Published by Global Banking & Finance Review®
Posted on January 8, 2025
2 min readLast updated: January 27, 2026
Renault warns that pooling CO2 emissions could harm the EU car industry, urging for regulatory clarity. The EU's new rules require more EV sales to avoid fines.
PARIS (Reuters) -French automaker Renault is committed to complying with tighter EU rules on CO2 emissions this year, it said, but believes automakers pooling their emissions could weaken the European car industry.
The EU significantly lowered its cap on automotive carbon dioxide emissions from Jan. 1, meaning at least one-fifth of all sales by most car companies must be EVs to avoid heavy fines.
Companies with lower electric vehicle sales can "pool" their emissions with segment leaders, however purchasing emissions credits from other manufacturers to lower their overall averages and save them hundreds of millions of euros in penalties.
EU filings on Tuesday showed companies including Stellantis, Mercedes and Toyota are planning to buy carbon credits from producers including Tesla and Polestar.
Renault said it was too early to say if it would also pool emissions, but added the move would be damaging to the sector. It has been urging Brussels to ease the regulations instead.
"Without a clear position from the European Commission, the manufacturers are forced to take counterproductive decisions such as purchasing credits from competitors, potential production cuts, etc. This leads to the weakening of the European industry," the company said in a statement to Reuters.
It added it is urgently calling for more clarity on the matter.
(Reporting by Gilles Guillaume, writing by Charlotte Van Campenhout and Dominique Patton, editing by Jason Neely and Louise Heavens)
The main topic is Renault's warning about the potential negative impact of pooling CO2 emissions on the EU car industry.
Renault believes that emissions pooling could weaken the European car industry by forcing manufacturers to make counterproductive decisions.
The EU regulation requires car manufacturers to have at least one-fifth of their sales as EVs to avoid heavy fines.
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