Ministry of Power Circulates Draft CAFE-III (2027) Fuel Economy Norms for Stakeholder Consultation

📌 Summary:

• The Ministry of Power circulated the Draft Corporate Average Fuel Economy 2027 Norms (CAFE-III) for stakeholder consultation
• The norms are proposed to apply to M1 category passenger vehicles manufactured or imported for sale in India during 2027-28 to 2031-32
• Suggestions and feedback are invited from stakeholders and the public; the last date for submissions is 6 August 2026
• The draft will be uploaded on the websites of the Ministry of Power and the Bureau of Energy Efficiency (BEE)
• CAFE norms regulate the fleet-wide average fuel consumption and CO2 emissions of a manufacturer, pushing greater fuel efficiency, lower emissions and adoption of electric and hybrid vehicles

🎯 UPSC Relevance: GS3 – energy efficiency, decarbonisation of transport and clean-mobility policy

📝 Prelims Facts:

• CAFE norms are administered under the Energy Conservation Act via the Bureau of Energy Efficiency (BEE)
• M1 category = passenger vehicles with up to 8 seats (excluding the driver)
• CAFE-III applies for 2027-28 to 2031-32; feedback deadline 6 August 2026

🔑 Key Term: CAFE norms – Corporate Average Fuel Economy standards that set a manufacturer's sales-weighted fleet-average fuel economy / CO2 target