India Eases Emission Norms to Promote Electric and Hybrid Vehicles
CAFE-3 draft eases emission norms, nudges automakers toward EV and hybrid shift
Image: The Economic Times
India's Bureau of Energy Efficiency has relaxed emission targets in the updated draft of the Corporate Average Fuel Efficiency (CAFE-3) regulations for 2027-32. The changes aim to encourage automakers to shift towards electric and hybrid vehicles while maintaining a gradual tightening of standards, with penalties for non-compliance.
- 01The updated CAFE-3 regulations will require annual improvements in fleet efficiency starting April 1, 2024.
- 02Emission targets have been relaxed for small cars while tightening for larger vehicles.
- 03Automakers will face penalties for selling higher-emission vehicles but can offset these through eco-friendly vehicle credits.
- 04The regulations include a compliance block period allowing flexibility in meeting targets.
- 05Financial penalties from non-compliance will support the Central Energy Conservation Fund.
Advertisement
In-Article Ad
The Bureau of Energy Efficiency in India has released an updated draft of the Corporate Average Fuel Efficiency (CAFE-3) regulations, set to take effect on April 1, 2024. The new regulations aim to encourage automakers to enhance fleet efficiency while easing emission targets for smaller vehicles. Specifically, the permissible emissions slope has been adjusted to 0.00158 for 2027-28 and 0.00131 for 2031-32, compared to 0.002 in the previous draft. This change is expected to incentivize the sale of vehicles with lower fuel consumption. Automakers producing higher-emission vehicles will incur financial penalties, but they can mitigate these through credits earned from electric and hybrid vehicle sales. The updated draft also introduces a compliance block period, allowing manufacturers to carry forward surpluses or deficits over three-plus-two years. Penalties will be assessed at the end of each block period, with proceeds directed to the Central Energy Conservation Fund, benefiting states based on vehicle sales.
Advertisement
In-Article Ad
The relaxed emission norms are expected to accelerate the adoption of electric and hybrid vehicles in India, benefiting consumers and the environment while pushing automakers to innovate.
Advertisement
In-Article Ad
Reader Poll
Do you support the easing of emission norms to promote electric vehicles?
Connecting to poll...
More about Bureau of Energy Efficiency
Read the original article
Visit the source for the complete story.