• Automakers like Stellantis, Toyota, and Ford plan to buy carbon credits from Tesla and Polestar to avoid EU emissions fines.
• EU regulations could cost carmakers €15 billion in penalties without carbon credit pooling.
• Tesla- and Mercedes-led carbon credit pools are open to other manufacturers until early February.

Navigating Stricter EU Emissions Rules

To comply with the EU’s 2025 carbon emissions rules, major automakers are partnering with electric vehicle (EV) leaders like Tesla and Polestar to pool CO₂ emissions and buy carbon credits, an EU filing revealed.

By pooling with EV manufacturers, automakers with lower EV sales can lower their emissions averages and avoid hefty fines, potentially saving hundreds of millions of euros.

“Our participation in the pool will help us meet EU targets while optimizing resources,” a Stellantis spokesperson said.

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Key Partnerships Forming

• Tesla-led pool: Stellantis, Toyota, Ford, Mazda, and Subaru plan to join.
• Mercedes-led pool: Polestar, Volvo, and Smart are selling their surplus credits to Mercedes.

Polestar confirmed its partnership, with a spokesperson stating, “Polestar, Volvo, and Smart will sell surplus credits to Mercedes.”

High Stakes and Pushback

According to Renault CEO Luca De Meo, the 2025 rules could cost European automakers €15 billion ($15.6 billion). The European Auto Lobby (ACEA) and some governments, including Italy, are calling for a suspension of the penalties.

Carmakers interested in joining the Tesla-led pool must apply by February 5, while the Mercedes-led pool closes February 7. No details on the credit volumes involved were disclosed in the filing.

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