As of January 1, 2025, Australia’s first carbon dioxide (CO2) emission standards were in effect and Polestar is the first car manufacturer to sell credits to other automakers seeking to comply with the new rules.
Polestar only sells electric vehicles (EVs) similar to Tesla. As such, it has more than enough to meet the Australian government’s recently implemented CO2 emissions standards under the New Vehicle Efficiency Standard (NVES) Act. Polestar’s NVES credits might be lucrative for the company.
The Australian government finalized the country’s first carbon dioxide emission standards in May 2024. The new NVES sets emission targets from 2025 to 2029 for new passenger cars, sports utility vehicles, utility vehicles (utes or pickup trucks), and vans.
Earlier this month, traditional automakers reportedly decided to pool carbon emissions with Tesla to comply with the European Union’s 2025 CO2 standards. UBS Group AG estimated that Tesla could collect over $1 billion in 2025 from the EU by sharing its CO2 emission credits with other automakers. Polestar might not quite see a similar figure as Tesla but could still profit significantly by selling NVES credits in Australia.
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