Decarbonizing India’s Logistics Sector: Strategies and Challenges

Decarbonizing India's Logistics Sector: Strategies and Challenges

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.

Source: DRIS

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