In this article, Dr. Jivisha Joshi Gangopadhyay, (Deputy Secretary [Logistics] DPIIT, Ministry of Commerce and Industry) and Richa Sekhani ( Logistics Executive, DPIIT) provide us with expert insights on India’s green logistics initiatives and their essential role in driving sustainable development.
At COP26, India unveiled five key commitments, referred to as ‘Panchamrit’ which outline a strategic plan for a greener future
India is vigorously pursuing sustainable growth models to transition towards a net-zero economy. India’s dedication to reducing carbon intensity and increasing non-fossil fuel sources in power generation aims to position the country as a global leader in sustainable development. At COP26, India unveiled five key commitments, referred to as “Panchamrit,” which outline a strategic plan for a greener future. These commitments include (i) Achieving net-zero emissions by 2070; (ii) Reducing carbon intensity by 45% by 2030; (iii) non-fossil electricity capacity of 500GW by 2030; (iv) 50% electricity capacity from renewable energy by 2030 and (v) 1 billion tonnes carbon emission reduction by 2030.
To aid in achieving the “Panchamrit commitments” and targets set in Sustainable Development Goals (SDG) [Ensuring access to affordable, reliable, sustainable and modern energy (Goal 7), Making Cities and human settlements inclusive, safe, resilient and sustainable (Goal 11); and taking urgent action to combat climate change and its impact (Goal 13)], Government of India in recent years have also increased its focus towards logistics sector.
The logistics sector, essential for economic development, also contributes to environmental issues such as greenhouse gas emissions and pollution. To address these challenges, the Indian government launched the National Logistics Policy on September 21, 2022, with the vision to “develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem in the country for accelerated and inclusive growth.” For this, ‘Green Logistics’ both at the national and state level is being promoted.
The key components related to Green Logistics in the National Logistics Policy include (i) the promotion of multimodal transportation to reduce reliance on road transport, (ii) the development of logistics parks and hubs with eco-friendly facilities and (iii) the implementation of smart logistics solutions to optimise routes and reduce emissions. These components of green logistics have also been integrated into the state logistics policies notified by several States/UTs.
Green logistics in state logistics policy
Initiatives proposed by states to promote Green Logistics in State Logistics Policies (SLP) are:
- Promotion of electric vehicles (EVs): States are promoting electric vehicles in logistics to reduce fossil fuel reliance and lower carbon emissions, offering financial incentives and subsidies for EV purchases and developing charging infrastructure. For instance, Assam in its SLP has proposed 100% road tax exemption and 50% exemption in the vehicle registration fee for the purchase of at least 15 hybrid or Plug-in Electric or Electric Cargo Vehicles with a minimum load capacity of at least 1MT per vehicle, to fleet owners like restaurants, courier agency, food delivery agencies (last-mile delivery providers).
- Development of green logistics parks: States are creating logistics parks with eco-friendly features like solar power, rainwater harvesting, and efficient waste management and recycling systems, investing in sustainable infrastructure for renewable energy and water conservation. Logistics Park developers in Tamil Nadu for instance undertaking green and sustainable initiatives as listed in the Tamil Nadu Industrial Policy, 2021, Para 13.5.3, is eligible for a 25% subsidy on the cost of capital for setting up such initiatives, subject to a cap of Rs 5 crore.
- Renewable energy integration: States are focusing on integrating renewable energy sources into logistics, promoting solar and wind energy for warehouses and transportation hubs, and using energy-efficient technologies to reduce overall energy consumption. Arunachal Pradesh has proposed to encourage companies to install renewable-powered captive power plants and procure clean electricity through green energy open access, by the Green Open Access Rules 2022.
- Infrastructure improvements: Enhancing infrastructure for sustainable logistics involves developing dedicated freight corridors to ease transportation and reduce congestion, along with improving multimodal transport systems, including rail, road, and waterways. Gujarat, is pioneering sustainable logistics through the development of a Dedicated Freight Corridor (DFC). This initiative is part of the state’s broader strategy to enhance the efficiency of logistics operations while minimising environmental impact.
- Smart logistics solutions: States are also focusing on the adoption of smart logistics technologies to enhance efficiency and sustainability. Uttarakhand in its SLP has proposed to implement smart systems for the efficient movement of cargo rough checkpoints. “Green Channels” will be identified for vehicles carrying export-import/Defence cargo.
- Pollution control measures: States are enforcing stricter pollution control by phasing out older vehicles and setting emissions standards for logistics fleets and equipment. The SLP of Tamil Nadu has stated the adoption of sustainable design standards and greening solutions that obtain a rating under LEED certification or GRIHA systems for the development of logistics infrastructure.
- Public-Private Partnership: States have also proposed collaboration between the government and private sector to drive innovation and investment in green logistics. Himachal Pradesh has proposed to set up scrappage yards on PPP mode at convenient locations to facilitate easier disposal of conventional vehicles.
- Capacity building and awareness programs: Training and awareness programs to educate stakeholders about the benefits and implementation of green logistics practices are also being encouraged. Arunachal Pradesh for instance has identified key areas for skill development, including renewable energy, sustainable agriculture, biodiversity conservation, eco-tourism and hospitality, waste management and recycling, water resource management, green building and architecture, climate change adaptation and mitigation, forestry and agroforestry, renewable energy entrepreneurship, environmental education and awareness, and green technology and innovation.
State-level green logistics initiatives are crucial for India’s sustainable development, demonstrating a commitment to sustainability and setting a precedent for others, vital for achieving broader environmental and economic goals.
