TERI Launches Policy Brief to Guide Cleaner Transport Transitions in India’s Million-Plus Cities
25 April 2025, New Delhi: The Energy and Resources Institute (TERI) released a new policy brief titled “Shifting Gears Towards Cleaner Air: Modernizing Urban Fleets for a Greener Future in India’s Million-Plus Cities.” The study examines the implications of phasing out older vehicles and transitioning to cleaner alternatives like electric vehicles (EVs) and compressed natural gas (CNG) across 44 of India’s million-plus cities.
Policy brief offers roadmap for reducing emissions, saving fuel costs, and creating over 3.7 lakh jobs through urban fleet modernization
Focusing on the transport sector’s role in deteriorating urban air quality, the report provides actionable insights for national and city-level policymakers. It evaluates two key pathways, namely, full electrification and a hybrid EV-CNG transition, assessing their respective impacts on infrastructure needs, fuel and energy savings, emissions reductions, and employment generation.
Dr Vibha Dhawan, Director General, TERI, emphasized, “The study explores two scenarios, that is, the full EV adoption and a hybrid EV-CNG transition. It assesses the impact on emissions, infrastructure, jobs, and energy use, etc. This shift isn’t just about technology; it’s also about jobs. It’s something which India is always concerned with, the young population. We are looking at the potential to create over 3.7 lakh new jobs in electric mobility, solar power charging, and recycling.”
The study finds that while a balanced 50:50 EV-CNG approach could reduce PM2.5 emissions by 11 tonnes per day (t/d), a complete shift to EVs could deliver more substantial environmental and economic benefits. These include a reduction of 11.5 t/d in PM2.5 emissions, oil savings of Rs.9.17 lakh crore (USD 106.6 billion) by 2035, and the creation of over 3.7 lakh jobs. However, such a transition would require large-scale infrastructure investments, including the development of more than 45,000 EV charging stations and 130 scrapping facilities by 2035.
Older buses, the report highlights, are a critical segment for targeted policy action due to their disproportionately high emissions. Limiting their operational age and promoting zero-emission replacements could substantially improve urban air quality and health outcomes.
Dr Anju Goel, Associate Director, Air Quality Research, TERI, noted, “Transport emissions are among the most persistent sources of urban air pollution. This policy brief outlines a practical, evidence-based path to addressing this challenge through cleaner fleets and better infrastructure. The findings reinforce the need for an integrated approach that prioritizes air quality improvement while aligning with India’s development and climate goals.”
The brief complements ongoing efforts under India’s National Clean Air Programme (NCAP), which supports 130 cities—including all Million-Plus Cities—in implementing Clean Air Action Plans. Among various sources of pollution identified in these plans, the transport sector remains one of the most consistent and significant contributors.
TERI’s recommendations point to the need for strong policy support, coordinated planning, and targeted investment to facilitate a clean, efficient, and inclusive mobility transformation—one that not only reduces pollution but also contributes to economic growth and job creation.
Also Read: TERI Celebrates 26 Years of GREEN Olympiad, Honours Young Environmental Champions
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