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    Home > Headlines > Mazda forms EU carbon emissions pool with Changan joint venture
    Headlines

    Mazda forms EU carbon emissions pool with Changan joint venture

    Published by Global Banking & Finance Review®

    Posted on October 27, 2025

    1 min read

    Last updated: January 21, 2026

    Mazda forms EU carbon emissions pool with Changan joint venture - Headlines news and analysis from Global Banking & Finance Review
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    Tags:sustainabilitycomplianceinnovationpartnershipAutomotive industry

    Quick Summary

    Mazda teams up with Changan to form an EU carbon emissions pool, aiming to avoid fines by pooling credits. The initiative is valid for 2025 and open to other manufacturers.

    Mazda Partners with Changan to Create EU Carbon Emissions Pool

    MILAN (Reuters) -Japanese automaker Mazda has teamed up with its joint venture with China's Changan to pool carbon credits and help avoid carbon emissions fines, an EU document showed.

    Several legacy carmakers face potential European Union fines as their shift to electric vehicles (EVs) has been slower than expected. But those with lower shares of EV sales can "pool" their emissions with segment leaders, purchasing credits from them and lowering their overall averages.

    EU's fines, which carmakers have said could total up to 15 billion euros ($17.5 billion) for the industry, were initially envisaged to apply to 2025 carbon emission levels. 

    However, in March, the European Commission bowed to pressure from car manufacturers and allowed compliance based on their average emissions over 2025-2027.

    The pool between Mazda and its 50/50 joint venture with Changan is valid for 2025 and is open to other manufacturers until the end of November.

    It adds to four others formed earlier this year, all of them valid for 2025, including ones built around Tesla and Mercedes-Benz.

    ($1 = 0.8575 euros) 

    (Reporting by Giulio Piovaccari; Editing by Alexander Smith)

    Key Takeaways

    • •Mazda partners with Changan for EU carbon credits.
    • •The pool aims to avoid EU emissions fines.
    • •Fines could reach 15 billion euros for carmakers.
    • •The pool is open to other manufacturers until November.
    • •Compliance is based on average emissions over 2025-2027.

    Frequently Asked Questions about Mazda forms EU carbon emissions pool with Changan joint venture

    1What is carbon credit?

    A carbon credit is a permit that allows the holder to emit a certain amount of carbon dioxide or other greenhouse gases. Companies can buy and sell these credits to meet regulatory limits on emissions.

    2What is an electric vehicle (EV)?

    An electric vehicle (EV) is a type of vehicle that is powered by electricity instead of traditional fuels like gasoline or diesel. EVs are known for being more environmentally friendly.

    3What are emissions fines?

    Emissions fines are penalties imposed on companies that exceed regulatory limits for greenhouse gas emissions. These fines are designed to encourage companies to reduce their environmental impact.

    4What is a joint venture?

    A joint venture is a business arrangement where two or more parties agree to collaborate on a specific project or business activity, sharing profits, losses, and control.

    5What is the European Commission?

    The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.

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