India is set to implement tougher carbon emissions norms for automakers, requiring a significant reduction in emissions over the next three years or facing substantial penalties. The Bureau of Energy Efficiency (BEE) has proposed the Corporate Average Fuel Efficiency (CAFE) 3 norms, which are scheduled to come into effect from April 2027, followed by CAFE 4 norms.
Under CAFE 3, automakers will need to achieve an average carbon dioxide emission of 91.7 grams per kilometer (gm CO2/km), while CAFE 4 aims for even stricter emissions of 70 gm CO2/km. To facilitate the transition, automakers will have a five-year period to comply with CAFE 4 norms.
The move comes in response to the increasing need for more fuel-efficient vehicles and a reduction in carbon emissions in the automotive sector. However, these stricter norms are expected to result in higher costs for cars, adding to the approximately 30% increase in prices seen since the transition to Bharat Stage VI emission norms in April 2020.
The BEE has invited feedback from industry stakeholders, with a deadline set for the first week of July. Once finalized, the guidelines will enforce penalties for non-compliance, thereby incentivizing automakers to produce more fuel-efficient vehicles.
This step underscores India's commitment to environmental conservation and reducing carbon footprints, aligning with global efforts to combat climate change through stricter emissions regulations.
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