India’s Green Logistics Mission: Decarbonising the Transport Sector for Net-Zero by 2070

India’s commitment to net-zero emissions by 2070 has brought the spotlight on the logistics sector, one of the country’s highest carbon emitters. With over 70% of freight movement depending on fossil fuel-based road transport, the sector needs an urgent green overhaul through electrification, modal shift to rail, and renewable-powered warehousing.

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Table of Contents:

1. Context: Why Decarbonisation of Logistics Matters

2. Carbon Footprint of India’s Logistics Sector

3. Challenges in Greening Logistics

4. Global Best Practices in Sustainable Logistics

5. India’s Current Initiatives and Progress

6. Deep-Dive: Sector-Specific Decarbonisation Strategies

   • Railways

   • Maritime

   • Road Freight

   • Warehousing

7. Role of Private Sector and Innovation

8. Role of Data, Digitisation, and AI in Green Logistics

9. Policy Suggestions and Regulatory Reforms

10. Way Forward: Integrated & Sustainable Logistics Planning

11. Conclusion

12. GS Paper 3 Tags

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1. Context: Why Decarbonisation of Logistics Matters:

India has committed to achieving net-zero carbon emissions by 2070, aligning itself with global climate goals. One of the major challenges in this journey is the logistics sector, which remains highly carbon-intensive, largely dominated by road-based freight and passenger transport. According to IEA (2023), nearly 90% of passenger and 70% of freight movement in India happens via roads, underscoring the urgent need to green this critical infrastructure.

2. Carbon Footprint of India’s Logistics Sector:

• The transport sector contributes 13.5% to India’s total greenhouse gas emissions.

• Road transport alone accounts for 88% of these emissions.

• Freight movement by trucks, particularly diesel-operated ones, generates nearly 38% of total CO₂ emissions in transport.

• Though smaller, inland waterways and domestic aviation also add to the carbon burden.

• Logistics costs in India amount to nearly 13–14% of GDP, higher than global benchmarks of 8–9%.

3. Challenges in Greening Logistics

1. Road Dominance: Over-reliance on diesel-based trucking for both inter- and intra-state transport.

2. Energy-Intensive Warehousing: Growing demand for temperature-controlled storage (e.g., cold chains) increases fossil fuel use.

3. Aviation Freight: Limited scope for electrification; dependency on refined fuels.

4. Scalability vs. Sustainability: Balancing economic growth and transport efficiency with emission reduction.

5. Regulatory Fragmentation: Lack of unified standards and enforcement across states.

6. Green Infrastructure Gaps: Inadequate EV charging stations, LNG corridors, and renewable-powered logistics parks.

7. Urban Congestion: Last-mile delivery vehicles worsen traffic and emissions.

8. Limited Modal Integration: Poor connectivity between rail, ports, and warehouses.

4. Global Best Practices in Sustainable Logistics

• China: Shifted bulk freight to railways and invested in high-speed freight corridors.

• USA: Nearly 50% of freight moved via rail; aggressive electrification of ports and intermodal hubs.

• Netherlands: Urban consolidation centers reduce last-mile emissions.

• IMO: Global shipping sector targeting 50% emission cuts by 2050 via alternative fuels.

5. India’s Current Initiatives and Progress

• Delhi–Jaipur Electric Corridor: Pilot on electrified truck lanes.

• Gati Shakti Master Plan: Unified logistics infrastructure plan.

• National Logistics Policy 2022: Focuses on cost-efficiency and sustainability.

• Green Hydrogen Mission: Targets clean energy for mobility and industrial use.

• Logistics Efficiency Enhancement Programme (LEEP): Focuses on intermodal connectivity.

6. Deep-Dive: Sector-Specific Decarbonisation Strategies

A. Railways

• Increase freight share from 27% to 45% by 2030.

• Electrify rail lines.

• Use DFCs for faster, cleaner movement.

B. Maritime

• Promote LNG, methanol, hydrogen.

• Modernize ports with solar grids and green cranes.

C. Road Freight

• Electrify trucks.

• Promote hybrid and fuel cell technologies.

• Incentivize retrofitting and green fleet leasing.

D. Warehousing

• Use rooftop solar and green building materials.

• Adopt smart HVAC systems.

• Integrate IoT for energy and inventory optimization.

7. Role of Private Sector and Innovation

• Logistics startups investing in EV fleets.

• Retail giants adopting carbon-neutral warehousing.

• High-tech tracking for optimized routing and reduced idle time.

8. Role of Data, Digitisation, and AI in Green Logistics

• AI for predictive freight management.

• Real-time monitoring using GIS and FASTag data.

• Smart dashboards for carbon tracking and ESG compliance.

9. Policy Suggestions and Regulatory Reforms:

• Mandate carbon disclosure for large logistics firms.

• Launch green certification for logistics parks.

• Reduce GST on clean transport.

• Integrate logistics reforms under circular economy agenda.

10. Way Forward: Integrated & Sustainable Logistics Planning:

• Modal shift to rail and waterways must be coupled with digital integration.

• Public-private partnerships crucial for scaling infrastructure.

• Regional logistics hubs to support balanced development.

• Converge NLP, Gati Shakti, and state action plans under unified dashboard.

11. Conclusion:

Decarbonising logistics is crucial not just for reducing emissions but for creating a resilient, future-ready economy. India must act swiftly to:

• Scale up sustainable rail and maritime logistics,

• Electrify road freight, and

• Transition warehousing to renewables.

With coordinated policy support, infrastructure planning, and public-private investment, India can lead the way in building a green logistics ecosystem that aligns economic growth with climate commitments.