Earlier quoted context omitted.
Im pretty sure its just a case of completely out of control rules - they became impossible to follow, so everyone just decided to "play along"
Also rules that are in conflict. To get good mileage and corresponding low CO2 emissions, you need ultra lean mixtures. Alas, ultra lean mixtures produce more NOx. You want low NOx emissions, you need richer mixtures, and thus higher fuel consumption and higher CO2 emissions.
Isn't that where catalytic converters come in though?
Rules in conflict surely are required by the chemistry of the situation, the companies have to search for the local minima in order to comply.