Prelims: Current events of National and International Importance
Why in news?
Recently, a study by Nomura (a research and consulting firm in Japan) recommended reforming India’s CAFE norms to relax emission targets for small cars.
- CAFE Norms – The Corporate Average Fuel Efficiency (CAFE) norms were introduced by the Bureau of Energy Efficiency (BEE) in 2017 to regulate fuel consumption and carbon emissions from passenger vehicles.
- It apply to vehicles that are under 3,500 kg, including petrol, diesel, CNG, LPG, hybrid, and electric vehicles.
- Current targets under CAFÉ – As per the 2022-23 norms, automakers must ensure,
- Fuel consumption – Not more than 4.78 litres per 100 km.
- CO₂ emissions – Not more than 113 grams per km.
- These norms are designed to reduce oil imports, cut air pollution, and promote cleaner vehicles.
Nomura Study Highlights Bias Against Small Cars
- Linear weight-based approach – As the weight of a vehicle increases, the allowed CO₂ emissions target also increases, in a linear (straight-line) manner.
- The study states that India’s linear weight-based approach results in stricter CO₂ targets only for lighter vehicles.
- But in other hand heavier vehicles like SUVs get relaxed targets, even if they emit more CO₂.
- Regulatory paradox – Reducing a car's weight is a common way to cut emissions but in India, as a car gets lighter, its emission target becomes even stricter, making light weighting efforts counterproductive for small cars.
- But globally there is relaxed norms for smaller, lighter cars to encourage their use due to their environmental and socio-economic value.
Examples from Global Markets
- USA & China – Both follow a piecewise linear approach, where targets remain constant below a certain size/weight.
- South Korea – It offers constant targets and additional benefits (5–7g/km relaxation) for small car sales.
- Japan – It uses a non-linear approach, avoiding strict penalties for lightweight, small cars.
Reference
The Indian Express| India’s CAFE Norms for Small Cars
