fuel-efficient

India Proposes CAFE Credit Trading That Could Open New Revenue Stream for Car Makers

India's Ministry of Power has proposed a draft amendment introducing a formal credit-debit passbook for automakers under CAFE norms. Manufacturers exceeding fuel-efficiency targets can sell surplus credits to peers or buy them from the Bureau of Energy Efficiency at Rs 2,500 per gram of CO2 per km for FY23-FY27. The mechanism aims to ease compliance and create a potential revenue stream.