Decarbonise transport sector through modal shift, zero emission vehicles: NITI report

NITI Aayog on Tuesday (February 10, 2026) stressed on decarbonising the transport sector through modal shift, zero-emission vehicles (ZEVs), and clean fuels & technologies to meet India’s Net Zero 2070 goal.

The transport sector is one of the key drivers of India’s economy. It also contributes significantly to the country’s energy use and emissions, accounting for 20% of final energy demand and around 10% of greenhouse gas (GHG) emissions in 2020, the government think tank said in a report.

As per the report, implementing the Net Zero pathway requires about $4.3 trillion in cumulative investment till 2070, around 25% higher than the $3.44 trillion under the Current Policy pathway.

This additional investment, however, is a strategic opportunity than a cost burden. As India urbanises rapidly and travel demand surges, the sector risks being locked into higher fuel imports, poorer air quality, and rising logistics costs.

“Decarbonising transport through modal shift, zero-emission vehicles (ZEVs), and clean fuels and technologies is therefore critical to meet India’s Net Zero 2070 goal,” the report said.

NITI Aayog has also stressed on Adoption of Zero-Emission Vehicles (ZEVs) including Battery Electric Vehicles (BEVs), hydrogen based vehicles, Biofuels (Ethanol based Flex Fuel Vehicles (FFVs) and Compressed Bio-Gas (CBG) based vehicles) should be kept as key priority for the long term vision and accordingly fomalise segment-wise ZEV acceleration through 2035 for two-/three-wheelers, passenger cars, buses, and trucks.

The institution has suggested promoting modal rebalancing and freight efficiency by expanding metro, regional Rapid Transit System (RRTS), and bus networks with strong last-mile connectivity and formalised paratransit integration. In the 136-page report, NITI Aayog further proposed advancing clean-Fuel diversity and decarbonising aviation and shipping.

In a separate report on industry, NITI Aayog said as India pursues developed-nation status, its industrial sector transition requires success in technology upgrades, electrification, renewable adoption, resource efficiency, innovative financing, supportive policies, stronger institutional frameworks, and capacity-building across energy-intensive and MSME segments.