Renault has agreed to abide by the EU’s new tighter 2025 CO2 emissions rule for cars . However, according to Reuters, the company has voiced concerns that pooling emissions with competitors could weaken the European car industry.
Beginning on 1 January, the EU severely reduced the automobile carbon dioxide cap. Automakers must see that EVs compose at least 20% of their sales total to avoid massive fines. Businesses that do not meet the 20% mark will buy emissions credits from firms which sell more than 20% more EVs, allowing the non-compliant company to “pool” their excess emissions.
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Renault’s Concerns
The automaker has not made a call on whether it will also pool emissions. But it has voiced out concerns that such a move could harm the European automotive sector. Renault believes that pooling emissions by purchasing credits from Tesla or Polestar could undermine the competitiveness of the EU car industry.
Renault is urging the European Commission for more clarity on the matter to avoid such counterproductive measures. The company stresses that without a clear position from the European Commission, the car industry could be driven into a corner.
The Impact of Emissions Credits
Companies such as Stellantis, Mercedes, and Toyota have already announced that they will purchase carbon credits from manufacturers like Tesla. These credits reduce the overall average emissions of carmakers, thus avoiding penalties. Manufacturers can avoid heavy fines and save hundreds of millions of euros by buying credits.
Renault contends that automakers are compelled to make choices that could negatively impact their business operations in the absence of explicit requirements from the European Commission. The company warned that such decisions—like purchasing emissions credits or making production cuts—could further weaken Europe’s car industry.