Fiat Chrysler Automobiles is teaming up with Tesla Inc. to comply with stricter European Union emission rules.

FCA is using an EU “open pool” option that allows automakers to group their fleets together to meet carbon dioxide emission targets. The company declined to comment on a Financial Times report Sunday that it’s paying Tesla hundreds of millions of euros for the arrangement.

“The whole point of a CO2 credit market is to leverage the most cost-effective ways to reduce overall greenhouse gas emissions in the market,” FCA said in a statement. “The purchase pool provides flexibility to deliver products our customers are willing to buy while managing compliance with the lowest cost approach.”

Calls to Tesla’s office in Amsterdam went unanswered outside business hours in Europe.

A notification on the European Commission website shows Fiat Chrysler formed an open pool with Tesla on February 25. Mazda and Toyota are also forming an open pool. The EU’s target for average new-car emissions of CO2 will decline from 130 grams to 95 grams by 2021.

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