Decarbonizing India’s Logistics Sector: Strategies and Challenges
Why in News?
-
The Indian government is intensifying efforts to decarbonize the logistics sector, a major contributor to greenhouse gas emissions. Recent discussions have focused on implementing sustainable practices and technologies to align with India’s net-zero emissions target by 2070.
Important Key Points:
-
High Carbon Footprint of Logistics
-
India’s logistics sector contributes significantly to CO₂ emissions, especially through road transport which accounts for over 60% of freight movement.
-
-
Overdependence on Road Transport
-
The dominance of road-based freight is inefficient and carbon-intensive compared to railways and waterways.
-
-
Government Initiatives
-
Programs like the PM Gati Shakti Master Plan and National Logistics Policy aim to improve multimodal logistics and reduce emissions.
-
Promotion of electric vehicles (EVs) and alternative fuels like LNG and hydrogen.
-
-
Logistics Performance and Costs
-
India’s logistics cost is around 13-14% of GDP, much higher than the global average of 8%, affecting economic competitiveness.
-
Efficient logistics can reduce costs and improve sustainability.
-
-
Decarbonization Strategies
-
Shift freight to rail and inland waterways.
-
Promote green logistics infrastructure such as energy-efficient warehouses.
-
Encourage modal shift, fleet modernization, and digital solutions for efficiency.
-
-
Challenges
-
High initial investment, lack of integrated planning, policy fragmentation, and limited private sector participation.
-
Need for behavioral change and capacity building in logistics stakeholders.
-
-
Way Forward
-
Strengthen public-private partnerships (PPPs).
-
Ensure policy coherence, use of data analytics, and promote low-emission zones in urban logistics.
-