Just as consumers rely on star ratings to choose energy-efficient electrical appliances, India is now set to implement a similar system for passenger vehicles (PVs) as part of its ambitious net-zero emissions goal by 2070. The National Green Tribunal’s (NGT) proposal for a star rating system based on fuel efficiency and CO2 emissions marks a crucial step towards promoting environmentally friendly vehicles. Much like high-star ratings indicate lower energy consumption and reduced electricity bills, this initiative encourages consumers to make informed choices that lessen their carbon footprint and align with the nation’s sustainability goals.
But while this system appears to be a positive push towards green mobility, will it be enough? Can it truly drive the transformation India’s transportation sector needs? There are critical questions to consider.
Global Lessons: How Countries Are Doing It
- Germany, France, and Austria:
- These countries use CO2-based labels and taxation to encourage low-emission vehicle purchases. In Germany, vehicles are taxed based on emissions, pushing consumers toward cleaner options. France operates a bonus/malus system, rewarding buyers of low-emission vehicles while penalizing high-emission ones. Austria applies the NoVA tax on high-emission vehicles, with electric vehicles exempted, creating financial incentives for cleaner choices.
- Thailand and Vietnam:
- In Thailand, emission-based excise taxes significantly favor electric and hybrid vehicles, encouraging their adoption. Vietnam follows a progressive taxation system, where vehicle registration and import fees are linked to CO2 emissions, promoting cleaner and more fuel-efficient options, especially electric vehicles.
Expanding the Star Rating System: Two-Wheelers (2Ws) and Three-Wheelers (3Ws)
India’s two-wheeler (2W) and three-wheeler (3W) segments, which are predominantly powered by internal combustion engines, contribute significantly to urban pollution. Introducing a star rating system for these categories would incentivize manufacturers to develop cleaner electric alternatives. Given the growing consumer interest in sustainable transport, this could accelerate the shift to electric two-wheelers and rickshaws, particularly in urban areas, improving air quality and reducing congestion.
Commercial Vehicles (CVs): A Crucial Addition
Commercial vehicles (CVs), responsible for long-distance goods and passenger transportation, have a substantial environmental impact. Extending the star rating system to CVs would push the adoption of electric trucks and buses, and fuel-efficient models, leading to substantial reductions in greenhouse gas emissions. This shift could have a profound effect, helping India move closer to its climate goals.
While the star rating system sounds promising, there are several considerations that could affect the program’s long-term success:
- As vehicles age, their fuel efficiency and emissions worsen. Should the rating system account for this, and how can we manage older vehicles’ impact on emissions?
- With the push for EVs, is India ready with the necessary charging infrastructure? What steps should be taken to accelerate infrastructure development?
- Can the star rating system effectively reduce the price gap between ICE vehicles and EVs? What role should financial incentives play in this transition?
- How do we ensure that consumers not only understand these ratings but also base their buying decisions on them?
The introduction of a star rating system is a crucial step toward greener mobility, but it is not a silver bullet. For long-term success, this initiative must be part of a broader strategy that includes scaling up infrastructure, addressing the challenges of aging vehicles, providing financial incentives, and raising consumer awareness. Expanding the system to cover all vehicle segments—2Ws, 3Ws, and CVs—will be vital for achieving comprehensive emissions reductions and aligning with India’s net-zero goals.
Reference:
https://www.indiatoday.in/auto/cars/story/fuel-efficiency-co2-emissions-based-star-ratings-to-promote-ev-adoption-say-experts-2612109-2024-10-06