There’s Only So Much Electric Can Do In India’s Net Zero Drive

Shweta Bhanot Mehrotra
31 Dec 2022
10:00 AM
3 Min Read

Net zero is more than just the carbon emissions and to attain it, we really need to look at the source of energy, raw materials, manufacturing processes and the physical product


E-mobility

Electric mobility is seen as a small step towards cleaner emissions while transiting from fossil fuels. However, electric vehicles (EVs) are not that green and represent only a minuscule part of a bigger mission. 

With nearly 70% of electricity in India generated by coal, using this to power EVs does not help reduce the carbon footprint. While the Centre is keen on reducing CO2 emissions by 50% and achieving net zero by 2070 by switching to renewable energy sources, it will be a while before the parallel green grid replaces fossil fuels. 

What really makes sense is to look inwards and understand that EVs in themselves are not that green, right from the batteries that create significant e-waste and the vehicle body that requires steel to the fossil fuels for smelting and the plastic that relies on petrochemicals. 

The need of the hour is to go in for a comprehensive approach towards carbon neutrality. “It starts from mining, sourcing and manufacturing to the entire lifecycle of the vehicle, whether it is an ICE (internal combustion engine) or EV,” explains Puneet Gupta, Director, S&P Global.

According to him, it is important to look beyond just the final product and adopt the 3Rs (reduce, recycle and reuse) as a way of working. What really makes sense, therefore, is to push the vehicle scrappage scheme in the mainstream.

The next step is to trade this scrap with allied industries such as steel, plastic recyclers etc. Beyond this, it is critical to team up with energy companies and create a parallel infrastructure, including battery swapping and afterlife usage. 

Carbon Neutrality Is Everyone’s Business

Tapping farmlands for ethanol, methane, green hydrogen and compressed biogas (CBG) production is equally vital, while enabling the supply chain to capture/ store carbon and other harmful gases emitting from the operations. 

“Carbon neutrality is everyone’s business. You cannot just stop within your ecosystem but need to look beyond and develop interoperability of ecosystems to make net zero a possibility,” explains VG Ramakrishnan, MD & Managing Partner, Avanteum Advisors LLP.

He adds that net zero is a misunderstood concept where certain parts are ignored. “Net zero is more than just the carbon emissions and to attain it, we really need to look at the source of energy, raw materials, manufacturing processes and the physical product. It is basically a balancing act of greenhouses released in the atmosphere and taken out.” 

Indicating that India has been lagging in making nuclear power as a key energy source, Ramakrishnan says it can be “our strongest source to attain net zero emissions”. While there are validation risks involved in nuclear power generation, the country should look at it as a “key source along with solar and wind”. 

Moreover, linking GST to carbon and regulating/ promoting its trading coupled with certification related to carbon use and emissions will also help the auto sector contribute to India’s net zero goal. 

Focus On Alternatives 

Hydrogen fuel cell technology is another energy source that automakers are looking to tap for future mobility, as also ethanol-blended fuel for transportation. However, all of these are still in the nascent stage. 

The Society of Indian Automobile Manufacturers had recently showcased ethanol adoption through multiple segments of flex fuel vehicles, particularly two- and four-wheelers. Nitin Gadkari, Minister of Road Transport & Highways, reiterated the need to “have technology that we can use to convert waste to wealth”. 

While driving home the point that India is the highest consumer of fossil fuels which in turn contribute to 40% of air pollution, the Minister added, “Apart from the monetary benefits generated from alternative fuels, economic benefits will also accrue to farmers and emerge an additional source of income.” 

Hemal N Thakkar, Director Transport, Logistics and Mobility, Crisil, says it is important to understand how the supply side infrastructure will be set up for these fuels. “We are a rain-fed country… what happens in times of drought? Moreover, CNG is not readily available in the interiors,” he adds.

Questions arise on transporting and making these fuels available along with “how much carbon would we be saving and its impact on the customer side”. According to Thakkar, EVs are still struggling to make a mark, especially in the commercial sector, which is one of the largest segments and predominantly operates on fossil fuels. “Liquefied natural gas and hydrogen fuel cells look more promising alternatives for the auto sector,” he says.

Challenges Galore 

The carbon neutrality vision also needs creation of a sustainable and circular economy focused on reuse, recycle and reduction in the material lifecycle. “We need to look at how we can recycle plastics, steel parts, etc and tap more sustainable materials for vehicle development,' says Gupta.

He cites the example of BMW, which uses renewable raw materials, natural fibres, plastic recyclates and recyclable textiles in its vehicles to reduce the carbon footprint by 2030. 

India is the third largest emitter of CO2 in the world after China and the US at about 2.6 gigatonne per annum. It has been racing against time to reduce its carbon footprint. Carbon Capture, Utilisation and Storage (CCUS) is expected to play a critical role in accomplishing net zero by 2070 with focus on power plants, iron and steel, transportation and cement.

NB: Photo is representational.

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ZF Bets Big On India In Global Electric Transition 

Global Electric 3-Wheeler Market To Grow At 6.5% CAGR Till 2027

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