Ford is going to pool its CO2 emissions with Volvo in order to avoid a hefty EU fine for missing this year’s emission reduction target.
Volvo Cars and Polestar, which fall under the umbrella of the Volvo Car Group, agreed to sell CO2 credits to Ford, according to the pooling system implemented by the European Commission. The Swedish carmaker repeated that they still have CO2 credits to sell to other manufacturers that struggle to meet EU’s strict emission rules.
Read More: Volvo Open To Selling CO2 Credits To Other Manufacturers In Europe
Volvo said that the resulting revenue from the deal with Ford will be reinvested in “new green technology projects”.
“For Volvo Car Group, the future is electric and we are transforming our company through concrete action,” said Volvo Car Group’s CEO Håkan Samuelsson. “I am pleased to see that we are exceeding our CO2 reduction targets. It proves our strategy is the right one for our business and for the planet.”
Earlier this month, Ford Europe said that they would need to purchase CO2 credits from a rival carmaker in order to comply with EU’s rules. The carmaker claimed it was on track to meet the required CO2 target for this year, but the recent stop-sale order and recall of the Kuga PHEV prevented them from doing so.
The European Union allows rival carmakers to pool their CO2 emissions in order to avoid heavy fines; VW recently signed a deal with MG, following delays in their own EV launch schedule, while Fiat Chrysler is buying credits from Tesla. Renault has also announced that they are accepting partners for an open emissions pool as they are well under their emission targets for 2020.
