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Home Environment

CAFE

March 31, 2020
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CAFE (Corporate average fuel efficiency)

Why in news?

  • The government is looking to tighten the corporate average fuel economy (CAFE) norms, in a bid to push automakers to incrementally increase production of electric vehicles by 2-3% every year.

What are the cafe norms?

  • CAFE is the average fuel efficiency of all vehicles produced by a manufacturer in a given period, taking into consideration the sales volume of each model.
  • It is achieved by lowering carbon dioxide (CO2) emissions.
  • Thus, it serves the twin purposes of reducing dependence on oil for fuel and controlling pollution.
  • The norms are applicable for petrol, diesel, and LPG and CNG passenger vehicles.
  • CAFE regulations in India came into force from April 1, 2017.

Significance:

  • A strict CAFE target will provide incentives to auto makers to produce and sell more EVs, to improve their average fuel efficiency.
  • By tightening the norms, auto makers will have to indirectly invest in EVs, rather than make production of EVs mandatory.
  • The government has reduced its initial target of getting aggregators to make 40% of their fleet electric by 2026.
  • Now aggregators are asked to procure EVs as part of their new fleet additions, and this could be in 2% increments (annually).
  • While CAFE regulations focus on reducing CO2 emissions, BS VI focuses on other harmful exhausts from vehicles.

World environment day:

  • World Environment Day (WED) was established by the UN General Assembly in 1972 on the first day of the Stockholm Conference on the Human Environment.
  • In 1974 the first WED was held with the theme “Only One Earth”.
  • Since then, World Environment Day takes place every year on 5 June.
  • Since then it is observed on 5th June annually with a country as a host.
  • The world environment 2019 was observed with the theme “Air pollution” and is being hosted by China.
  • India hosted World Environment Day 2018 with the theme ‘Plastic Pollution’.
  • Colombia will host World Environment Day 2020 in partnership with Germany and that it will focus on biodiversity.
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