Why India’s proposed CAFE III & IV norms need to be more stringent

Date Published

07/2024

Authors

Deepak Rajagopal, Amol Phadke, Nikit Abhyankar

Key Suggestions

IECC’s comments on the proposed Corporate Average Fuel Efficiency (CAFE) III (2027-2032) and IV (2032-2037) norms, put forth by India’s Bureau of Energy Efficiency (BEE), provide a detailed analysis and recommendations to enhance the effectiveness of the proposed norms.

Key highlights include:

Stringency of Emission Norms: We recommend making the emission norms substantially more stringent than currently proposed and additionally also reducing super-credits for Electric Vehicles (EVs) from 4 to 3 under CAFE IV (for 2032-2037).

Review of Current CI Calculation: Our analysis indicates that there is room for improvement in the current method of calculating the carbon intensity (CI) of EVs. We propose refining the formula to better reflect the actual grid emission intensity, thereby ensuring a more accurate assessment.

Market Impact: Our recommendations are designed to significantly accelerate EV adoption, helping India reach its energy independence and carbon reduction goals.

Policy Recommendations: We emphasize the need for policies that push automakers to scale up EV production and achieve cost parity with internal combustion engine (ICE) vehicles, thus harnessing the full economic and environmental potential of EVs.

We invite you to review our full comments and underlying calculations, which are available here: