Relevance: GS III (Infrastructure – Energy & Environment) | Source: The Hindu ; Bureau of Energy Efficiency (BEE)
1. The Context: Closing the “Regulatory Blind Spot”
For years, while passenger cars faced strict fuel efficiency rules, Light Commercial Vehicles (LCVs)—the small trucks used for delivery—operated without similar mandates.
- The Change: In July 2025, the Bureau of Energy Efficiency (BEE) proposed new fuel consumption standards for LCVs for the period 2027–2032.
- The Goal: To electrify the logistics sector, which accounts for a massive chunk of urban pollution but currently has less than 2% electric vehicle penetration.
2. The “Tipping Point” Concept
Efficiency standards change the economics of manufacturing.
- The Threshold: Research shows there is a specific carbon limit (116.5 g CO₂/km) where the game changes. Below this limit, it becomes cheaper for manufacturers to build an Electric Vehicle (EV) than to try and upgrade a diesel engine to meet the strict norm.
- The Target: The BEE has set the target at 115 g CO₂/km, effectively pushing manufacturers across this tipping point toward electrification.
3. The Policy Tool: “Super Credits”
To make the transition easier, the government is using a regulatory tool called “Super Credits.”
- How it Works: It acts as a Multiplier. If a manufacturer sells one electric truck, it counts as selling multiple (e.g., 3) clean vehicles when calculating their fleet-wide emission score.
- Benefit: This rewards early adopters and allows companies to meet strict government targets on paper while gradually shifting their production lines.
UPSC Value Box
Concept / Institution | Relevance for Prelims |
| Bureau of Energy Efficiency (BEE) | A Statutory Body under the Ministry of Power, established under the Energy Conservation Act, 2001. It develops policies like the Star Labeling program and ECBC (Building Codes). |
| CAFE Norms | Corporate Average Fuel Economy. These norms limit the average carbon emission of a car manufacturer’s entire fleet, rather than checking every single car individually. |
| PM E-DRIVE | The successor scheme to FAME-II, aimed at promoting electric mobility (though it has faced criticism for excluding certain commercial segments). |
Q. With reference to the Bureau of Energy Efficiency (BEE), consider the following statements:
- It is a constitutional body established under the Article 280 of the Constitution.
- It functions under the administrative control of the Ministry of New and Renewable Energy (MNRE).
- Its primary objective includes reducing the energy intensity of the Indian economy through self-regulation and market principles.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 3 only
(c) 1 and 3 only
(d) 2 and 3 only
Correct Answer: (b)
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