This piece originally appeared in Punjab Kesari in Hindi.

For many reasons, Haryana is the automobile hub of India. Its electric vehicle (EV) policy, which began in 2022, marked a significant step toward reducing transportation emissions. Now more than 2 years into the 5-year policy, with the Government of India having released the Production Linked Incentive (PLI) scheme for the National Programme on Advance Chemistry Cell Battery Storage and the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, there’s a prime opportunity for Haryana’s new government to make strides in promoting EV adoption, particularly for electric cars.

Here are four areas where extra focus could help maximize the potential for success:

1.  Grow the charging infrastructure network. While Haryana’s EV policy promotes setting up charging points in designated urban areas, implementation has been relatively sluggish. For drivers of electric cars in particular, public charging stations are needed in cities and along major highways to make them feel most confident. This is a learning from regions with the highest EV adoption rates, and one example is Norway’s successful model, which ensures charging stations every 50 km on main roads. Norway has one of the world’s highest ratios of chargers to vehicles with 30 public chargers per thousand electric cars and vans. A focus on standardized public charging stations compatible with various EV models and on installing fast chargers would reduce time that drivers spend waiting for a charger, particularly in high-traffic areas, parking lots, and commercial hubs. As we outlined here, charging infrastructure standardization is crucial because it reduces investment costs through economies of scale and significantly improves user experience.

In addition, Haryana can complement Central Government funding available for charging infrastructure in PM E-DRIVE with its own financial incentives for installing home and workplace chargers. Norway’s experience was highlighted at our India Clean Transportation Summit 2024, where Markus Nilsen Rotevatn from the Norwegian EV Association explained that a suite of policies have combined to make EVs in Norway so cost-effective that consumers are choosing them for that reason alone.

2. State manufacturing and research and development (R&D) initiatives for EVs. Haryana’s many strategic advantages—proximity to key markets, robust road infrastructure that provides reliable connectivity to other parts of India, dedicated EV parks, and skilled manufacturing workforce—mean it’s well positioned to become an EV manufacturing hub. The government can offer financial incentives to attract investment from local and global EV manufacturers, battery producers, and component suppliers. One avenue is special economic zones (SEZs) for EV production, which are designated areas that provide benefits like tax exemptions, streamlined customs processes, and access to superior infrastructure. These zones can enhance productivity, reduce operational costs, create job opportunities, and contribute to economic development. In Haryana, such SEZs could be complemented by R&D centres that focus on advancing EV battery technology and cost-effective EV components through public-private partnerships with local universities and technical institutions.

3. Financial incentive structures. Though Haryana’s EV policy includes purchase incentives for electric two-wheelers, three-wheelers, and cars, registration fee waivers, and road tax exemptions, there are ways to expand the financial benefits. Taking cues from successful global models in the United States, the United Kingdom, and China, Haryana’s government could collaborate with financial institutions to offer low-interest loans for EV buyers and give them more time to repay EV loans. Additionally, the government could create a financial risk management fund from the State Transport Fund for Accelerating EVs and support banks that lend to middle-class buyers and fleet operators. This could be especially effective now, as interest rates are not low. A fixed percentage of the State’s Transport fund could be allocated to things like providing purchase subsidies, developing charging infrastructure, and electrifying public transportation. The fund can also be used to provide free parking or reduced tolls.

4. New regulatory frameworks and building codes. Following models from Europe, Haryana could consider introducing low-emission zones (LEZs) in pollution-heavy cities like Gurugram and Faridabad. LEZs are geographically defined areas where access restrictions are applied to polluting motorized vehicles. The importance of LEZs was highlighted recently in a convening organized jointly by the Government of Haryana Transport Department and the ICCT. The Haryana Pollution Control Board mentioned LEZs in its Winter Action Plan 2024–25, but action on the ground has yet to commence. Updating building codes to require that new residential and commercial buildings be EV-ready and mandating that government departments transition to battery electric vehicles within a specified time frame are other ways to support the market.

Several supplementary measures would also support these priorities. From public-awareness campaigns that leverage multiple channels including television, social media, and community events, to educational programs in technical institutions that focus on EV technology and a robust battery recycling infrastructure with appropriate regulations, such measures work together to create a supportive ecosystem that enables widespread EV adoption.

Delivering on the vision in Haryana’s EV policy is expected to generate substantial environmental and economic benefits, including significant reduction in vehicular emissions, improved air quality across urban centres and avoided premature deaths through reduced air pollution, job creation across the EV value chain, and the positioning of Haryana as a competitive EV manufacturing hub in North India. The state EV policy complements the National Electric Mobility Mission Plan’s goal of 30% EV penetration by 2030 and strengthens India’s commitment under the Paris Agreement to reduce emissions intensity by 45% by 2030. While this agenda is ambitious, the long-term benefits to public health, employment, and economic growth make this transition not just desirable but imperative for Haryana’s sustainable future.

About this event

Did you know that the road transport sector contributes over 20% of global CO₂ emissions? In India, transitioning to zero-emission vehicles (ZEVs) presents a major opportunity to reduce both greenhouse gas (GHG) emissions and air pollution. Many major economies have already set regulations to achieve 100% ZEV or electric vehicle (EV) sales for new cars and vans by 2035. But what does this transition look like for India?

The ICCT’s latest study, “Vision 2050,” provides an updated global assessment of ZEV policies and market trends, analyzing their impact on EV sales, road transport energy consumption, and emissions through 2050. Accelerating ZEV adoption is the most promising strategy to cut CO₂ emissions from road transport and help meet the Paris Agreement goal of keeping global warming well below 2°C.

India’s ZEV adoption in the last year

In the last year from 2023 to 2024, the number of EVs sold in India increased by 27%. Three-wheelers are leading this transition, with a 57% EV adoption rate, and two-wheelers dominate the sales by the numbers, accounting for 59% of total EVs sold.

In partnership with ET Auto, this webinar will discuss how India and other countries are accelerating the transition to ZEVs, highlighting key successes and opportunities. Based on insights from the ICCT’s “Vision 2050” study, we will discuss how supply-side regulations (SSRs) and fiscal incentives have accelerated ZEV adoption across diverse vehicle markets. We will also examine how India could integrate international best practices to accelerate domestic EV uptake with key policies like fuel economy standards and EV fiscal incentives.

Join us to gain valuable insights on how India can drive towards a cleaner, more sustainable future.

This piece was originally published in the Hindustan Times.

Road traffic congestion is a pressing issue in many of India’s metropolitan centres. Gridlock brings prolonged commute times, excessive fuel consumption, air and noise pollution, and elevated greenhouse gas emissions. The National Capital Region has been in the spotlight as traffic has worsened with urban sprawl. According to research published by the International Council on Clean Transportation (ICCT), on-road vehicles were responsible for nearly three-quarters of the transportation health burden in New Delhi in 2015.

To address peak-hour congestion, Delhi’s government reportedly plans to introduce a pilot congestion tax that would charge drivers who use select roadways during busy periods. Also known as congestion pricing, this aims to ease traffic and reduce pollution by discouraging unnecessary trips and encouraging drivers to use alternative routes, travel at off-peak times, shift to public transport, or share rides (and fees) with others. A 2010 study by the ICCT found that congestion tax schemes in London, Singapore, and Stockholm reduced congestion by 13%–30% and greenhouse gas emissions by 15%–20%.

This isn’t the first time Delhi has considered congestion pricing. Proposals in 2009 and 2018 failed to advance. Still, as Delhi looks ahead to its congestion tax pilot, I’ll highlight experiences from other cities that can provide valuable insights into how these schemes could be employed to effectively reduce traffic and air pollution.

Dynamic pricing

Delhi’s pilot would reportedly charge vehicles entering the city at 13 major entry points during morning and evening peak hours. With over 1.1 million vehicles entering and exiting daily, this makes sense, as such corridors are often heavily congested. A 2016 Centre for Science and Environment (CSE) cross-border traffic survey at nine major entry points to Delhi accounting for about 70% of traffic into the city found that the number of personal and passenger cars and two-wheelers entering daily was about the same as the number of vehicles registered in the city in a year.

At the same time, with over 1,800 new vehicles added to the Capital’s roads daily, an entry-point congestion tax during peak hours could miss an opportunity to address a large portion of daily vehicle emissions. Another CSE study estimated that the traffic at surveyed border points contributed just 10% of the total pollution loads emanating from the transport sector in Delhi. Administering taxes only at peak hours can also mean overlooking emissions during off-peak times, including those from heavy-duty vehicles, which are responsible for 20%–30% of transport sector pollution in Delhi and operate predominately outside of peak hours.

Other countries have sought to balance pollution and emission reduction aims against commuter access through dynamic pricing schemes that apply city-wide and have fees that rise at times of high congestion and drop during less busy times. In Singapore, an early pioneer in congestion pricing, charges are regularly reviewed and adjusted in response to changes in traffic patterns. Rates vary throughout the day and rise and fall gradually around periods of high traffic, which helps avoid surges before and after the designated peak hours.

Targeting the most polluting vehicles

Delhi reportedly plans to impose charges on most vehicles but exempt two-wheelers and electric vehicles. Congestion pricing programs in other countries have also provided discounts or exemptions for certain travelers, such as for residents of the designated taxation area, diplomatic vehicles, and emergency vehicles.

However, in Delhi, discounts and exemptions for any personal or commercial vehicle may risk undermining the core congestion and emission reduction aims of the schemes. For instance, two-wheelers, with reportedly about 1,100 new registrations  each day,  are roughly one in three vehicles on the road and are the second-largest contributor to transport pollution, according to The Energy and Resources Institute. Lessons can also be drawn from Delhi’s own 2016 odd-even scheme, which aimed to reduce pollution by restricting the operation of vehicles based on license plate number and exempted two-wheelers, women-only vehicles, and taxis, among others. Observers assessed that the program had minimal impact on pollution due in part to an increase in the use of exempted vehicles.

Pricing framework

Policymakers in other countries have wrestled with how to set congestion charges high enough to encourage reductions in vehicle use without placing a disproportionate financial burden on low-income travelers. In the 1970s, Singapore’s congestion toll led to a larger-than-expected drop in traffic that raised commuter welfare concerns. More recently, London revised its fee upward to maintain effectiveness in response to inflation.

There are other strategies. Currently, pricing in Singapore and Milan’s Area C varies by vehicle size and heavier, more polluting vehicles pay higher charges than lighter ones. This reflects their greater impact on both traffic congestion and pollution levels. Remote sensing, a method used to monitor real-world tailpipe emissions, could offer support for tailoring congestion prices to the emissions of different vehicles. This technology has been deployed in Europe, the United States, Spain, Sweden, and elsewhere to identify high- and low-emission vehicles and detect possible vehicle tampering. A recent ICCT study that took measurements via remote sensing in Delhi and Gurugram highlighted the difference between real-world tailpipe emission levels and laboratory limits and the need for advanced techniques for emissions monitoring.

A review of congestion pricing pilot programs in U.S. cities identified a number of possible approaches to mitigate the impacts of these schemes on low-income groups, including discounts, exemptions, and rebates. Such measures aim to minimize the financial burden on disadvantaged communities while maintaining the program’s effectiveness. Additionally, cities like Bogotá (Colombia) have adopted approaches that consider drivers’ income level alongside vehicle emissions to establish an equitable pricing structure.

The role of public transportation and supportive policies

Delhi has more than 7,500 buses in operation and over 390 km of metro connectivity, including links to other major cities. Still, challenges persist, including irregular bus frequency, overcrowding during rush hours, poor conditions of the bus, and last-mile connectivity issues for metro users. Ensuring that the public transit system is reliable, well-integrated, and equipped for last-mile connectivity through feeder bus services and pedestrian and cycling infrastructure is critical to realizing the shift away from private transport envisioned under congestion tax schemes. Indeed, congestion pricing was also considered recently in Bangalore and Mumbai, but it stalled due to concerns about the capacity of the public transport system to provide sustainable alternatives to private vehicle users.

Other cities have used revenues from congestion pricing to pay for upgrades to the public transit system. In London, the net revenue from congestion pricing has supported efforts to enhance bus fleets, expand bicycle and pedestrian lanes, improve road safety, and more. Cities like London, Paris, and Brussels have implemented scrappage programs that provide subsidies to retire older, higher-emitting vehicles and encourage a shift to public transit or cleaner private vehicles. Furthermore, initiatives like Delhi’s Mohalla bus scheme, a feeder bus service designed for neighbourhood-level operations, are expected to bridge the last-mile connectivity challenges by deploying 9 m zero-emission buses at scale.

In considering congestion taxing to help address poor air quality, Delhi has the opportunity to draw on global insights and establish a strong precedent for tackling traffic congestion and air pollution together. Success in this would promote sustainable urban mobility that offers a safer, healthier environment for its residents.