Corporate Average Fuel Efficiency/Economy regulations (CAPE)

Corporate Average Fuel Efficiency/Economy regulations (CAPE)

Subject: Economy

Context: Automakers seek relief on new fuel efficiency, emission norms like CAPE, BS-6 norms.

Concept:

• It seeks to achieve emission norms as part of climate change commitments by mandating norms to be adopted by automotive sectors.
• It seeks to lower fuel consumption (or improving fuel efficiency) of vehicles by lowering carbon dioxide (CO2) emissions, thus serving the twin purposes of reducing dependence on oil for fuel and controlling pollution.
• Corporate average here refers to sales-volume weighted average for every auto manufacturer.
• CAFÉ norms are applicable to petrol, diesel, LPG and CNG passenger vehicles.
• It came into force in India from April 1, 2017.
• It mandates must be less than 130 gm per km till 2022 (10% fuel efficiency) and below 113 gm per km thereafter (30% efficiency).

Significance:

• It can complement government efforts to boost electric vehicles sales through:

1. FAME scheme
2. BS 6 norms from April 2020 (Focus on other exhausts which are harmful like SO2, NO2)
3. Plan to shift to EVs by 2030.