The Ministry of Power has issued draft amendments to the Corporate Average Fuel Efficiency (CAFE) norms to introduce a credit-based compliance framework for passenger vehicle manufacturers. The proposed amendments seek to operationalise provisions relating to credit accounting, pooling and compliance that were not specified under the existing framework.
Under the proposed framework, manufacturers exceeding their prescribed fleet-average fuel consumption targets will earn credits, while those falling short will accumulate debits, both expressed in grams of carbon dioxide per km (g COâ‚‚/km). Credits and debits will be recorded annually in a manufacturer-specific passbook and may be carried forward within the five-year compliance block from FY 2022-23 to FY 2026-27. Manufacturers will also be allowed to trade credits with one another or purchase credits from the Bureau of Energy Efficiency at Rs 2,500 per g COâ‚‚/km to offset debit balances. Compliance will continue to be assessed annually, while penalties for non-compliance will be determined at the end of the five-year block period. The proposed amendments also require manufacturers to furnish state-wise vehicle sales data along with their annual compliance reports.