MILAN (Reuters) -Japanese automaker Mazda has teamed up with its joint venture with China’s Changan to pool carbon credits and help avoid carbon emissions fines, an EU document showed. Several legacy carmakers face potential European Union fines as their shift to electric vehicles has been slower than expected. But those with lower shares of EV […]
Business
Mazda forms EU carbon emissions pool with Changan joint venture
Audio By Carbonatix
MILAN (Reuters) -Japanese automaker Mazda has teamed up with its joint venture with China’s Changan to pool carbon credits and help avoid carbon emissions fines, an EU document showed.
Several legacy carmakers face potential European Union fines as their shift to electric vehicles has been slower than expected. But those with lower shares of EV sales can “pool” their emissions with segment leaders, purchasing credits from them and lowering their overall averages.
EU’s fines, which carmakers have said could total up to 15 billion euros ($17.5 billion) for the industry, were initially envisaged to apply to 2025 carbon emissions levels.
However, in March, the European Commission bowed to pressure from car manufacturers and allowed compliance based on their average emissions over 2025-2027.
The pool between Mazda and its 50/50 joint venture with Changan is valid for 2025 and is open to other manufacturers until the end of November.
Mazda is already part of a different pool formed at the beginning of this year around Tesla which also includes Stellantis and Ford.
Including the new Mazda one, a total of five pools have been set up so far this year.
($1 = 0.8575 euros)
(Reporting by Giulio Piovaccari; Editing by Alexander Smith)