The Corporate Average Fuel Emissions (CAFE) regulation establish progressive limits that manufacturers, such as Mercedes-Benz, must meet from 2020 onwards as part of their commitment to decarbonising their vehicles.
In this regard, as of 1 January this year, the regulation sets an average limit of 93.6 grams of CO2 per kilometre for all cars sold within the territory of the European Union (EU).
This represents a reduction of 23.5 grams compared to the previous limit of 115.1 grams.
In this context, Mercedes-Benz states to Mobility Portal Europe:
“To close the remaining gap and meet European CO2 emissions targets for our new fleet of vehicles, Mercedes-Benz, Mercedes-AMG, smart, Volvo, and Polestar intend to form an open CO2 pool for 2025.”
The German automaker is setting the groundwork for a fleet of new, carbon-neutral cars by 2039.
This means that the carbon emissions not avoided or reduced by the company will be offset through certified compensation projects.
“The path to decarbonisation is the only way forward. Mercedes-Benz continues to invest billions in electric vehicles,” they assert.
On the other hand, it is worth mentioning that the European Commission explains to Mobility Portal Europe – through a statement – that open emission pools have become a key tool for manufacturers.
“These facilitate compliance with CO2 emissions targets, fostering open and non-discriminatory participation among industry players,” explains a spokesperson.
What are emissions pools?
As defined in Regulation (EU) 2019/631, it allows manufacturers to collaborate to meet the established limits.
There are two main types of pools: closed ones, which are composed of manufacturers from the same corporate group, and open ones, which include companies from different groups.
In the case of Mercedes-Benz, Volvo, and Polestar, their intention to form an open pool aligns with the EU’s transparency and fair competition regulations.
These agreements must be notified to the Commission before the end of the calendar year in which the pool is created.
“For example, for 2025, the notification deadline is 31 December of the same year,” they detail.
For open pools, the notification of the agreement must be preceded by a declaration of interest to form a pool, allowing other manufacturers to express their interest in joining the relevant pool.
Declarations of interest to form an open one are published on the Commission’s website (CIRCABC).
“This is the case with the aforementioned companies, which have declared their intention to form open pools in accordance with the regulation,” they state.
And they add: “These planned pools are now open for applications, and the details have been published on our portal.”
Mercedes-Benz is included in the “M1 Declarations of Intent to Form Open Pools” published on 15 January.
Industry positions on the CAFE regulation
Non-compliance with the CAFE regulations results in a fine of 95 euros for each gram of CO2 exceeded.
In this context, the European Automobile Manufacturers’ Association (ACEA) warned that the industry risks losing up to 16 billion euros in investment capacity due to these requirements.
As a result, many manufacturers expressed concerns about their ability to meet the emissions target for 2025.
In this regard, Wopke Hoekstra, European Commissioner for Climate, Net Zero, and Clean Growth, states that “the Commission is aware” of this situation, which is influenced by a growing global competitive environment and a contracting automotive market.
“At the same time, other large European manufacturers have expressed confidence in their ability to meet their targets and have strongly opposed any changes to the framework for 2025,” he details in a statement.
Therefore, he maintains that modifying the rules would distort the fair competitive conditions and place these manufacturers at a competitive disadvantage.
Electric vehicles are not the only route to achieving the targets: hybrids, plug-in hybrids, improvements to conventional engines, as well as the development of smaller and more efficient cars, can also contribute.
As set out in Article 15 of Regulation (EU) 2019/631, the Commission will review the effectiveness and impact of the regulation in 2026.
This will be based on the progress report to be submitted by the end of 2025, taking into account updated information on the implementation of the regulation.
