Auto Sector Can Cut Emissions by 87% by 2050: CEEW
ECONOMY & POLICY

Auto Sector Can Cut Emissions by 87% by 2050: CEEW

India’s automobile industry could reduce its manufacturing emissions by 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 report estimates that if original equipment manufacturers (OEMs) and their suppliers target net-zero emissions by 2050, annual emissions could fall from a projected 64 million tonnes of CO₂ (under the business-as-usual scenario) to just 9 million tonnes. This would require OEMs to adopt 100 per cent green electricity and steel suppliers to source 56 per cent of their energy from hydrogen, while reducing coal’s share to below 10 per cent. Additionally, increasing scrap-based steel production to 48 per cent by 2050 would further cut emissions and improve resource efficiency.
While several leading Indian automakers have committed to reducing direct factory and use-phase emissions, the report notes that upstream supply chain emissions remain largely unaddressed. These upstream emissions—primarily from steel and rubber—currently account for more than 83 per cent of the sector’s total emissions.
Dr Arunabha Ghosh, CEO of CEEW, said, “India’s auto industry stands at a turning point. Automakers must decarbonise the manufacturing process, the energy powering their plants, and the supply chain that produces key inputs like steel and rubber.”
The study mapped emissions across three scopes: Scope 1 (direct emissions from manufacturing), Scope 2 (indirect emissions from electricity use), and Scope 3 (upstream supply chain). Scope 3 emissions were identified as the dominant contributor, largely due to the sector’s heavy reliance on coal-intensive materials.
Dr Vaibhav Chaturvedi, Senior Fellow at CEEW, added, “To align India’s auto sector—central to GDP, jobs, and industrial growth—with a net-zero future, we must go beyond electrifying vehicles and decarbonise manufacturing itself.”
The report advocates accelerating electric vehicle (EV) adoption while also decarbonising the broader manufacturing value chain. In assessing a high-hybrid scenario, where hybrid vehicles dominate initially, the study found that while supplier energy demand would drop by 7 per cent, emissions would remain slightly higher than under a full EV transition due to continued use of combustion engines.
As vehicles’ use phase contributes 65–80 per cent of their lifetime emissions, the report reiterates that EV adoption remains the most effective strategy for end-use emission reduction. However, for deep decarbonisation, clean energy and low-carbon materials must underpin vehicle manufacturing. 

India’s automobile industry could reduce its manufacturing emissions by 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 report estimates that if original equipment manufacturers (OEMs) and their suppliers target net-zero emissions by 2050, annual emissions could fall from a projected 64 million tonnes of CO₂ (under the business-as-usual scenario) to just 9 million tonnes. This would require OEMs to adopt 100 per cent green electricity and steel suppliers to source 56 per cent of their energy from hydrogen, while reducing coal’s share to below 10 per cent. Additionally, increasing scrap-based steel production to 48 per cent by 2050 would further cut emissions and improve resource efficiency.While several leading Indian automakers have committed to reducing direct factory and use-phase emissions, the report notes that upstream supply chain emissions remain largely unaddressed. These upstream emissions—primarily from steel and rubber—currently account for more than 83 per cent of the sector’s total emissions.Dr Arunabha Ghosh, CEO of CEEW, said, “India’s auto industry stands at a turning point. Automakers must decarbonise the manufacturing process, the energy powering their plants, and the supply chain that produces key inputs like steel and rubber.”The study mapped emissions across three scopes: Scope 1 (direct emissions from manufacturing), Scope 2 (indirect emissions from electricity use), and Scope 3 (upstream supply chain). Scope 3 emissions were identified as the dominant contributor, largely due to the sector’s heavy reliance on coal-intensive materials.Dr Vaibhav Chaturvedi, Senior Fellow at CEEW, added, “To align India’s auto sector—central to GDP, jobs, and industrial growth—with a net-zero future, we must go beyond electrifying vehicles and decarbonise manufacturing itself.”The report advocates accelerating electric vehicle (EV) adoption while also decarbonising the broader manufacturing value chain. In assessing a high-hybrid scenario, where hybrid vehicles dominate initially, the study found that while supplier energy demand would drop by 7 per cent, emissions would remain slightly higher than under a full EV transition due to continued use of combustion engines.As vehicles’ use phase contributes 65–80 per cent of their lifetime emissions, the report reiterates that EV adoption remains the most effective strategy for end-use emission reduction. However, for deep decarbonisation, clean energy and low-carbon materials must underpin vehicle manufacturing. 

Next Story
Infrastructure Energy

Mizoram To Build Rs 139 Billion Pumped Storage Power Plant

Mizoram Chief Minister Lalduhoma on Friday announced plans to construct a 2,400 MW pumped storage hydroelectric power plant in Hnahthial district, marking a major step towards achieving energy self-sufficiency in the state. Addressing the Mizo Students’ Union general conference in Hnahthial town, the Chief Minister said the plant would be developed across the Darzo Nallah, a tributary of the Tuipui river. Once operational, the project is expected to play a pivotal role in meeting Mizoram’s rising electricity demand and reducing dependence on imported power. Officials from the State Power..

Next Story
Infrastructure Energy

Centre Plans Nationwide Opening Of Power Retail Market

India is preparing to open up its retail electricity market to private companies nationwide, effectively ending the long-standing monopoly of state-run power distributors in most regions, according to a draft bill released by the Union Power Ministry on Friday. The move will enable major private sector players — including Adani Enterprises, Tata Power, Torrent Power, and CESC — to expand their presence across the country’s electricity distribution landscape. A similar reform attempt in 2022 had faced strong opposition from state-run distribution companies (discoms), which currently dom..

Next Story
Infrastructure Energy

CEA Sets 100 GW Nuclear Target For India By 2047

In a landmark step marking its 52nd Foundation Day, the Central Electricity Authority (CEA) unveiled an ambitious roadmap to develop 100 gigawatts (GW) of nuclear power capacity by 2047, aligning with India’s long-term Net-Zero commitment and energy security objectives. The event, held at the Central Water Commission auditorium in New Delhi’s R.K. Puram, was attended by Pankaj Agarwal, Secretary, Ministry of Power, who served as the Chief Guest. The roadmap sets out a detailed plan to expand India’s nuclear capacity from its current level of approximately 8,180 MW as of early 2025, outl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?