A rapidly warming world calls for some radical changes to our lifestyles and the way we think about the planet. Take the transport sector - it provides an apt example of how our lifestyles and thought processes must keep pace with a rapidly changing climate. For decades, owning a car was something to aspire to. But today, it is no longer aspirational. Cities like London and Singapore levy a tax on private cars coming into business districts during business hours to reduce congestion. Indian cities may soon be left with no choice either if they have to control the congestion and the air pollution that has been held responsible for 1.67 million deaths in India in 2019 alone.
The economic loss due to these deaths was pegged at USD 28·8 billion for 2019. Majority of this pollution is vehicular, coming from both passenger and freight vehicles. Hence, relooking at the way we use transportation is a key aspect of a climate friendly lifestyle. Let’s look at what can be done to bring about a change in this economically important sector.
Transport connects industrial production centres to consumption centres. In India it contributes around 10 per cent to the national GDP. Vehicle ownership is low compared to other countries and emissions from the sector are driven mainly by fossil fuel consumption in the road sector, which accounts for 87 per cent of passenger and 60 per cent of freight traffic. Therefore, greening this sector is critical to India’s long-term low-carbon development strategy.
Given India’s current growth and transport sector trends, the on-road freight segment is expected to be a significant driver of transport emissions in the long-term in a business-as usual (BAU) scenario. Emissions from heavy duty vehicles would account for the majority of such emissions.
Last year at COP26 at Glasgow, India declared its 2070 net zero target. It followed up with a decarbonisation roadmap for key sectors such as energy and transport at COP 27 at Sharm-el-Sheikh in Egypt last month. The Long-Term Low-carbon Economic Development Strategy (LT-LEDS) announced by India at COP27 assesses the low carbon options for the sector in the context of both passenger and freight transport requirements. Among the options outlined in the document is electrification of vehicles across the board – that is, public and private transport as well as passenger and freight uses.
Addressing both passenger and freight sector will have a significant impact on greening the transport sector in the country and therefore, should be an important goal for India’s low-carbon development.
The strategic elements outlined for the transformation of the transport sector in the LT-LEDS document include electrification across multiple modes: ‘A comprehensive package of programmes, policies, and measures for the domestic manufacturing of electric vehicles and batteries and the electrification of railways will be taken up. Modal shift towards public and less polluting modes of transport: India will seek to integrate transport with urban planning, multi-modal connectivity, and enhanced railway capacity.’ The document places the transition to EVs in the context of increased fuel-efficiency, and the transition to greener fuels and mode shifts, especially to rail for long-distance freight, a hard-to-abate sector.
Current Policy Landscape
India announced its first EV policy, FAME I, in 2015, followed by FAME II in 2019. FAME II had a budget outlay of Rs. 10,000 crore to support the deployment of one million e-two-wheelers, half a million e-three -wheelers, 55,000 e-passenger vehicles and 7,000 e-buses. Under the scheme, Rs 3545 crore was allocated to the e-bus segment. Currently, the scheme has been extended till 2024.
The government followed this up with Production Linked Incentive scheme for Advanced Chemistry Cell Battery Storage (PLI-ACC) in 2021 which is expected to boost India’s battery infrastructure. The scheme has an outlay of Rs 18,100 crore, to be disbursed to beneficiaries over five years once the manufacturing facility is set up.
To facilitate a smooth roll-out of charging infrastructure, the Central Electricity Regulatory Commission has set norms for EV charging tariff – a single-part tariff that shall not exceed the average cost of supply till 31 March, 2025. There is also a provision for open access with only cross subsidy charges being applicable.
The government’s recent directive on mandatory standards for EVs that came into effect from 1 December 2022 will further bring uniformity to EV battery packs. This will also facilitate battery swapping going forward. These norms cover standardisation of battery components and testing of the components such as cells and modules that are components of an EV battery pack.
The norms will see new compliance measures being implemented and additional safety measures with regards to battery cells, battery management systems, battery pack design, on-board charger and thermal propagation due to internal cells short circuit leading to fires.
In the coming years, government incentives and subsidies and falling prices of battery packs are expected to escalate the sale of electric vehicles across the country. The electric vehicle market in India is expected to grow from USD 5,153.79 million in 2022 to USD 14,910.33 million in 2028, at a CAGR of 19.81 per cent. NITI Aayog has set a target to achieve EV sales penetration of 70 per cent for all commercial cars, 30 per cent for private cars, 40 per cent for buses and 80 per cent for two and three-wheelers by 2030. This is in line with the goal to achieve net zero carbon emission by 2070.
Effective Decarbonisation
For sustained and optimal decarbonisation of the sector, the government needs to focus on mode shift from private vehicles to public transport and/or shared modes, such as taxis.
The mode shift to public transport faces a number of challenges. Public transportation systems in India are inadequate at best, and therefore, for most commuters not a mode of choice but of necessity. In fact, data shows that over time, the share of public has declined considerably. While the growth of metro rails in big cities in the past decades provides some hope that public transportation can be salvaged, last mile connectivity remains an issue.
Many potential commuters stay away from public transportation on account of the lack of last mile connectivity. Enabling mode shift calls for efficient and optimal use of all types of shared mobility to provide smooth and seamless and at the same time affordable last mile connectivity.
Private cars will go off the roads only when public transport is both efficient and comfortable, catering to all commuter segments. Transport planning must take into account all sections of commuters over decadal projections rather than from a short-term congestion relief perspective. Commuters have responded to the availability of quality commute – whether it was the introduction of AC coaches in Mumbai local trains or the proposal to introduce bullet trains between Mumbai and Ahmedabad.
Further, an electrified and efficient public transport fleet is like a double bonanza with the added benefit of cleaner air. In Delhi, which is private transport dependent, despite a widespread metro-rail system, nearly 50 per cent of the city’s air pollution comes from vehicular pollution. It is heartening to see the recent DTC announcement that 80 per cent of its fleet will be electrified by 2025 and 100 per cent electrification going forward. Moving to e-buses is a simple but elegant solution to both the air pollution and mobility issues that all Indian cities face. This can be done by ensuring that all future procurements are e-buses.
Another important aspect of mode shift and lifestyle changes is non-motorised transport. Our city planners and transport planners must work together to ensure that there is dedicated space for cyclists and walkers. It is not only healthy, but effectively decongests roads and lessens air pollution.
Shifting to a climate friendly lifestyle is finally about making the right choices – for ourselves and for the subsequent generations. It is about making a conscious decision to consume less, share resources, collaborate and cooperate and putting public good before private greed for a greener planet.