Finance
China's BYD in advanced talks to form pool in Europe over carbon credits
Published by Global Banking & Finance Review®
Posted on February 10, 2025
2 min readLast updated: January 26, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 10, 2025
2 min readLast updated: January 26, 2026
BYD is negotiating with European automakers to sell carbon credits, helping them avoid EU fines on 2025 emissions. Agreements must be notified to the EU by December 31.
TURIN (Reuters) -Chinese EV giant BYD is in talks to form a pool with European automakers and sell them carbon credits to help them avoid hefty European Union fines on 2025 emissions, a BYD representative said on Monday.
"We're in talks, we are well underway," BYD's special adviser for Europe Alfredo Altavilla said during a car presentation in Italy.
He did not offer further details.
Earlier this year automakers announced the creation of two pools, one with EV maker Tesla, Stellantis , Toyota, Ford, Mazda, Subaru, and another one between Germany's Mercedes, Polestar, Volvo Cars and Smart.
Companies with lower EV sales can pool their emissions with EV market leaders, purchasing emissions credits from them to lower their overall averages and save them hundreds of millions of euros in EU fines.
Automakers have to notify the European Commission of pooling agreements by December 31 of each year.
Brussels can request extra information about the agreements, but not assess their commercial terms.
Pool participants must not share data or exchange information other than about average specific emissions of CO2, specific emissions targets and the total number of vehicles registered.
(Reporting by Giulio Piovaccari, editing by Alvise Armellini and Louise Heavens)
The article discusses BYD's negotiations with European automakers to form a carbon credit pool to avoid EU emissions fines.
Carbon credits are permits allowing a company to emit a certain amount of carbon dioxide, which can be traded if unused.
Automakers use carbon credits to offset emissions and avoid hefty fines imposed by the EU for exceeding emissions targets.
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