Pressure builds on carmakers as Nissan turns to BYD’s electric strength in Europe, pooling emissions to dodge fines and keep pace with strict green rules.
Nissan has confirmed a partnership with Chinese electric vehicle maker BYD to help meet strict European emissions requirements from 2025. The agreement aims to reduce Nissan’s fleet-wide CO2 average in the EU and avoid significant financial penalties.
The arrangement forms part of an EU-approved system that allows carmakers to ‘pool’ emissions. Manufacturers of petrol and diesel vehicles can pay zero-emission brands to lower their combined average. The system has become crucial for companies that remain reliant on combustion engines as climate rules tighten.
Nissan said the deal focuses on passenger car sales in EU markets for the 2025 reporting year. The company stated that the move supports both its decarbonisation strategy and the EU’s climate targets for 2050. It added that the partnership enhances regulatory compliance as it gradually shifts to fully electric products.
Analysts say EU rules require carmakers to achieve an average CO2 emission of 93.6g/km. Failure to comply could trigger fines totalling billions of dollars. Industry estimates suggest penalties might have reached £13 billion across the sector without pooling agreements.
According to a report by The Guardian, Chinese EV exports are already shaking Europe’s automotive landscape. Partnerships like this highlight the unusual dynamic where European and Japanese manufacturers depend on competition from Chinese brands to meet green goals. Tesla has struck similar agreements with Toyota, Ford, Mazda, Alfa Romeo and Suzuki. Polestar works with Mercedes-Benz, Volvo and Smart.
Critics say the system could slow Europe’s shift to cleaner vehicles. Carbon trading specialists warn that extending compliance deadlines to three years risks reducing urgency. EV adoption in parts of southern and central Europe remains sluggish, held back by weak charging infrastructure.
Automakers are also urging the EU to review its 2035 deadline to end sales of new combustion engine cars. They argue mainstream consumers still need convincing before fully embracing electric mobility.
Nissan has not disclosed the financial terms of the BYD agreement. More details are expected as the 2025 compliance period approaches.
