Presently, emission norms equivalent to the Euro-I standard prevail in the entire country, while Euro-II is the standard in metropolitan cities. The government of India has made significant policy interventions, including continuous improvements in the emissions standards to improve the air quality in the urban centres in the wake of a rapidly growing vehicular population; recent years have witnessed a phenomenal growth in road transport vehicles. This trend of growing vehicle population is expected to continue with rising incomes and enhanced vehicular choices offered to consumers. The emissions of local pollutants in urban centres have, therefore, continued to grow along with rising GHG emissions.
The deterioration in urban air quality led to several responses, such as the introduction of CNG vehicles, improvement in auto fuel quality, and enhancement of road infrastructure. The government of India announced the Auto Fuel Policy in 2003, which comprehensively addresses the issues of vehicular emissions, vehicular technologies, and the provision of cleaner auto fuels in a cost-efficient manner, while ensuring security of the fuel supply. The policy includes a road map for reduction in emission standards for new vehicles. Besides proposing the enhanced quality of liquid fuels, the policy encourages the use of CNG and liquid natural gas (LNG) in cities affected by high vehicular pollution to enable vehicle owners a wider choice of fuel and technology. The policy envisages the accelerated development of alternate technologies, like battery and fuel cell-powered vehicles, and a comprehensive programme for research and development support and other measures for zero-emission vehicles. Implementation of the Auto Fuel Policy would accrue significant improvement in local air quality and also contribute to reduction of GHG emissions.
However, the transport sector remains a difficult arena for CDM projects.
Transport-related emissions are usually very dispersed and difficult to monitor,
while baselines are hard to calculate. This makes CDM projects in the transport
sector risky until standardized guidelines and processes are introduced