Stellantis will buy CO2 credits from Tesla 2025 pool: here’s why

Francesco Armenio
Stellantis to continue buying Tesla CO2 credits in 2025 despite EU rule changes, as its EV sales remain below target.
Stellantis US

In recent days, Stellantis has confirmed that it will continue to purchase CO2 credits from Tesla in 2025 to meet the European Union’s strict emission reduction targets. Despite a regulatory change allowing automakers to comply with emission limits over a three-year period (2025-2027) instead of just for 2025, Stellantis’ European head Jean-Philippe Imparato stated that the company will continue to rely on Tesla’s carbon credit pool.

Stellantis has confirmed that it will also purchase green credits from Tesla in 2025 to avoid EU fines

Stellantis

Why is Stellantis buying Tesla’s carbon credits? Due to stricter EU emission regulations, European automakers must reduce their CO2 emissions or face heavy fines. Companies lagging in electric vehicle adoption, including the automotive group led by President John Elkann, are purchasing credits from companies like Tesla and Polestar.

Imparato spoke at an automotive event in Turin, Italy, where he stated that Stellantis‘ current mix of electric vehicles in its European sales is 14 percent, compared to the 21 percent target set by the EU. The 2027 extension “gives us some breathing room, but doesn’t provide a solution,” he said.
Imparato added that production of the new hybrid version of the Fiat 500 city car will begin in November at the Stellantis Mirafiori complex in Turin, with an annual production target for the vehicle, in both hybrid and electric versions, of 130,000 units.

Stellantis has joined a pool of automakers led by Tesla, which also includes other competitors. Earlier this month, the European Commission yielded to pressure from European manufacturers and authorized compliance based on an automaker’s average emissions over the 2025-2027 period and not just for 2025, as initially planned.

X