the entire value chain. In addition, in 2023, suppliers representing around 87 percent of Mercedes-Benz’s annual purchasing volume signed an Ambition[1]The ambition of the Mercedes-Benz Group is by 2039 to reduce its CO₂ emissions by 90% in its own production, by 80% in the vehicle use phase, where market conditions permit, and by 70% across all relevant stages of the value chain, compared to 2019. In addition, the Mercedes-Benz Group supports qualified climate change mitigation projects that meet recognized standards. By 2049 at the latest, the Mercedes-Benz Group intends to achieve net-zero. Net-zero means that the CO₂ emissions will be reduced by at least 90% compared to 2019. Remaining CO₂ emissions (< 10%) will be neutralized permanently.
Letter, agreeing to supply the company only with net carbon-neutral production materials in the future. With access to specialised renewable carbon technologies and networks, Mercedes-Benz can further accelerate the transformation of its supply chain.

Actively shaping the transformation of the automotive industry

Becoming a member of the “RCI” marks another milestone in Mercedes-Benz’s active role in shaping the transformation of the automotive industry. The company’s commitment to sustainability goes far beyond individual products: under the guiding principle of “Tomorrow drives Mercedes-Benz”, sustainability is firmly anchored in the business strategy and throughout the entire value chain.

Mercedes-Benz Sustainability Dialogue 2022.

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