India Must Rethink Small Car Emission Norms

INDIA MUST RETHINK EMISSION NORMS FOR SMALL CARS: NOMURA STUDY

Why in the News?

  • Nomura study: Recommends reforming CAFE norms to align with global practices that protect small cars, considering the environmental impact and economic benefits.
  • Global comparison: Unlike India, countries like US, China, EU, and Japan offer relaxed norms for lightweight vehicles, reflecting differences in agricultural policy and regulatory frameworks.
  • Industry impact: Carmakers like Maruti Suzuki are pushing for lenient regulations on small hatchbacks amid declining sales, highlighting the need for balanced agricultural economics and environmental safety.

India Must Rethink Small Car Emission Norms

Structural Bias in India’s CAFE Norms

  • Linear weight model: India’s system penalises lighter cars with tougher CO₂ targets, favoring heavier vehicles, potentially impacting smallholder farmers and overall agricultural productivity.
  • Global model: Major markets use a non-linear approach, recognizing the efficiency and value of small cars, aligning with broader goals of environmental safety and economic benefits.
  • Disincentivising lightweighting: India’s current policy discourages lightweight design, hurting decarbonisation strategies and potentially affecting long-term soil health and environmental impact.

What Are India’s CAFE Norms?

  • Introduced in 2017: Issued by Bureau of Energy Efficiency (BEE) to control fuel use and CO₂ emissions, reflecting broader concerns about environmental safety and agricultural policy.
  • Applicable range: Covers all passenger vehicles under 3,500 kg including petrol, diesel, EVs, and hybrids, showcasing the intersection of agricultural biotechnology and environmental regulations.
  • 2022 tightening: Norms require ≤4.78L/100 km fuel use and ≤113g/km CO₂ emissions, with penalties for non-compliance, emphasizing the need for a robust regulatory framework and environmental risk assessment.

CORPORATE AVERAGE FUEL EFFICIENCY (CAFE)

● Definition: CAFE norms are fleet-level emission standards to improve fuel economy and reduce carbon output, aligning with broader goals of environmental safety and agricultural policy.

● Global origin: First implemented in the US in 1975 post oil crisis; now adopted with local adaptations worldwide, reflecting evolving approaches to agricultural economics and environmental impact.

● India’s objective: To reduce oil imports, curb urban air pollution, and promote clean mobility solutions, considering the broader context of food security and agricultural productivity.

● Enforcement body: BEE under Ministry of Power, with data collected from auto manufacturers annually, showcasing the role of regulatory authorities in environmental safety.

● Future roadmap: CAFE Phase III expected to push towards greater EV integration and tighter fuel norms, potentially impacting agricultural policy and smallholder farmers in the long term.