Revised CAFE III norms unveiled, recognizing biofuels and flattening weight-adjustment curve
The Centre has released the third draft of Corporate Average Fuel Economy (CAFE III) norms for passenger vehicles, effective from April 2027. The revised norms will recognize ethanol, compressed biogas (CBG), and other biofuels, allowing manufacturers to claim specified reductions in declared tailpipe carbon dioxide emissions. The draft retains a flatter weight-adjustment curve, which reduces the compliance advantage previously available to heavier SUVs. Fleet-wide emission targets are tightened, with compliance assessed over two blocks (three-year and two-year periods), aiming for progressive improvement in fuel efficiency.
Key Points
- The third draft of CAFE III norms for passenger vehicles will be effective from April 2027.
- The norms recognize biofuels like ethanol and compressed biogas (CBG) for reducing CO2 emissions.
- A flatter weight-adjustment curve is retained, reducing compliance benefits for heavier SUVs.
- Fleet-wide emission targets are tightened, aiming for 3.327 litres per 100 km by 2031-32.
- Compliance will be assessed over two blocks: an initial three-year period followed by a two-year period.
Exam Facts
- Norms: Corporate Average Fuel Economy (CAFE III).
- Effective date: April 2027.
- Recognized fuels: Ethanol, Compressed Biogas (CBG).
- Targeted fuel consumption: From 3.996 litre/100 km (2027-28) to 3.327 litre/100 km (2031-32).
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