European carmakers led by Volkswagen could be forced to pay hundreds of millions of euros to Chinese electric vehicle rivals to buy carbon credits, as the auto sector tries to avoid potential fines for failing to meet 2025 pollution rules set by Brussels.
Under EU rules requiring carmakers to cut emissions, manufacturers lagging in the electric transition face the choice of paying billions of euros in fines, boosting EV sales by slashing prices or buying credits from less polluting competitors.
Europe is the fastest warming continent on earth, estimated at twice the global average since the 1980s, in large part because of its proximity to the melting Arctic where exposed dark ground amplifies the effect.
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