Several vehicle manufacturers are reportedly considering creating a fund to purchase carbon credits from Tesla and Polestar to avoid fines stipulated under the Corporate Average Fuel Economy (CAFE) regulation on vehicle emissions.
Since 1 January 2025, the CAFE regulations require that CO2 emissions fall to 93.6 grams per kilometre for cars sold in the 27 EU member states.
In this context, the aim of these automotive companies is to “pool” their emissions with those of pure electric car manufacturers by purchasing emissions rights.
This would lower their overall average emissions and potentially save billions of euros in fines for traditional automakers.
Manufacturers that fail to comply face fines of up to 95 euros per gram exceeded, potentially leading to multi-billion-euro penalties for automakers that cannot meet the targets for zero-emission vehicle sales outlined in the EU regulations.
Going forward, the CAFE regulations mandate a 15% reduction in the average CO2 emissions of each manufacturer’s vehicles compared to the levels at the beginning of the decade.
The limit introduced in 2025 will be further reduced, reaching 49.5 grams of CO2 per kilometre, with the aim of implementing a de facto ban on petrol and diesel vehicle sales by 2035.
Which automakers are reportedly interested in creating this fund?
Stellantis, Toyota, Ford, Mazda, and Subaru are believed to be planning to merge their carbon emissions with Tesla to comply with European Union regulations, while Mercedes-Benz, Volvo, and Smart are expected to collaborate with Polestar, according to international media sources cited by Europa Press.
“Stellantis is committed to reducing CO2 emissions, and our participation in this pool will contribute to achieving our European emissions targets for 2025 while optimising our resources,” Stellantis representatives told Europa Press. They added that the company’s strategy currently focuses on developing “innovative technologies” to build “a company of the future.”
