How EVs Can Help Decarbonise India’s Transport Sector

Sushant Kumar
07 Sep 2022
10:29 AM
3 Min Read

Climate change and global warming have become existential threats to the world, and India isn’t safe from this global menace either.


Climate change and global warming have become existential threats to the world

The transportation industry contributes to around 37% of global carbon dioxide emissions. In India alone, 2,597 metric tonnes of CO2 are being released into the atmosphere as a result of burning fossil fuels, which is a staggering 6.8% of global CO2 emissions. 

Further, India's CO2 emissions increased by 132% between 2000 and 2015, much exceeding the global average of 40%. At 770 gCO2/kWh in 2015, India's power sector had one of the highest emissions rates worldwide. It is 15% more than that of China and 50% higher than the global average. 

There is increased concern due to the transportation industry's CO2 emissions. As urbanisation and population continues to expand, emissions will continue to climb as well. As population grows, the consumption of fossil fuels too tend to rise exponentially.

In fact, climate change and global warming have become existential threats to the world, and India isn’t safe from this global menace either. For India and its 1.3 bn people, the growth of industries and motor vehicles on fossil fuels poses a constant threat. 

In light of this, India is seeing a rise in the adoption of electric vehicles (EV), which is being pushed by the government, as the country has pledged to combat climate change and achieve its goal of decarbonising the transportation industry

India's Path To A Thriving Low-Carbon Economy

The Indian government wants to achieve complete carbon neutrality by 2050, and decarbonisation would have to be a crucial step in that direction. According to an ORF analysis, India's path to a thriving low-carbon economy depends on three different types of initiatives: creating jobs in low-carbon businesses, achieving strong low-carbon economic growth, and reducing its greenhouse gas or CO2 emissions without jeopardising nation's development goals.

Zero emission electric vehicle
 Decarbonisation would have to be a crucial step in India achieving complete carbon neutrality by 2050.

Although decarbonising the coal-based industries is urgently needed, the process will take time. In this sense, the transportation sector is the only one where significant efforts are being made to reduce its reliance on fossil fuels. If India wants to reduce its carbon footprint, the shift to electric mobility is absolutely necessary. In addition to creating new jobs, this industry can also reduce emissions significantly.

The global climate goal set forth by the Paris Agreement to cut carbon emissions is what is driving the push for EVs. In terms of job generation, the drive is also anticipated to have a significant impact on the local EV manufacturing sector. EVs are also expected to strongly back the government's agenda of carbon neutrality. 

A forum organised by the World Resources Institute (WRI) and NITI Aayog seeks the creation of uniform policies and assists in achieving specific outcomes in the reduction of carbon emissions from the transportation sector. Since India is now developing a domestic renewable auto sector with the goal of becoming the world's largest electric vehicle production and exporting hub, the forum is poised to significantly shape India's EV sector through international investments and quality leadership. 

By 2050, it is predicted that battery-powered EVs (that emphasises battery innovation) would have surpassed conventional fossil-fuelled automobiles nationwide. Approximately INR 18,000 crore, according to reports, has been granted for the development of sophisticated cell chemistry and energy storage business. These incentives also aim to promote domestic EV development in order to lower their initial cost, which will benefit customers.

Efforts In Decarbonisation 

India's first EV leasing project has been introduced to a government entity by Energy Efficiency Services Limited (EESL), a joint project in the energy sector under the administrative direction of the Ministry of Energy. EESL started leasing electric vehicles to government organisations with complete maintenance and driver support after announcing a sizable tender to purchase EVs from the country's private EV makers. It should be highlighted that the government has contributed to the cost of making the switch to an extravagant electric car fleet.

Share of powered transportation in India
Image Source: https://www.idtechex.com/en/research-report/electric-vehicles-in-india-2021-2041/793

Additionally, a number of EV manufacturers have emerged in the nation as a result of the government's successful subsidising scheme. Electric two-wheelers (bikes and scooters) are the biggest players, while four-wheeled EVs are still much lesser. The number of e2Ws has increased exponentially on the road, which is contributing immensely toward zero-emission and subsequent decarbonising efforts. 

In India, more private players are now contributing to the creation of a sustainable EV ecosystem and infrastructure. The nation, which intends to lead the way in hydrogen-based mobility systems, is also developing hydrogen-based energy solutions. Such initiatives represent a significant step in the transportation sector's overall decarbonisation.

About the Author: Sushant Kumar is the Founder & Managing Director of AMO Electric Bikes

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