• Corporate Average Fuel Efficiency or CAFE norms were first introduced in 2017 under the Energy Conservation Act, 2001, with the aim of curbing fossil fuel dependence and air pollution from road transport.
• Issued by the Bureau of Energy Efficiency (BEE).
• The regulations set limits on corporate average fuel consumption, measured in litres per 100 kilometres, based on the average weight of vehicles sold by an automaker during a financial year.
• The rules aim to reduce carbon intensity by pushing companies to improve the efficiency of their overall fleet.
• Phases
  • CAFÉ 1: implemented in 2017–18, capped average fuel consumption at 5.5 litres/100 km and emissions at <130 gm CO2/km.
  • CAFÉ 2: in force since 2022–23, tightened this to 4.78 litres/100 km and <113 gm CO2/km.
  • CAFE 3 (or CAFE 2027): Proposes to reduce permissible fuel consumption to a range of 3.72–3.01 litres/100 km, with emissions expected to fall below 91.7 gm CO2/km.

Source: The Economic Times