Just Transition to Zero-Emission Trucking in India
India’s road logistics industry plays a vital role in the country’s economy, handling 70% of domestic freight. However, this industry is also a significant contributor to pollution, responsible for 4% of India’s energy-related CO2 emissions and 53% of particulate matter emissions. As India’s truck fleet is expected to grow four-fold by 2050, reducing emissions from this sector is critical to meeting the country’s Nationally Determined Contribution (NDC) and achieving net-zero targets. Transitioning to zero-emission trucks (ZETs) is necessary for the environment and public health, as the transport sector’s emissions severely impact human health and well-being.
The “Just Transition to Zero-Emission Trucking in India” report explores the multifaceted challenges and opportunities of transitioning to ZETs. Among the various alternatives to internal combustion engine (ICE) trucks, battery-electric technology stands out as the most feasible solution, given its cost-effectiveness and technological maturity. However, this transition presents several challenges, including the higher total cost of ownership of ZETs compared to traditional ICE trucks and the limited availability of charging infrastructure.
The report underscores that the transition to ZETs must be gradual, driven by cost reductions and supportive government policies. While the sector is expected to grow, the shift will inevitably have social and economic impacts, particularly in India, where the trucking industry employs millions. The industry has created approximately 8 million direct jobs, with an additional 9.4 million indirect and 4 million induced jobs. Adopting ZETs could lead to job losses for workers in ICE-related trades, both in organized and unorganized sectors and among those employed in trucking clusters. However, it will create new job opportunities in emerging areas, such as electric powertrain manufacturing and maintenance.
The report emphasizes the need for a people-centric transition that does not exacerbate existing inequalities. A comprehensive approach ensures that all stakeholders—drivers, fleet owners, manufacturing workers, and those in aftersales 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 are equipped with the skills required for the new landscape.
To facilitate this, the report recommends policy and financial interventions tailored to the needs of direct, indirect, and induced workers. Adequate training, reskilling, and job placement programs will ensure a smooth transition. Additionally, equity considerations should extend to communities impacted by trucking activities, particularly those near major transportation corridors. These communities stand to bear a disproportionate burden of the transition to ZETs and require financing support for alternative livelihoods.
A significant recommendation in the report is the establishment of a Just Transition Fund for India (JTFI) under the Ministry of Skill Development and Entrepreneurship (MSDE). Capitalized through 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 could finance reskilling programs and provide loans and grants to induced job holders who cannot 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 no one is left behind in the journey toward a cleaner, healthier future.
