Grain Ethanol Manufacturers Association (GEMA) says the proposed framework validates ethanol as a key pillar of India’s low-carbon mobility strategy. Calls the draft a positive signal for flex-fuel vehicles, higher ethanol blends and future demand growth.

The Grain Ethanol Manufacturers Association (GEMA) welcomes the Centre’s draft CAFE-III norms, calling them an important policy shift towards technology-neutral clean mobility, with the proposed framework recognising the role of ethanol and other renewable fuels in reducing transport emissions.

The draft CAFE-III regulations introduce Carbon Neutrality Factors (CNFs) that acknowledge the carbon reduction potential of ethanol-blended fuels, flex-fuel vehicles (FFVs), biofuels and compressed biogas within the fuel efficiency compliance framework. The proposal also provides an 8 per cent Carbon Neutrality Factor for the current level of ethanol blending, reinforcing the role of biofuels in India’s evolving decarbonisation strategy.

Dr C.K. Jain, President, Grain Ethanol Manufacturers Association (GEMA), said: “The draft CAFE-III framework represents an important evolution in India’s clean mobility policy. By recognising the carbon reduction potential of ethanol and other renewable fuels, the government has reinforced the need for a technology-neutral approach to decarbonising the transport sector. This provides greater policy visibility to industry, encourages long-term investment and complements India’s broader energy security and climate objectives.”

Dr. Jain noted that the draft framework builds on the success of the Ethanol Blended Petrol (EBP) Programme, which has established India among the world’s leading biofuel markets while significantly reducing dependence on imported fossil fuels.

“The grain ethanol industry has responded to the government’s policy direction by creating substantial production capacity and investing across the value chain. As India moves towards higher ethanol blends and the gradual adoption of flex-fuel vehicles, policy measures such as CAFE-III will help create a supportive ecosystem for expanding the use of domestically produced renewable fuels. This will not only strengthen energy security but also create sustained economic opportunities for farmers, rural industries and allied sectors.”

GEMA said the proposed framework reflects a balanced policy approach by recognising multiple low-carbon mobility pathways instead of relying on a single technology solution. Such an approach, the Association noted, will encourage innovation, provide greater flexibility to automobile manufacturers and strengthen the role of renewable fuels in India’s transition towards cleaner transportation.

The Association expressed confidence that the final CAFE-III framework will further accelerate investments in India’s grain-based ethanol ecosystem while supporting the country’s long-term goals of reducing crude oil imports, lowering transport sector emissions and building a more resilient, self-reliant energy economy.