Government issues draft CAFE III norms to progressively reduce vehicle emissions

Exam-focused facts from the 18 July 2026 current affairs briefing.

Key facts

The Ministry of Power released Draft Corporate Average Fuel Economy 2027 Norms (CAFE III) on July 16, 2026.
The norms will replace existing CAFE-II norms after March 31, 2027, and apply to M1 category passenger vehicles for 2027-28 to 2031-32.
Fuel consumption targets will tighten progressively from 3.996 L/100 km (94.76 gCO2/km) in 2027-28 to 3.3273 L/100 km (78.90 gCO2/km) in 2031-32.
For the first time, the norms recognize carbon neutrality of ethanol, bio-fuel, and compressed bio-gas, allowing reductions in declared tailpipe CO2 emissions.
Manufacturers can claim up to 9 gCO2/km compliance benefit for approved fuel-saving technologies, with a maximum of 1 gCO2/km per technology.