August 24, 2024: A new report from the Climate Policy Initiative entitled “Just Transition to Zero-Emission Trucking in India” has sounded a dire warning that a transition of zero-emission trucks is now needed if India is to meet climate and air quality goals. According to a new report by CPI, the road logistics industry is one of the biggest contributors to the environmental problems India faces today, accounting for 4 percent of energy-related CO2 emissions and 53 percent of particulate matter emissions within the country.
Environmental and Public Health Imperatives
According to the CPI report, transitioning to ZETs is not only a requirement for reducing GHG emissions; it is also a public health imperative. Road transport is one of the largest emitters of harmful pollutants into the atmosphere, and cleaner, zero-emission technology could drastically reduce the public health burden caused by such kind of pollution.
If this is not done, since the truck fleet in India is likely to quadruple by 2050, achieving the necessary reduction in emissions will be impossible. Green mobility—especially with battery-electric trucks—can credibly be a path to replace ICE trucks. Higher ownership costs and massive charging infrastructure are only part of the problem.
Challenges in Transitioning to ZETs
According to the report, while the trend towards this transition to battery-electric ZETs is likely to accelerate, being driven by rapidly falling battery costs and supportive government policies, it also carries possible financial challenges, particularly for the very fragmented trucking industry. This industry employs millions directly, indirectly, and induced, with many of them at risk from the shift to ZETs.
Therefore, informal job workers, such as mechanics specializing in ICE, are highly vulnerable to potential job loss during this transition. The CPI report also points out that the ZET transition could, if not managed and mitigated appropriately, further aggravate existing inequalities already faced within communities—particularly those living near big transportation corridors who are expected to bear an additional burden from this transition.
A Just Transition for India’s Trucking Sector
The CPI report calls for a “just transition” to ZETs, focused on how such an approach could be people-centered and worker-centric, placing workers and communities that would be most impacted by the transition in the limelight. This means the direct workers in the trucking industry, indirect workers related to ICE trades, and those who hold induced jobs inside trucking clusters.
One of the key recommendations in this report is to moot a Just Transition Fund for India under the Ministry of Skill Development and Entrepreneurship. This fund would be used to tap money already available in the government schemes, such as Pradhan Mantri Kaushal Vikas Yojana for skill development and Pradhan Mantri MUDRA Yojana for loans, towards funding reskilling programs and alternative livelihoods for those unable to find new employment within the industry.
Socioeconomic Costs and Opportunities
While pointing out losses at the sectoral level from trucking, this report indicates that opportunities will be created in new fields related to electric powertrains, batteries, and advanced electronics. To make this just transition, policy and financial interventions must focus on training, reskilling, and job placement programs.
The CPI report further remarks that particular attention should be given to communities whose lives are disrupted by trucking activities, often located near large transportation arteries. These communities can be hit particularly hard by the transition and may need special support to not be increasingly marginalized.
Next Steps and Recommendations
The steps that have to be taken next to assure that this will be a just transition to ZETs are emphasized in this report: affected stakeholder identification, policy design targeting these people, and financial instruments tailored to meet the needs of those concerned. Stakeholder feedback will need to be elicited to fine-tune designs of interventions through pilot programs and then inform broader policy.
Another of the long-term expectations is the creation of a just transition financing facility as an important conduit in scaling up the required funds for a just and equitable transition to zero-emission trucking. Such a facility would be critical in ensuring that the transition addresses India’s climate objectives while safeguarding livelihoods of the people associated with trucking.
Conclusion:
Zero-emission trucks will be one of the most critical elements in the strategy as India pushes ahead toward its climate and air quality goals. But, as the CPI report underlines, such a transition must be harnessed with fairness and inclusiveness—saving the livelihoods of millions of workers while moving forward toward a cleaner and healthier environment.
The recommendations of the report, including the setting up of a Just Transition Fund, chart the pathway toward doing this effectively and equitably in order that a shift to green mobility takes place.
Source: Climate Policy Initiative.