Introduction:
Corporate Average Fuel Efficiency (CAFE) norms mandate automobile manufacturers to meet fleet-average CO₂ emission limits. Introduced in 2017, they aim to improve fuel efficiency and reduce emissions in India’s transport sector.
Effectiveness in Promoting Decarbonisation:
1. Incremental reduction in emissions:
- By linking fuel use to CO₂ emissions, CAFE ensures gradual decline in per-vehicle emissions.
- Tighter norms (Phase II) indicate progressive ambition.
2. Technological improvements:
- Encourages better engines, lightweighting, and hybridisation.
- Leads to efficiency gains without major disruption to industry.
3. Indirect push to EVs:
- Electric and hybrid vehicles help meet fleet targets.
- Supports broader clean mobility transition.
Limitations:
1. Limited real impact:
- Firms often comply through minor efficiency tweaks rather than deep decarbonisation.
- Fossil fuel dependence largely continues.
2. Dilution due to fleet averaging:
- Efficient small cars offset high-emission SUVs, reducing overall impact.
3. Narrow coverage:
- Excludes two-wheelers and heavy vehicles, which form a major share of emissions in India.
4. Structural and regulatory issues:
- Weight-based norms may distort market choices.
- Weak enforcement and limited penalties reduce effectiveness.
Conclusion:
CAFE norms are effective in achieving efficiency-led emission reductions but fall short of enabling transformational decarbonisation. A stronger shift toward electrification, wider coverage, and stricter enforcement is essential for meaningful emission reduction in India’s transport sector.
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CAFE Norms India: Limits of Transport Decarbonisation