New draft CAFE III norms reward E20 and biofuel vehicles with emission benefits
India's Ministry of Power introduced draft Corporate Average Fuel Efficiency (CAFE) III norms, allowing automakers to claim lower CO₂ emissions through Carbon Neutrality Factors (CNFs) for ethanol and biofuels. The draft proposes an 8% carbon reduction for E20 fuel and up to 22.3% for strong hybrids and flex-fuel vehicles, incentivizing the adoption of cleaner technologies. This regulatory shift aims to support the government's ethanol blending program amid ongoing public debate over its environmental impact.