Corporate Average Fuel Efficiency (CAFE)
Context:
The Bureau of Energy Efficiency (BEE) has unveiled a proposal to introduce fuel consumption standards for Light Commercial Vehicles (LCVs).
These new norms are proposed to be implemented from 2027 through 2032.
LCVs operate without CAFE mandates, despite their high utilisation and substantial market presence.
About CAFE Norms:
Corporate Average Fuel Efficiency (CAFÉ) norms were first notified by the Government in 2017, under the Energy Conservation Act, 2001 to mitigate fuel consumption by lowering CO₂ emissions; aiming to reduce oil dependency and air pollution.
These norms are applicable for petrol, diesel, liquefied petroleum gas (LPG), CNG, hybrid, and electric passenger vehicles with gross vehicle weight (GVW) <3500kgs.
It relates the gasoline-equivalent corporate average fuel consumption (in litres/100 km) to the corporate average kerb weight of all cars sold by an Original Equipment Manufacturer (OEM) in a fiscal year.
There is a limit set on the total emission of CO₂ emitted, as the amount of CO₂ a car emits has a direct correlation with the amount of fuel it consumes.
Objective:
To reduce fleet-wide CO2 emissions and oil dependency.
Since CO2 emissions directly correlate with fuel consumption, the norms effectively set a limit on total emissions
Applicability:
Currently applicable to M1 category (passenger vehicles) with a Gross Vehicle Weight (GVW) of less than 3,500 kg.
It covers Petrol, Diesel, LPG, CNG, Hybrid, and Electric vehicles.
Phases & Targets (For Passenger Cars)
Parameter
Stage I
Stage II
Effective Period
2017-18 Onwards
2022-23 Onwards
Fuel Consumption Target
< 5.5 litres / 100 km
< 4.78 litres / 100 km
CO2 Emission Target
< 130g / km
< 113 g / km
Reference Average Kerb Weight
1,037 kg
1,082 kg
Impact:
In the fiscal year 2022-23 alone, the implementation of these norms resulted in a reduction of 1.32 Million tonnes of CO2.