When supportive policies meet scale, costs of clean technologies like EVs and batteries fall, making adoption more affordable
Credit: Reuters File Photo
As the world prepares for COP30 in Belém, Brazil, it is clear that this must be the COP of implementation. India has a special role to play — not only as a large emerging economy, but also as a hub of solutions that the Global South can learn from.
One of the most powerful levers India can bring to the table is transport and mobility — a sector central to our Nationally Determined Contributions (NDCs) and directly connected to COP30’s wider narrative of forests, climate justice, and inclusive finance.
Why transport matters
Transport already accounts for around 14% of India’s energy-related CO₂ emissions. By 2050, passenger demand is expected to double and freight demand to grow fivefold. That trajectory could lock us into high emissions — but it also means action here delivers outsized benefits.
India’s updated NDCs commit to reducing the emissions intensity of GDP by 45% by 2030 and ensuring that 50% of cumulative installed power capacity comes from non-fossil sources. A rapid mobility transition — electrifying two- and three-wheelers, buses, and freight corridors, powered by clean electricity — bridges these pillars.
Progress is already visible. EV sales crossed 1.9 million last year, led by two- and three-wheelers. Nearly 26,000 public charging stations are operational, and cities like Delhi are deploying electric buses at scale. By doubling down on what is already working, India can show that its NDCs are not just a paper target but a grounded, implementable pathway.
Power of early scale, supportive policies
When supportive policies meet scale, costs of clean technologies like EVs and batteries fall, making adoption more affordable. Globally, the cost of lithium-ion batteries has dropped by nearly 90% since 2010, largely driven by early mover markets such as China and the European Union.
In India, electric two- and three-wheelers have become increasingly affordable for consumers, thanks to economies of scale and targeted policy incentives like FAME-II and state-level schemes. Maharashtra’s EV policy, for instance, combined purchase incentives with road tax and registration fee waivers, accelerating adoption. Delhi’s measures helped the city achieve a record 12% EV share in new vehicle sales in 2024 — one of the highest in India.
Cities that invest early in electrification also see faster improvements in air quality. Beijing’s aggressive adoption of EVs played a key role in reducing annual PM2.5 concentrations, offering a playbook for Indian cities where transport accounts for up to 30% of local air pollution. For a country that bears some of the world’s highest health and productivity costs from air pollution in its urban areas, the co-benefits of early electrification can be immediate and profound.
For India, scaling clean mobility early does more than improve health and affordability. It also strengthens domestic resilience while opening new export opportunities. Several estimates project the global EV market will reach 40 million annual sales by 2030; if India captures even a modest share in vehicles, batteries, or charging hardware, it could unlock billions in export revenues.
Blueprint for economic transformation
The transition to clean mobility is not only a climate imperative — it is a development opportunity. The EV and battery sector could generate 50 million direct and indirect jobs by 2030. Electrifying transport could save India ₹160 lakh-crore ($1.9 trillion) in crude oil imports by 2050. Reducing oil dependence enhances India’s energy security and eases pressure on the balance of payments, insulating the economy from volatile global fuel prices.
This is precisely where India’s leadership at COP30 can stand out— a model for how developing economies can pursue climate and development goals in tandem. Just as Brazil will showcase forests as global assets, India can showcase how early scaling of clean mobility — enabled by supportive policies — delivers triple dividends: lowering costs, improving health, and positioning the economy for global competitiveness. For the Global South, this becomes not just a climate story but an implementation blueprint for economic transformation.
Resilient supply chains
Sustaining this transformation requires secure and resilient supply chains. Today, over 70% of global battery cell manufacturing is concentrated in one geography, creating vulnerabilities. India is responding through a ₹18,000 crore production-linked incentives for advanced batteries and a ₹1,500 crore scheme for critical mineral recycling, the Critical Minerals Mission, under which the Geological Survey of India will conduct 1,200 exploration projects in five years, and new exploration licences to expand private sector participation and promote recovery from secondary sources.
By 2030, it is expected that recycled EV batteries could meet 5-20% of domestic demand for lithium, nickel, cobalt, and graphite.
The Bharat Cleantech Manufacturing Platform, launched by the government, aims to strengthen value chains across solar, wind, hydrogen, and battery storage. With import dependence projected at $100 billion annually by 2030, this is both a necessity and an opportunity.
This work aligns with COP30’s focus on finance and trade. As Brazil advances a $125 billion blended-finance initiative for forests, India must advocate similar mechanisms for mobility — and push for fair market access for cleantech exports.
Conclusion
As COP30 approaches, India’s message can connect across agendas: just as forests are vital global assets, so too is a resilient, clean mobility system.
If we get this right, we will not only deliver on our NDCs — reducing emissions intensity, expanding renewables, and building towards net zero — but also secure triple dividends: lowering costs through early scale, improving health through cleaner air, and strengthening energy security and competitiveness through resilient domestic supply chains and new export opportunities.
This is the model that the Global South needs, one that combines climate action with inclusive growth and energy security.
Ashish Kumar Singh is former Additional Chief Secretary, Government of Maharashtra, and Akshima Ghate is MD, RMI - India Program.
(Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.)