The Hindu·4 min read·hard

What’s new in the draft CAFE-III norms? | Explained

J
Jagriti Chandra
What’s new in the draft CAFE-III norms? | Explained
AI Summary

The Indian government has released the third draft of CAFE-III norms, which aim to improve fuel efficiency in passenger vehicles by 2031-32. The draft introduces carbon neutrality factors for biofuels and adjusts compliance formulas for different vehicle weights.

The story so far: The Centre on Thursday (July 17, 2026) released the third draft of the Corporate Average Fuel Efficiency (CAFE)-III norms for passenger vehicles, proposing to recognise ethanol, compressed biogas (CBG) and other biofuels in compliance calculations by allowing manufacturers specified reductions in declared tailpipe carbon dioxide emissions.

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