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BEE Proposes CAFE-III Norms: 77 g CO2/km Target by 2032 with Super-Credits for EVs, Delays Urgent Electrification

Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
24 Apr 2026
~2 min
Source: The Hindu
Key Data:77 g CO2/km by 2031-32113 g CO2/km (CAFE-II)April 2027 to March 203214%-15% (small car share)
Bodies:BEE
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What This Article Covers

1.Bureau of Energy Efficiency (BEE) sets new CAFE-III target of 77g CO2/km for automakers by 2031-32, down from 113g/km under CAFE-II.

2.Framework includes flexible compliance mechanisms like super-credits for EVs and credit banking/trading, which critics argue may slow down the urgent shift to cleaner technologies.

3.The policy is crucial as the transport sector is India's third-largest source of greenhouse gas emissions, linking directly to climate mitigation and energy security goals.

The Big Picture
Prelims · HighMains · High

India's Bureau of Energy Efficiency (BEE) has proposed the CAFE-III norms, setting a Corporate Average Fuel Efficiency target of 77 grams of CO2 per km by 2031-32, down from 113 g/km under CAFE-II. However, the inclusion of flexible compliance pathways like super-credits and credit trading may weaken the policy's ability to drive a rapid transition to electric vehicles, which is critical for decarbonizing India's transport sector.

Exam Lens

Quick Exam Facts From News

CAFE-II Target~113 g CO2/km
CAFE-III Target77 g CO2/km by 2031-32
Implementation CycleApril 2027 to March 2032
Small Car Segment Share14%-15% of passenger vehicle sales

1-Minute Revision

  • ›CAFE-II Target: ~113 g CO2/km
  • ›CAFE-III Target: 77 g CO2/km by 2031-32
  • ›Target this Data: CAFE-III target is 77 grams of CO2 per km by 2031-32.
  • ›Target this Nodal Body: Bureau of Energy Efficiency (BEE) sets CAFE norms.
  • ›Target this Legal Point: Compliance is assessed over three-year blocks, not annually.

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Q1Static LinkageEasy

The Corporate Average Fuel Efficiency (CAFE) norms in India are set and regulated by which body?

Q2Statement-basedHard

Consider the following statements regarding the proposed CAFE-III norms:

1. The target is to reduce corporate average CO2 emissions to 77 grams per kilometre by 2031-32.

2. Compliance will be assessed annually to ensure consistent pressure on manufacturers.

3. The norms include super-credits where a battery electric vehicle can count as three vehicles for compliance.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what was the approximate corporate average CO2 emission target under the previous CAFE-II norms?

Q4Application/ImpactMedium

What is a major criticism, as highlighted in the article, regarding the flexible design of the proposed CAFE-III norms?

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