Emissions sharing deal with Tesla confirmed
In its financial results presentation for the quarter, Jaguar Land Rover confirmed details of the agreement with Tesla and Honda to join an emissions pool to ensure it avoids financial penalties for missing the UK and European Union’s CO2 emissions targets.
The firm said that it had been on track to meet its compliance target for CO2 emissions based on demand, but that the semiconductor shortage had disproportionately affected production of electrified cars.
To avoid penalties, Jaguar Land Rover has entered a pool with Tesla and Honda – and it has an agreement to extend that into 2022 if needed. While the firm did not directly say how much it had paid Tesla to join the pool, it noted it had been able to reduce its compliance reserves by AUD$94.5 million to AUD$67.24 million.
The firm has also set aside AUD$107 million for 2021 to continue buying EV credits in both the US and China.