In a move highlighting the intensifying pressure to meet stringent environmental regulations, Japanese automotive giants Honda and Suzuki have officially joined forces with U.S. electric vehicle pioneer Tesla in a European Union (EU) carbon emissions pool for the year 2025. An EU filing revealed on Monday that this alliance aims to ensure compliance with the EU’s intermediate carbon reduction targets, commonly known as CAFE (Corporate Average Fuel Economy) standards.
This development underscores the significant challenges traditional automakers face in rapidly transitioning their fleets to meet increasingly ambitious emissions goals. By pooling their emissions with Tesla, a company whose entire output boasts zero tailpipe emissions, Honda and Suzuki gain access to valuable “credits” that can offset emissions from their internal combustion engine (ICE) vehicle sales.
Source: Reuters