Fuel economy standards: sanctity of decision making process must be upheld

Car industry's efforts to dilute standards approved by PMO will significantly reduce fuel savings
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Car industry's efforts to dilute standards approved by PMO will significantly reduce fuel savings

The desperate bid of the Indian car industry to reopen and dilute the proposed fuel economy standards after it was approved by the prime minister’s office (PMO) has shocked all. This violates the sanctity of the decision-making process. The approved proposal has been finalised after due diligence, inter-departmental deliberations, public consultations and the prime minister’s approval. This cannot be compromised and reopened through backdoor negotiations with the car industry unilaterally.

These standards are meant to set targets for fuel efficiency improvement in cars and conversely reduce carbon dioxide emissions that are directly linked with the amount of fuel burnt. The Corporate Average Fuel Consumption standards that have already been approved by the PMO in July this year has laid down a target of 18.15 km/litre (or 129.8 gm of CO2/km) in 2015 and 20.79 km/litre (or 113 gm of CO2/km) in 2020, after adjusting for increase in the average weight of the car fleet.

Industry bid to dilute standards

According to sources, the car industry, which is said to be unhappy with these standards, is trying to push the deadline of their implementation to 2018 and 2023. It is also making an effort to have the standards watered down. While the approved targets are aiming at 20 per cent CO2 reduction over 2010 levels in 2020, the car industry is proposing just 16 per cent reduction as late as 2023.

The car industry is also against adjusting the targets to account for the increase in average weight of the car fleet. It wants to keep lax margins for bigger cars. The average weight of the Indian car fleet is expected to increase in coming years. Bigger cars burn more fuel—standards must account for this. In fact, in 2010 the average fleet weight was 1,037 kg; this has already increased to 1,100 kg. The PMO approved standards has adjusted the 2020 target of 113 gm/km assuming that the average fleet weight will increase to 1,145 kg that in any case looks like an underestimation.

Car industry's low ambition
 
Fuel efficiency standards approved by PMO: 18.15 km/litre (or 129.8 gm of CO2/km) in 2015, and 20.79 km/litre (or 113 gm of CO2/km) in 2020, after adjusting for increase in the average weight of the car fleet.

The PMO-approved standards will enable fuel savings of close to 103 million tonnes of oil equivalent. The approved targets are aiming at 20 per cent CO2 reduction over 2010 levels in 2020. But the car industry is proposing just 16 per cent reduction as late as 2023.

The European CO2 standard for cars for 2012 is 140 gm CO2/km. But Europe will leapfrog to 95 gm/km in 2020. The US will bring down its levels from 187 gm/km in 2010 to 121 gm/km in 2020
 
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