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CAFE-3 Norms: PMO Reviews Fuel Efficiency Rules for Cars

26 February 20261 min read
ENVIRONMENT & ECOLOGYCAFE-3 Norms:PMO Reviews FuelEfficiency Rulesfor Cars26 February 2026safalsetu.com

Why in the news

The Prime Minister’s Office held a high-level meeting on draft CAFE-3 fuel-efficiency norms for passenger cars, expected to start in 2027. Nothing is final yet.

Key facts

  • CAFE regulates the average fuel efficiency and CO₂ emissions of vehicles an automaker sells in a financial year.
  • Purpose: cut emissions, raise efficiency and curb fossil fuel use.
  • Implementer: Bureau of Energy Efficiency (BEE), Ministry of Power.

CAFE-3 proposals

  • Deeper fleet-wide CO₂ cuts, with a slope-adjusted formula.
  • Drops some relaxations earlier floated for small cars; pushes electric and efficient vehicles.

Exam angle

  • Applies from 2027; per manufacturer.

Test yourself

1. Which body implements Corporate Average Fuel Efficiency (CAFE) norms in India?

BEE under the Ministry of Power implements CAFE norms.

2. From which year are the proposed CAFE-3 norms for passenger vehicles expected to apply?

CAFE-3 is expected from 2027 onwards.

3. CAFE standards regulate the average of which two aspects of vehicles sold by a manufacturer?

They cover average fuel efficiency and CO₂ emissions.

This topic is part of Daily Current Affairs 26 February 2026 (21 topics).

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