Volvo’s near-term plan is to become a fully electric carmaker by the year 2030. But the company has an even more ambitious—and arguably more impactful—goal on the horizon: to be completely carbon-neutral by 2040. Volvo aims to achieve this by optimizing its manufacturing processes and greatly increasing the amount of recycled, sustainable materials being used in its cars. The new EX30 EV is a small crossover that represents a big step in this direction.

The EX30 focuses on carbon-neutrality from its inception. This subcompact electric SUV will be built at Volvo’s plant in Zhangjiakou, China—a facility powered by 100 percent climate-neutral electricity—and the carmaker will expand EX30 production to its Ghent, Belgium, factory in 2025. Volvo estimates that 25 percent of the aluminum used in the construction of the EX30 is recycled, as is 17 percent of all steel. Additionally, 17 percent of all the plastics in the EX30—everything from bumpers to interior components—is recycled, which is the highest percentage of any Volvo to date.

Sitting inside the EX30, these efforts are on full display. Denim, flax, and blended wool that contains 70 percent recycled polyester make up the deco pieces, which not only look cooler than traditional wood or metal trim but also feel more interesting beneath your fingertips. There’s a celestial deco that’s made from ground-down bits of scraps created during various manufacturing processes, and the denim pieces come from threading together shredded fibers that are usually wasted when recycling jeans. The flax fiber panels are colorful and full of texture, and vegan fabrics cover a long-time Volvo hallmark: super comfy seats.

Further simplification comes from reducing the complexity of stamped parts. The two dash panels on either side of the 12.3-inch multimedia screen are identical, as are the air vents and arm rests; and two toggles housed on the center console serve dual-purpose as controls for the front and rear windows, which is an annoying byproduct of this focus on part reduction. Also, while it can be frustrating to have all of the car’s settings housed inside the touchscreen, this allows Volvo to forego manufacturing superfluous buttons and knobs. Thankfully, the touchscreen quickly responds to inputs, and fixed rows of commonly used functions are always visible along the bottom of the display.

All told, Volvo says the EX30 represents a 25 per