Read by: 100 Industry Professionals
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Automotive industry accounts for a significant portion of the total emissions generated by the transportation sector. In fact, road transport alone contributes to three-quarters of these emissions and 15% of the overall global CO2 emissions. If current conditions persist, projections indicate a worrisome scenario where annual greenhouse gas emissions in 2050 could be 90% higher than those recorded in 2020.
In India, a country with a vast and diverse transport sector, the automotive industry ranks as the third-largest emitter of CO2. Data from the International Energy Agency (IEA) in 2020 and the Ministry of Environment Forest and Climate Change in 2018 reveal that within the transport sector, road transport alone is responsible for over 90% of the total CO2 emissions. The transport sector in India accounts for 12% of the nation’s greenhouse gas emission. I has tripled since 1990, making it imperative to prioritise the decarbonization of the automotive industry in order to achieve the goals underlined through the Paris Climate Agreement.
The urgency for decarbonisation stems from the alarming increase in carbon emissions, particularly in India. The Global Carbon Project reports that India’s carbon emissions are rising more than twice as fast as the global average. To address this, the Forum for Decarbonising Transport was launched in August 2021, aiming to develop a coherent strategy for decarbonising transport in the region. Additionally, the Indian government has implemented initiatives such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) Scheme, which provides subsidies to encourage the adoption of electric vehicles (EVs). Similarly, under the Production Linked Incentive (PLI) Scheme, significant funds were approved for the development of advanced cell chemistry battery storage manufacturing.
However, several challenges hinder the progress of decarbonisation efforts. One major challenge is the absence of commitments from the large automobile markets and manufacturers. They have to do much more to achieve substantial emission reductions by 2050.
This requires phasing out internal combustion engine vehicles within the next decade. Unfortunately, the current focus on overarching goals lacks attention and financial support. It is crucial to shift towards clearer outcomes and targets that address specific problems, with well-defined financing strategies. Public capital should guide private investments in priority areas.
EV adoption
Adoption of electric vehicles (EVs) is a crucial aspect of decarbonisation, but it also presents challenges. One issue is the lack of a clean source of power for charging EVs in countries like India, where a significant portion of power generation relies on coal. Additionally, the mining of metals used in EV batteries, such as lithium, often involves energy-intensive processes that are not environmentally compliant. Another challenge is the mismatch between the vehicle mix and the penetration of electric mobility. In India, a large portion of diesel consumption comes from trucks and inter-state buses, which do not have feasible electric mobility solutions. Affordability and energy security are also concerns, as the per capita income in India is significantly lower than in countries like Norway or the US, making expensive solutions less viable.
To overcome these challenges, a comprehensive approach is required. India needs to explore multiple options for green mobility, including biofuels, compressed natural gas (CNG), hydrogen hybrid electric vehicles (HEVs), and EVs. Scenario-based modelling can help formulate effective transport policies that consider GHG emissions reductions through feasible scenarios. This approach can provide policymakers with data-driven insights while allowing for testing and predicting the impact of different policy options.
Furthermore, the automotive industry needs to address emissions associated with material production. As tailpipe emissions decrease, emissions from vehicle materials will increase and become a larger share of life-cycle emissions. To mitigate this, industry players must focus on adopting low-carbon energy sources in their production processes and promoting circular economy principles to reduce material demand and waste.
Investments in research and development are crucial to accelerate the deployment of clean technologies and drive innovation. Collaboration between academia, research institutions, and the industry is essential for advancing breakthrough technologies and solutions. Governments can incentivize R&D investments through funding programs, tax credits, and public-private partnerships to encourage collaboration.
Charging infrastructure
Decarbonisation efforts also require a comprehensive charging infrastructure to support the widespread adoption of EVs. Governments should invest in building a robust and accessible charging network, focusing on urban centres, highways, and public parking facilities. Public-private partnerships can play a vital role in the development and maintenance of charging infrastructure.
In conclusion, decarbonizing the automotive industry goes beyond being a mere necessity. It represents our collective responsibility to combat the escalating carbon emissions and confront the imminent threat of climate change. The urgency to reduce pollutants from transportation is particularly evident in India, where emissions continue to rise unchecked. In essence, we must embrace the resounding call of S.H.I.F.T. – Sustainable and Holistic Innovations for a Thriving Future – as our guiding principle going forward, leading us unwaveringly towards a greener tomorrow.
(Disclaimer: Kaviraj Singh is the founder and Managing Director of Earthood. Views are personal.)
