To address global emissions from transport, switching to electric mobility solutions and leveraging the most public-private partnerships can be a good start
In the collective global fight against climate change, sustainable transportation solutions have a significant role to play. Transport has always had several environmental implications, influencing the air quality, surrounding ecosystems, and human health.
Hence, accelerating the transition to sustainable transport solutions has become an environmental necessity and one of the critical components for making cities worldwide more liveable and healthier by reducing the overall dependence on fossil fuels.
The urgent need to renew ongoing commitments towards combating climate change was even more apparent as the global community gathered for the 28th annual United Nations (UN) climate meeting in Dubai, in the United Arab Emirates (UAE).
Stakeholders around the world are hopeful that the 28th Conference of Parties, or COP28, will keep alive the commitment to limit global long-term temperature rise to 1.5 degrees Celsius. In this context, the transportation sector has become a global point of action for the UN, accounting for around one-fifth of the global carbon dioxide emissions, of which road transport amounts to three-quarters.
To address global emissions from transport, switching to electric mobility solutions and leveraging the most public-private partnerships can be a good start. Electric vehicles (EVs) have become quite popular, and they offer a fuel-efficient and sustainable mode of transportation and a chance to decrease overall carbon dioxide emissions substantially. India has marked its arrival on the EV front, crossing a major milestone of over 1 million EV sales in 2023.
India and sustainable transportation
With its vast population, rapidly growing urban demographics, and increasing energy requirements, India faces several unique challenges. Due to the previous overreliance on traditional transport and an increasing number of vehicle owners, there was a sharp and constant increase in emission levels, air pollution, and congestion.
This situation made the need for rapid transformative change all the more evident, with the government stepping in and setting an ambitious target of achieving EV sales penetration of around 30 percent for private cars, 70 percent for commercial-use vehicles, and up to 80 percent for two- or three-wheelers by 2030.
Electrifying transport
In some promising news for India, the Rocky Mountain Institute, an organisation that recently collaborated with Niti Aayog, estimated 50 million EVs on Indian roads by 2030 if vehicle financing improved and the nation could rally public and private capital in a targeted manner. The government has also allocated a total budgetary support of 10,000 crore INR for the Faster
Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME India) Scheme, starting four years ago, to support and influence buyers towards EVs. It is also anticipated that the FAME scheme will be renewed for an additional term of 3–4 years because of the recent growth seen in EVs. A comprehensive plan is also in place to increase EV adoption nationwide.
Driving with fuel-agnostic technology
The advent of fuel-agnostic technology is a ground-breaking innovation that's reshaping vehicle propulsion systems and offering a versatile solution to the sustainability challenge. It is capable of operating with various fuels, irrespective of their type or source.
Their major benefit lies in significantly reducing greenhouse gas emissions, as they accommodate cleaner alternatives like biofuels and hydrogen. While hybrid vehicles have paved the way by running on both fossil fuels and electric energy, they still rely on internal combustion engines, leaving room for improvement in achieving zero tailpipe emissions.
Companies like Cummins are pioneering this field with their next-generation fuel-agnostic diesel engines, capable of running on a range of fuels, from hydrogen to biofuels. These engines promise substantial reductions in harmful emissions, though they have yet to achieve complete elimination of tailpipe emissions.
The concept of flex fuel vehicles, capable of running on different blends of gasoline and ethanol, like E85 (85 percent ethanol, 15 percent gasoline), further illustrates the versatility of fuel-agnostic technology.
Particularly in countries like India, this technology could revolutionise the agricultural sector and thus rural economies by creating a demand for biofuel crops, consequently reducing fuel import costs and bolstering environmental sustainability. It also aligns with the nation's renewable energy ambitions.
Attracting investments
The Indian automobile sector already contributes around 50 percent to the manufacturing GDP of the country and over 7 percent to the total GDP. The battery costs for EVs have also seen a sharper decline than anticipated, leading to favourable economics.
The nation’s EV industry received a $6 billion investment a couple of years ago, with the government allowing up to 100 percent Foreign Direct Investment (FDI) in the sector via the automatic route, making it an attractive avenue for venture capital and private equity investors.
Observers can also notice a buzz of excitement and optimism surrounding the industry, with a Bengaluru-based EV startup raising $15 million in funding from Al-Futtaim Automotive, one of the primary vehicle distributors in Dubai. With the bulk of the Indian population owning two-wheelers, it would be the ideal vehicle market for EV makers to target this segment for quick growth and scaling.
Areas of improvement
While many cities across the U.S. have implemented bike lanes to help those who prefer to commute on two wheels instead of four, many of these bike lanes are nothing more than painted lines that do not actually do much to protect cyclists. This lack of infrastructure for bicyclists does not encourage people to ditch their cars.
Bike lanes need to be broader and separated from vehicle lanes; this would not only improve the safety of cyclists but also encourage more people to opt for bike commuting. The U.S. is not alone in this regard. Other countries are struggling to create more bike-friendly cities, such as Hong Kong. If cities did more to create safer bike lanes, more people would start choosing to commute that way.
Citywide bike-share programmes can and should also be expanded. These types of programmes are gaining popularity nationwide, but they often only exist in selective urban areas, making it difficult for everyone to access them.
The aviation sector is another area of transportation that could be significantly upgraded by going electric. While aviation currently ‘only’ accounts for 2.5 percent of global emissions, projected growth trends predict that the aviation sector will become a major carbon producer by 2050. To prevent this from happening, we need more investment in electric aviation and sustainable aviation fuels (SAFs). This includes aircraft used for freight transportation as well as aircraft used for travel.
Reinventing public transport
Public transport is the lifeline that connects India, and it is also one of the most critical issues the nation needs to address to achieve its ambitious environmental and sustainability targets. The government has taken several steps to make the existing public transport infrastructure more sustainable and fuel-efficient. It already provides purchase assistance and attractive tax breaks for BEVs, PHEVs, and FCEVs.
The Delhi-Chandigarh Highway will become the nation’s first EV-friendly one due to Bharat Heavy Electricals Limited (BHEL) successfully installing a charging station network.
Combined with incentives, relevant programmes, the FAME scheme, substantial investments, and an increasing EV adoption rate, this could lead to the establishment of eco-friendly alternatives to traditional public transport. Local bus transportation is best suited to electrification because of its ability to transport masses, limited travel routes, ability to recharge at night and during halts, and long-term contracts based on an operating model.
Conclusion
In light of the recently concluded COP28, the ongoing efforts by the Indian government and the industrial ecosystem to move towards sustainable transportation solutions are remarkable. They can achieve their stated goal of reducing carbon emissions, improving air quality, and guaranteeing energy security by addressing the challenges in the transport sector.
The EV revolution offers the chance to do that while helping the country adhere to the conditions of the Paris Climate Agreement and the spirit of COP28. “While we didn’t turn the page on the fossil fuel era in Dubai, this outcome is the beginning of the end,” said UN Climate Change Executive Secretary Simon Stiell in his closing speech. “Now all governments and businesses need to turn these pledges into real-economy outcomes without delay,” he added.
(Gajanan Gandhe, Country Head and Vice President for Dana India)