This year, numerous cities in India have faced recurring issues with bad air quality, affecting the health of millions. Two significant studies focused on pollution in Delhi, one from 2015 called Urban Emission and another from 2018 conducted by TERI, highlight that a major cause of smog in urban areas is the presence of tiny particles known as PM2.5 and PM10. These particles primarily originate from vehicles and construction work.
Amidst this scenario, the widespread use of electric vehicles in transportation on roads can play a fundamental role in tackling the issue of air pollution in the country.
Relevancy for UPSC Aspirants
For UPSC aspirants, understanding the dynamics of electrification in India’s road transport is important, given its relevance to both environmental and economic sectors. This editorial illuminates the significance of electric vehicles (EVs) in mitigating air pollution, a pressing issue in many Indian cities, thus linking directly to GS Paper – 3 topics like Environmental Pollution & Degradation. It also elaborates on the government’s initiatives like the FAME II Scheme and NEMMP, pertinent for GS Paper – 2 under Government Policies & Interventions.
Why India Needs to Electrify Road Transport
Electrification of road transport in India addresses major environmental, economic, and urban challenges. By embracing this transition, India can work towards a cleaner, more sustainable future while fostering economic growth and enhancing the quality of life in its cities.
Improved Air Quality
- The transport sector is responsible for a significant portion of harmful emissions—25% of global CO₂ emissions and 15% of greenhouse gases. By 2050, transport-related CO₂ emissions could rise by 16% despite current efforts to reduce them.
- India hosts 35 of the world’s 50 most polluted cities, making it necessary to cut down emissions, especially those from road transport.
- Electric vehicles (EVs) emit fewer pollutants like NOx and PM2.5, which can dramatically improve air quality in India’s crowded cities.
Less Reliance on Fossil Fuels
- The transport sector in India relies heavily on oil, with about half of the country’s oil demand coming from transportation.
- Electrifying road transport means less dependence on oil, encouraging cleaner energy sources like solar and wind.
- This shift not only promotes sustainability but also strengthens India’s energy security by diversifying its energy mix.
Addressing Climate Change
- Electric vehicles are a key part of global efforts to tackle climate change. Studies in 2021 indicated that EVs in India produce 19-34% fewer greenhouse gases compared to gasoline-powered cars.
- By adopting EVs, India can meet its climate targets and contribute to the worldwide reduction in carbon emissions.
Economic Growth Opportunities
- India is the fourth-largest car manufacturer globally, making electric vehicles a significant economic opportunity.
- The Indian government aims for 30% of all vehicles to be electric by 2030, creating new jobs and spurring innovation in areas like battery technology and charging infrastructure. This can boost the economy and position India as a leader in the electric vehicle market.
Enhanced Urban Planning and Livability
- Electric vehicles can transform urban landscapes, encouraging shared mobility and reducing traffic congestion. This leads to more pedestrian-friendly spaces, improved cycling infrastructure, and better public transport options, enhancing the overall quality of life in cities.
- By focusing on EVs, India can create more sustainable and livable urban environments for its citizens.
Challenges in Electrification of Road Transport in India
Power Generation and Decarbonization
- Electrifying road transport without reducing emissions from power generation could simply move pollution from car exhausts to power plant smokestacks.
- India’s heavy reliance on coal-fired power plants to generate electricity can lead to significant emissions of sulfur dioxide (SO2) and other pollutants, especially without stringent pollution controls in place.
Carbon Footprint of Electric Vehicles (EVs)
- EVs are often seen as environmentally friendly, but they come with a high “whole-of-life” carbon cost. This refers to the total carbon emissions over the vehicle’s entire lifecycle, from manufacturing to disposal.
- Due to the energy-intensive production of lithium-ion batteries and the typically heavier structure of EVs (which require more steel and aluminum), studies show that an EV must be driven at least 200,000 km before its lifecycle carbon emissions match those of a traditional internal combustion engine (ICE) vehicle.
Technological Hurdles
- The production of lithium-ion batteries, crucial for EVs, depends on specific minerals and rare earth elements.
- India’s heavy reliance on imports for these materials creates supply chain risks, impacting the ability to scale up EV production.
High Upfront Costs
- EVs generally cost more to purchase than conventional vehicles, making them less accessible for many consumers.
- This high initial cost acts as a barrier to widespread adoption, slowing down the growth of the EV market.
Charging Infrastructure
- EVs need a robust charging network to be practical for widespread use. India’s current infrastructure is lacking, with far fewer charging stations than needed to support a large EV fleet.
- NITI Aayog estimates that to support 80 million EVs by 2030, India will need at least 3.9 million charging stations, a far cry from the existing capacity.
Limited Market Penetration
- Although the global EV market has grown significantly, India’s adoption rate remains low, with EVs comprising only around 1% of the automobile market.
- This number is primarily driven by electric two-wheelers, while sales of electric cars and buses are still minimal, with just 4,000 units sold in 2020.
Each of these challenges presents a significant obstacle to India’s vision for a greener transportation future. Addressing them requires a comprehensive approach that includes policy changes, technological innovation, and substantial investments in infrastructure and supply chains.
Government Initiatives Driving Transport Electrification in India
- FAME II: The Faster Adoption and Manufacturing of Electric Vehicles scheme provides subsidies to encourage electric vehicle production and sales. It’s a core part of the government’s push toward a greener transport future.
- NEMMP: The National Electric Mobility Mission Plan sets the long-term vision for electric mobility in India, aiming to transform the country’s transportation landscape.
- PLI Scheme: The Production Linked Incentive scheme rewards companies for increasing domestic manufacturing of electric vehicles and components, helping to build a strong local EV industry.
- Battery Storage Initiative: The National Mission on Transformative Mobility and Battery Storage promotes research and development in battery technology, crucial for electric vehicles.
- Vehicle Scrappage Policy: This policy incentivizes the removal of old, polluting vehicles from the roads, paving the way for newer, cleaner electric vehicles.
- Charging Infrastructure: The Ministry of Power’s guidelines ensure the availability of charging stations in urban areas and along highways, with a minimum of one station every 3 km in cities and every 25 km on highways.
- Urban Planning for EVs: The Ministry of Housing and Urban Affairs has updated building codes to require 20% of parking spaces in residential and commercial buildings to be set aside for EV charging.
- EV Charging Standards: The Department of Science and Technology has launched a challenge to establish Indian standards for electric vehicle charging infrastructure, promoting compatibility and ease of use.
- Tax Incentives: High taxes on petrol and diesel (around 60% of retail prices) and lower Goods and Services Tax (GST) rates for electric vehicles (from 12% down to 5%) offer financial incentives for consumers to switch to electric vehicles.
These initiatives show India’s commitment to moving toward a more sustainable and eco-friendly transportation system. The focus is not just on promoting electric vehicles but also on creating the infrastructure and incentives necessary for their widespread adoption.
Learning from Global Electric Mobility Success Stories
Setting Concrete Goals and Plans
- United Kingdom created a Transport Decarbonization Plan to transition to zero-emission cars and vans by 2030.
- Chile Energy Roadmap 2018-2022 aims to increase electric car numbers tenfold by 2022 and electrify all public transport by 2040. Aims for 40% electric car ownership by 2050.
Establishing Clear Targets
Norway aims to achieve 100% electric vehicle sales in light-duty vehicles (LDVs) and public buses by 2025, establishing a strong precedent for transitioning to electric mobility.
Offering Accessible Incentives
South Korea offers a one-time purchase subsidy for electric cars and plans to reduce purchase tax surcharges, encouraging consumers to opt for electric vehicles.
Implementing at Local Levels
California demonstrates the impact of subnational efforts, providing both financial and non-financial incentives on top of federal programs, along with clear adoption targets for electric vehicles.
Countries Leading in EV Adoption
Nations like Norway, Iceland, Sweden, the Netherlands, and China have impressive electric vehicle adoption rates. For example, in 2022, electric vehicles made up 80% of passenger vehicle sales in Norway, showing the potential for rapid EV uptake with the right policies and incentives.
The Road Ahead for Electric Vehicles
Government-Driven Electric Fleets
- All government vehicles should transition to 100% electric. If India fulfills its expected demand for 7,750 electric trucks by 2030, it could save over 800 billion liters of diesel by 2050.
- States need clear plans to switch their government-owned fleets to electric and set the pace for broader adoption.
- Some states like Andhra Pradesh, Assam, Madhya Pradesh, Maharashtra, Uttar Pradesh, and Haryana have already established targets for transitioning to 100% EVs for their government agencies.
Investing in Charging Infrastructure
- To support electric vehicles, there must be an increase in charging stations.
- Programs like Viability Gap Funding can help reduce the costs of building and operating these stations, making it easier for businesses to invest in this infrastructure.
EVs in Priority Sector Lending
- Bringing electric vehicles under the Reserve Bank of India’s priority sector lending (PSL) guidelines would boost funding for EVs, driving growth in the sector.
- PSL has a history of encouraging formal credit towards key national objectives, offering a strong incentive for banks and non-banking financial companies to finance electric vehicles.
Innovative Financial Approaches
- NITI Aayog suggests recognizing EVs as an infrastructure sub-sector and creating a distinct category for them under RBI reporting.
- Additionally, green bonds and other innovative financial models could be key to funding electric buses and promoting electric mobility.
Product Innovation
- India has rolled out its first electric double-decker bus, marking a major advancement in public transportation.
- This new type of bus is ideal for city travel, taking up less road space and carrying more passengers, making it a significant step toward cleaner public transit.
Technological Solutions for Efficiency
- Utilizing technology like data monitoring and analytics can improve the efficiency of electric vehicle operations, enhancing commuter experiences and increasing the number of passenger trips.
Private Sector Involvement
- The private sector is showing interest in developing electric vehicle charging infrastructure.
- This involvement is critical to speeding up EV adoption and making it easier for individuals and businesses to switch to electric mobility.
Towards Sustainable Mobility
- NITI Aayog’s “Decarbonising Transport 2023” report emphasizes the importance of both a “mobility transition” and an “energy transition in transport” to achieve a truly sustainable transportation system.
- By aligning efforts across sectors, India can move closer to its goal of a cleaner, greener future.
Conclusion
Focusing only on electric vehicles isn’t enough to fully reduce carbon emissions in the transportation sector. To make a significant impact, we need a broader strategy that looks beyond electric cars. This means finding ways to make all types of transportation more efficient and less reliant on carbon-heavy fuels. At the same time, we need to ensure our electricity grid is powered by cleaner energy sources, encourage the development of alternative fuels, and phase out subsidies that support fossil fuels. All these steps are essential to driving the energy transition and cutting carbon emissions from transportation in India.
