How to avoid European Union fines? Stellantis, Toyota and Ford would be ready to join Tesla‘s CO2 pool in 2025, according to Automotive News. Mazda and Subaru are also included, while automakers seek to avoid hefty penalties from stricter EU emission regulations effective January 1, 2025. Green credits are appealing, and thus Elon Musk grows even richer. Otherwise, those who violate the new limits risk fines of 16 billion euros. Additionally, more electric cars and fewer internal combustion engine cars registered will mean lower chances of receiving fines.
Stellantis could avoid European Union fines thanks to Tesla
Average CO2 emissions from new cars registered in Europe have steadily decreased in recent years, with a 28% reduction between 2019 and 2023. The main driver of this emissions decrease is the surge in electric vehicle registrations, which reached 23.6% of the European Union’s new car fleet in 2023. Almost all car manufacturers achieved their binding targets in 2023. Transport emissions represent a quarter of EU greenhouse gas emissions. To achieve climate neutrality, the European Green Deal requires a 90% reduction in transport greenhouse gas emissions by 2050.
To help achieve these goals, EU Regulation 2019/631 establishes fleet-wide targets for average CO2 emissions of all new cars in Europe. For 2020-2024, the target is 95 gCO2/km (NEDC), equivalent to about 115.1 gCO2/km (WLTP). From 2025 onwards, stricter EU fleet targets: 93.6 g/km until 2029, 49.5 g/km from 2030 to 2034, and 0 g/km from 2035. Specific emission targets also apply. These are binding for manufacturers both individually and organized in pools. Hence the idea of teaming up: many car manufacturers together in an anti-pollution team.
In 2023, average CO2 emissions from new cars registered in the EU decreased by 1.6% compared to 2022 and reached 106.4 gCO2/km. The main reason for the reduction observed in the last year is the growing share of battery electric vehicle (BEV) registrations, which increased from 13.5% in 2022 to 15.5% in 2023. However, gasoline cars continued to be the most sold fuel type in 2023, making up more than half of all new registrations (including hybrid cars), followed by diesel cars (17%).
Specific emission targets are set annually for each manufacturer or pool, which is a group of manufacturers acting together to meet the target. These targets are based on the average mass of the manufacturer’s or pool’s new vehicle fleet in the year in question. Until 2024, companies producing heavier vehicles have higher emission targets than others. Manufacturers or pools responsible for fewer than 300,000 newly registered cars per year can benefit from a derogation target.
In 2023, 98 out of 101 manufacturers, individually or as pool members, reached their binding target. In some cases, this was facilitated by the use of eco-innovation savings. Three individual manufacturers (DFSK Motor Co Ltd, General Motors Holdings LLC, and Lotus Cars Limited), each responsible for fewer than 1,600 newly registered vehicles in Europe, exceeded their respective targets.
Average CO2 emissions of all pools are below 125 gCO2/km. The pools with the lowest average CO2 emissions were Kia, BMW, and Stellantis, reporting between 100 and 103 gCO2/km. Among individual manufacturers, Tesla registered over 300,000 new zero-emission vehicles in Europe in 2023. Polestar registered about 22,000, BYD about 15,000, and Smart about 9,700.
The pool is managed by Tesla‘s Dutch subsidiary: Pool Manager. It includes 15 car manufacturers, including Toyota Motor Europe, also present as a representative of Toyota Motor Corporation and Toyota Gazoo Racing Europe GmbH. Then Ford Werke GmbH, also on behalf of Ford Motor Company. Also Mazda Motor Europe GmbH and Subaru Europe. And furthermore: Stellantis Auto Sas, Automobiles Peugeot SA, Automobiles Citroën SAS, Stellantis Europe Spa, FCA Us Llc (Stellantis Europe), Alfa Romeo Spa, Opel Automobile GmbH and Leapmotor Automobile Co.. This way Stellantis will be able to avoid European Union fines, making Elon Musk and his Tesla even richer.