Corporate Average Fuel Efficiency (CAFE) Norms

Corporate Average Fuel Efficiency (CAFE) Norms Latest News

India has proposed to significantly revamp its key vehicle emissions rules, called the Corporate average fuel efficiency (CAFE) norms, and has introduced a draft of the third iteration of the key standards. 

About Corporate Average Fuel Efficiency (CAFE) Norms

• Corporate Average Fuel Efficiency (CAFE) norms are government-mandated standards that require auto manufacturers to meet a fleet-wide average fuel economy target.
• These are introduced by the Bureau of Energy Efficiency (BEE) in 2017, aim to regulate fuel consumption and CO₂ emissions from passenger vehicles under 3,500 kg. 
• In India, CAFE norms were introduced in two phases, with the first stage effective from 2017-18 and the second from 2022-23. 
• These norms apply to vehicles powered by petrol, diesel, LPG, CNG, hybrids, and electric power.
• Objective: CAFE norms were designed to: Reduce oil imports, Cut air pollution, Promote cleaner vehicles like EVs, CNG cars, and hybrids.

Key Facts about Bureau of Energy Efficiency

• It was established in 2002 under the provisions of the Energy Conservation Act, 2001.
• Objective: The primary objective of BEE is to reduce energy intensity in the Indian economy.
• Function and Duties
  • It coordinates with designated consumers, designated agencies and other organizations; recognizes, identifies and utilizes the existing resources and infrastructure, in performing the functions assigned to it under the Energy Conservation Act.

Source: IE

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