TERI unveils Roadmap for India’s Energy Transition in the Transport Sector
New Delhi, November 26, 2024: The Energy and Resources Institute (TERI) released today an important report titled “Roadmap for India’s Energy Transition in the Transport Sector”, during a significant event aimed at integrating transport with the Nationally Determined Contributions (NDCs). The report offers insights into India’s future transport demand, emissions trajectory, and technology-driven mitigation strategies. The event, attended by senior government officials, railway authorities, and industry players, underscored the urgent need for sustainable transport solutions to achieve India’s ambitious climate goals.
In his welcome address, Mr Sanjay Seth, Senior Director, TERI, highlighted the critical importance of reducing transport-related emissions, emphasizing that the adoption of cleaner technologies and fuels is essential for India’s energy transition. He highlighted that the report comprehensively addresses all aspects of energy transition in the transport sector, prioritizing energy security while maintaining a strong focus on environmental sustainability.
Shri KRK Reddy, Additional Member (Traffic), Railway Board, GoI, in his special address, praised the report as a comprehensive framework to navigate the challenges of decarbonizing India’s rapidly growing transport sector aligned with the NDC goals for the economy. He stated, “Railways have been a lifeline for India, connecting diverse landscapes and promoting economic development. The country has made significant strides in sustainable mobility, electrifying 99% of its railway network and reducing carbon emissions. India aims to enhance infrastructure, increase connectivity, and improve passenger experience through various initiatives.” Congratulating TERI on the release of the report, he said that it is not only a roadmap for energy transition, but the report will also ensure affordability and accessibility.
Shri Mukul Saran Mathur, Additional Member (Commercial), Railway Board, GoI, echoed these sentiments, adding, “The transition in railways is going to impact the energy consumption of the country, which is about 2% of the total energy consumed. The energy consumption patterns need to be studied as we move towards a net-zero scenario. Railways have been taking initiatives such as LED lighting, green buildings, efficient locomotives, regenerative breaking, improving payload-tare ratio, and energy audits to reduce consumption.”
Delivering the opening remarks, Mr Shri Prakash, Distinguished Fellow, TERI, called the report a cornerstone for India’s energy transition efforts in the transport sector. According to Mr Prakash, sustainable transport should be economically viable, socially accessible and environmentally tolerable. Referring to the current scenario of air pollution, he said, “Transport contributes 30-40% of the air pollution. Therefore, sustainable transport is important.” “Even in the highly ambitious scenario, the role of fossil fuels is going to stay even in 20270. Therefore, the role of railways is going to be crucial,” he further added.
The report was presented by key authors including Dr Rahul Chakraborty, Associate Fellow, and Ms Shreya Gupta, Research Associate from TERI. Key findings noted that the transport demand in India is projected to grow considerably, with fourfold increase in passenger demand and a twelvefold increase in freight demand by 2070-71. Additionally, the number of passenger vehicles is expected to grow from 193 million in 2019-20 to 897 million in 2070-71, while the number of goods vehicles is projected to increase from 11 million to 69 million during the same period. Further, the combined demand for electricity and hydrogen as transportation fuels is expected to reach 262 Mtoe under a Highly Ambitious scenario.
The findings further highlighted that over 60% of fuel demand by 2070-71 will stem from freight transport, necessitating a significant shift toward cleaner fuels. While electric vehicle penetration has begun in India, adoption remains low in the freight segment. Hydrogen as a transport fuel is in its nascent stages of development but offers immense potential. Railways, with their lower carbon footprint, present a vital opportunity for transport decarbonisation, particularly in freight logistics.
The report also highlights the continuing importance of fossil fuels in India's transport sector, and underscores the importance of enhancing fuel efficiency, promoting biofuel blends, and scaling up alternative fuel technologies to address the rising fuel demand and reduce greenhouse gas emissions. Further, the immense potential of railways in reducing emissions from transport was highlighted. The study’s modeling, conducted using TERI’s in-house transport model (TERI-TptM), provides a robust evidence base for policy recommendations.
The event concluded with a vote of thanks by Mr Sharif Qamar, Associate Director, TERI. He noted that the discussions and insights from the report underscored the critical steps required to achieve net-zero targets and reiterated TERI’s commitment to driving these changes to secure a sustainable future for the country. Mr Qamar also expressed appreciation to the dignitaries, stakeholders, and TERI’s research team for their valuable contributions to the report and the broader dialogue on sustainable transport.
To access the report: https://teriin.org/project/roadmap-indias-energy-transition-transport-sector