In India, Maharashtra emerged as one of the pioneers of low-emission zones (LEZs) when it introduced its Electric Vehicle Policy in 2021. In the policy, six urban agglomerations—Mumbai, Pune, Chhatrapati Sambhajinagar (formerly Aurangabad), Nagpur, Nashik, and Amravati—were tasked with creating LEZs to boost the adoption of zero-emission vehicles.

LEZs are designated areas where the entry of internal combustion engine vehicles operating with petrol, diesel, compressed natural gas, and liquefied petroleum gas is either prohibited based on criteria such as vehicle age, emission standard, and fuel type or allowed only after charging a fee (the latter are called “priced LEZs”). Beyond promoting zero-emission vehicles, LEZs aim to achieve a wide range of objectives, including improving air quality and decarbonizing the transport sector by encouraging the use of public transport and other cleaner modes.

For more than a year, the ICCT has been supporting Pune, the neighboring city of Pimpri-Chinchwad, and Chhatrapati Sambhajinagar in planning and implementing  LEZs. With each city, we conducted a study to evaluate the impact of establishing an LEZ in reducing vehicle tailpipe emissions using the citywide emission inventory approach outlined in the National Clean Air Programme (NCAP). We also developed a timebound plan of action to implement vehicle restrictions in the LEZ. The geographical areas of the LEZs were mapped as part of the assessment based on city-specific factors such as air pollution levels, population exposure, vehicle density, and more.  The work to delineate the LEZ areas for Pune and Pimpri-Chinchwad was supported by the Institute for Transport Development and Policy (ITDP), and in Chhatrapati Sambhajinagar, it was supported by the Urban Research Foundation (URF). Beyond restricting vehicle operations, our analysis also factored in the need for complementary measures to facilitate the transition from older, more polluting vehicles to cleaner, more efficient options.

Scope and high-level findings of the impact study 

The detailed results will be discussed in an upcoming ICCT study that outlines two LEZ options for Pimpri-Chinchwad:  one smaller and one bigger, with each designed to address emissions at different scales. This approach allows a city to choose its starting point based on readiness and ability to effectively enforce the LEZ. We modeled the potential emissions reduction using various vehicle-restriction scenarios and by considering drivers’ response in shifting from non-LEZ-compliant vehicles to LEZ-compliant options, compared with a no-LEZ scenario (this is the same as a Business-As-Usual scenario). The highest reductions in emissions were observed in the ambitious scenario that assumes a shift to zero-emission vehicles. The roadmap of action proposes investing the initial 2 years in planning and developing necessary support mechanisms for the LEZ, and it is enforced in the following years (2026 to 2030).

The findings recommend an LEZ covering varying portions of the city, 16% for the smaller and 48% for the larger. The projected cumulative emissions reduction within the LEZ areas, with an LEZ in effect from 2026 to 2030, are 22%–52% for particulate matter (PM) and 12%–43% for nitrogen oxides (NO_x), depending on the scenario considered. Although smaller, estimated carbon dioxide (CO₂) reductions were still noteworthy, reaching up to 15%.

What strategies are the cities adopting to implement LEZs?

The Pimpri-Chinchwad Municipal Corporation (PCMC) has integrated a priced LEZ citywide as part of its Graded Response Action Plan (GRAP). GRAP is implemented in four phases, with increasingly stricter regulations applied during the times of year when air quality worsens; this is similar to Delhi’s Emergency Response Action Plan. For example, Pimpri-Chinchwad imposes Environmental Compensation Charges of ₹100–₹1,500 based on vehicle types to permit their operation during the GRAP phases. Phase 1 targets Bharat Stage (BS) III and older vehicles and successive phases extend the charge to BS IV vehicles. There is a broader impact with this measure because it applies citywide rather than just in a single zone. However, the GRAP regulations are implemented temporarily, as ad-hoc solutions until the air quality improves, and when the vehicle restrictions are lifted the operation of the older and high-emitting vehicles resumes without charge.

In Chhatrapati Sambhajinagar, meanwhile, the municipal corporation is planning to integrate the LEZ into the city climate action plan. This is an opportunity to build expertise with LEZs by planning and implementing them as a year-round intervention.

Replicating the LEZ concept in other cities in Maharashtra 

There have been several climate-change-induced disasters in Maharashtra, and the state government recently issued a resolution mandating that 43 cities under the AMRUT (Atal Mission for Rejuvenation and Urban Transformation) scheme establish climate action cells at the city, district, and divisional levels. These cells are tasked with developing a comprehensive climate action plan for their regions and overseeing the progress of implementation. This directive came almost a year after the State Climate Action Cell was constituted by the Government of Maharashtra’s Department of Environment and Climate Change.

This policy lever can be leveraged to encourage all 43 cities to implement LEZs. Additionally, the state can issue general guidelines and best practices for LEZs by drawing on experience from cities in other regions and within Maharashtra that have adopted LEZs or LEZ-like interventions. The figure below illustrates one proposal of how various agencies and stakeholders could potentially collaborate to institutionalize the LEZ concept and implement LEZs across the entire state of Maharashtra.

Figure. Schematic of possible roles and responsibilities for planning and implementing LEZs in Maharashtra

LEZs have gained considerable traction in European countries, and the cities implementing them have seen improved air quality and reduced health issues. Additionally, in Madrid, Spain, an LEZ contributed to a significant increase in adopting cleaner and more efficient transport options. Examples like this have prompted the exploration of more stringent zero-emission zones.  

In India, LEZs are still an emerging concept, despite the existence of legal provisions supporting their implementation. As three cities in Maharashtra are among the first in India to endorse LEZs, they have a chance to be the trailblazers for LEZs statewide and to potentially set a benchmark for other regions of India. 

O seminário Transição Energética no Mar, realizado no Rio de Janeiro no final de Abril, marcou um grande avanço nos planos para descarbonizar o setor marítimo do Brasil. Os organizadores, liderados pelo Almirante de Esquadra Ilques Barbosa Júnior, apresentaram uma proposta para o Plano Nacional de Transição Energética Brasileiro (BMNAP). Espera-se que o plano oriente os investimentos em tecnologia de propulsão de navios, combustíveis marítimos alternativos e infraestruturas portuárias, assim como atraia apoio político na implementação de um roteiro para a descarbonização marítima. 

A proposta está em análise e será discutida em audiência pública no Senado Federal no dia 22 de agosto. O BMNAP finalizado será apresentado ao Comitê de Proteção do Meio Ambiente Marinho da Organização Marítima Internacional (IMO), que se reunirá no final de setembro de 2024. Esta ação ajudará a solidificar o compromisso do Brasil no cenário internacional. 

Antes do seminário, o Conselho Internacional de Transporte Limpo (ICCT) publicou um documento destacando o valor de um Plano de Ação Nacional no Brasil para orientar investimentos e fomentar políticas que apoiem uma indústria marítima limpa. A publicação destacou a importância da adoção de combustíveis renováveis e da melhoria da eficiência energética da frota existente, ambos refletidos na proposta do BMNAP. O artigo também destacou o potencial de colaborações intersetoriais, incluindo aquelas com portos. 

No seminário, o secretário-geral da IMO, Arsenio Antonio Dominguez Velasco, fez referência aosinsights do estudo do ICCT sobre as emissões de gases de efeito estufa do ciclo de vida do hidrogênio no Brasil durante seu discurso de abertura. Este e outros artigos do ICCT lançaram luz sobre a necessidade de aplicar uma metodologia robusta de avaliação do ciclo de vida ao avaliar a sustentabilidade de combustíveis marítimos alternativos. Este tipo de pesquisa ajudará a fornecer uma compreensão abrangente do potencial dos biocombustíveis, porque leva em conta as emissões associadas às mudanças indiretas do uso do solo (ILUC). 

O secretário-geral da IMO, Arsenio Antonio Dominguez Velasco, fez o discurso principal e destacou a Figura 4 de um estudo publicado pelo ICCT em 2023. Foto Francielle Carvalho.

O ICCT tem conduzido diversas análises técnico-econômicas ao nível das rotas para testar a viabilidade da adoção de diferentes tecnologias de combustível e propulsão nos navios, o que pode ajudar os líderes do setor a priorizar o investimento. Na verdade, os participantes do seminário destacaram o desafio de dar prioridade ao investimento devido às incertezas que rodeiam a tecnologia dos combustíveis e a viabilidade econômica. 

Apresenta-se aqui um breve estudo de caso do graneleiro Cape Jasmine, que transporta minério de ferro. Optou-se por analisar uma extensa e importante rota marítima que vai do Porto de Açu no Brasil (AÇU) até Qingdao na China (QDG), com demandas energéticas substanciais. Ao analisar dados de movimentos de navios de 2023 do Sistema de Identificação Automática (AIS), projetamos uma hipotética viagem futura desta embarcação, que tem capacidade de carga substancial (comprimento total: 292 m; largura: 45 m; pontal: 24,8 m; calado: 18,32 m). O modelo de Avaliação Sistemática de Emissões de Embarcações (SAVE) foi utilizado para estimar as demandas de energia da rota, o que resultou em aproximadamente 15 GWh para a viagem de ida e volta, de cerca de 20.000 milhas náuticas. Isso equivale ao consumo anual de energia elétrica residencial de 19.230 habitantes do sudeste do Brasil em 2020. 

Aproveitando a metodologia que utilizamos anteriormente, a análise mostra que a utilização de hidrogênio líquido como combustível exigiria duas paradas adicionais para reabastecimento para completar a viagem (só ida). Em contraste, a amônia e o metanol poderiam alimentar a viagem de ida sem quaisquer paragens adicionais (Tabela 1). Para explorar o custo dos combustíveis alternativos, a análise baseou-se em um estudo anterior do ICCT, que comparou quantitativamente o custo dos combustíveis marítimos por várias vias. Para esclarecimento, apenas foi comparado o custo do combustível para vias que utilizam eletricidade renovável e capturam dióxido de carbono como matéria-prima. Até 2030, o custo do fornecimento de combustíveis marítimos alternativos para transportar minério de ferro entre AÇU e QDG seria semelhante para o hidrogênio renovável, a amônia renovável e o metanol renovável e, para todos, seria mais de três vezes mais elevado do que a contrapartida dos combustíveis fósseis numa base de energia equivalente. 

Tabela 1. Volume estimado e custo do combustível necessário pelo graneleiro Cabo Jasmine ao longo do corredor AÇU – QDG para uma hipotética viagem só de ida, caso sejam utilizados combustíveis marítimos alternativos 

Observação: todos os custos estão em dólares americanos de 2021. 

Com o hidrogênio líquido, existem limitações práticas em relação ao armazenamento que exigiriam modificações no navio antes que ele pudesse ser usado como combustível principal. Além disso, embora o metanol e a amônia tenham potencial para abastecer viagens de longo curso sem a necessidade de paradas de reabastecimento mais frequentes, a sua toxicidade inerente e a necessidade de modificações significativas nos navios apresentam desafios. Tal como demonstrado no estudo de caso acima, o custo também é um desafio para todos os três tipos de combustíveis alternativos limpos. 

Um aspecto fundamental para viabilizar uma transição para a energia limpa é a sinergia em toda a indústria marítima. Isso significa colaboração entre proprietários de carga, operadores de navios, portos, fornecedores de combustível, construtores navais e outros. Com o BMNAP em fase de conclusão, o Brasil está preparado para demonstrar não apenas liderança nessa colaboração, mas também o seu compromisso com as metas internacionais de descarbonização. 

The Energy Transition in the Sea seminar held in Rio de Janeiro in late April marked a major step forward in plans to decarbonize Brazil’s maritime sector. The organizers, led by Ilques Barbosa Junior, an Admiral of the Fleet, presented a proposal for the Brazilian Maritime National Action Plan (BMNAP). The plan is expected to guide investments in ship propulsion technology, alternative marine fuels, and port infrastructure, and it also calls for supporting policy frameworks to implement a roadmap for maritime decarbonization.

The proposal is being reviewed and is set to be discussed during a public audience in the Federal Senate on August 22. When the BMNAP is finalized and presented to the International Maritime Organization (IMO)’s Marine Environment Protection Committee, which convenes in late September 2024, it will help solidify Brazil’s commitment on the international stage.

Before the seminar, the International Council on Clean Transportation (ICCT) published a paper highlighting the value of a National Action Plan in Brazil to guide investments and foster policies that support a clean maritime industry. It highlighted the importance of adopting renewable fuels and improving the fuel efficiency of the existing fleet, and both are well reflected in the BMNAP proposal. Our paper also highlighted the potential of cross-industry collaborations, including those with ports.

At the seminar, IMO Secretary General Arsenio Antonio Dominguez Velasco referenced insights from an ICCT study about the life-cycle greenhouse gas emissions of hydrogen in Brazil during his keynote speech. This and other papers by the ICCT have illuminated the need to apply robust life-cycle assessment methodology when assessing the sustainability of alternative marine fuels. Doing so helps provide a comprehensive understanding of the potential of biofuels because it takes account of the associated indirect land-use change (ILUC) emissions.

The ICCT has been conducting various route-level techno-economic analyses to test the feasibility of adopting different fuel and propulsion technologies on ships. These can help industry leaders prioritize investment. Indeed, seminar participants highlighted the challenge of prioritizing investment due to the uncertainties surrounding fuel technology and economic viability.

Here we’ll present a brief case study of the Cape Jasmine, a bulk carrier transporting iron ore. We chose to analyze a long, vital shipping route from Porto de Açu, Brazil (AÇU) to Qingdao, China (QDG) with substantial energy demands. By analyzing satellite ship movement data from 2023, we constructed a hypothetical future voyage of this vessel, which has substantial cargo capacity (length overall: 292 m; breadth: 45 m; depth: 24.8 m; draught: 18.32 m). The Systematic Assessment of Vessel Emissions (SAVE) model was used to estimate the energy demands of the route, and that came out to approximately 15 GWh for the round trip of about 20,000 nm. That’s equivalent to the annual residential electricity power consumption of 19,230 inhabitants in southeastern Brazil in 2020.

Leveraging a methodology we’ve used before, the analysis shows that using liquid hydrogen as fuel would require two additional refueling stops to complete the voyage (one way). In contrast, ammonia and methanol could power the one-way voyage without any additional stops (Table 1). To explore the cost of the alternative fuels, we relied on a previous ICCT study that quantitatively compared the cost of marine fuels made through various pathways. To be clear, we only compared the cost of fuel for pathways that use renewable electricity and captured carbon dioxide as feedstock. By 2030, the cost of supplying alternative marine fuels to ship iron ore between AÇU and QDG would be similar for renewable hydrogen, renewable ammonia, and renewable methanol, and for all it would be more than three times higher than the fossil fuel counterpart on an energy-equivalent basis.

Table. Estimated volume and cost of fuel required by Cape Jasmine along the AÇU–QDG corridor for a hypothetical one-way voyage if using alternative marine fuels

Note: All costs are in 2021 U.S. dollars.

A key aspect of unlocking a transition to clean energy is synergy across the maritime industry. That means collaboration among cargo owners, ship operators, ports, fuel providers, shipbuilders, and others. With BMNAP nearing completion, Brazil is poised to demonstrate not only leadership in such collaboration but also its commitment to international decarbonization goals.

El seminario Transición Energética en el Mar celebrado en Río de Janeiro a finales de Abril marcó un avance importante en los planes para descarbonizar el sector marítimo de Brasil. Los organizadores, encabezados por Ilques Barbosa Junior, Almirante de Escuadra, presentaron una propuesta para el Plan Nacional Marítimo de Transición Energética de Brasil (BMNAP). Se espera que el plan oriente las inversiones en tecnología de propulsión de buques, combustibles marinos alternativos e infraestructura portuaria, y también exige marcos de políticas de apoyo para implementar una hoja de ruta para la descarbonización marítima.

La propuesta está bajo revisión y será discutida durante una audiencia pública en el Senado Federal el 22 de agosto. El BMNAP finalizado será presentado al Comité de Protección del Medio Marino de la Organización Marítima Internacional (OMI), que se reunirá a finales de septiembre de 2024, y ayudará a solidificar el compromiso de Brasil en el escenario internacional.

Antes del seminario, el Consejo Internacional de Transporte Limpio (ICCT) publicó un documento destacando el valor de un Plan de Acción Nacional en Brasil para orientar inversiones y fomentar políticas que apoyen una industria marítima limpia. Destacó la importancia de adoptar combustibles renovables y mejorar la eficiencia de combustible de la flota existente, y ambos aspectos están bien reflejados en la propuesta del BMNAP. Nuestro documento también destacó el potencial de las colaboraciones entre industrias, incluidas aquellas con puertos.

En el seminario, el Secretario General de la OMI, Arsenio Antonio Domínguez Velasco, hizo referencia a los resultados del estudio del ICCT sobre el ciclo de vida de las emisiones de gases de efecto invernadero del hidrógeno en Brasil durante su discurso de apertura. Este y otros artículos del ICCT han iluminado la necesidad de aplicar una metodología sólida del análisis del ciclo de vida al evaluar la sostenibilidad de los combustibles marinos alternativos. De esta manera, se puede proporcionar una comprensión integral del potencial de los biocombustibles porque se tienen en cuenta las emisiones asociadas al cambio indirecto del uso de la tierra (ILUC).

El Secretario General de la OMI, Arsenio Antonio Domínguez Velasco, pronunció el discurso de apertura y destacó la Figura 4 de un estudio publicado por el ICCT en 2023.  Foto de Francielle Carvalho

El ICCT ha estado realizando varios análisis tecnoeconómicos a nivel de ruta para probar la viabilidad de adoptar diferentes tecnologías de combustible y propulsión en los barcos. Estos estudios pueden ayudar a los líderes de la industria a priorizar la inversión. De hecho, los participantes del seminario destacaron el desafío de priorizar la inversión debido a las incertidumbres que rodean la tecnología de los combustibles y la viabilidad económica.

Aquí presentamos un breve estudio de caso del Cape Jasmine, un granelero que transporta mineral de hierro. Elegimos analizar una ruta marítima larga y vital desde el Puerto de Açu en Brasil (AÇU) hasta Qingdao en China (QDG) con demandas energéticas significativas. Al analizar los datos de 2023 del sistema de identificación automática (AIS), construimos un hipotético viaje futuro de este barco, que tiene una capacidad de carga sustancial (eslora total: 292 m; manga: 45 m; puntal: 24,8 m; calado: 18,32 m). Se utilizó el modelo de Evaluación Sistemática de Emisiones de Buques (SAVE) para estimar las demandas de energía de la ruta, que resultó en aproximadamente 15 GWh para el viaje de ida y vuelta de aproximadamente 20.000 millas náuticas. Esto equivale al consumo anual de energía eléctrica residencial de 19.230 habitantes en el sureste de Brasil en 2020.

Aprovechando una metodología que hemos utilizado anteriormente, el análisis muestra que el uso de hidrógeno líquido como combustible requeriría dos paradas adicionales para reabastecer de combustible para completar el viaje (solo de ida). Por el contrario, el amoníaco y el metanol podrían abastecer el viaje de ida sin paradas adicionales (Tabla 1). Para explorar el costo de los combustibles alternativos, nos basamos en un estudio anterior del ICCT que comparó cuantitativamente el costo de los combustibles marinos por varias vías. Para ser claros, solo comparamos el costo del combustible para las vías que utilizan electricidad renovable y capturan dióxido de carbono como materia prima. Para 2030, el costo de suministrar combustibles marinos alternativos para transportar mineral de hierro entre AÇU y QDG sería similar para el hidrógeno renovable, el amoníaco y el metanol renovables, y en total sería más de tres veces mayor que el costo de los combustibles fósiles en términos de energía equivalente.

Tabla 1. Volumen estimado y costo de combustible requerido por Cape Jasmine a lo largo del corredor AÇU-QDG para un viaje hipotético de ida si se utilizan combustibles marinos alternativos

Nota: Todos los costos están en dólares estadounidenses de 2021.

Con el hidrógeno líquido, existen limitaciones prácticas en torno al almacenamiento que requerirían modificaciones en el barco antes de que pueda usarse como combustible principal. Además, aunque el metanol y el amoníaco tienen el potencial de alimentar viajes de larga distancia sin la necesidad de paradas más frecuentes para repostar combustible, su toxicidad inherente y la necesidad de modificaciones significativas en los barcos presentan desafíos. Como se muestra en el estudio de caso anterior, el costo también es un desafío para los tres tipos de combustibles alternativos renovables.

Un aspecto clave para desbloquear una transición hacia la energía limpia es la sinergia en toda la industria marítima. Eso significa colaboración entre propietarios de carga, operadores de buques, puertos, proveedores de combustible, constructores navales y otros. Con el BMNAP a punto de finalizar, Brasil está preparado para demostrar no sólo liderazgo en dicha colaboración sino también su compromiso con los objetivos internacionales de descarbonización.

The growth of online shopping was accelerated by the COVID-19 pandemic, and e-commerce revenue approximately doubled in the United States in the past 5 years. In the neighborhoods where new warehouses have been built to meet this increase in demand, the trend has brought noticeable changes, including emissions from large tractor-trailers that bring containers from nearby ports and vans that collect packages for home delivery. These vehicles emit harmful pollutants including fine particulate matter and a group of gases called nitrogen oxides (NO_x).

While the warehouses don’t emit pollution like a power plant, their operations mean that truck traffic and tailpipe emissions concentrate around them. Researchers have detected increases in air pollution in communities where new warehouses have opened.

We at the ICCT partnered with researchers from The George Washington University on a new nationwide study in Nature Communications that helps quantify how much warehouses worsen local air pollution in the United States. The study focuses on nitrogen dioxide (NO₂), which is associated with new asthma cases in children, respiratory symptoms such as coughing and difficulty breathing, and other adverse health impacts. NO₂ emissions also lead to the formation of fine particulate matter and ozone in the air, which increase the risk of dying prematurely from heart and lung diseases, cancers, and other conditions.

Our study analyzed NO₂ satellite data along with a database of nearly 150,000 warehouses in the contiguous United States. The figure below illustrates the pattern in annual average NO₂ pollution around a warehouse, averaged across all locations. It shows that there is a spike in annual NO₂ of nearly 20% associated with warehouses. The highest NO₂ concentration is around 4 km away from the warehouse in the direction of the wind. Additionally, larger numbers of loading docks or parking spaces were associated with more truck traffic and higher levels of NO₂.

Figure. Annual average NO₂ concentration in 2021 from TROPOMI satellite data averaged over all warehouses in the contiguous United States. Source: Kerr et al. (2024).

Like others, our study also found that census tracts with greater numbers of warehouses tended to have higher shares of residents of color. This aligns with results from previous studies which showed that racial and ethnic inequities in NO₂ exposure are largely attributable to diesel truck traffic. Clearly, warehouse-related truck emissions are important to understand when taking action to address air pollution exposure disparities.

Addressing the issue requires action at multiple levels. At the federal level, the U.S. Environmental Protection Agency (EPA) recently finalized standards that will reduce emissions from new trucks starting in model year 2027. Under these, new engines sold by manufacturers must meet NO_x emission limits more than 80% below current levels. Additionally, the Phase 3 greenhouse gas rule, finalized in 2024, will encourage the deployment of more efficient technologies like hybrids and zero-emission vehicles, further reducing NO_x emissions from trucks.

At the state level, California’s Advanced Clean Trucks and Advanced Clean Fleets rules require manufacturers to transition to 100% zero-emission sales for medium- and heavy-duty vehicles by 2036. The Advanced Clean Fleets rule also includes a zero-emission drayage registration requirement that will accelerate the adoption of cleaner vehicles at ports and warehouses. Both EPA’s greenhouse gas rule and the California Advanced Clean Fleets rule face legal challenges, but these rules need to stay in place to support the transition to cleaner vehicles and reduce air pollution near warehouses.

Regulations can also directly target warehouse-related pollution. The South Coast Air Quality Management District in California implemented an indirect source rule that requires large warehouses to reduce pollution, and credit is awarded for actions like transitioning to zero-emission and near-zero-emission trucks and installing charging infrastructure. New York City recently announced plans to implement a similar policy.

Lastly, addressing this issue requires action from both the private sector and regulated electric utilities. Amazon, the largest player in the e-commerce space, has committed to deploying 100,000 electric delivery vans by 2030. While a significant step, commitments to end diesel drayage contracting by 2030 and work toward implementing zero-emission service contracts with logistics operators and warehouse owners, and installing charging infrastructure at warehouses, would further demonstrate industry leadership. Prologis, the largest owner of warehouses in the United States, pledged to install 900 MW of charging capacity at its facilities. Simultaneously, electric utilities proactively planning grid upgrades and streamlining permitting for necessary charging infrastructure can help ensure the success of these initiatives.

Emissions from trucks have declined substantially in recent years thanks to regulations requiring more advanced emission control technology. With a nearly 50% increase in freight tonnage moved by trucks projected over the next 30 years, the new rules from EPA and California are key to continuing to make progress. The private sector, electric utilities, and other local rules also have important roles. The status quo is simply not enough. A commitment to delivering clean air requires action to address warehouse-related truck emissions.

This blog was original published on HindustanTimes.

As India develops standards for swappable electric bus batteries to ensure interoperability and ease of battery change, parallelly addressing range anxiety, there continues to be focus on creating common swapping stations for all electric buses. This will improve overall efficiency while reducing infrastructure constraints.

As of early July 2024, 8,583 electric buses were registered across India. That number is set to increase fairly dramatically soon as by 2030, the Indian government intends to replace 800,000 diesel buses with electric buses.

In an effort to boost the adoption of electric buses, the Central Government is planning to implement uniform battery standards for electric buses.

NITI Aayog’s draft Battery Swapping Policy primarily targets the electric two- and three-wheeler segments. However, introducing uniform battery standards for electric buses is expected to enhance interoperability and promote battery swapping within the electric bus sector.

While national schemes such as FAME, National Electric Bus Program, and PM e-Bus Sewa have supported State Transportation Undertakings (STUs) in increasing the number of electric buses in their fleets, electric bus adoption in the private sector is limited. Only a few established private operators with sufficient financial capacity are making noticeable progress.

Currently, there are central government subsidies for STUs to procure electric buses through gross cost contracts (GCC) that cover bus supply, operation, maintenance, charging infrastructure, and driver costs. But for the private sector, which constitutes 94% of the 2.39 million buses registered across India, if not through such subsidy, could battery swapping with certain financial incentives be a catalyst for faster adoption of electric buses?

The International Council on Clean Transportation (ICCT), supported by NITI Aayog, explored battery swapping for electric two-wheelers in India by analysing factors affecting total cost of ownership (TCO). That work provides a strategic framework from which to also explore adopting battery swapping in the private bus market.

Current context

All electric buses in India rely on plug-in charging. To attain a full charge, these typically take 20-40 minutes using DC fast charging or 6-8 hours using lower-powered slow charging. To support the 8 lakh buses by 2030, an overall investment of ₹1.5 trillion ($18 billion) is estimated be required, and this includes the power and upstream infrastructure across cities and on intercity routes. The estimate also includes large spaces for charging stations at every 100 km on each side of highways. The process of land acquisition India is often lengthy and costly, and installing fast charging brings challenges related to not only space and costs, but also power availability and continuous supply on isolated interstate routes in rural areas.

Benefits of battery swapping

Separating batteries from buses would enable battery swapping operators (BSOs) to own the batteries instead of the bus owner. This converts the battery into a variable cost and reduces the upfront capital cost of the bus dramatically, as batteries constitute 40%–50% of this cost. Battery swapping is about as fast as refueling a combustion engine vehicle and typically takes 1-3 minutes. Sun Mobility’s battery swapping station in Ahmedabad required only 33% of the energy and 60% less area than depot-based charging. The strategic deployment of battery swapping stations could help reduce range anxiety, and the short turnaround time of battery swapping instead of opportunity charging may benefit bus operators by lowering overall travel time and thus making the service more desirable to passengers.

The emergence of a battery-swapping industry in India

The industry has advanced towards battery swapping for electric two- and three-wheelers because of the Ministry of Power’s Battery Swapping Stations policy. Delhi led with purchase incentives for swappable EVs, and last-mile service aggregators are improving efficiency with low-cost, swappable vehicles.

In the Union Budget 2022–23, finance minister Nirmala Sitharaman announced plans for a national battery swapping policy with interoperability standards. NITI Aayog is working to standardize the policy across all vehicle segments, and the Heavy industry ministry is set to implement norms for electric buses

Purchase-subsidy based scheme and usage-linked incentives

The ICCT’s battery swapping report included a strategy framework for early policy that highlighted the potential of purchase subsidy and usage-linked incentives for electric two-wheelers. The framework may be considered for its potential to accelerate adoption of private electric buses. Under a purchase-subsidy based scheme, electric buses sold without pre-fitted batteries could qualify for certain financial incentives under national or state-level programs. The incentives could be given to manufacturers, which can then choose to pass them on to registered BSOs that meet safety standards.

Additionally, the usage-linked leasing scheme may allow bus operators to lease swap-capable buses rather than buying them outright. This allows operators to pay fees based on distance or usage, and Macquarie recently launched Vertelo in India, a $1.5 billion platform providing leasing, financing, charging infrastructure, fleet management, and end-of-life vehicle solutions for electric buses.

Battery swapping to potentially enhance electric bus operations

If a network of battery-swapping stations were developed across urban and peri-urban areas, private operators could procure battery-swappable buses and collaborate with a BSO as needed to ensure operational efficiency and reduce time and cost.

The expansion of the highway network, the unavailability of railway tickets, and high airfare also make intercity buses a convenient option, especially for passengers from Tier and Tier 4 cities. It was observed that ticketing for electric buses on Delhi Agra and Delhi Chandigarh routes surged by 150% in 2022. With rising diesel prices and improved electric bus technology, new electric buses can now travel 250–300 km per charge, covering 40% of India’s intercity trips. With less space requirements, battery-swapping stations can be strategically placed along highways and if interoperability is achieved, private operators could subscribe to highway-based battery swapping services from suitable BSOs.

In the case of BasiGo in Kenya and in Shenzhen, China, buses were procured without pre-fitted batteries. Shenzhen Bus Group (SZBG) in China did not ultimately opt for battery swapping due to a lack of battery standardization, safety concerns, and the absence of subsidies for BSOs. But for more than 2 million buses across India with over 26,000 private operators, interoperability through standardization of batteries and creating an ecosystem of battery swapping might hold the key for some. Prioritizing policies for battery standardization and interoperability through a consensus-driven approach would help build a solid foundation for scalable and efficient integration of electric buses into India’s transport systems.