Brake On Emissions: As India Plans CAFE Norms, A Look At Regulations Followed Globally Across US, Other Automotive Markets

India is preparing to implement CAFE 3 norms by 2027, aiming to lower passenger vehicle emissions to 113 gm of CO2 per kilometer. Consultations are underway to finalize the regulations. A Nomura report suggests India should reform its CAFE regulations to incentivize light-weighting, a key decarbonization strategy.

India is in the process of holding consultations ahead of the formalisation of CAFE (Corporate Average Fuel Efficiency) 3 norms, scheduled to come into force from April 1, 2027.

India currently caps average emissions of all passenger vehicles weighing less than 3,500 kg sold by each manufacturer at 113 gm of carbon dioxide per kilometre. This means that some models can have higher emissions if the manufacturer has fuel-efficient vehicles in its portfolio.

A car’s CO2 emissions are directly proportional to the amount of fuel it consumes. Here is a look at the regulations followed globally across all major automotive markets, including the US, China, Japan, Korea, and Europe.

INDIA

CAFE targets follow a linear weightbased approach
Framework gives heavier vehicles more relaxed absolute CO2 limits
Smaller cars get a much more stringent target

The US

Target on fuel economy (miles per gallon) based on car footprint (square feet) of the car
Follows a piece-wise linear approach
Comparatively relaxed targets for smaller cars

CHINA

CHINA Target on fuel consumption (l/100 km) based on curb weight of the car
Follows a piece-wise linear approach
Target does not keep on tightening indefinitely for smaller, lighter cars

SOUTH KOREA

Target on fuel economy (km per liter) based on the curb weight of the car
Smaller, lighter cars are not subjected to increasingly stricter targets as weight reduces
OEMs get extra advantage of 5–7g/km in their CAFÉ performance
Based on sales ratio of small cars in their portfolio

JAPAN

Target on fuel economy (km per liter) based on curb weight
Follows a non-linear (quadratic curve)
Small light-weight cars are not subjected to disproportionately higher targets

EUROPE

Bigger cars have a lower absolute CO2 target
Smaller cars have relaxed targets

EXPERT TAKE

As per the report titled ‘Deep Dive into Global Practices on CAFE Regulations’ by Nomura, India must reform CAFE regulations as light-weighting, a key decarbonisation strategy, is disincentivised In India. India must adopt global best practices like footprint-based or piece-wise linear models to ensure equitable treatment of small cars and support affordable low-emission mobility

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