Decarbonising Transport Sector

Context: 

Recently Niti Aayog released a report titled “Towards Decarbonising Transport – Taking Stock of G20 Sectoral Ambition”.

Highlight of the Report:

• Responsibility of G20: The G20 countries are responsible for a significant portion of global greenhouse gas emissions (GHG), making decarbonization of the transport sector crucial for achieving global climate goals.
  • India’s Emissions from the transport sector could increase by 65 per cent by 2030 and a staggering 197 per cent by 2050 relative to 2020 levels.
• Lack of Commitment: Despite commitments to the Paris Agreement, the G20 has not given enough attention to decarbonizing and reshaping the transport sector.
• Snail Pace Policy Impact: Notable reductions in transport emissions have not been achieved since 1990, and emissions have been increasing due to motorization around the globe.
  • Overall G20 transport emissions have grown by almost 6% in 2015–2019.
• Geopolitical Pressure: Due to the pandemic and growing geopolitical tensions, the international commitment to climate action is currently facing challenges.
  • Tectonic shifts in geopolitics mean greater economic competition between China, India, and Indonesia, on the one hand, and the US, Western Europe, and Japan, on the other.
• Fuel Subsidy: Overall subsidy levels are still distorting the market, giving carbon-intensive modes of transport an undue advantage.

India’s Transport Sector and Carbon Emissions:

• Scope and Coverage: India’s road network is the second largest in the world after the US and it has the fourth-largest rail network globally. 

• • The total number of road vehicles grew at an average of 10% per year between 2005 and 2012 and continues to grow strongly, which, together with increasing urbanisation, has led to high levels of traffic congestion and air pollution. 
  • India’s total CO₂ emissions from fuel combustion grew by 330% between 1990 and 2019. 
• Emission from Transport Sector: Road transport emerges as the major contributor to sector emissions, closely followed by rail transport. 
  • Transport-sector emissions grew 375% over the same period and represent an uncharacteristically low share – 14% due to high carbon intensity of India’s power generation.
  • With 1.6 t CO₂ for total emissions and 0.2 t CO₂ for the transport sector, India’s per capita emissions are the lowest in the G20. 
  • India’s rail transport’s share of sector emissions (nearly 7%) is one of the highest among the G20 countries.
• Slow Progress on EVs: Despite the global push to transition to electric vehicles (EVs), India has only set a target for a 30% electric vehicle share in passenger light-duty vehicle sales by 2030.
  • It falls short of an overall emissions or energy target for the entire transport sector.
• Lack of Specific Target under INDC: India’s updated Nationally Determined Contribution (NDC) includes targets to reduce emissions intensity and increase non-fossil fuel-based energy resources, but it does not specifically address the transport sector.

Steps Taken to Control Transport Emissions in India:

• Ambitious Target: India aims to increase the share of rail in freight transport to 45% by 2030 and intends to achieve a 30% share of electric light-duty vehicle sales by the same year. 
  • India signed the COP26 declaration, setting a target to transition to 100% zero-emission cars and vans by 2040.Adopting greener policies in passenger and freight transport sectors to avoid up to 1.7 Gt CO₂e by 2030.
• EVs Push: Among G20 nations, India stands out for its rapid and impressive evolution in the EV market. 
  • Programmes: National Electric Mobility Mission Plan 2020 in 2013, followed by the Faster Adoption of Manufacturing of EVs (FAME) Phase I and Phase II. 
  • These programs have allocated $1.25 billion to incentivize EV adoption through upfront subsidies and the development of robust charging infrastructure. 
  • India has over 2.4 million registered EVs as of June 2023.
• Fossil fuel subsidy reform: India which phased out price controls for transport fuels in late 2014.
  • From 2014 to 2017, India incrementally reduced oil and gas subsidies by 75%, while increasing funding for renewable energy six-fold.
• Hydrogen Push: India launched a National Hydrogen Mission in August 2021. 
  • Its target is to have 30 GW of electrolysis capacity by 2030 with related renewable power generation capacity, producing 5 million tonnes of green hydrogen per year.

Report Recommendation:

• Prioritizing Transport in Energy Transition: G20 states should lead in decarbonizing transport by eliminating fossil fuel subsidies and increasing green fuel funding.

• • Fostering Just Energy Transition Partnerships and supporting power-to-X technologies for enhanced cooperation among member states.Adopting Power-to-X fuels: They refer to carbon-neutral alternatives to conventional fossil energy carriers. 
  • These fuels are produced by using renewable energy sources, such as wind or solar power, to convert water and carbon dioxide into synthetic fuels like hydrogen or synthetic methane. 
  • They can play a crucial role in decarbonizing sectors like long-haul aviation and maritime shipping, where direct electrification may not be feasible.
• Greener Funding: Increasing investments to more energy-efficient means of passenger and freight transport can help shift consumer demand toward lower-carbon transport.
  • India has set a target to move at least 50% of goods via rail by 2030 and fully electrify its rail system by 2024.
• Adopting “Avoid, Shift and Improve” strategy: This strategy emphasizes the need to avoid unnecessary vehicle trips, shift towards low-carbon modes of transport, and improve the efficiency of existing transport systems. 
• Sustainable Mobility: The transition to sustainable mobility will reduce energy consumption without limiting mobility. 
  • Enhance the availability and cost-competitiveness of public transport and to support both the electrification of vehicles.
  • Electric vehicles (EVs) can improve energy efficiency by producing about 20% less CO₂ emissions than internal combustion engines.
• Integrated system approach: Combining IT, transportation, and power grid expertise can enhance integration between power and transportation sectors, promoting decarbonization in transportation and the energy economy as a whole.
• Role of Legislation: Countries must pass laws promoting new ideas, accelerating low-carbon system expansion, and holistic policies, addressing energy and land use linkages.. 
  • Ex: Public transport infrastructure is crucial for reducing GHG emissions, improving urban quality, and reducing congestion and fatalities.
• Behavioral Change: G20’s 2019 Energy Efficiency Leading Programme (EELP) recognised the importance of “behavioral change”
• • • Policies should promote eco-friendly, efficient transportation options like walking, cycling, and public transport, while promoting electric vehicles.

News Source: NITI Aayog

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