Corporate Average Fuel Economy (CAFE) regulations aimed at lowering fuel consumption (or improving fuel efficiency) of vehicles by lowering carbon dioxide (CO2) emissions.
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‘CAFE’ or Corporate Average Fuel Efficiency/Economy Regulations
- The regulations serve the twin purposes of reducing dependence on oil for fuel and controlling pollution.
- The regulations were passed in 1975 as part of the Energy Policy and Conservation Act backed by energy crisis of United States in 1973.
- It sets up minimum standard on the fuel economy of vehicles produced by the manufacturer in terms of Miles per Gallon (mpg).
- The regulations are in force in many advanced as well as developing nations, including India.
- The norms are applicable for petrol, diesel, LPG and CNG passenger vehicles.
CAFÉ regulations in India:
- CAFE regulations in India came into force from April 1, 2017.
- Under this, average corporate CO2 emission must be less than 130 gm per km till 2022 and below 113 gm per km thereafter.
- That shows cars to be 30% or more fuel efficient from 2022 and 10% or more between 2017 and 2021.
- The norms are targeted at reducing the carbon footprint of the automobile industry.
National Auto Policy:
- The National Auto Policy (draft) put out in early 2018.
- It is for developing a roadmap for reduction in CO2 emissions through CAFE regulations.
- It defines corporate average CO2 gm per km targets for all passenger vehicle manufacturers from 2020 and aspires to match Indian CO2 reduction targets to those set by developed countries by 2025.
- The policy also contemplates economic penalties for manufacturers who do not meet corporate average targets.