Transportation via roads plays a critical role in India's shift towards clean energy.
A new report highlights the significant potential of electrifying India's transport sector in curbing emissions and improving air quality. The shift towards electric vehicles (EVs) could potentially avoid a substantial amount of CO2 emissions, ranging from 110 to 380 million tonnes, by 2050, depending on the pace of power sector decarbonization.
The report underscores the dual nature of road transport, which poses environmental challenges but also serves as a means to promote clean energy transition. Urban air pollution in India is alarmingly high due to road transport emissions, making the need for a cleaner, more sustainable transport system all the more urgent.
The electrification of the transport sector could serve as a linchpin for India's transition to clean energy. The IEA's Stated Policy Scenario predicts a potential doubling of energy use and CO2 emissions from road transport by 2050. However, strategic policies in place can drive sustainable growth for the country by electrifying its transport sector.
India has adopted an electrification strategy as a key part of its efforts to decarbonize the transport sector. Two flagship national programs, the FAME scheme and the PLI schemes, are providing purchase incentives and manufacturing support for electric vehicles in India. These initiatives are already showing results, with more than 50% of three-wheelers in recent years being electric vehicles, and approximately 4% of two-wheelers being electric.
Regions in India that have received subsidies under the FAME and PLI schemes to support electric vehicle development include Karnataka and Telangana in the south, Mahararashtra in the west, and Delhi in the north. These areas are benefiting from regional incentives, tax exemptions, and investments in charging infrastructure.
Government policies, including subsidies and favorable taxation, are narrowing the price gap between electric and conventional vehicles. Electric three-wheelers offer a 70% cost advantage over their gasoline-powered counterparts over their lifetime.
Looking ahead, India is considering additional policy measures such as low-emission zones, stringent fuel economy standards, and zero-emission vehicle (ZEV) requirements to accelerate the adoption of EVs. Road transport currently accounts for 12% of India's energy-related CO2 emissions. Presently, the emissions avoided by electric vehicles in India are balanced by emissions produced during power generation.
India, being the fourth-largest car manufacturer in the world, positions electric vehicles as a potential catalyst for economic growth and environmental sustainability. The report projects that electric vehicle sales could reach nearly 35% of total vehicle sales by 2030. As the country continues to electrify its transport sector, it is poised to lead the way in clean energy transition, improving air quality, and reducing carbon emissions.
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