“Nissan intends to CO₂-pool with BYD across the EU during 2025 to meet more challenging emissions targets.” That’s what Schmidt Automotive Research, a UK-established, Germany-based independent consultancy and publishing firm that specializes in the automotive market, predicts. However, neither Nissan nor BYD has confirmed this so far.
Nissan’s intention to pool its European fleet CO₂ emissions with Chinese automaker BYD from 2025 would mark a quiet but strategic shift in how the Japanese brand plans to navigate the European Union’s tougher emissions regime. For Renault, its longtime alliance partner, the move is equally significant and, in fact, advantageous.
Advanced talks?
Nissan has officially stated before that it is ‘open to pooling’ its EU fleet CO₂ emissions with other carmakers to meet the more challenging 2025 target and avoid EU fines. The move would also reflect the end of Nissan’s previous pooling arrangement with Renault Group, which expired at the end of 2024.
BYD, in the meantime, has acknowledged it is in ‘advanced talks’ with European automakers about forming a pool or selling credits, but hasn’t confirmed partner names or that a partner is Nissan.
The new rules, taking effect in January 2025, tighten fleet limits by 15 percent compared with 2021 levels, to around 93.6 g/km for passenger cars, and have prompted a flurry of pooling deals between legacy carmakers and electric-only brands.
Tesla remains the largest beneficiary, selling credits to a host of legacy automakers, including Stellantis, Toyota, Ford, Mazda, and Subaru. A second primary pool links Mercedes-Benz with Polestar, Volvo Cars, and Smart, combining their low-emission fleets for compliance.
Crucial safety net
For Nissan, which is still transitioning its European line-up from internal combustion engines toward electric vehicles, pooling with BYD provides a crucial short-term safety net. Alone, it is some 30 g/km over target in 2025 in CO2 fleet emission snapshots.
BYD’s lineup in Europe, on the other hand, consists entirely of low- or zero-emission BEVs and PHEVs, making it an ideal partner to offset Nissan’s remaining gasoline and hybrid models, such as the Qashqai and Juke.
Other laggards besides Nissan include Ford (28 g/km), Mazda (27 g/km), and Suzuki (13 g/km), according to a September report by the International Council on Clean Transportation (ICCT). These other carmakers so far chose not to pool at all for 2025, risking full exposure to EU fines later on if the gap persists through the 2025-2027 averaging period.
Renault’s greener fleet
In the meantime, Renault’s greener fleet makes pooling unnecessary. Renault no longer needs the emissions relief that Nissan once provided. The French group has dramatically lowered its average CO₂ output thanks to its growing portfolio of EVs, including the Renault Zoe, Mégane E-Tech, and Scenic E-Tech, alongside the budget Dacia Spring and a strong line of E-Tech hybrids.
Analysts estimate Renault’s fleet is already compliant with 2025 limits, even before accounting for additional BEV launches. Pooling again with Nissan, whose average emissions remain higher, would have diluted Renault’s progress and limited its ability to bank or sell surplus emissions credits, now a valuable asset in the compliance market.
The timing also fits Renault’s broader strategy. Following the 2023-2024 restructuring of the Renault-Nissan-Mitsubishi Alliance, both companies are operating more independently.
Renault’s new EV subsidiary, Ampere, plans a public listing, and clear, standalone emissions data strengthens its environmental credentials ahead of that debut. Still, the Renault Group announced the cancellation of the planned IPO of Ampere on 29 January 2024, citing “current equity market conditions are unfavorable”.
By avoiding a joint pool with Nissan, Renault can report its own low-emission performance cleanly and monetize any CO₂ credits it generates. Nissan, in turn, gains a lifeline through BYD while it scales up European production of its upcoming EVs.
