As global trade gains momentum and climate regulations grow more stringent, the logistics sector is navigating a pivotal moment—balancing the pressure to decarbonise with the imperative to keep cargo moving swiftly and efficiently across air, sea, and land.
For India—where the government aims to triple air cargo volumes by 2030 while slashing logistics costs as a share of GDP—the message is clear: sustainability must be embedded into the heart of freight systems, not treated as an afterthought.
Grounded in policy and practice
India’s National Logistics Policy, introduced in 2022, is already steering the country towards more cost-effective and sustainable logistics. The target: reduce logistics costs from about 14 percent of GDP to below 8 percent, and enable cleaner, multimodal transport corridors. The urgency is amplified by projections from the civil aviation ministry, which forecast a tripling of air cargo—currently 3.4 million tonnes annually—by the end of the decade.
But airfreight’s environmental footprint remains disproportionate. Although it moves less than 1 percent of global trade by volume, it accounts for 2–2.5 percent of carbon emissions. The need for change is immediate and systemic.
“There’s no silver bullet for green logistics,” Vikram Kumar, secretary of ACAAI and director at CTC Air Carriers Pvt. Ltd, said. “It’s a composite toolkit—from packaging design and modal shift to energy audits and digital paperwork.”
Industry-led solutions
UPS, a global logistics powerhouse with a growing footprint in South Asia, showcased its roadmap towards carbon neutrality by 2050. Dinkar Singh, director of public affairs at UPS – Indian Subcontinent, outlined steps already underway, including paperless trade, solar-powered facilities, EV fleets, and route optimisation through its ORION platform.
“The concept of green logistics must scale from rhetoric to delivery,” Singh said. “It starts with electrifying the last mile, optimising fleet turnaround, and engaging clients on carbon-conscious packaging.”
Singh also spotlighted a growing but under-addressed challenge: reverse logistics. “E-commerce returns are silently inflating our carbon footprint,” he warned. “Lack of efficient returns systems leads to shipment abandonment, especially in cross-border trade.”
The green enabler
Technology took a central role in the summit’s vision for a cleaner logistics future. From real-time shipment tracking and digital bills of lading to AI-powered predictive logistics, panellists agreed that digital tools are essential for both emissions reduction and regulatory compliance.
“Every gram of paper removed from documentation is a reduction in energy use,” Singh explained. “Every automated field is a step towards transparency and compliance.”
UPS is working with partners to implement blockchain-enabled visibility in pharmaceutical logistics—a segment where precision and traceability are paramount. On the policy front, India’s Unified Logistics Interface Platform (ULIP) and National Single Window System are laying the digital groundwork for cross-modal efficiency.
Regulatory and capacity
However, green logistics isn’t just a technical challenge—it’s also a regulatory one. Deepak Baindur, project manager at GIZ India, stressed the importance of harmonising regulations across transport modes. “Our governance systems are still siloed,” he said. “For a green transition to work, emissions and efficiency must be governed uniformly across modes.”
He pointed to India’s new Digital Personal Data Protection Act as a potential lever for improving the accountability of digital carbon tracking and urged greater collaboration between academia and policymakers. “We must institutionalise sandbox environments for green innovation. The government cannot legislate change in isolation.”
