Alongside Tesla, Nissan has announced it began selling its excess green-car credits under California’s clean-air rules.
The state of California requires large automakers to sell electric or other zero-emission vehicles in proportion to their share of the largest U.S. state market for cars and trucks. Nissan has delivered enough of its all-electric Leaf hatchbacks that it has started selling excess credits, Executive Vice President Andy Palmer told reporters in Irvine, California, this week.
“We’ve got carbon credits to sell, and we’re selling them — California ZEV credits,” Palmer said. He didn’t elaborate, and the Yokohama, Japan-based company declined to provide details about timing, price or purchasers.
U.S. demand for plug-in hybrid and battery-only autos has been pushed by California’s requirement for such vehicles to ease emissions of climate-warming carbon dioxide and other exhaust gases and by federal rules aimed at doubling fuel-efficiency by 2025. The state’s target is to get 1.5 million zero-emission vehicles on the road by 2025.
Tesla, too small to be required to accrue the ZEV credits under California’s pollution rules, has so far been the main seller. Its first net income was made possible in part by such transactions to undisclosed mass-market rivals. Including sales of credits for exceeding federal efficiency requirements, such transactions accounted for 16% of Tesla’s total revenue.