Carmakers may soon trade fuel-economy credits, and buy forgiveness from the government at Rs 2,500 a gram
The draft, prepared under the Energy Conservation Act, amends the 2015 corporate average fuel efficiency (CAFE) notification. It defines credits and debits in grams of CO2 per kilometre — a maker beating its fleet target earns credits, one missing it books debits — recorded in a per-manufacturer "passbook".
Manufacturers may trade credits with each other, and any remaining debit can be settled by buying credits from the Bureau of Energy Efficiency at Rs 2,500 per gram of CO2 per kilometre for each reporting year.
For a manufacturer ten grams over target on a million cars, the buyout arithmetic is Rs 2,500 crore — steep enough to make traded credits from efficient rivals the cheaper door.
The money trail: penalties and buyout receipts go to the Central Energy Conservation Fund, of which 90 per cent is transferred to states in proportion to vehicle sales.
Offsetting is allowed until 30 September 2027, with the final passbook due at the Bureau by 31 October 2027.
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