India's Bold Move: Unpacking the Merger of CAFE and Emission Norms to Combat Vehicular Pollution

In a significant push towards a greener future, the Indian government is set to introduce a pivotal change in its approach to tackling vehicular pollution. By merging the stringent Corporate Average Fuel Economy (CAFE) norms with the existing Bharat Stage (BS) emission regulations, India aims to accelerate its journey towards cleaner air and reduced carbon footprint.

This strategic integration is not just about tightening rules; it's about fundamentally reshaping how automakers design and sell vehicles in the country.

For years, vehicular emissions have been a significant contributor to air pollution in India's bustling cities, posing serious health risks and environmental challenges.

With India's ambitious commitment to achieve net-zero emissions by 2070, as declared at COP26, robust policy interventions are more crucial than ever. While Bharat Stage norms directly regulate the tailpipe emissions of individual vehicles, CAFE norms take a broader, corporate-level view, focusing on the average fuel efficiency of a manufacturer's entire fleet sold in a year.

CAFE norms, first introduced in India in 2017 (Phase 1) and further tightened in 2022 (Phase 2), work by setting targets for a company's average CO2 emissions per kilometer.

The calculation considers the sales volume of different models, with penalties levied if a manufacturer's fleet average exceeds the prescribed limit. This mechanism incentivizes automakers to sell more fuel-efficient vehicles or a higher proportion of smaller, less polluting cars, as well as hybrid and electric models, to offset the impact of larger, more fuel-thirsty vehicles.

The current proposal, put forth by the Ministry of Road Transport and Highways (MoRTH), seeks to create a unified compliance framework.

This means that instead of meeting CAFE and BS norms independently, vehicle manufacturers will now need to satisfy both sets of regulations simultaneously to avoid penalties. Specifically, a manufacturer's compliance with CAFE norms will be judged only if they are also fully compliant with the latest BS emission standards.

This is a game-changer because it eliminates any potential loopholes where a manufacturer might achieve one target while lagging on the other.

The automotive industry is bracing for the impact of this integrated approach. With the recent introduction of BS6 Phase 2 norms, which have already pushed manufacturers to adopt advanced technologies for real driving emission (RDE) compliance, the additional layer of merged CAFE targets presents a formidable challenge.

Experts predict that this will accelerate the shift towards smaller, more efficient internal combustion engines, and significantly boost the adoption of hybrid and electric vehicles, as these technologies offer a clear pathway to meeting both stringent fuel efficiency and emission targets.

While CAFE norms focus on reducing fuel consumption and thus CO2 emissions—a greenhouse gas responsible for global warming—BS norms tackle direct pollutants like nitrogen oxides (NOx), particulate matter (PM), carbon monoxide (CO), and unburnt hydrocarbons (HC), which directly impact air quality.

By linking these two critical regulatory frameworks, India is not just aiming for a reduction in greenhouse gas emissions but also a tangible improvement in the air quality that its citizens breathe. This bold step underscores the government's unwavering commitment to environmental protection and public health, signaling a new era of responsible automotive manufacturing in the country.