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EnvironmentThe HinduEditorial27 April 2026

Incremental change: On Corporate Average Fuel Efficiency-III

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๐Ÿ“Œ Summary:

  • India has proposed Corporate Average Fuel Efficiency Phase III (CAFE-III) norms, targeting a reduction in average fleet emissions from ~113 grams of CO2 per kilometre (under CAFE-II) to 77 g/km by 2031-32

  • Background: CAFE norms regulate the average fuel efficiency that automobile manufacturers must achieve across their entire vehicle fleet sold in India; they are India's primary tool for curbing vehicular GHG emissions

  • Transport sector is India's third-largest source of greenhouse gas emissions, making CAFE norms directly relevant to India's climate commitments

  • Previous controversy: Earlier CAFE-III proposal created an effective carve-out for small cars (a Maruti Suzuki-friendly provision) -- delaying the shift to cleaner fuels; small cars account for 14-15% of passenger vehicle sales but were held to lower standards

  • Larger carmakers faced more stringent targets under the earlier proposal, creating an unlevel playing field on pricing and investment -- triggering a relook

  • The revised CAFE-III norms are described as "only marginally better" with some provisions appearing counterproductive to decarbonisation goals

  • CAFE-III cycle proposed to run from April 2027 to March 2032

  • Editorial argues that incremental ICE-focused improvements are insufficient -- significant emissions reductions in transport can only come through accelerated electrification of the vehicle fleet

  • India's EV push (PM E-DRIVE, FAME schemes) must be aligned with CAFE targets to achieve meaningful decarbonisation

CAFE-IIIfuel efficiency normsEVvehicular emissionsdecarbonisation

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