Stellantis to buy CO2 credits from Tesla ’pool’ also in 2025, exec says

Stellantis, the multinational automotive conglomerate, will continue purchasing carbon dioxide (CO₂) emission credits from Tesla's pooling arrangement in 2025 to comply with the European Union's stringent emissions reduction mandates. This decision comes despite the EU granting automakers an extended compliance period spanning 2025 to 2027, rather than solely focusing on 2025 as initially planned. ​

Jean-Philippe Imparato, Stellantis' Head of European Operations, emphasized the company's commitment to utilizing all available resources to meet regulatory standards and avoid substantial fines. He noted that Stellantis' current electric vehicle (EV) sales constitute 14% of its European market share, falling short of the EU's 21% target. Imparato acknowledged that the extended compliance timeline offers some respite but does not present a definitive solution to the challenges ahead. ​

In addition to its emissions strategy, Stellantis plans to commence production of a new hybrid version of the Fiat 500 at its Mirafiori complex in Turin by November. The company aims for an annual production target of 130,000 units for both the hybrid and electric variants of the Fiat 500. ​

The practice of pooling emissions allows automakers with lower EV sales to partner with manufacturers like Tesla, whose fully electric fleets generate surplus CO₂ credits. By purchasing these credits, companies can lower their average emissions and avoid hefty penalties. This strategy has become increasingly common among manufacturers striving to meet the EU's rigorous environmental standards. ​

Tesla has significantly benefited from such arrangements, with revenue from carbon credit sales accounting for nearly 3% of its $72 billion total revenue in the first nine months of the previous year. Analysts project that Tesla's earnings from credit sales in Europe could surpass €1 billion in 2025, as automakers seek to align with the EU's emissions targets. ​

While the EU's decision to average emissions over a three-year period provides some flexibility, industry leaders like Imparato stress that it is not a panacea. Automakers must continue to invest in electrification and other sustainable technologies to achieve long-term compliance and reduce reliance on credit purchases. The automotive sector faces ongoing challenges in balancing regulatory requirements, environmental responsibilities, and market demands as it navigates the transition toward a more sustainable future.​