The decarbonisation of transport sector is very critical for national climate action as it is rapidly growing contributor to the country’s carbon emission. India’s transport sector, contributing 14% of energy-related CO₂ emissions in 2020 with road transport alone responsible for 90% of the sectoral contribution. Thus, this sector requires aggressive decarbonization to align with the nation’s net-zero target by 2070 and 45% emissions intensity reduction by 2030. Key strategies include fuel economy improvements, electrification, and modal shifts, potentially cutting emissions by up to 71% by 2050 compared to business-as-usual scenarios. These approaches leverage government policies like FAME schemes and rail freight expansion.
Core Strategies
Fuel economy standards for vehicles like cars, buses, and trucks could improve efficiency by 60-75% over baseline by 2050, reducing CO₂ by 21% standalone. Electrification via sales mandates for electric vehicles (EVs) across passenger and freight modes offers the highest potential, slashing emissions by 57% by 2050 with grid decarbonization to 55% renewables. Modal shifts—boosting public transport for passengers and rail for freight (targeting 45% rail share by 2030)—provide 18% reductions at lowest cost, saving ₹12,118 per tonne CO₂ abated.
Policy Framework
The key initiatives and policy frameworks include:
- Promotion of electric Vehicle
A 30% EV sales share by 2030 in India can reduce transport sector CO₂ emissions by approximately 38 million tonnes annually relative to business-as-usual scenarios, based on estimates from Crisil Intelligence for 5-10% EV stock penetration across segments. CEEW models indicate a 4% GHG reduction from EVs alone, escalating to 20% when combined with higher public transport mode-share. These tailpipe savings assume average vehicle parc, running patterns, and grid decarbonization progress.
- Fuel Efficiency and Emission Standard
India’s fuel efficiency standards are governed by Corporate Average Fuel Efficiency (CAFE) norms, while emission standards follow Bharat Stage (BS) norms, both aimed at reducing vehicle pollution and oil dependence. CAFE Phase II, effective since 2022-23, sets fleet-average fuel consumption at 4.78 liters per 100 km (113 g CO₂/km) for passenger cars under 3,500 kg. Draft CAFE III norms, proposed for April 2027-2032, tighten targets to around 91-95 g CO₂/km (or 3.726-3.013 liters/100 km annually), with incentives for EVs (counted as three units), hybrids, flex-fuel, and ethanol blends. Enforcement rules finalized in 2025 allow penalties up to ₹10 lakh plus daily fines for non-compliance.
BS-VI norms, nationwide since 2020, limit sulphur to 10 ppm and cut NOx by 70%, PM by 80% versus BS-IV, using real-driving emissions (RDE) testing. They mandate diesel particulate filters, selective catalytic reduction, and advanced onboard diagnostics for petrol/diesel vehicles.
BS-VII (BS7), modelled on Euro 7, introduces on-board monitoring for lifetime emissions, controls brake/tire dust, and regulates EV batteries, likely phased from 2025-2027 in polluted cities. CAFE III supports this by balancing EV and flex-fuel incentives amid industry concerns over steep targets and shrinking small-car sales. These align with India’s climate goals, potentially saving 23 million tons of fuel by 2025.
- Modal shift and Public Transport
Modal shift refers to the transition from less sustainable transport modes, like private cars, to more sustainable options such as public transport, walking, or cycling. This change reduces congestion, emissions, and costs while improving urban livability.
Public transport-driven modal shift lowers greenhouse gas emissions by decreasing reliance on solo vehicles, which account for significant pollution. It enhances health through active travel integration and saves time and money via efficient routing and shared systems. Cities experience less traffic and better economic productivity from reduced congestion.
Authorities promote shift through integrated networks, fare caps, and incentives like discounts for inactive users or mobility budgets. Infrastructure upgrades, such as dedicated bus lanes and seamless ticketing, make public options more appealing than cars. Push-pull measures combine car restrictions with attractive alternatives like real-time apps.
- Decarbonisation of Logistics and Freight
Decarbonisation of logistics and freight transport reduces greenhouse gas emissions through technologies, efficiency measures, and policy shifts, addressing a sector responsible for about 8% of global emissions that could rise significantly without action. Key strategies balance short-term optimizations with long-term fuel transitions, particularly relevant for high-growth markets like India. Progress aligns with net-zero goals by 2050-2070 in many regions.
Efficiency gains from route optimization and modal shifts offer immediate reductions, such as shifting freight to rail or sea, which cuts emissions 5-20 times compared to air or road. Digital tools like AI enable 10-15% global freight emission cuts via better load utilization and predictive planning. Low-carbon fuels including biofuels, LNG, and electrification target short-haul trucks, while hydrogen and ammonia suit long-haul needs under Vision 2047. Initiatives like Bharat ZET Policy Advisory outline 30 interventions for trucking, which emits 60% of ground transport GHGs, through subsidies and coastal/inland
- India’s Updated National Determined Contribution (NDC)
India submitted its updated First Nationally Determined Contribution (NDC) in August 2022 to the UNFCCC, enhancing commitments under the Paris Agreement toward its net-zero goal by 2070.
India aims to reduce the emissions intensity of its GDP by 45% by 2030 from 2005 levels, up from the original 33-35% target. It also targets 50% cumulative electric power installed capacity from non-fossil sources by 2030, previously 40%, and plans an additional carbon sink of 2.5-3 billion tonnes of CO2 equivalent through forest cover.
India has already met the 50% non-fossil capacity target ahead of schedule, reaching it five years early, though non-fossil generation share remains around 25%. Emissions intensity has dropped by about 33% from 2005 to 2019, with non-fossil electricity at 43.81% of total generation.
- Transition to green energy
India’s transition to green energy accelerates through rapid renewable capacity growth and policy support, achieving over 50% non-fossil fuel power five years ahead of 2030 targets. As of late 2025, total installed capacity exceeds 500 GW, with renewables at around 226 GW including solar and wind dominance. This aligns with net-zero by 2070, emphasizing solar, green hydrogen, and storage
Renewable additions hit a record 29.52 GW in FY 2024-25, pushing non-fossil capacity to 235.7 GW by mid-2025. Leading states like Rajasthan (30 GW), Gujarat, and Tamil Nadu drive solar and wind, supported by auctions awarding 47 GW solar last year. Initiatives like PM Surya Ghar and National Green Hydrogen Mission target 5 MMT production by 2030, attracting US$62 billion investments.
National Solar Mission and PM-KUSUM solarize agriculture, adding 30 GW capacity while cutting diesel use. Geothermal Policy 2025 promotes baseload renewables, complementing 500 GW non-fossil goal via hybrid projects and storage. EV policies like FAME and Bharat ZET aim for 30% sales by 2030, slashing transport CO2 by 28-38 Mt annually.
- Emission -Reducing Fuels
Emission-reduced fuels, also known as low-carbon or green fuels, produce fewer greenhouse gas emissions over their lifecycle compared to conventional fossil fuels like gasoline or diesel. These fuels derive from renewable sources such as biomass, waste, or captured carbon, enabling decarbonization in transport sectors including aviation, shipping, and road vehicles.
Common emission-reduced fuels include biofuels and synthetic options.
- Biodiesel and Renewable Diesel: Made from vegetable oils, animal fats, or waste; compatible with existing diesel engines and cuts emissions by up to 85% on a well-to-wheel basis.
- Bioethanol: Fermented from crops like sugarcane or corn; blended with gasoline (e.g., E10) to lower tailpipe emissions.
- Sustainable Aviation Fuel (SAF): Produced via processes like HEFA or Alcohol-to-Jet from waste; reduces lifecycle emissions by up to 70%.
- Renewable Natural Gas (RNG): Biomethane from organic waste; used as CNG or LNG substitute with near-zero net emissions
Emission-reduced fuels target high-emission sectors without major infrastructure changes. They support aviation (SAF), marine (ammonia/methanol), and trucking (RNG), contributing over 25% of Asia-Pacific emissions cuts by 2050 alongside electrification. Benefits include improved air quality from reduced NOx/SOx and energy security via diverse feedstocks. Challenges involve scaling production and costs, addressed through policy incentives
- Infrastructure and Regulatory Reforms
Increasing investment in charging infrastructure across highways and cities to support electric vehicle.
Impacts and Targets
Combined high-ambition strategies yield 71% CO₂ cuts and 70% fossil fuel reductions by 2050, curbing quadrupling demand growth. Passenger demand triples and freight septuplets by 2050 under BAU, but shifts reduce private vehicle reliance by 35%. EV targets include 30% private cars and 40% buses by 2030, with 1 crore annual sales projected.
Challenges Ahead
Infrastructure gaps, like charging networks and rail capacity, persist alongside trucking inefficiencies (40% empty runs). Complementary measures—carbon taxes, feebates, and renewables—counter rebound effects from efficiency gains. Urban focus on non-motorized transport and last-mile connectivity is vital for equitable outcomes.
GHG cuts relative to business-as-usual with 30% EV sales, rising to 20% when paired with public transport shifts. NITI Aayog emphasizes fleet electrification for massive impacts, though tailpipe savings depend on cleaner grid power.