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WDH: VW Group buys emissions certificates outside of Europe | 06/05/21

(Repeat: in the penultimate sentence of the first paragraph, the missing word “der” has been added.)

WOLFSBURG (dpa-AFX) – Outside Europe, the VW Group (Volkswagen (VW) vz) also purchases emissions certificates to meet its emissions targets. “In Europe we are confident that we will achieve the fleet goals,” Chief Executive Herbert Deiss said on Thursday in a conference call with reporters. In other markets such as China and the United States, there are smaller agreements to purchase certificates. “This is declining as our electrical strategy intensifies, and in two to three years, it should be zero,” the manager said. Deiss did not provide any information with whom the Wolfsburg-based company concluded such deals and what the company cost them.

Car manufacturers in various regions can reduce their vehicle fleet emissions on paper by purchasing surplus so-called credits from other car manufacturers that fall below emissions standards. For example, Tesla, the leading US electric company that only produces electric cars and does not produce combustion engines themselves, is in a lucrative trade in corresponding emissions rights.

For example, the Italian-American automaker Fiat Chrysler – today part of the Stellantis Group – recently replenished its emissions balance sheet in Europe with Tesla purchased credits. Stellantis President Carlos Tavares wants to end the rights trade after Fiat Chrysler’s merger with PSA (Peugeot, Citroen, Opel) starting next year, as he now assumes he will be able to adequately reduce emissions / fba