New Delhi
There is a major disagreement among Indian automakers over the calculation of carbon credits. On one side of this chasm are Korean companies such as Tata Motors, Mahindra & Mahindra (M&M), Hyundai Motor India (HMIL) and Kia India, while on the other hand there are companies such as Maruti Suzuki India (MSIL) and Toyota Kirloskar Motor (TKM) and others are arguing on the other side. side.
Because of these differences, a recent meeting (first week of February) between original equipment manufacturers (OEMs) and the Bureau of Energy Efficiency (BEE) on calculating carbon credits failed to reach an agreement. , said government and industry officials. business line.
Under the Corporate Average Fuel Economy (CAFE) regulations, the government aims to reduce overall carbon dioxide emissions from vehicle exhaust.
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The first CAFE standard was launched in April 2017 with BS4 emissions standards, and the second was rolled out in January last year, setting limits on total carbon dioxide emissions. These are calculated taking into account the weight of the individual model of the vehicle and the number of units sold. The aim is to improve vehicle fuel efficiency by 35% by 2030.
It has been decided that the maximum allowed carbon dioxide emissions will be 130 grams per km until 2022, after which this will be further reduced to 113 grams per km. CAFE regulations cover all engines, including gasoline, diesel, and CNG/LPG, in passenger cars.
“The first group wants that credits from previous years should be allowed to be compensated in the current year. However, Maruti Suzuki is strongly opposed to this move. Industry body SIAM (India) “The Japan Automobile Manufacturers Association (Japan Automobile Manufacturers Association) has also not been able to reach an agreement among OEMs,” said a person familiar with the discussions at the meeting.
At the same time, OEMs hope that CAFE penalties will be synchronized when India introduces a formal structure for a carbon credit mechanism. It is also not clear whether CAFE penalties should be imposed by the Center or state regulators, the official said.
“The industry basically wanted to understand a number of issues. This wasn’t exactly a conflict, it was an unresolved issue that the industry wanted resolved and clarified. The discussion also , it revolved around specific things that can be done to operate the entire process in a more flexible manner,” said another official who attended the meeting.
“For example, we would review the accounts every year and decide what to do. Another option is to let people count their past CAFE points and do better next year. But this is nothing more than a bank provision,” he added.
“The discussion did not end as several companies including Hyundai Motors, Kia Motors and Tata Motors and M&M had different views and insisted that the points should be carried over to the next year (as the target was not achieved), but as MSIL “TKM opposed it because it had already achieved its fiscal year targets,” the official said.
The next meeting will be convened in mid-April and may include further discussions to reach an agreement, the officials added.
Query submitted business line We asked MSIL, Hyundai Motor India, Tata Motors and M&M for their versions but did not receive any response.
This is a message from BEE. “We inform you that the fuel consumption is measured under standard conditions in a nationally accredited laboratory where fuel consumption is measured over domestically driven cycles. These standards will ensure that by 2025 It is expected that fuel consumption will be reduced by 22.97 million tons.”
This is at the top of the priority list of countries, economies and companies aiming to become sustainable. India has set a goal of achieving net zero by 2070 and meeting half of its energy needs with renewable energy by 2030. Currently, India ranks fourth in the world in terms of carbon dioxide emissions, after China, the United States, and Europe. Union.
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