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CA Topic

Steering the Decarbonisation of India’s Logistics Sector

Brief Context

In News Indias logistics sector is one of the most carbon-heavy in the world and it needs to undergo a sustainable transformation. Indias logistics sector It is crucial for the country’s economic growth, facilitating the efficient movement of goods and services across its vast territory. As India aims to achieve a GDP of US$ 5.5 trillion by 2027, transforming its logistics sector becomes essential.

Source Content

Syllabus :GS3/Economy/Environment

In News

  • India’s logistics sector is one of the most carbon-heavy in the world and it needs to undergo a sustainable transformation.

India’s logistics sector 

  • It is crucial for the country’s economic growth, facilitating the efficient movement of goods and services across its vast territory. 
  • As India aims to achieve a GDP of US$ 5.5 trillion by 2027, transforming its logistics sector becomes essential. 
  • This sector supports industries like manufacturing, agriculture, and e-commerce but faces numerous challenges and offers significant opportunities.

Issue and Concerns

  • India’s logistics sector is a major contributor to carbon emissions, accounting for 13.5% of the country’s total greenhouse gases, with road transport responsible for over 88% of these emissions.
    • Trucks alone contribute 38% of CO₂ output. While aviation and shipping contribute less, their impact is still notable. The warehousing sector also adds significantly to emissions.
  • As freight and passenger movement are set to grow, particularly through inland waterways and coastal shipping by 2030, the challenge lies in balancing this growth with environmental sustainability. 
Do you know ?
– Global examples, like China and the United States, show the benefits of shifting freight from road to rail, which significantly reduces emissions.
– Rail is a more sustainable, nearly zero-carbon option, and India should increase its use of rail for freight transport. 

Suggestions

  • India should increase rail’s share in freight transport and electrify road freight, as seen in the Delhi-Jaipur corridor pilot project.
  •  Coastal shipping and inland waterways also offer significant decarbonisation potential by adopting cleaner fuels like LNG and biofuels.
  • While air transport is harder to decarbonise, sustainable aviation fuels and efficiency improvements in other sectors can help offset emissions.
    • The warehousing sector can reduce its carbon footprint by transitioning to renewable energy sources.

Conclusion and Way Forward 

  • As the country works towards its net zero target by 2070, a green transformation of logistics — including transportation, warehousing, and supply chains — is essential for building a resilient and sustainable future.
  • By scaling rail freight, electrifying road transport, adopting cleaner maritime fuels, and improving warehouse energy efficiency, India can create a high-performing, green logistics network. 

Source: TH

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