India, the world's fourth largest greenhouse gas emitter, has launched a new United Nations-backed project to reduce emissions and develop a low-carbon transport system.

The Indian government will work with the UN Environment Programme (UNEP) and the German non-governmental organization International Climate Initiative on a $2.5 million, three-year project to bring the country's transport growth in line with its climate change agenda.

Even though it has the world's second largest population, India's per capita emissions are below the global average, UNEP noted in a news release.

In 2007, around 13 per cent of its emissions came from the transport sector. That is expected to rise due to population growth, a rapid growth in the number of privately-owned vehicles and the switch from rail to road transport in the freight and passenger sectors.

The project is part of a National Action Plan on Climate Change (NAPCC) and involves designing low-carbon transport plans for major Indian cities.

Indian officials hope the project will act as an inspiration for other developing countries trying to build their transport systems.