Japanese automaker Mazda has joined forces with its Chinese partner Changan to pool carbon credits in an effort to avoid potential European Union (EU) emissions fines, according to an EU document. The move highlights growing pressure on legacy carmakers that have been slower to transition to electric vehicles.
Under EU rules, car manufacturers whose average fleet emissions exceed permitted limits can face significant fines. To mitigate this risk, companies are allowed to form “pools” with other automakers that have lower emissions or higher electric vehicle (EV) sales, thereby sharing compliance credits and reducing their overall emissions average.
See also: All-Electric Mazda6e Earns Five-Star Euro NCAP Safety Rating
The Mazda-Changan pool, formed through their 50/50 joint venture, will apply to the 2025 reporting year and remains open for other manufacturers to join until the end of November. The EU’s carbon compliance mechanism allows such partnerships as a temporary measure to help automakers meet tightening environmental standards.
Mazda is already part of another emissions pool established earlier this year alongside Tesla, Stellantis, and Ford. Including the newly formed Mazda-Changan collaboration, five such pools have been created so far in 2025.
See also: Changan Mazda Launches EZ-60 SUV With EREV and BEV Options, Eyes Global Markets
European regulators had initially planned to apply emissions fines starting in 2025, which could have totaled up to 15 billion euros ($17.5 billion) for the industry. However, in March, the European Commission granted a concession, allowing compliance calculations to be averaged over the 2025–2027 period instead of a single year.