Context: The Central Government has released the third draft of Corporate Average Fuel Efficiency (CAFE) Phase III norms for stakeholder consultation.
Explanation
- Corporate Average Fuel Efficiency (CAFE) norms prescribe the maximum average CO₂ emissions/fuel consumption allowed for a manufacturer’s passenger vehicle fleet.
- Introduced under the Energy Conservation Act, 2001, and implemented by the Bureau of Energy Efficiency (BEE) under Ministry of Power.
- CAFE I (2017–2022): First fleet-average CO₂ standards for passenger cars.
- CAFE II (2022–2027): Stricter emission targets and broader vehicle coverage.
- CAFE III (2027–2032): Recognises Carbon Neutrality Factors (CNFs) for ethanol, CBG and biofuels, tightens emission limits, and introduces multi-year compliance blocks. Effective from April 2027
- Objective: Improve fuel efficiency, reduce transport emissions, and support India’s Net Zero 2070 goal.
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