Government proposes stringent fuel efficiency standards for passenger vehicles

The Ministry of Power on Thursday issued the draft Corporate Average Fuel Economy 2027 CAFEIII norms for stakeholder consultation proposing a new fiveyear fuel efficiency regime for passenger vehicles beginning on April 1 2027The new norms which aim to progressively reduce vehicle emissions will replace the existing CAFEII norms that are likely to lapse on March 31 2027Which categoriesThe draft norms apply to M1 category vehicles passenger cars carrying up to eight people besides the driver which includes all hatchbacks sedans and SUVs manufactured or imported for sale in India The M1 category excludes commercial goods carriers and busesM1 vehicles are required to meet stringent fuel efficiency and emission standards under CAFE norms which are periodically updated to reduce greenhouse gas emissionsCompliance under CAFEIII will be assessed across five years in two phases with the first phase spanning three years and fuel efficiency targets becoming progressively more stringent each yearThe fuel consumption targets are proposed to be progressively tightened from 3996 litres100 km 9476 gCOkm in 202728 to 33273 litres100 km 7890 gCOkm in 203132 according to a PTI report Manufacturers will be eligible to claim up to 9 gCOkm of compliance benefit for approved fuelsaving technologies subject to a maximum benefit of 1 gCOkm per technology it addedCarbonneutrality of ethanol blended vehiclesWhen CAFE III norms come into effect it will recognise the carbonneutrality of ethanol biofuel and compressed biogas CBG for the first time by permitting specified reductions in declared tailpipe carbon dioxide emissions before compliance assessment it statedFor the current ethanol blending levels an 8 per cent carbon neutrality factor CNF shall be considered while for CBG and biofuel the reduction shall be based on the prevailing actual blending level it addedStakeholders and the public can mail their suggestions and feedback or send them to the under secretary energy conservation by August 6 2026The framework overseen by the Bureau of Energy Efficiency under the Ministry of Power aims to bring down average fleet emissions from current levels to a significantly lower threshold by financial year 203132 as per IANSWith Agency Inputs