PMO MEETS ON CAFE-3 NORMS

NEWS: The Prime Minister’s Office (PMO) held a highlevel meeting to review the proposed CAFE-3 (Corporate Average Fuel Efficiency) norms for passenger vehicles, which are planned to be implemented from 2027. However, no final decision has been taken yet.

CAFE Norms

• CAFE (Corporate Average Fuel Efficiency) norms are government regulations thatà Set fuel efficiency standards for vehicle manufacturers
• Aim to reduce fuel consumption and CO₂ emissions
• Apply to the average emissions of all vehicles sold by a company
• These norms are a key part of India’s:
  • Climate commitments
  • Energy efficiency goals
  • Emission reduction strategy

The meeting was conducted to:

• Review the draft CAFE-3 emission norms
• Address disagreements among car manufacturers
• Balance environmental goals and industry concerns

Key Ministries Present

• Ministry of Power
• Bureau of Energy Efficiency (BEE)
• Ministry of Heavy Industries

Key Changes in the New Proposal

• Removal of 3g CO₂/km Waiver
  • Earlier: Small cars (up to 909 kg and engine capacity ≤ 1200 cc) got a 3g CO₂/km waiver
  • Now: This waiver has been removed
• Flatter Emission Reduction Slope–>The new proposal makes the emission targets more gradual instead of strict from the beginning.
  • Earlier target: 0.002 reduction over five years
  • New proposal: 0.00153 in Year 1, Gradual annual reduction, Target of 0.00128 by Year 5

SIGNIFICANCE

• Reduces CO₂ emissions
• Supports India’s Paris Agreement commitments
• Helps achieve Net Zero goals (2070)
• Improves fuel efficiency
• Reduces oil import dependence
• Pushes auto industry toward: Electric Vehicles (EVs), Cleaner technology