Emissions pooling saves penalties, boosts revenue

As the European electric vehicle (EV) market growth has slowed significantly, vehicle companies have looked anxiously at their ratios of EV to total sales. Failing to sell enough EVs to comply with emissions targets (measured in the EU through average grammes of CO2 per km) could mean significant fines. However, a regulatory exemption allows vehicle companies to pool their total sales so that companies which have excess CO2 emissions can avoid fines by allying with companies with significant credits. Tesla, which sells only EVs, has substantial excess emissions credits in relation to its sales and can sell these credits to other vehicle companies in a pooling system to help them comply with the emissions rules.