Chinese electric vehicle giant BYD is in discussions with European car manufacturers to form an emissions pool, allowing automakers to purchase carbon credits and avoid substantial EU fines on 2025 emissions targets, a company representative confirmed on Monday.
“We’re in talks, we are well underway,” said Alfredo Altavilla, BYD’s special adviser for Europe, during a car presentation in Italy. However, he did not provide further details regarding potential agreements.
Under EU regulations, automakers with higher emissions can pool their carbon footprint with EV market leaders to lower their overall average emissions, thereby avoiding financial penalties. Similar agreements have already been established this year, including a Tesla-led pool featuring Stellantis, Toyota, Ford, Mazda, and Subaru, and a Mercedes-led pool with Polestar, Volvo Cars, and Smart.
Pooling agreements must be notified to the European Commission by 31 December each year. While Brussels can request additional information, it does not assess the commercial terms of these arrangements. Participants are restricted from sharing data beyond CO₂ emissions figures, targets, and total vehicle registrations.
If finalised, BYD’s participation in an emissions pool would strengthen its expanding European footprint while providing traditional automakers with a compliance mechanism to meet EU climate regulations.
