Nissan Begins Selling Green Car Credits in California to Boost Profits

NissanNissanJapan, 1932 > present159 models
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has become the second automaker to sell green car credits in California; the first was TeslaTeslaUnited States of America, 2003 > present4 models
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.

California requires automakers to sell zero emissions vehicles within the state based on their share of the US market, but those that do not sell enough zero emissions vehicles can buy credits for other automakers to make up for the deficit.

"We've got carbon credits to sell, and we're selling them,” said Nissan America Vice President Andy Palmer.

The California Air Resources Board created the rule to reduce CO2 emissions within the state and has set a goal of having 1.5 million zero emissions vehicles in the state by 2025. The board is known for creating the most strict air quality rules in the US.

Nissan gets three credits for each LeafNissan LEAFJapan, 2009 > present29 versions
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sold in the states that adhere to the California rules.

In Tesla’s case, it has too small of a market share to need the credits, so it sells the excess at a profit. Twelve percent of its revenue in the first half of the year came from selling the credits.

The credits are exchanged between automakers privately, so the exact price of each credit on the market is unknown.

Source: Automotive News