State-level Consultation on ZEV Mandate

Global experience suggests that a supply obligation on vehicle manufacturers in the form of a ZEV sales regulation can address uncertainty faced by investors and bring all manufacturers into the zero-emission vehicle market. Such regulations are marked by features that stimulate competitive forces for consumer benefit, while building in sufficient compliance flexibility for manufacturers as well. For example, compliance flexibilities in the form of a credit trading mechanism rewards early entrants into the market through revenues generated from surplus “credits”, while manufacturers who may choose to stagger their market entry over a period have the option to do so by purchasing surplus credits. Eventually, as the ZEV sales obligations increase in stringency, all manufacturers enter the market and compete to capture market shares by introducing more models at cost-competitive prices for consumers, thus lowering long-term dependence on government subsidies.

ICCT conducted a review of key Acts and Regulatory Frameworks governing the automobile sector, energy (fuel consumption), climate change and greenhouse gas emissions, and air quality and ambient pollution in India at both National and State levels. This review was conducted to identify available authority under the existing framework in India to notify a ZEV sales regulation on automobile manufacturers in India. This exercise broadly conveys the following: Authority is available at multiple national and sub-national venues to regulate vehicle manufacturers to supply ZEVs.

ICCT is looking forward to a fruitful discussion with state leaders on opportunities for ZEV mandates throughout India at the state level. In partnership with Kerala State Government, we will facilitate a consultation with a set of stakeholders on the needs, benefits, and legal authority for notifying ZEV sales regulations in India in addition to the design and operational elements of a ZEV sales regulation for the two-wheeler segment in India.

With the above context, the ICCT in Partnership with Kerala State Govt. would like to set up consultation  a broader set of stakeholders on the following:

• Need, benefits, and legal authority for notifying ZEV sales regulations in India.
• Design and operational elements of a ZEV sales regulation for the two-wheeler segment in India.