Transition To Zero-Emission Trucks Tough For Logistics Industry: Climate Policy Initiative

India’s road logistics industry is a significant contributor to pollution, responsible for 4 percent of India’s energy-related CO2 emissions and 53 percent of particulate matter emissions. With the truck fleet expected to grow four-fold by 2050, reducing emissions from this sector is critical to achieving the country’s Nationally Determined Contribution (NDC) and net-zero targets. Transitioning to zero-emission trucks (ZETs) is essential for both the environment and public health, given the severe impact of transport sector emissions on human well-being. 

The “Just Transition to Zero-Emission Trucking in India” report delves into the multifaceted challenges and opportunities of transitioning to ZETs. Among the various alternatives to internal combustion engine (ICE) trucks, battery-electric technology emerges as the most feasible solution, owing to its cost-effectiveness and technological maturity. However, the transition presents several hurdles, including the higher total cost of ownership of ZETs compared to traditional ICE trucks and the limited availability of charging infrastructure. 

The report asserts that the shift to ZETs must be gradual, driven by cost reductions and supportive government policies. While the sector is poised for growth, the transition will inevitably have social and economic impacts, particularly in a country like India, where the trucking industry provides approximately 8 million direct jobs, with an additional 9.4 million indirect and 4 million induced jobs. The adoption of ZETs could lead to job losses for workers in ICE-related trades, affecting both organised and unorganised sectors, as well as those employed in trucking clusters. However, it also offers new employment opportunities in emerging areas such as electric powertrain manufacturing and maintenance. 

The report emphasises the need for a people-centric transition that avoids exacerbating existing inequalities. A comprehensive approach is essential to ensure that all stakeholders—drivers, fleet owners, manufacturing workers, and those in after-sales and induced jobs—are not left behind. The transition to ZETs must address the social and economic dimensions of the industry’s reconfiguration, ensuring that workers acquire the skills needed for the new landscape. 

To facilitate this transition, the report recommends tailored policy and financial interventions for direct, indirect, and induced workers. Adequate training, reskilling, and job placement programmes will be crucial for a smooth transition. Additionally, equity considerations should extend to communities affected by trucking activities, particularly those near major transportation corridors, as these communities are likely to bear a disproportionate burden of the shift to ZETs. 

A key recommendation in the report is the establishment of a Just Transition Fund for India (JTFI) under the Ministry of Skill Development and Entrepreneurship (MSDE). Funded by government budgetary support and other sources, this fund could leverage existing government schemes, such as the Pradhan Mantri Kaushal Vikas Yojana for skilling and the Pradhan Mantri MUDRA Yojana for loans. The JTFI would finance reskilling programmes and provide loans and grants to support workers unable to transition into new roles within the industry. 

By investing in workforce readiness, aligning policies with equity and social justice, and providing transparent information on the co-benefits of the transition, India can achieve its environmental goals while protecting the livelihoods of its trucking industry workforce. The report lays the foundation for a sustainable, equitable shift towards green mobility, ensuring that no one is left behind in the journey towards a cleaner, healthier future.