Metro & Railways: The effective vehicles of low carbon transportation

Indian railways are among the largest rail networks globally and transport 23 million passengers and 3 million tonnes of freight daily.

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India is the world’s fourth-largest emitter of greenhouse gases. Transport contributes 13 % of India’s GHG emissions (MoEF. India: greenhouse gas emissions 2007, Indian Network for Climate Change Assessment (INCCA), Ministry of Environment and Forests (MoEF). Government of India, New Delhi. Accessed 13 Sept 2013, 2010). Driven by rising population, income, and urbanisation, under a business-as-usual scenario, India’s energy demand from transport is projected to increase sixfold in 2050 from current levels. This has a vital impact on key national sustainable development indicators like energy security and air pollution. In response, several national and subnational policies and measures were initiated to ameliorate the adverse impacts of transport decisions on sustainability. These include national policies and programs for fuel efficiency, low-carbon technologies, investments in public transport infrastructure, and climate change mitigation. These aside, several bottom-up interventions that are initiated locally are showing promise.

Current Transport Scenario in India

India’s transport sector is a rapidly growing sector and contributes 6.4 % to the GDP of the country. The sector is largely oil-dependent and accounts for 13 % of the country’s energy-related CO2 emissions. Crude oil imports have been increasing steadily and making India the third-largest oil importer globally. Nearly 80 % of India’s current crude oil consumption comes from imports raising challenges of national energy security.

Intercity transport is mainly met by road (88 %), rail (11 %), and a limited share of air transport. Indian railways are among the largest rail networks globally and transport 23 million passengers and 3 million tonnes of freight daily. Despite its extensive network, railways are faced with issues of capacity constraints and poor infrastructure. The share of rail dropped from over 40 % in 1970 to 11 % in 2010 due to high competition from road transport. Similarly, rail dominated freight transport in India which was on the decline in recent years, is expected to revive with the incorporation of DFCs (Dedicated Freight Corridors) under construction for IR under various routes.

In urban areas, road transport dominates. Present status of urban transport is characterised by increasing trip distances, increasing share of private motorised transport, and declining share of public and non-motorised transport. These trends are leading to increasing problems of poor air quality, road safety, noise, and congestion.

Common Trends: Growing CO2 emissions, Need for an Assessment

India is witnessing a unique period of population growth, economic growth, and urbanisation. A third of India’s population lives in urban areas. Urban population is expected to grow in the future, and by 2050, half of India’s population is projected to reside in cities. India’s GDP is also expected to grow at a healthy rate with per capita incomes reaching USD 15,842 (2010 prices) in 2050. Population, income, and urbanisation are expected to drive vehicle ownership, travel demand, and freight transport demand.

Intercity travel demand will increase by 4.3 times between 2010 and 2050. In business-as-usual (BAU), this demand will be met by road-based transport and a growing share of air transport resulting in a higher energy demand resulting in challenges of national energy security and greenhouse gas emissions. In cities, increasing travel demand, reliance on private motorised modes, and declining share of public transport and non-motorised modes will increase energy demand and GHG emissions from cities.

Under a BAU scenario, oil will dominate as the energy source, despite a minor diversification into natural gas, electricity, and biofuels. Increasing electrification of intercity rail, urban rail, and freight transport will increase electricity demand from transport. Transport emissions in the BAU are expected to reach around 1 billion tCO2 in 2050—an increase of 5.5 times increase from 2010 levels. It is increasingly becoming clear that the BAU will not deliver the desired level of GHG mitigation. For policy makers in the Indian transport sector, this growth poses multiple challenges. Besides the impact on climate change, this raises other issues on how to offer wider mobility access at affordable rates, limit the health impacts of air pollution, and reduce traffic congestion and dependence on fossil fuels.

Concerns in developing countries exist regarding the costs imposed by mitigation targets and their impact on economic growth. The ‘co-benefits approach’ helps identify actions that balance the short-term development concerns with long-term goals of climate change mitigation. Opportunities exist to mitigate GHG emissions from India’s transport sector and facilitate sustainable mobility by integrating transportation policies with environment, development, and climate change policies. Key interventions include reducing travel demand through planning and sustainability measures, a shift of passenger and freight transport from road-based modes to rail and from private transport to public transport and non-motorised transport in cities, and increase penetration of alternate fuels and vehicles including electric vehicles and hybrid vehicles. These measures will also diversify the fuel mix with a higher share of electricity, natural gas, and biofuel.

The sustainability focus is evident in policies of the Government of India. For instance, India’s National Action Plan on Climate Change (NAPCC) highlights a mix of measures, including a higher share of public transport, penetration of biofuels, and significant improvements in vehicle efficiency. Several cities are proactively initiating infrastructure investments in mass transit, urban planning for better land use transport integration, and upgrading existing public transport. These policies and interventions have reduced GHG emissions and at the same time have delivered social and environmental benefits. Since these are limited to a few cities, they have not realised the desired mitigation potential. Evidently, there is scope for replication to deliver higher emission reduction and deliver wide-ranging economic, social, and environmental benefits.

At the same time, some of these initiatives are beset with challenges during planning and implementation. It is essential to carry out a comprehensive assessment of good practices for three reasons:

  1. this assessment can help highlight the mitigation potential and other benefits to guide policymakers in replication or scaling up,
  2. it can highlight unique approaches or co-benefits, and
  3. it can help understand challenges during planning and implementation which can be integrated during the next stage to avoid adverse impacts post-implementation.

For instance, the successful implementation of the Auto Fuel Policy 2003 catalysed the development of a roadmap for further improvement till 2025. The success of transport initiatives in cities can facilitate cross-learning among subnational governments and help to bring in measures early. As an example, successful implementation of a mass transit system in a city can deliver useful lessons to subnational governments on developing mobility plans and leveraging finance for implementation. It is essential therefore to take critical and comprehensive assessment of objectives and impacts to guide future policies to better align these with development goals.

Various Transport Policies

The Government of India has initiated several policies and initiatives for the transportation sector with the objective of enhancing passenger mobility, improving logistics of freight transport, increasing rail use by improving efficiency, raising the average speed, promoting low-carbon transport, and at the same time improving energy security and local benefits of air quality and congestion. Cities have initiated urban transport initiatives including infrastructure for public transport and non-motorised transport and urban planning and zoning interventions to facilitate transit-oriented development.

A few important transport policies for a better transport system in the country is as under :

SectorPolicy / PlanHighlights
Urban TransportNational Urban Transport PolicyEnhancing mobility to support economic growth and development
Reduce environmental impacts
Enhancing regulatory and enforcement mechanisms
National Mission on Sustainable HabitatSubmission under India’s National Plan on Climate Change
One of the key components is promotion of urban public transport
Alternate fuels and vehiclesNational policy on Biofuels5% blending of ethanol in petrol in 20 states and eight union territories
Financial incentives
Waiver on excise duty for bio-ethanol and excise duty concession for bio-diesel
National Electric Mobility Mission PlanInvestments in R&D, power and electric vehicle infrastructure
Savings from the decrease in liquid fossil fuel consumption
Substantial lowering of vehicular emissions and decrease in carbon dioxide emissions by 1.3-1.5% in 2020.
Phase-wise strategy for research and development, demand and supply incentives, manufacturing and infrastructure upgrade.
Intercity Passenger TransportHigh Speed Rail ProjectHigh Speed Rail Corporation of India Limited (HSRC) formed for development and implementation of high-speed rail projects
14 corridors identified.
EfficiencyFuel Economy Standards for carsBinding fuel economy standards starting 2017.
Fuel efficiency improvement in cars by 10% in 2017
20% in 2022.
Auto Fuel Policy30 new cities planned to move to Euro IV by 2015.
Euro V in entire country by 2020
FreightDedicated freight corridorsDouble employment potential in 5 years (14.47% CAGR)
Triple Industrial Output in 5 Years (24.57% CAGR)
Quadruple exports from the region in 5 years (31.95% CAGR)

The transport sector takes up a share of 45 % in the total infrastructure investments in India. There are plans to increase investments from 2.6 % of GDP between 2006 and 2011 to 3.6 % of total GDP in the period between 2018 and 2022. The Government of India policies highlights rapid expansion and modernisation of transport infrastructure. Some of these include expansion and upgradation of roads and highways, reducing congestion in railways, electrification of rail corridors, investments in dedicated freight corridors, and expansion of air infrastructure investments in high-speed rail and mass transit in cities. Improving water-based transport is now receiving some attention, and this has been mentioned as one of the focus areas in the National Urban Transport Policy.

Emerging policies highlight the focus on multiple benefits of meeting the transport demand and delivering environment and development benefits. An example is a recent initiative to develop high-speed rail corridors in the country (GoI 2014a) which is expected to benefit cities along major corridors by improving their connectivity.

Historically, transport interventions in India have been driven by various push factors. For instance, in Delhi, a public interest litigation regarding air pollution prompted a Supreme Court directive authorising the conversion of public transport to CNG. This was a landmark achievement as Delhi’s success prompted several other cities to bring in CNG vehicles. Similarly, the success of electric auto-rickshaws in Delhi was driven by favourable economics and not necessarily government intervention.

Key Transport Initiatives Implemented: A Timeline

YearMeasure Implemented
1991First set of mass emission norms for all vehicles introduced
1995Catalytic converters made compulsory
1995Unleaded petrol introduced in Delhi
1996Diesel with 0.5 % S introduced in four metros and Taj Trapezium
1997Low-sulfur diesel (0.25 %) in Delhi and Taj Trapezium
1998Low-sulfur diesel (0.25 %) in three metros
1999Euro I equivalent norms for passenger cars in Delhi
2000Auto Fuel Policy Committee formed; unleaded petrol in the country; low-sulfur diesel (0.25 %) in the country; (0.05 %) in four metros
2000-2001Euro II equivalent norms for passenger cars in four metros
2002All public transport converted to CNG in Delhi
2003Phase out of old taxis
Three Wheelers to CNG in Mumbai
2005Low-sulfur diesel (0.05 %) in the entire country; (0.035 %) in metros
2005Euro III equivalent norms for all cars in seven megacities
2008BRTS becomes operational in Delhi
2009BRTS becomes operational in two other cities
2010Low-sulfur diesel (0.035 %) in the entire country; (0.0005 %) in ten metros
2010Euro IV equivalent norms in major cities; Euro III equivalent for the rest of the country
2011Delhi Metro Phase II completed
2012National Electric Mobility Mission Plan announced
2013Ahmedabad BRTS ridership reaches record high
2014Dedicated bicycle track in Diu
2014Low-carbon comprehensive mobility plan for three cities
2015Electric rickshaws legalised in Delhi

The Government of India set up the Auto Fuel Policy Committee in 2000 to prepare a policy for setting up of emission norms and fuel quality standards in the country and to provide a roadmap for its implementation. In addition, the policy recommended improvement of fuel economy, reducing pollution from in-use vehicles, submitting vehicle for inspection and maintenance, and augmenting public transport.

Current policies on climate, energy and transport 

In 2009, the Government of India released the first-ever National Action Plan on Climate Change (NAPCC). The plan has eight missions that define broad policy directions for reducing India’s emissions intensity: 

  1. National Solar Mission
  2. National Mission for Enhanced Energy Efficiency
  3. National Mission on Sustainable Habitat;
  4. National Water Mission;
  5. National Mission for Sustaining the Himalayan Ecosystem;
  6. National Mission for a Green India; vii) National Mission for Sustainable Agriculture; and
  7. National Mission on Strategic Knowledge for Climate Change. 

The Mission on Sustainable Habitat outlines measures to reduce emissions in the transport sector. The Mission proposes modal shift and better urban planning in order to move towards low carbon transport systems. It also encourages the promotion of alternative fuels and suggests the need for research and development in biofuels. Hydrogen has also been recognised as a potential future energy source for the transport sector. 

In 2015, with its first Nationally Determined Contribution (NDC), India committed to reduce the emissions intensity of its GDP by 33%-35% by 2030 compared to 2005. The NDC has also set the target for 40% of India’s installed electricity capacity to be renewable or nuclear by 2030. In addition, India’s NDC includes the creation of an additional carbon sink by increasing forest and tree cover, plus enhanced investment in vulnerable sectors to adapt to climate change.

The Indian government has long recognised the importance of tackling climate change. In 2002, India hosted the Conference of the Parties (COP) of the United Nations Framework Convention on Climate Change in New Delhi, where the Delhi Ministerial Declaration was adopted, calling for developed countries to transfer technology in an effort to minimise the impact of climate change on developing countries. This stance is consistent with the significant flows of climate funds received by the country and the ambitious goals regarding clean energy and transport technology deployment.

India’s policies on climate, energy and transport – including measures found in the NDC – can be broadly categorised in three groups: 

  • travel demand and modal choice management
  • energy efficiency, and 
  • diversification towards low-carbon energy vectors.

Metro Railways: Ushering New Scenario in Low Carbon Transportation In India

Passenger mobility in India is also characterised by paratransit services, also known as intermediate public transport (IPT), contributing both to main haul and feeder services for other modes of transport. IPT is largely served by motorised auto-rickshaws (three-wheelers), although it may also be provided by non-motorised options, such as a cycle rickshaw. IPT services are more common in smaller cities, with short trip distances, partly due to insufficient active transport (walking and cycling) and lacking public transport facilities. In larger cities, IPT services mostly provide the first and last mile connection to mass transit stations, such as metro and suburban rail or bus rapid transit (BRT) systems.

Railways make a significant contribution to passenger transport in India, especially if compared with the ASEAN region, where the modal share of intercity rail is negligible. The Indian rail system, along with those of China, the European Union and the Russian Federation, provides some of the largest passenger transport services (in pkm) globally. The estimated current modal share for rail in India is about a quarter of all pkm. India was also estimated to have the second-highest absolute level of passenger rail activity in 2016, close behind China. Metro networks currently operate in only 13 Indian cities (plus one under construction); however, the government is keen to extend metro services to 50 cities. Existing metro rail and suburban rail systems in India often lack integration with the local transport network, resulting in low ridership and with fare revenues failing to cover operating costs in several cities. 

Kolkata was the first city to implement a metro rail transport system, followed by Delhi, however cities such as Hyderabad, Chennai and Mumbai had suburban rail systems even before the introduction of metro rail systems. Part of the energy needed for metro operations in Delhi, including station lighting, is powered by solar power from photo voltaic cells on station roofs, parking locations and city depots. Suburban rail usage in Mumbai is exceptionally high compared to other systems in the country, this can be attributed to the efficient operation by Western Railway and Central Railway and to the linear form of the city. The Integrated Transport Plan for the National Capital Region (NCR) 2032 also includes the development of a Regional Rapid Transit System (RRTS), a high-speed and high-capacity commuter service connecting the regional nodes in the NCR.

Despite the fact that non-motorised transport infrastructure lags in many cities, shares of walking and cycling are high compared to major cities in developed regions. In 2020, buses accounted for roughly 20% of all pkm and at least 25% of India’s urban residents depend on public transport. The importance of buses in the Indian urban modal mix is consistent with the low-income level since this is one of the factors associated with a lower reliance on private modes. Despite the high relevance of buses in the Indian modal mix for passenger transport, most Indian cities remain ill-prepared to deliver high-quality, inclusive mobility. Formal city bus systems are only available in a few larger Indian cities such as Delhi, Bangalore, and Chennai, and serve only a small portion of public transport demand. While new BRT systems introduced in several cities serve central routes, they lack feeder services and sufficient reach to extend their benefits to poorer communities. Ridership levels and trends for urban transport by bus vary between cities. Although public transport use in many cities is high, the transport providers – mainly state-run entities – incur operating losses of 6%-27%.

In many Tier II and III cities, informal operators fill the void created by poor public transport services. These services are usually faster and more affordable than state run public transport as operating costs are lower and they operate on the most profitable routes. With more than 35 million cars on Indian roads in 2019, passenger cars accounted for just below 20% of all passenger transport activity in 2020. This relatively low share of transport by passenger car is principally due to vehicle ownership levels, which are well below those observed in other major economies. However, levels of car ownership are rapidly increasing, almost doubling in the past ten years, with vehicle sales close to 3 million per year before the Covid-19 pandemic.

The growing number of cars on the road results in increased urban congestion. A review of comprehensive mobility plans (CMPs) in 2010 showed that average motor vehicle speed on urban roads in India was 15- 16 km/h. The TomTom Traffic Index ranks Bengaluru as having the worst global levels of traffic congestion, with Mumbai, Pune and New Delhi in fourth, fifth and eighth positions, respectively. Cities in India also face a severe shortage in space and on-street parking can block up to 60% of the road width. In dense cities the area of a single parking space is larger than the area of a plot for low-income housing. A typical response to accommodate growing motor vehicles and ease congestion is to provide additional road space, often in the form of flyovers, signal free roads and ring roads, leading to a vicious cycle of automobile dependency.

In recent years, the increase in car travel was partly induced by app-based taxi services, which have a growing presence in the urban transport scene in India, offering a cost-effective service compared to car ownership. Ridesharing in India is governed by state governments and the two major ridesharing operators are Ola and Uber, which launched in India in 2010 and 2014, respectively. Ola holds more than 50% of the market, Uber holds around 30% and other small operators, such as Meru, Jugnoo, ixigo, hold the remaining 20%. 

The advent of ridesharing spurred technology development with cashless payments and delivery of information to consumers. Improvements in ridesharing are expected to reduce personal vehicle demand and provide employment opportunities, however some form of government regulation is essential to protect local businesses and create a level playing field for all service providers. Transport by air is still low compared with other major economies with higher income levels, however aviation saw sustained growth prior to the Covid-19 pandemic. In particular, growth in Indian domestic aviation was the fastest globally in the four years leading up to 2019, continuing to grow in 2019, albeit at a lower rate, despite the Jet Airways bankruptcy.

Freight Transport 

As in all economies, maritime transport has a central role as an enabler of international trade for India and, due to the long distances required for international movement of goods, accounts for substantial tonne kilometres (tkm). Based on analysis of trade data by commodity and origin/destination distances, total international maritime transport activity to and from India is estimated to be between 2.5 and 3 trillion tkm per year in the period 2015-20, exceeding the volume of inland transport activity in the country, which is estimated to be around 2 trillion tkm for the same period, up from 1.5 trillion tkm in 2010.

Rail remains a key mode of freight transport in India, despite a declining share in recent years, rail freight activity is larger than for the whole of Europe, roughly 25% of the tkm of North America or China, and around 30% of the tkm of rail transport in Russia. The coal sector and railways are strongly interdependent in India, 60% of coal is transported by rail and coal is the leading product shipped on the rail network, accounting for 40% of Indian Railways’ revenue. The stagnation of transported coal volumes and declining average distances have led to reduced rail freight activity (in tkm) in recent years. Charges for freight rail transport are significantly higher than in other countries as freight revenues are used to subsidise passenger rail transport.

Trucks with gross vehicle weight (GVW) over 3.5 tonnes account for the largest portion of road transport activity, with a share of over 80% of total road freight traffic. This reflects the fact that these vehicles have a high load capacity and drive large distances, typically for long distance transport of large amounts of goods. Nevertheless, as is the case in other emerging economies, the modal share of medium-sized trucks (GVW above 3.5 tonnes and below 12 tonnes) out of all trucks (including trucks with a GVW above 12 tonnes) in India is higher than in developed economies. This can be at least partly explained by the quality of the road network. Light commercial vehicles (GVW below 3.5 tonnes) have a limited modal share in India. This is due to their low load capacity and ownership rates (similar to passenger cars, light commercial vehicle ownership grows with increasing income and tends to stabilise once incomes exceed USD 30 000 per capita). Rickshaws (three-wheelers) are common in India’s cities and are also partly used for freight transport.

Towards clean & green transport system: A case study of DMRC

The Delhi Metro Rail Corporation Limited (DMRC) was established to implement the construction of a mass rapid transit system in Delhi. The objective was to develop a mass transit system to enhance mobility and simultaneously to ease congestion and reduce air pollution in Delhi.

The first phase of the metro corridor with a length of 65 km was completed in less than 3 years. An additional 125 km in Phase 2 became fully operational in 2011, taking the present network to 193 km covering 140 stations. The infrastructure covering four phases totalling 245 km is expected to complete by 2022. The project was funded with a joint contribution of Japan International Cooperation Agency (JICA), joint equity contribution by the national and state governments, and a small proportion coming from property development. The Delhi Metro has not only improved connectivity within the city but has also improved transport integration through its airport-city link and regional connectivity through its planned connections to towns in the neighboring state of Haryana.

Key Information

  • It is a world class Mass Rapid Transport system that offers comfortable, air conditioned and eco-friendly services to the commuters and serves Delhi and its satellite cities of Gurugram, Faridabad, Noida and Ghaziabad in National Capital Region (NCR).
  • It is the world’s 12th longest metro system in length and 16th largest in ridership.
  • It is built and operated by DMRC, a state-owned company with equal equity participation from Union Government and Government of Delhi.
  • The Delhi Metro has also contributed tremendously on the environment front by becoming the first ever railway project in the world to claim carbon credits for regenerative braking.
  • DMRC has also been certified by the United Nations (UN) as the first Metro Rail and Rail based system in the world to get carbon Credits for reducing Green House gas emissions as it has helped to reduce pollution levels in the city by 6.3 lakh tons every year thus helping in reducing global warming.
  • It has also set up roof top solar power plants at many of its stations. All stations of the presently under construction corridors are being constructed as green buildings.

Delhi Metro has a daily ridership of 2.6 million passengers. A recent study has reported that about 0.3 million vehicles have been taken off the road due to the introduction of the Delhi Metro. Expansion of the metro network delivered air quality benefits of reduced NO2, CO, and PM2.5. In 2011, shifting of commuters from road-based transportation to metro rail in Delhi saved 1320 tons of NOx, 107 tons of particulate matter, and over 3880 tons of CO2.

This is the first urban rail CDM project globally and has achieved significant reductions in GHG emissions. This is also a landmark project for the country as it has already registered three successful projects under the Clean Development Mechanism (CDM). These include the carbon credits from regenerative braking, the Modal Shift Project, and the Energy Efficiency Project under CDM and Gold Standard which are expected to reduce approximately 570,000 tCO2 annually. The project saved 90,000 tons of CO2 from regenerative braking between 2004 and 2007 and continues to claim credit. Increasing ridership, modal shift, and energy conservation practices will deliver further mitigation benefits in the future.

In response to the success of DMRC, the Government of India has submitted the MRTS Program of Activities (PoA) to The United Nations Framework Convention on Climate Change (UNFCCC). The PoA will cover a series of rail-based MRTS projects (like metro rail, LRT, monorail) implemented across India. The objective of MRTS PoA by DMRC is to promote implementation of mass transit systems to reduce GHG emissions and support with implementation for the construction of an MRTS projects by providing fast-track carbon funding and risk-free registration of future projects.

A scenario analysis in 2011 was carried out for Delhi Metro to demonstrate that a rail-dominated mass transit system in Delhi can deliver 61 % reduction in energy use compared to 31 % reduction for a bus-dominated system. A cost-benefit analysis of the Delhi Metro calculated a 22 % social rate of return, a financial rate of return of 17 %, and an economic rate of return of 23.9 % including gains from air pollution reduction. The study reported that Delhi Metro generated benefits to the stakeholders including citizens and government; however, other transport providers suffered from income losses (ibid).

The implementation of the Delhi Metro has resulted in social impacts including relocation of people and reduced accessibility of the relocated low-income households. The DMRC faces challenges due to land acquisition issues. Metro infrastructure projects are being planned or are under construction in nearly 20 cities—several of which will follow the Delhi model. It is crucial to address issues of equity and development to minimise adverse social impacts during project implementation. An additional concern is the vulnerability of cities and infrastructures to the risks from climate variability, especially extreme weather events. These considerations should be factored in as far as possible into planning of long-term transport infrastructure.


Transportation has multifarious interfaces with economic development and environment. Transport networks create access to markets and render economic efficiency. In an emerging nation like India, the demand for transport will grow through this century driven by urbanisation, industrialisation, and rising income. The experience of developed countries shows that the business-as-usual transport policies lead to energy-intensive and oil-dependent transport leading to high GHG emissions.

India is a geographically diverse and vast country. National transport policies are crafted keeping in view the diversity of transport demand, appropriate mix of modes, technologies, fuels, and corresponding infrastructures.

The transport system architecture varies at national and subnational levels and so do policy interventions. Transport decisions interface with numerous other development policy domains, e.g., land use, energy, environment, technologies, and finance. The transport decisions have inherent long-term lock-ins lasting several decades. The transport policy making needs long-term perspective and concurrent attention to interface with multifarious development goals. Climate change is now an added interface to which transport policy makers have to pay their attention. The assessment of development policies and plans of several countries in Asia shows that their development policies were not aligned with climate change goals, though their focus on other development and environment objectives like energy security and local air pollution has led to reduced GHG emissions.

For India, the studies have shown opportunities to align policies to simultaneously ensue multiple development and climate objectives.

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