As global temperatures climb, nations are scrambling to fulfill their climate pledges. The transport sector has emerged as a critical battlefield in this fight, especially for a rapidly growing economy like India. A recent analysis underscores the complex challenges and strategic opportunities India faces in aligning its massive transportation network with its national climate commitments.
The Global Landscape of Transport Mitigation
Strategies to cut emissions from transport vary sharply based on a nation's wealth. An October 2025 review by The Energy and Resources Institute (TERI) of 158 countries' Nationally Determined Contributions (NDCs) reveals a clear divide. High and upper-middle-income countries frequently announce ambitious targets for zero-emission vehicles (ZEVs), backed by robust infrastructure and deep investment pockets.
In contrast, lower-middle and low-income nations, including India, often prioritize more immediately accessible solutions. These include improving fuel efficiency and implementing locally tailored measures. Approaches like biofuels, promoting modal shifts from road to rail, and expanding natural gas use are common across all income groups.
A crucial financial divide also exists. Wealthier nations tend to set unconditional climate targets, achievable with domestic resources. Poorer countries, however, often list their goals as conditional, dependent on international support for finance, technology, and capacity building. For instance, nations like Nepal, Pakistan, and Vanuatu have set conditional ZEV targets, focusing on electrifying two- and three-wheelers and public transport—affordable, high-impact solutions gaining traction across Asia, Africa, and Latin America.
India's Dual Challenge: Growth and Emissions
India's transport story is one of staggering growth. TERI data shows that between 2005 and 2023, transport emissions in lower-middle and upper-middle-income economies ballooned by 127% and 97% respectively. While emissions per unit of GDP have decreased, indicating more efficient development, the sheer scale of increased activity—more electricity use, air travel, road freight, and a love for larger cars—has driven overall emissions upward.
India's climate strategy is firmly rooted in the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC). It argues that developed nations must lead on emission cuts and provide consistent financial and technological support to developing countries. Alongside other Like-Minded Developing Countries (LMDCs), India has pointed out a persistent imbalance in global talks, where mitigation often overshadows discussions on finance and equity.
India's multi-pronged transport strategy focuses on technology and systemic change:
- Electrifying Mobility: Expanding metro networks, bus rapid transit (BRT) systems, electric buses, and two- and three-wheelers powered by renewable energy.
- Boosting Rail: Electrifying railways and using dedicated freight corridors to shift cargo from roads to lower-emission rail.
- Building Domestic Supply: Promoting local manufacturing of batteries and EVs through production-linked incentive (PLI) schemes to cut costs and secure supply chains.
- Optimizing Logistics: Developing multimodal transport, coastal shipping, and inland waterways to reduce emissions and lower logistics costs as a percentage of GDP.
Closing the Gaps: Governance, Data, and Finance
For India to succeed, strengthening its climate governance framework is essential. Transport has been part of its UNFCCC reports since 2004, but early submissions lacked detailed data. As India prepares its first Biennial Transparency Report (BTR), it has a prime opportunity to move beyond mere compliance and create a system that genuinely informs policy.
Aligning with the Paris Agreement's Enhanced Transparency Framework means tackling persistent data gaps. Currently, passenger and freight activity data are not consistently recorded or monitored. Establishing a strong institutional framework, potentially with the Ministry of Statistics and Programme Implementation (MoSPI) at its core for data integration and quality control, is vital for building trusted monitoring, reporting, and verification (MRV) systems.
Furthermore, integrating transport into India's upcoming National Adaptation Plan (NAP) is critical, as the sector is both an economic driver and highly vulnerable to climate impacts. The NAP must focus on climate-resilient infrastructure, such as stronger roads and bridges and better drainage in flood-prone areas.
The biggest hurdle remains finance. Although transport is the second-largest recipient of global mitigation finance after energy, a massive funding shortfall persists. Bridging this gap requires enhanced international collaboration, concessional financing, and private sector involvement through instruments like green bonds, blended finance, and Article 6 carbon markets.
The potential payoff is enormous. Globally, transport could cut emissions by 3.2 gigatonnes of CO2 equivalent annually by 2030, rising to 4.8 gigatonnes by 2035, with road transport offering the largest savings. For India, a coordinated push on policy, technology, and finance in the transport sector is not just an environmental imperative but a cornerstone of sustainable development for future generations.
Analysis based on insights from Sharif Qamar, Fellow and Associate Director, Transport and Urban Governance Division, TERI.
