Emissions 'pooling', relief for small cars: New draft CAFE rules prescribe, Pg22.

Key Highlights:

• The proposed CAFE 3 norms aim to offer emissions relaxation to small, light-weight cars.
• The norms are applicable to M1 category vehicles with a seating capacity of up to nine people and a maximum weight of 3,500 kg.
• Carmakers can 'pool' their emissions to meet targets and receive emissions discounts for selling electric vehicles.
• Smaller cars with specific criteria can claim a further reduction of 3.0 g CO2/km, with a cap of 9.0 g/km of CO2.
• Each EV sold will be counted three times while calculating a company’s average.
• The Bureau of Energy Efficiency (BEE) introduced the CAFE norms in 2017 to regulate fuel consumption and carbon emissions from passenger vehicles.

Detailed Insights:

• CAFE 3 introduces an efficiency formula [0.002 x (W – 1170) + c], where 'c' decreases from FY28 to FY32, tightening rules over time.
• Smaller cars meeting specific criteria can claim a 3.0 g CO2/km reduction, capped at 9.0 g/km of CO2, aiming to revive the small car segment.
• EVs receive "super credits," with each EV sold counted three times, plug-in hybrids 2.5 times, and strong hybrids twice, incentivizing EV production.
• The carbon neutrality factor (CNF) offers relaxation based on fuel type, with petrol vehicles (E20 to E30) getting 8% CNF and flex-fuel ethanol vehicles getting 22.3% CNF.
• Emissions pooling allows up to three carmakers to jointly meet targets, fostering strategic partnerships and shared responsibility.
• The CAFE norms, introduced in 2017, were tightened in 2022-23, requiring car companies to achieve a fuel consumption of not more than 4.78 litres per 100 km.

Key Concepts Involved:

• CAFE Norms: Regulations to improve fuel efficiency and lower emissions from vehicles.
• M1 Category Vehicles: Passenger vehicles with a seating capacity of up to nine people.
• Emissions Pooling: Allows multiple carmakers to combine emissions to meet targets.