The auto industry has recently approached the government with a request to postpone the implementation of Corporate Average Fuel Efficiency (CAFE-2) regulations and BS-VI stage II norms. The proposed delay, until April 2024, comes in the light of lockdown measures impacting the nation. At present, the CAFE-2 norms are scheduled to come into effect in 2022, while the BS-VI stage II norms are set to be implemented in April 2023.
Understanding Corporate Average Fuel Efficiency (CAFE-2) Regulations
CAFE-2 regulations or Corporate Average Fuel Efficiency/Economy norms are in place in several developed and developing nations, including India. These are designed to reduce fuel consumption by lowering Carbon Dioxide (CO2) emissions and thereby curb pollution, making these a crucial step in the journey towards environmental sustainability. By doing so, the regulations support the dual cause of lessening the dependence on oil and controlling pollution.
At the core of the CAFÉ concept is the idea of compelling manufacturers to prioritize the production and sale of more fuel-efficient models, such as electric vehicles. Corporate Average refers to a sales-volume weighted average for all auto manufacturers.
In India, the Union Ministry of Power (MoP) first notified the CAFÉ standards in 2017 under the Energy Conservation Act, 2001. They align coherently with the fuel consumption standards of 2015 that aim to enhance vehicle fuel efficiency by 35% by 2030. The Ministry of Road Transport and Highways (MoRTH) holds the responsibility for tracking and reporting a summary of each fiscal year’s annual fuel consumption by automobile manufacturers.
Introduced in two target phases, the regulation initially aims at a CO2 emission target of 130 gram/kilometre for 2022-23, later reducing to 113 g/km from 2022-23 onwards. Importantly, the norms apply to petrol, diesel, Liquefied Petroleum Gas (LPG), and Compressed Natural Gas (CNG) passenger vehicles.
Delineating BS-VI Stage II Norms
Bharat Stage (BS) emission standards are legislated by the government to regulate air pollutants’ output from internal combustion engines and spark-ignition engine equipment, including motor vehicles. Aimed at improving emission control, fuel efficiency, and engine design, these standards play a significant role in auto industry regulations.
Since 1st April 2020, the central government has mandated that vehicle manufacturers must produce, sell, and register only BS-VI (BS6) compliant vehicles. The BS-VI norms equate to the Euro-VI norms presently followed across European countries.
Following the BS-VI emission norms, petrol vehicles must show a 25% reduction in their NOx or nitrogen oxide emissions. Conversely, diesel engines are required to decrease their HC+NOx (hydro carbon + nitrogen oxides) by 43%, their NOx levels by 68%, and particulate matter levels by 82%.
As sulphur content in fuel is a primary environmental concern, BS-VI fuel incorporates significantly less sulphur than BS-IV fuel. Specifically, it is reduced from 50 mg/kg under BS-IV to 10 mg/kg max in BS-VI.
For 2023, some additional measures have been announced, such as determining the confirmatory factor for in-service compliance, conducting market surveillance, independent verification testing of in-use vehicles by regulatory authorities, adopting stricter driving cycles for emissions testing, and public disclosure of emissions data by manufacturers on publicly accessible websites, along with introduction of on-board fuel consumption meters.
