Corporate Average Fuel
Efficiency (CAFE) III
Prelims:
Environment & Ecology, Economy
Mains:
GS Paper III-Environment Conservation
Current relevance:
The Ministry of Power released
the draft Corporate Average Fuel Efficiency (CAFE) III norms on 16 July,
proposing a revised fuel-efficiency framework.
Highlights:
1.
The draft CAFE
III norms seek to improve the fuel efficiency of manufacturers' passenger
vehicle fleets by prescribing annual sales-weighted average fuel-efficiency
targets, encouraging cleaner technologies and reducing dependence on
imported crude oil.
2. Background:
CAFE norms were first introduced to reduce oil
dependence and later evolved to address greenhouse gas emissions,
encouraging innovation in fuel-efficient, hybrid, and electric vehicles.
3. Aim: To reduce the average emissions of passenger vehicles
from 113 gCO₂/km to
77 gCO₂/km by
FY 2031–32.
4. Mechanisms under CAFE III:
i.
Carbon
Neutrality Factor: Provides
compliance benefits for vehicles compatible with higher ethanol blends
and other fuels.
ii.
Super Credits: Additional compliance benefits are provided for battery
electric vehicles, plug-in hybrids, strong hybrids, and flex-fuel vehicles.
iii.
Manufacturers
exceeding targets can bank or trade compliance credits, while companies
with deficits may purchase credits from the Bureau of Energy
Efficiency (BEE).
5. CNG as a Policy Example:
i. India's experience with Compressed Natural Gas (CNG) demonstrates that clear regulatory support can encourage manufacturers to introduce cleaner vehicle technologies and expand market adoption.
Source: THE
HINDU - https://www.thehindu.com/opinion/lead/beyond-compliance-indias-road-to-cleaner-mobility/article71273564.ece