Brief Context
Context India has proposed to significantly revamp its key vehicle emissions rules, called the Corporate average fuel efficiency (CAFE) norms. India’s Current CAFE Norms The Bureau of Energy Efficiency introduced the CAFE norms in 2017 to regulate fuel consumption and carbon emissions from passenger vehicles. These norms apply to vehicles running on petrol, diesel, liquefied petroleum gas (LPG), compressed natural gas (CNG), hybrids, and electric vehicles (EVs) weighing less than 3,500 kg.
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Syllabus: GS3/Environment
Context
- India has proposed to significantly revamp its key vehicle emissions rules, called the Corporate average fuel efficiency (CAFE) norms.
India’s Current CAFE Norms
- The Bureau of Energy Efficiency introduced the CAFE norms in 2017 to regulate fuel consumption and carbon emissions from passenger vehicles.
- These norms apply to vehicles running on petrol, diesel, liquefied petroleum gas (LPG), compressed natural gas (CNG), hybrids, and electric vehicles (EVs) weighing less than 3,500 kg.
- The norms were tightened in the beginning of financial year 2022-23, with increased penalties for non-compliance.
- These norms are designed to reduce oil dependency and curb air pollution.
Key Proposed Provisions:
- Objectives of CAFE 3 Norms:
- Reduce fuel consumption and CO₂ emissions.
- Promote EVs, hybrids, and CNG vehicles.
- Provide protection for small cars while aligning with global best practices.
- Applicability: Targets M1 category vehicles i.e. passenger cars with up to 9 seats (including driver) and max weight 3,500 kg.
- All manufacturers must comply with fuel efficiency & CO₂ emission targets, else face penalties.
- Efficiency Target: Each car company has a fuel efficiency target based on the average weight of its cars.
- Heavier cars have a slightly higher target, lighter cars have a stricter target.
- Small Cars: These norms offer additional exemptions to smaller cars up to 9 g CO₂/km lower.
- Goal: Revive the small car segment and make it easier for manufacturers to comply with emission rules.
- Small cars have limited scope to improve fuel efficiency, and their sales have fallen sharply in recent years.
- Electric Vehicles: CAFE 3 norms propose to offer companies “super credits” based on the type of vehicle they sell.
- Each EV sold will be counted three times while calculating a company’s average.
- Relaxation on Fuel Type: The draft also carbon neutrality factor (CNF), which offers further relaxation on the targets based on the type of fuel used in a car.
- Emission Pooling: Up to 3 manufacturers can form a pool to meet targets jointly.
- Pool is treated as one manufacturer; pool managers accountable for penalties.
- Benefit: Strategic partnership reduces compliance cost and balances fleet emissions.
Conclusion
- CAFE 3 norms aim to reduce fuel use and CO₂ emissions, encourage lighter and more efficient cars, support small cars and EVs, and allow collaboration among manufacturers to meet targets more easily.
Source: IE