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Gulf Today
4 hours ago
- Automotive
- Gulf Today
Indian auto industry emissions could reduce drastically
A new study released by India's Council on Energy, Environment and Water (CEEW) has said that India's automobile industry — the third-largest in the world — could cut its manufacturing emissions by as much as 87% by 2050 through a shift to green electricity and low-carbon steel. According to a CEEW press release, the study comes as several leading automakers — such as Mahindra & Mahindra, Tata Motors, TVS Motors, Ford, BMW, Mercedes-Benz, and Toyota — have, over the past two years, ramped up electric and hybrid vehicle production while simultaneously setting ambitious emission reduction targets. These automakers have also committed to the Science-Based Targets initiative (SBTi), aligning with global definitions of net-zero (NZ) that require full value-chain decarbonization by 2050. For large Indian auto manufacturers, cleaning up supply chains will not just lower emissions; it will enhance long-term cost competitiveness and position them as preferred international suppliers. The Executive Summary of the study says as the world moves towards NZ emissions, a transition is expected across all economic sectors. For the automobile sector, this would lead to a higher demand for low-carbon vehicles. Currently, about 65–80% of a vehicle's emissions come from its use phase. Electrification is a major step toward reducing these emissions, while hybrid vehicles are also being explored as a bridge in the short to medium term. This, in turn, means that there will be major shift in the type of vehicles being manufactured. The Indian automobile sector contributes around 7.1% to the gross domestic product, the Executive Summary points out, and employs over 19 million people. Indian original equipment manufacturers (OEMs) will need to ramp up low-carbon vehicle manufacturing to tap into the growing demand. For auto OEMs to be competitive, they will need to focus on decarbonizing their own manufacturing and upstream supply chains. It is, therefore, important to understand the future pattern of vehicle production, associated energy use and emissions, as well as the growth in demand for materials like steel or rubber used in vehicles. The OEMs must make informed decisions based on long-term assessments on the kind of materials and energy required for vehicle manufacturing. Emissions intensity is declining — but not fast enough, the press release points out. The CEEW study uses a custom version of the Global Change Analysis Model to project emissions under various pathways. It finds that if current business-as-usual (BAU) trends continue, annual vehicle production could rise nearly fourfold — from 25 million units in 2020 to 96 million by 2050. Emissions, however, would only double, reaching 64 million tonnes of CO₂, suggesting a steady decline in emissions per vehicle. Still, the absolute rise in emissions underscores the need for accelerated action. Steel alone would remain the largest source of supply chain emissions, with suppliers expected to rely heavily on coal in this business-as-usual scenario. The study estimates that sourcing low-carbon steel could reduce emissions by nearly 38 million tonnes by 2050. Green electricity and green steel are essential for deep decarbonization, according to the study. If both OEMs and their suppliers were to aim for NZ by 2050, annual emissions could fall from the projected 64 MtCO₂ (BAU) to just 9 MtCO₂ — an 87% reduction. This would require OEMs to shift to 100% green electricity — sourced through power purchase agreements, renewable energy certificates, or captive solar — and steel suppliers to use 56% hydrogen-based energy, reducing coal's share to under 10%. In addition, increasing scrap-based steel production to 48% by 2050 would significantly reduce emissions and resource intensity. The CEEW study also highlights that rubber suppliers must transition to green electricity to clean up Scope 2 emissions. The CEEW study also examines a high-hybrid scenario, where hybrids dominate in the near term before electric vehicles (EVs) take off. While this reduces energy demand among component suppliers by 7%, emissions remain slightly higher than in a BAU shift to EVs due to continued reliance on combustion engines. Ultimately, hybrid vehicles are at best a bridge and will need to be reduced to make way for zero-carbon vehicles. To align the automobile sector with a 2050 NZ pathway, the CEEW study recommends a two-pronged strategy: accelerate the transition to electric vehicles and decarbonize the full manufacturing value chain.
Time of India
6 days ago
- Automotive
- Time of India
Not just electric: Auto sector needs cleaner steel & power to really put the brakes on emissions, says study
India's automobile sector—the third-largest in the world—could slash its manufacturing-related emissions by a staggering 87% by 2050, not just by building more electric vehicles (EVs), but by cleaning up how all vehicles—ICEs, hybrids, and EVs—are made. That's the central finding of a new report released Wednesday by the Council on Energy, Environment and Water (CEEW), which stresses that green electricity, low-carbon steel, and cleaner supply chains—not just EVs—are essential to decarbonising the industry. In recent years, top automakers such as Tata Motors , Mahindra & Mahindra, TVS Motors , Ford, BMW, Mercedes-Benz, and Toyota have set ambitious emission reduction targets and joined the Science-Based Targets initiative (SBTi). Many have expanded electric and hybrid offerings—but the study urges the sector to go further by addressing Scope 1, 2, and 3 emissions, including those from suppliers. 'To lead in a low-carbon global economy, we must decarbonise not just the vehicles we drive, but the industrial processes that build them,' said Dr Arunabha Ghosh, CEO of CEEW. 'Automakers must clean up what powers their factories and how suppliers produce critical materials like steel and rubber.' The Delhi-based think tank's study shows that while production could quadruple to 96 million vehicles by 2050, emissions from manufacturing can be capped—or even dramatically cut—if the sector shifts to 100% green electricity, adopts hydrogen-based and scrap-intensive steelmaking, and makes low-carbon procurement the norm. Today, Scope 3 emissions—mostly from materials like coal-heavy steel and rubber—account for 83% of the industry's carbon footprint in India. Simply electrifying vehicles without addressing these upstream emissions will leave most of the climate problem intact. Hybrids are a temporary bridge CEEW also modelled a 'high-hybrid' scenario, where hybrids dominate before EVs become widespread. While this reduces some energy demand, emissions remain higher than a direct EV transition due to continued combustion engine use. 'Hybrid vehicles may offer short-term efficiency gains, but they're not a substitute for a zero-carbon mobility future,' the report notes. Green manufacturing: Real game changer The report urges OEMs to treat green manufacturing as a strategic lever—not just for climate goals, but for long-term competitiveness. With global supply chains tightening sustainability standards, Indian manufacturers who decarbonise early will have a distinct edge. 'Indian automakers must secure green steel, power factories with renewables, and demand cleaner inputs from suppliers,' said Dr Vaibhav Chaturvedi, Senior Fellow at CEEW. 'Without this, EVs alone won't be enough to meet net-zero goals.' The study calls for a two-pronged strategy: accelerate EV adoption and decarbonise the manufacturing value chain. If done right, it says, the Indian auto sector could become a 'force multiplier' in the country's broader transition to net-zero.
Time of India
7 days ago
- Automotive
- Time of India
Auto manufacturing emissions in India can drop 87% by 2050 through clean energy and low-carbon steel: Report
New Delhi: India's automobile industry can reduce its manufacturing-related carbon emissions by as much as 87 per cent by 2050 through a shift to green electricity and low-carbon steel, according to a study released by the Council on Energy , Environment and Water (CEEW). The study tracks the emissions profile of the world's third-largest auto industry across the full value chain and highlights the role of cleaner inputs in aligning the sector with India's net-zero targets. Using a custom version of the Global Change Analysis Model, the CEEW study projects that annual vehicle production in India could grow from 25 million in 2020 to 96 million by 2050 under a business-as-usual (BAU) trajectory. In this scenario, annual emissions from manufacturing are expected to double, reaching 64 million tonnes of CO₂, even as emissions intensity per vehicle declines. The study notes that Scope 3 emissions, which include upstream supply chain emissions from materials such as steel and rubber, currently account for more than 83 per cent of the sector's overall emissions. Scope 1 and 2 emissions, which come from direct factory operations and electricity use respectively, contribute the remaining share. Dr Arunabha Ghosh, CEO, CEEW, said, 'India's auto industry stands at a turning point. To lead in a low-carbon global economy, we must decarbonise not just the vehicles we drive but the industrial processes that build them. Automakers must clean up how their vehicles are made, what powers their factories, and how their suppliers produce critical inputs like steel and rubber.' If original equipment manufacturers (OEMs) and their suppliers were to align with net-zero by 2050, emissions from the sector could be reduced to just 9 million tonnes of CO₂ annually, down from the projected 64 MtCO₂ under BAU—a reduction of 87 per cent. This would require a shift to 100 per cent green electricity and increasing the share of hydrogen-based energy in steel production to 56 per cent. Coal's share in steelmaking would have to fall below 10 per cent, while scrap-based steel production would need to rise to 48 per cent. Dr Vaibhav Chaturvedi, Senior Fellow, CEEW, said, 'To align India's automobile sector—central to GDP, jobs, and industrial growth—with a net-zero future, we must go beyond electrifying vehicles. We must decarbonise manufacturing itself. Leading OEMs are already making corporate decisions to stay ahead by decarbonising their operations and supply chains.' The study also examines a high-hybrid scenario, where hybrid vehicles dominate initially before EVs take off. While this reduces component suppliers' energy demand by 7 per cent, overall emissions remain slightly higher than in a direct shift to EVs due to continued use of combustion engines. The study recommends a dual approach to achieve net-zero alignment by 2050: accelerate EV adoption and decarbonise the entire manufacturing chain. Since 65–80 per cent of a vehicle's lifetime emissions stem from its use phase, electrification remains the most effective lever to cut total emissions, provided it is coupled with clean manufacturing practices.
Time of India
7 days ago
- Automotive
- Time of India
Auto manufacturing emissions in India can drop 87% by 2050 through clean energy and low-carbon steel: Report
India's automobile industry can reduce its manufacturing-related carbon emissions by as much as 87 per cent by 2050 through a shift to green electricity and low-carbon steel, according to a study released by the Council on Energy , Environment and Water (CEEW). The study tracks the emissions profile of the world's third-largest auto industry across the full value chain and highlights the role of cleaner inputs in aligning the sector with India's net-zero targets. Using a custom version of the Global Change Analysis Model, the CEEW study projects that annual vehicle production in India could grow from 25 million in 2020 to 96 million by 2050 under a business-as-usual (BAU) trajectory. In this scenario, annual emissions from manufacturing are expected to double, reaching 64 million tonnes of CO₂, even as emissions intensity per vehicle declines. The study notes that Scope 3 emissions, which include upstream supply chain emissions from materials such as steel and rubber, currently account for more than 83 per cent of the sector's overall emissions. Scope 1 and 2 emissions, which come from direct factory operations and electricity use respectively, contribute the remaining share. Dr Arunabha Ghosh , CEO, CEEW, said, 'India's auto industry stands at a turning point. To lead in a low-carbon global economy, we must decarbonise not just the vehicles we drive but the industrial processes that build them. Automakers must clean up how their vehicles are made, what powers their factories, and how their suppliers produce critical inputs like steel and rubber.' If original equipment manufacturers (OEMs) and their suppliers were to align with net-zero by 2050, emissions from the sector could be reduced to just 9 million tonnes of CO₂ annually, down from the projected 64 MtCO₂ under BAU—a reduction of 87 per cent. This would require a shift to 100 per cent green electricity and increasing the share of hydrogen-based energy in steel production to 56 per cent. Coal's share in steelmaking would have to fall below 10 per cent, while scrap-based steel production would need to rise to 48 per cent. Dr Vaibhav Chaturvedi , Senior Fellow, CEEW, said, 'To align India's automobile sector—central to GDP, jobs, and industrial growth—with a net-zero future, we must go beyond electrifying vehicles. We must decarbonise manufacturing itself. Leading OEMs are already making corporate decisions to stay ahead by decarbonising their operations and supply chains.' The study also examines a high-hybrid scenario, where hybrid vehicles dominate initially before EVs take off. While this reduces component suppliers' energy demand by 7 per cent, overall emissions remain slightly higher than in a direct shift to EVs due to continued use of combustion engines. The study recommends a dual approach to achieve net-zero alignment by 2050: accelerate EV adoption and decarbonise the entire manufacturing chain. Since 65–80 per cent of a vehicle's lifetime emissions stem from its use phase, electrification remains the most effective lever to cut total emissions, provided it is coupled with clean manufacturing practices.
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Business Standard
23-07-2025
- Automotive
- Business Standard
Switch to green power, steel to cut India's auto sector emissions: CEEW
India's automobile industry—the third-largest in the world—could cut its manufacturing emissions by as much as 87 per cent by 2050 through a shift to green electricity and low-carbon steel, according to a new independent study released on Wednesday by the Council on Energy, Environment and Water (CEEW). The study comes as several leading automakers—such as Mahindra & Mahindra, Tata Motors, TVS Motors, Ford, BMW, Mercedes-Benz, and Toyota—have, over the past two years, ramped up electric and hybrid vehicle production while simultaneously setting ambitious emission reduction targets. These automakers have also committed to the Science-Based Targets initiative (SBTi), aligning with global definitions of net-zero that require full value-chain decarbonisation by 2050. For large Indian auto manufacturers, cleaning up supply chains will not just lower emissions; it will enhance long-term cost competitiveness and position them as preferred international suppliers. While many of these targets focus on direct factory emissions (Scope 1 and 2) and downstream use-phase emissions, upstream supply chain emissions remain largely overlooked, despite contributing the majority of the sector's carbon footprint. The CEEW study tracks emissions across three scopes: direct emissions from vehicle manufacturing (Scope 1), indirect emissions from electricity use (Scope 2), and upstream supply chain emissions (Scope 3). Scope 3 emissions currently make up over 83 per cent of the auto industry's emissions in India, largely due to the use of coal-intensive steel and rubber in vehicle manufacturing. 'India's auto industry stands at a turning point. To lead in a low-carbon global economy, we must decarbonise not just the vehicles we drive but the industrial processes that build them. Automakers must clean up how their vehicles are made, what powers their factories, and how their suppliers produce critical inputs like steel and rubber. This is not new—promisingly, most major manufacturers in India are already thinking about these shifts,' said Arunabha Ghosh, chief executive officer, CEEW. 'Now, the push must be to create demand for green materials at scale, lower costs, and deploy cleaner technologies rapidly. The auto sector can emerge as a force multiplier for economy-wide net-zero transitions—but only through collective foresight, investment and innovation,' he added. The CEEW study uses a custom version of the Global Change Analysis Model to project emissions from India's vehicle manufacturing sector under various pathways. It finds that if current business-as-usual (BAU) trends continue, annual vehicle production could rise nearly four-fold—from 25 million units in 2020 to 96 million by 2050. Emissions, however, would only double, reaching 64 million tonnes of CO₂, suggesting a steady decline in emissions per vehicle. Still, the absolute rise in emissions underscores the need for accelerated action. Steel alone would remain the largest source of supply chain emissions, with suppliers expected to rely heavily on coal in this business-as-usual scenario. The study estimates that sourcing low-carbon steel could reduce emissions by nearly 38 million tonnes by 2050. If both OEMs and their suppliers were to aim for net-zero by 2050, annual emissions could fall from the projected 64 MtCO₂ (BAU) to just 9 MtCO₂—an 87 per cent reduction. This would require OEMs to shift to 100 per cent green electricity—sourced through power purchase agreements (PPAs), renewable energy certificates (RECs), or captive solar—and steel suppliers to use 56 per cent hydrogen-based energy, reducing coal's share to under 10 per cent. In addition, increasing scrap-based steel production to 48 per cent by 2050 would significantly reduce emissions and resource intensity. The CEEW study also highlights that rubber suppliers must transition to green electricity to clean up Scope 2 emissions. 'To align India's automobile sector—central to GDP, jobs, and industrial growth—with a net-zero future, we must go beyond electrifying vehicles. We must decarbonise manufacturing itself. Leading OEMs are already making corporate decisions to stay ahead by decarbonising their operations and supply chains. What's needed now is strong procurement intent, especially through advanced market commitments to secure green steel and other low-carbon materials,' said Vaibhav Chaturvedi, Senior Fellow, CEEW. 'The policy landscape may be evolving, but major markets are still pushing hard on green through corporate and investor action. Indian automakers must treat clean manufacturing as a strategic lever—not just for cost control, but to stay competitive in global supply chains,' Chaturvedi added. The CEEW study also examines a high-hybrid scenario, where hybrids dominate in the near term before EVs take off. While this reduces energy demand among component suppliers by 7 per cent, emissions remain slightly higher than in a BAU shift to EVs due to continued reliance on combustion engines. Ultimately, hybrid vehicles are at best a bridge and will need to be reduced to make way for zero-carbon vehicles. To align the automobile sector with a 2050 net-zero pathway, the CEEW study recommends a two-pronged strategy: accelerate the transition to electric vehicles and decarbonise the full manufacturing value chain. Since 65–80 per cent of a vehicle's lifetime emissions come from its use phase, shifting to EVs remains the most effective way to cut end-use emissions. But deep reductions will only be possible if EVs are manufactured using clean energy and low-carbon materials. This requires coordinated action across OEMs and suppliers—supported by long-term procurement commitments and policy signals that encourage investments.
