GVR Phase II: A Consumer Information Rating Tool

Published on January 12, 2022

Alliance for an Energy Efficient Economy (AEEE) had rolled out the Green Vehicle Rating (GVR-I) in 2018, a tool useful for nudging consumer preference towards greener variants and aiding the government to fulfil the Nationally Determined Contributions (NDCs). It is the country’s only vehicle rating system based on environmental performance. It serves as a consumer information tool that identifies high to low performing vehicle models in the Internal Combustion Engine (ICE) two-wheeler segment. In its second phase in 2021, GVR-II incorporates Electric Vehicle (EV) two wheelers as part of its vehicle database. The focus is on Bharat Stage (BS) VI compliant ICE models and electric variants of two-wheelers. To enable comparison between ICE and EV variants, the Plant-to-Wheel emissions methodology is incorporated. This encompasses emissions from Energy Production, Distribution and Storage and Tail pipe emissions. In the case of EVs, though there are no tailpipe emissions, the notion is to capture the upstream emissions from power plants. GVR ratings of the models can be accessed online at http://aeee.in/green-vehicle-rating/.

In India, the transportation sector is the third highest contributor of CO2 equivalent emissions with a sectoral share of 13.2% and road transport is responsible for 90% of this sector’s total energy consumption. Build-up of carbon emissions in the atmosphere results in global warming. The rising sea levels and erratic weather patterns observed, have spurred natural disasters resulting in significant economic damages equivalent to 3.3% of the world's GDP in the year 2020. Additionally, automobiles by virtue of their harmful exhaust emissions is estimated to have caused economic damages amounting to $2.9 trillion per year and has a direct correlation to nearly 7 million premature deaths annually.

In the interest of a cleaner and efficient future, it is necessary that the supply and demand needs of the transport ecosystem are nudged towards greener alternatives. While e-mobility produces zero tailpipe emissions, they are not emission-free. Thermal power plants that produce electricity to power electric vehicles can contribute significantly to both GHG emissions and air pollution. Thus, a consumer must be aware of the Plant-to-Wheel emission impact of their prospective vehicle choice. This impact must be available and conveyed to the public in a simple and easy to understand language. The Green Vehicle Rating (GVR) tool developed by the Alliance for an Energy Efficient Economy (AEEE), is a pioneer step towards advocating clean mobility to consumers.

With a domestic share of 80.83% of all motor vehicles present, two-wheelers are a key segment for emission control in India. Post COVID-19, the shift in preference for private mode of transport indicates that the passenger vehicle density in India is bound to further increase. It is in this space that EVs are ably positioned and have a critical role to play in the country’s transition towards clean mobility. Post completion of its second iteration, GVR has accounted for the top-selling EV and ICE two-wheeler models. The tool allows for consumers to compare vehicle models and gauge the environmental performance between their prospective choices.

Empowering consumers to make a greener vehicle purchase can enable a demand-led shift to cleaner mobility. Such a shift in demand will gradually open up avenues for automobile manufacturers to prioritize their vehicles’ efficiency. In the upcoming iterations, GVR will expand to include other vehicle segments such as four-wheelers, and address critical information asymmetries concerning the health and environmental damages caused by automobiles.

In the long run, bridging such information gaps towards cleaner alternatives can ensure that the transport sector supports a sustainable future. GVR also functions as a catalyst to achieve the government’s broader objective to promote e-mobility and contribute to the Sustainable Development Goals. Mainstreaming health and environmental impact as part of consumer’s criteria for vehicle choice is a crucial step forward to enable sustainable transportation.