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CAFE III Norms Propel India's Ethanol Journey, Boost Energy Security
- •The Indian Sugar & Bio-energy Manufacturers Association (ISMA) welcomes the Power Ministry's notification of Corporate Average Fuel Economy (CAFE III) norms for M1 category vehicles.
- •ISMA Director General Deepak Ballani states that CAFE III strengthens the policy ecosystem for cleaner and more energy-secure mobility.
- •The norms recognize ethanol-based mobility with an 8% Carbon Neutrality Factor (CNF) for E20–E30 vehicles and 22.3% CNF for Flex Fuel Ethanol Vehicles, encouraging fuel and technology choices.
- •CAFE III provides a regulatory push for the next phase of India's ethanol journey, building on the success of E20 and the rollout of E85 infrastructure and commercially available Flex Fuel Vehicles (FFVs).
- •These measures aim to create additional avenues for utilizing India's growing ethanol capacity, reduce fossil-fuel dependence, and advance a self-reliant, low-carbon mobility sector.
Key Questions Answered
The Indian Sugar & Bio-energy Manufacturers Association stated that the government's CAFE III fuel efficiency norms provide a crucial regulatory push for ethanol-based mobility. By incorporating Carbon Neutrality Factors and Volume Derogation Factors for flex-fuel and E20-E30 vehicles, the policy rewards cleaner alternatives.
The CAFE III framework establishes an 8 percent Carbon Neutrality Factor for E20-E30 vehicles and a 22.3 percent factor for Flex Fuel Ethanol Vehicles. It also provides Volume Derogation Factors of 1.1 for flex-fuel vehicles and 2.5 for flex-fuel hybrids.
The notification defines a Flex Fuel Ethanol Vehicle as any vehicle capable of operating on gasoline blended with ethanol containing up to 85 percent ethanol or pure 100 percent ethanol.
