India's CAFE III norms face questions over effectiveness

India’s proposed Corporate Average Fuel Efficiency (CAFE) III norms, aimed at reducing average emissions to 77 gCO2/km by FY2031-32, include flexibility mechanisms like the Carbon Neutrality Factor that may weaken their impact. The draft notification, a compromise after industry lobbying, rewards ethanol compatibility despite uncertain policy. Critics argue the framework prioritizes compliance over genuine transformation, risking India’s energy security and EV adoption lagging behind China and the West.