Jaguar Land Rover to Join Tesla’s CO2 Emission Pooling in Europe

Photo: Matthias Schmidt

Jaguar plans to go all-electric by 2025, and with electric vehicle (EV) Land Rover variants coming as soon as 2024, and in order to do so, the company will need to significantly drop its supply chain emissions – though a new report shows that won’t happen yet this year.

Jaguar Land Rover (JLR) has agreed to join Tesla’s EU CO2 pool in 2021, according to Automotive Research and European Commission data obtained by Matthias Schmidt. The data details JLR plug-ins registered sold in West Europe, which made up a quarter of all the company’s sales in the same time period.

This means Tesla may see some earnings from Jaguar Land Rover, joining Honda Motor Co., which is also in the pool.

According to Schmidt, in 2020 JLR was hit with 35 million in GBP fines for failing to meet its EU CO2 goal. Joining a CO2 pool with Honda and Tesla may result in fewer penalties than paying fines.

While most manufacturers are likely to reach their CO2 targets, many were also struggling to produce as many vehicles amidst the semiconductor shortage – which could feasibly cause JLR to want to boost its other profits by focusing on more profitable vehicle models, while sacrificing their CO2 targets.

Because of its classification as a niche manufacturer, JLR has a CO2 derogation target of 131.8g/km, although most volume manufacturers are subject to a 95g/km target from the New European Driving Cycle (NEDC).