Anirudha Biswas

UT4051

Urban transport is a major source of greenhouse gas emissions, accounting for about 25% of global emissions (IPCC). Decarbonizing urban transport is essential in mitigating climate change and creating more sustainable and livable cities. Electric mobility is a key technology for decarbonizing urban transport, but its adoption is hindered by a number of factors, including the high upfront cost of electric vehicles (EVs) and the lack of charging infrastructure. Sustainable financing can play a significant role in decarbonizing urban transport and accelerating the transition to Electric Mobility by making it more affordable to invest in low-carbon transport infrastructure and technologies. It can help to direct capital flows to low-carbon investments, such as EV charging infrastructure and the development of new EV business models This research explores various financing mechanisms to bridge the financial gap and facilitate the transition to electric public transport in India. It will help in investigating the complexities of financing sustainable electric mobility solutions in India's public transport system. We explore various financing options, including UNFCC climate funds, multilateral and bilateral funds, carbon markets, green bonds, and blended finance. Through case study analysis, we evaluate the suitability of these mechanisms for financing the transition to electric buses in Ahmedabad and Surat. The research focuses on carbon financing as a potentially continuous revenue stream through carbon credit generation. It assesses the feasibility of replacing conventional (diesel and CNG) AC/non-AC buses with electric alternatives, analyzing various replacement scenarios. i. Identify the most suitable financing mechanism for electric buses in Ahmedabad and Surat.  ii. Develop an assessment of replacing conventional buses with electric buses under carbon financing. iii. Provide recommendations for policymakers and stakeholders to promote sustainable financing for electric public transport in India. Ultimately, this project aims to identify and implement efficient financing strategies for sustainable and improved public transportation systems.