Headlines
Mazda forms EU carbon emissions pool with Changan joint venture
Published by Global Banking & Finance Review®
Posted on October 27, 2025
1 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 27, 2025
1 min readLast updated: January 21, 2026
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.
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)
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.
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.
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.
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.
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.
Explore more articles in the Headlines category
