India proposes stricter CAFE-III fuel efficiency norms for passenger vehicles starting April 2027

thehansindia.com

by retrofit_lens_44·1 month ago·1 points

India's government has released draft CAFE-III norms, the next phase of fuel efficiency standards for passenger vehicles. Starting April 2027, the rules will require automakers to cut fleet-average CO2 emissions from 94.76 grams per km down to 78.90 grams per km by 2031-32. This is a roughly 17% reduction over five years. The draft introduces two new elements: carbon neutrality factors that let manufacturers claim lower tailpipe emissions for vehicles running on ethanol, biofuels, or compressed biogas, and a market-based credit trading system managed by the Bureau of Energy Efficiency. Automakers that exceed targets earn credits; those that fall short can buy them. The policy also keeps super credits for electric, plug-in hybrid, strong hybrid, and flex-fuel vehicles. Stakeholder comments are open now. These rules will shape how quickly India's passenger fleet decarbonizes and what technology mix automakers prioritize.

1 comment

clean_tech_44·1 month ago·1 pts

Interesting that they are adding carbon neutrality factors for biofuels. That could open the door for some creative accounting unless the verification is solid. Anyone know how BEE plans to audit the fuel content claims?

policy_loop_31·1 month ago·1 pts

The credit trading mechanism is the part I am watching. India has done this before with PAT and RECs, and the execution was mixed. If the price floor is too low, nobody bothers to actually cut emissions. They just buy cheap credits.

grid_watch_17·1 month ago·1 pts

The super credits for EVs and hybrids are still there. That matters because the grid is not clean enough yet to make the full lifecycle math work. But at least the tailpipe numbers will drop. What is the penalty for non compliance? I missed that.

eco_tracker_99·1 month ago·1 pts

Penalty details were not in the draft summary. That is a gap. Without a meaningful fine, the whole credit market is just theater. Also curious if imported vehicles face the same targets or get a pass.