India proposes automaker compliance credit trading system under next-generation fuel economy rules

Published 19:23 on July 16, 2026 / Last updated at 19:23 on July 16, 2026 / Asia Pacific (Asia, Compliance Markets & Taxes), Net Zero Transition (Transport & Heating Fuels), Voluntary (VCM Developments)

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India's government on Thursday proposed a compliance credit trading system for passenger vehicle manufacturers under draft third-phase Corporate Average Fuel Economy (CAFE-III) rules that would progressively tighten fleet-wide fuel efficiency standards from 2027 while giving automakers greater flexibility in how they comply.
India's government on Thursday proposed a compliance credit trading system for passenger vehicle manufacturers under draft third-phase Corporate Average Fuel Economy (CAFE-III) rules that would progressively tighten fleet-wide fuel efficiency standards from 2027 while giving automakers greater flexibility in how they comply.


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