The Future of Green Freight in India

India stands at a pivotal movement in its freight transformation journey. With mounting pressure to decarbonize and a growing demand for sustainable supply chains, India’s logistics sector is undergoing a sideways shift. The sector aims to integrate sustainability into daily operations, while shaping the future of freight through strategic direction for green logistics in the country. 

Green and digital corridors have been hailed as engines of economic growth, innovation, and sustainability as they accelerate the adoption of low-emission technologies, transform maritime operations, and strengthen digital tools. The India-Singapore Green and Digital Shipping Corridor is an important leverage for India as it builds bilateral relationships and establishes global trade dynamics that are green and sustainable.

Promoting Sustainable Logistics Through Technology 

Recognising the importance of sustainable logistics for India’s environmental well-being and economic growth, several initiatives have been taken by the Government. The Government is promoting a sustainable logistics industry by leveraging digitization and automation.

The PM Gati Shakti National Master Plan (PMGS- NMP) relies on the GIS-based platform that uses geospatial data for better infrastructure planning and creating multimodal connectivity across the lengths and breadths of the country. 

Similarly, the National Logistics Plan (NLP) aims to modernize logistics through adoption of digital technology. Digital platforms like Unified Logistics Interface Platform (ULIP) and Logistics Data Bank (LDB) are being increasingly used for digitalizing, tracking, and monitoring of logistics movement in the country. 

The Freight Greenhouse Gas (GHG) Calculator is a digital intervention that has been created to promote sustainability in the freight transport planning process and shift to low-carbon modes of transport. It helps the user make an informed modal choice based on the environmental cost and total emissions estimates to advance sustainable and green logistics in India.

Use of Cleaner Fuels 

Sustainability in the transport sector is largely driven by green fuel such as green hydrogen, methanol, sustainable aviation fuel (SAF) , along with other blended fuel. 

Under The National Green Hydrogen Mission, the government has initiated a pilot project to use hydrogen in buses, trucks and other commercially viable modes for utilizing hydrogen into transport sector and adding supporting infrastructure like hydrogen refuelling stations. 

Initiatives like Sustainable Alternative Towards Affordable Transportation (SATAT) promotes compressed biogas (CBG) as an alternative green transport fuel as it is based out of organic waste and also helps in efficient management of biomass.

India is also targeting 1% blending by 2027, 2% by 2028 and 5% by 2030 in Sustainable Aviation Fuel (SAF) as mandated by The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). CORSIA. With more than 750 million metric tonnes of available biomass and 230 million metric tonnes of surplus agricultural residues, India has the capacity to meet its SAF demand as well as emerge as a global leader and exporter for carbon offsetting in the aviation industry. 

M-15 fuel blending (15 % methanol and 85 % Gasoline) has also shown a reduction in greenhouse gas (GHG) emissions by about 5- 10%  thereby improving air quality. 

Building A Green Shipping & Maritime Sector 

Sustainability in logistics cannot be achieved by focusing only on road or air transport. A green shipping and maritime sector forms an important part of India’s international decarbonisation goal and achieving IMO’s 2023 Revised GHG Strategy. 

Sustainable maritime practices through initiatives like the Green Tug Transition Programme and Harid Nauka Initiative focus on adopting low-emission and alternative fuel-powered ships. The Alang Ship Recycling Programme is another global effort in sustainable ship recycling. With ₹25,000 crore in Maritime Development Fund, India is also catalysing green investments, positioning itself as a leader in sustainable shipping and maritime infrastructure. 

Furthermore, the Maritime India Vision 2030 is a comprehensive framework for the holistic development of India’s maritime sector through focus on innovation, sustainability, and skill development. It aims to develop ports, shipping, and waterways aimed to propel India to global maritime leadership. This expansion aligns seamlessly with the broader aspiration of Viksit Bharat 2047, contributing to employment generation, global competitiveness, and economic resilience.

Propelling the Green Engine in Railways 

Railways is another sector which has immense potential for transforming the sustainability and environmental landscape of India. Government initiatives like National Rail Plan and Rail Sagar Corridor  aim to improve freight share from the current 35-36% to 45% by 2030. It also aims to improve modal shift for railways, contribute to cleaner ways of freight movement and accelerate growth of railways cargo traffic. 

Addressing Key Barriers 

As we transition to modes of transport that emit lower carbon and are less harmful to the environment, there are also some systemic and infrastructural barriers that have to be addressed collectively by the industry and the Government. One of the key barriers to this is infrastructure, especially for alternative fuels. 

There is a need for LNG infrastructure and implementing green channelling initiatives that strengthen the entire logistics sector. Another key factor for the green freight landscape is driver training. With properly trained drivers, we can better fuel mileage and efficiency as these are newer vehicles and roads for the drivers. 

As the transport sector moves towards EVs, there is also a need to use renewable energy for the purpose of charging these new vehicles for personal, commercial, and transport purposes.

Bodies like the Confederation of Indian Industry are crucial in addressing these barriers as it can push the Government and the financial industry to look at better financing of green vehicles, improved training deployment, and building a toll-free environment for LNG and EVs. Clubbing Government Initiatives with the ESG framework and enforcing it across the industry can also help India achieve excellence in its logistics sector, making it a Global example and leader.