Green Freight

Objectives

Green Freight project aims to provide strategies and technical solutions to the decision-making agencies at the national, regional/local level to develop freight transport in India in a climate friendly and efficient manner and support the India’s Nationally Determined Contributions (NDCs).

Description

Freight sector in India is inefficient and the logistics cost is estimated at approximately 13% of the GDP, which is higher than that observed for most developed countries (<10 % of GDP). Currently, 60% of goods is carried by road; 33% by railways and 7% by coastal shipping and inland waterways. Studies have shown that the share of rail transport could even drop from 35% (in 2009) to 25% by 2020 in a business-as-usual scenario (Mckinsey 2010). According to the United Nations Environment Program (UNEP), the fuel consumption of freight traffic will increase six-fold between 2010 and 2050 (Dhar, Pathak, and Shukla 2013).

India is therefore faced with the challenge of disproportionately large traffic volumes and high energy consumption. This makes the freight transport sector as one sector with the highest potential for reducing greenhouse gas (GHG) emissions and other climate-relevant pollutants.

The Green Freight project aims to support national and state-level partners in making the Indian freight and logistics sector climate-friendly and efficient, thereby contributing to the implementation of Indian NDCs.

The project advises the implementing partner Ministry of Commerce and Industry (MoCI), Govt. of India in setting up coordination and monitoring mechanisms for the National Logistics Policy, as well as selected national authorities responsible for the freight sector in the development of climate-friendly standards and regulations. Measures for improved logistics management and the introduction of climate-friendly technologies will be implemented in selected regions. To ensure the sustainable implementation of national strategies and the measures tested, the competences of state level authorities, as well as private logistics companies will be strengthened. At the same time, the partners will be supported at national and state level in setting up monitoring systems for the reduction of greenhouse gas emissions.

Approach/Field of intervention

The project will undertake the following activities

  • Urban freight (Freight Smart Cities)
  • Roll On-Roll-Off services
  • Cold Chain Logistics
  • Capacity Building
  • Freight GHG Calculator

Targeted beneficiaries

The project aims to benefit the following beneficiaries:

  • At the National level are the managers and experts of the Ministry of Commerce and Industry, who are advised so that climate-friendly freight traffic can be adequately integrated into future logistics policy together with the managers and experts of the Ministry of Railways (MoR), Ministry of Road Transport and Highways (MoRTH), Ministry of Housing and Urban Affairs (MoHUA) and NITI Aayog
  • At the State and local level it will benefit the administrators in the state urban department; department of municipal administration; urban local bodies, urban development authorities; and private sector stakeholders i.e. commercial establishments, freight forwarders and logistics service providers.
  • Lastly, it will benefit the people who live and work in the selected regions. Their quality of life will be improved by reducing pollution through noise and harmful chemicals in the freight transport sector. Consumers in India will benefit from reduced prices.

Highlight activities /Achievements

  • Organised a national level stakeholder consultation “Consultative Meeting on Freight Smart Cities” on 2nd July 2021 under the chairmanship of the Hon’ble Minister of State Shri Hardeep Singh Puri
  • Launched the beta version of freight GHG calculator
COUNTRY

India

DURATION

January 2019 - October 2022

Contact Person