Company calls on Brussels to ease regulations as the move could weaken the EU car industry
08 January 2025 - 16:09
byGilles Guillaume
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FILE PHOTO: The logo of French car manufacturer Renault is seen in front of a dealership in Vendenheim near Strasbourg, France, January 14, 2016. Picture: REUTERS/Vincent Kessler/File Photo
Paris — French automaker Renault is committed to complying with tighter EU rules on carbon dioxide emissions this year, it said, but believes automakers pooling their emissions could weaken the European car industry.
The EU lowered its cap on automotive CO2 emissions from January 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, and so on. This leads to the weakening of the European industry,” the company said in a statement.
It said it is urgently calling for more clarity on the matter.
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Renault urges clarity on carbon emission pooling
Company calls on Brussels to ease regulations as the move could weaken the EU car industry
Paris — French automaker Renault is committed to complying with tighter EU rules on carbon dioxide emissions this year, it said, but believes automakers pooling their emissions could weaken the European car industry.
The EU lowered its cap on automotive CO2 emissions from January 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, and so on. This leads to the weakening of the European industry,” the company said in a statement.
It said it is urgently calling for more clarity on the matter.
Reuters
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