CNG beats EVs in lifecycle environmental impact, TERI study finds
A new TERI study reveals CNG has a lower lifecycle environmental burden than EVs in India due to the coal-heavy electricity mix.
As India pushes for rapid electric vehicle (EV) adoption to curb crude oil imports, a new study by The Energy and Resources Institute (TERI) has delivered a surprising finding: Compressed Natural Gas (CNG) currently carries a lower overall lifecycle environmental burden than EVs across most vehicle categories in India.
The Coal Factor: Why EVs Face an Environmental Hurdle
The study, titled "Study on Comparative Assessment of Vehicular Fuels in India's Energy Transition," highlights that the environmental performance of a vehicle cannot be judged solely by what comes out of the tailpipe. Instead, a lifecycle assessment (LCA) must be used, which tracks impacts from fuel production and vehicle manufacturing to operation and end-of-life disposal.
While EVs are superior in terms of operational air pollution because they produce zero tailpipe emissions, their total environmental footprint is heavily influenced by how electricity is generated. Because India’s current electricity grid remains predominantly coal-dependent, the carbon footprint associated with charging an EV is significant.
Key Findings of the TERI Lifecycle Assessment:
- Climate Change & Particulate Matter: CNG shows a lower overall environmental burden across most vehicle categories due to the current electricity mix.
- Manufacturing Impact: The environmental footprint of battery manufacturing remains a critical factor for EVs.
- Resource Use: The study assessed impacts on water consumption, fossil-resource use, and the consumption of minerals and metals.
Winners and Losers: Which Vehicle Wins?
The report clarifies that electrification is not a "one size fits all" solution. The benefits of EVs vary significantly depending on the vehicle type and its usage pattern.
The EV Advantage:
Electric mobility is currently the preferred option for two-wheelers and three-wheelers. For these segments, EVs offer the lowest ownership costs, driven by lower running costs and high utilization rates.
The CNG Advantage:
For larger vehicles such as passenger cars, taxis, buses, and light commercial vehicles, CNG currently provides a better balance of economic, environmental, and operational factors.
The Future of Heavy-Duty Transport
For the heavy-duty sector, the study suggests a differentiated transition pathway:
- Regional Freight: CNG is expected to remain highly relevant.
- Long-haul Transport: Liquid Natural Gas (LNG) could become increasingly important.
- Battery-Electric Trucks: These are expected to remain suitable only for specific, select applications.
The New Energy Dilemma: Oil vs. Minerals
As India implements the PM E-DRIVE scheme and allocates significant funds—including Rs 2,000 crore for public charging infrastructure—to boost EV adoption, the study warns of a strategic shift in dependency. While moving toward electric mobility reduces reliance on imported crude oil, it simultaneously increases India's exposure to global supply chains for critical battery minerals.
Materials such as lithium, cobalt, nickel, and graphite are essential for battery production, making supply-chain resilience a vital component of India's long-term energy security strategy.