An introduction to start export-import of your products with China

By Palak Bhagasra, NITISARA

The logistics industry, which accounts for nearly 11% of global CO₂ emissions and is a critical enabler of global trade, is undergoing a rapid transformation toward decarbonisation. Driven by international climate commitments, consumer demand for sustainable supply chains, and regulatory pressures, logistics players across shipping, aviation, trucking, and warehousing are adopting multi-pronged strategies to cut emissions. Between 2020 and 2024, global investment in green logistics technologies surpassed USD 150 billion, with leading firms prioritising electric vehicle (EV) fleets, alternative fuels like green hydrogen and bio-LNG, digital route optimisation, and energy-efficient infrastructure. This article examines key initiatives, emerging technologies, and collaborative frameworks that are reshaping logistics sustainability — from port electrification and low-carbon shipping corridors to carbon accounting platforms — and analyses their potential to align trade growth with the net-zero agenda.

Introduction

The global logistics sector, valued at USD 9.6 trillion in 2023 (World Bank Logistics Report, 2024), is both an engine of economic growth and a major source of greenhouse gas (GHG) emissions. Transport and logistics activities collectively contribute around 24% of global CO₂ emissions, with freight transport alone responsible for nearly 8 gigatons of CO₂ equivalent annually. As e-commerce, globalisation, and urbanisation accelerate, freight volumes are expected to triple by 2050, significantly intensifying the carbon footprint of the sector unless systemic interventions are adopted.

Governments and corporations are responding with ambitious decarbonisation targets and innovations. The EU’s “Fit for 55” package mandates a 55% reduction in transport emissions by 2030, while the International Maritime Organization (IMO) has committed to net-zero shipping by 2050, requiring at least 5% of maritime energy to come from zero- or near-zero fuels by 2030. Global logistics leaders such as DHL, Maersk, and FedEx are spearheading initiatives — from Maersk’s methanol-powered vessels and DHL’s 80,000+ electric delivery vehicles to FedEx’s carbon-neutral operations goal by 2040. Meanwhile, digital tools such as AI-based route optimisation and IoT-enabled carbon tracking systems are helping reduce emissions intensity by 10–15% across fleet operations.

The International Transport Forum (ITF) projects that freight-related emissions could rise by 42% by 2050 without intervention, making decarbonisation an economic and environmental imperative. Between 2025 and 2030, many companies are working to reduce their carbon footprint by using cleaner energy, smarter technology, and better planning. In this blog, we will explain simple and practical strategies that logistics companies can use to reduce pollution. We will also include a table and a graph to make the ideas easier to understand. Logistics includes the transport, storage, and delivery of goods. It is a big part of global trade but also a major source of greenhouse gas emissions. Vehicles burn fuel, warehouses use electricity, and packaging creates waste. As the world faces climate change, we must find ways to reduce this pollution. The goal of decarbonisation is to cut down carbon emissions and help fight global warming. From 2025 to 2030, the logistics sector must change how it works by using cleaner fuels, switching to electric vehicles, improving efficiency, and reducing waste.

Key Decarbonisation Strategies 2025-2030

Alternative Fuel Adoption and The transition from fossil fuels to sustainable alternatives represents one of the most impactful strategies for reducing carbon emissions in the logistics industry. As the global demand for freight services increases, so does the urgency to adopt greener fuel sources. Several promising options are being developed and tested globally:

• Green Methanol: Derived from renewable sources such as biomass or captured carbon dioxide, green methanol offers a nearly carbon-neutral fuel option. It is particularly suited for shipping and long-distance marine logistics due to its compatibility with existing storage and engine systems.
• Green Ammonia: Although still emerging, green ammonia holds great promise, especially for long-haul maritime transport. It is produced by combining hydrogen (from water electrolysis) with nitrogen (from air), using renewable energy.
• Biofuels: These can be blended with conventional fuels and used in current infrastructure without major changes. Biofuels offer immediate emission reduction potential and are derived from plant and waste materials, providing a renewable fuel alternative.
• Hydrogen: Seen as a long-term solution, hydrogen fuel is ideal for heavy-duty road transport and industrial logistics. When used in fuel cells, hydrogen emits only water vapor, making it a zero-emission solution.

I. Use of Technology and Digital Tools

Modern technology helps companies save fuel and work better.Artificial Intelligence (AI), the Internet of Things (IoT), blockchain technology, and self-driving systems are transforming modern logistics into a smarter and more sustainable process. AI helps plan the most efficient delivery routes and can predict and fix vehicle issues before they cause breakdowns, improving both speed and reliability. IoT enables real-time tracking of fuel usage and pollution, providing valuable data to reduce environmental impact. Blockchain ensures transparent and tamper-proof records of emissions across the entire supply chain, making it easier to monitor and manage sustainability goals. Additionally, self-driving vehicles and robots are increasingly being used in warehouses and transportation to boost efficiency, reduce human error, and promote cleaner operations. These emerging technologies not only reduce direct emissions but also enhance efficiency, traceability, and resilience in global supply chains. Four transformative technologies—electric mobility, green hydrogen, artificial intelligence (AI), and blockchain—stand at the forefront of this decarbonisation wave.

1. Electric and Hybrid Fleets (EV Logistics): Electric mobility is revolutionizing last-mile and regional freight delivery. According to the International Energy Agency (IEA), over 340,000 electric trucks and vans were deployed globally in 2024—a 70% year-on-year increase. Companies such as Amazon, DHL, and UPS have committed to electrifying large portions of their fleets, with DHL targeting 60% electrification by 2030. The combination of lower maintenance costs, urban emission regulations, and improved battery ranges (now exceeding 400 km per charge) makes EV logistics increasingly viable. In markets like India, the National Electric Freight Mission and FAME II subsidies are catalyzing widespread EV adoption in short-haul logistics.

2. Green Hydrogen and Alternative Fuels: For long-haul, heavy-duty, and maritime operations—where electrification faces limitations—green hydrogen and ammonia are emerging as leading alternatives. Hydrogen fuel cells offer high energy density and zero tailpipe emissions, ideal for trucks, trains, and ships. Pilot projects like Toyota’s H2 Accelerate and Maersk’s methanol-powered vessels highlight industry momentum. The Hydrogen Council estimates that hydrogen could meet 20% of total transport energy demand by 2050, potentially cutting up to 800 million tons of CO₂ annually. Meanwhile, bio-LNG and sustainable aviation fuels (SAF) are scaling in air and maritime logistics, supported by policies such as the EU Fit for 55 package and U.S. Inflation Reduction Act (IRA) incentives.

3. AI-Based Logistics Optimization: AI and machine learning are reshaping logistics efficiency by optimizing routing, load planning, and predictive maintenance. AI-driven platforms can reduce fuel consumption and idle time by 10–20%, according to McKinsey. Predictive analytics models enable companies to simulate carbon outcomes and adjust operations in real-time, integrating weather data, traffic, and vehicle performance metrics. For example, FedEx’s AI-powered Network 2.0 reduced flight hours by 8%, cutting emissions while maintaining service levels. Additionally, AI enhances demand forecasting, reducing empty runs and warehouse energy waste.

4. Blockchain for Carbon Tracking and Transparency: As carbon accountability becomes a key compliance and investor requirement, blockchain technology is enabling transparent, tamper-proof carbon tracking across supply chains. Platforms like IBM’s TradeLens (now integrated with GSBN) and Nitisara’s Ethical Procurement AI prototype are leveraging blockchain to record verified emission data from shipping, warehousing, and customs processes. The World Economic Forum estimates that blockchain-based traceability can improve carbon disclosure accuracy by up to 50%, supporting ESG reporting and green financing. Moreover, tokenized carbon credits and smart contracts are simplifying emissions offsetting and compliance under frameworks like the EU CBAM (Carbon Border Adjustment Mechanism).

II. Working Together with Partners

Reducing pollution is a shared responsibility that requires collaboration among various stakeholders. Companies work closely with fuel suppliers to access cleaner energy options such as methanol or hydrogen, which help lower emissions. They also partner with tech companies to adopt the latest tools and machines that support efficient and eco-friendly operations. Governments play a key role by setting environmental rules and policies that guide businesses toward sustainable practices. Additionally, customers are becoming more environmentally conscious and prefer services that offer eco-friendly delivery and shipping options. Together, these efforts create a strong network aimed at reducing pollution and promoting sustainability. Decarbonisation of the logistics industry is being accelerated through coordinated policy frameworks, corporate commitments, and technology-driven innovation across major economies. Below are key regional and global initiatives reshaping low-carbon freight and logistics systems:

III.  Improving Daily Operations

Small changes in daily work can save fuel and reduce waste:

• Use trains and ships more than trucks where possible.
• Fill vehicles fully to avoid half-empty trips.
• Upgrade buildings with solar lights and energy-saving machines.
• Reduce, reuse, and recycle materials and packaging.

Case Study: Maersk’s Use of Green Methanol

Maersk, the world’s largest shipping company, has committed to becoming carbon-neutral by 2040 and is leading the maritime industry’s transition toward cleaner fuels through its focus on green methanol. To achieve this, Maersk has invested in a new generation of dual-fuel vessels capable of running on both conventional marine fuel and green methanol. The company has partnered with major producers such as Ørsted, OCI, and WasteFuel to secure sufficient supplies of this low-carbon fuel. In a major milestone, Maersk launched the world’s first methanol-powered container ship, “Laura Maersk,” which reduces emissions by nearly 100 tons of CO₂ per day compared to traditional vessels. Despite facing challenges such as high fuel costs, limited global refueling infrastructure, and the need for specialized maintenance and crew training, Maersk’s initiative has had a transformative impact. It has set a powerful precedent for other shipping companies, accelerated green fuel production across the value chain, and helped the maritime industry align with European Union emission reduction targets and global decarbonization frameworks.

Role of Policy and Government Support

The maritime shipping industry currently operates under a complex framework of environmental regulations designed to reduce carbon emissions and combat climate change. The European Union’s Carbon Trading System has been extended to include shipping companies, requiring them to purchase carbon credits to offset their emissions, while the International Maritime Organization (IMO) has established ambitious targets for the industry to achieve net-zero emissions by 2050. Additionally, the implementation of carbon border taxes is reshaping international trade dynamics by imposing costs on goods based on their carbon footprint during transportation between countries. To comply with these evolving regulations, shipping companies must adopt comprehensive strategies that include implementing robust emission measurement systems to accurately track their environmental impact, optimizing delivery routes through advanced planning technologies to minimize fuel consumption and emissions, and fostering collaborative partnerships with other environmentally conscious stakeholders throughout the supply chain. This regulatory landscape represents a fundamental shift toward sustainable maritime operations, requiring companies to balance compliance costs with operational efficiency while contributing to global climate goals. Decarbonising the logistics sector is not just the responsibility of private companies. Governments and public policies play a very important role in encouraging and supporting this transition.

1. Subsidies and Tax Benefits – Governments can offer financial incentives to companies that invest in green technologies. These include:

• Subsidies for buying electric trucks or installing solar panels
• Tax benefits for using biofuels or reducing emissions
• Grants for research in clean logistics innovations

2. Strict Emission Norms- By setting clear rules and limits on carbon emissions, governments push logistics companies to adopt greener practices. For example:

• Many countries now follow Euro 6 emission standards for commercial vehicles
• Cities like Delhi and London charge extra for polluting vehicles entering urban zones
• Some ports only allow low-sulphur fuel ships to dock

3. Support for EV Infrastructure- Electric vehicles can only grow if there are enough charging stations across cities and highways. Governments are now:

• Setting up EV charging networks at warehouses, petrol stations, and public places
• Making it mandatory for new buildings to include EV charging setups
• Providing land or space for logistics hubs to install renewable energy systems

4. Promoting Green Public Transport and Railways- Governments can encourage freight movement by train or inland water transport, which is more eco-friendly than trucks. To do this, they:

• Improve railway tracks and cargo train networks
• Develop river routes for barge transport
• Offer lower freight charges for rail cargo

5.Public-Private Partnerships (PPPs)– Sometimes, governments work with private companies to launch green initiatives. For example:

• Joint investment in solar-powered logistics parks
• Co-development of smart routing apps for public and private use
• Pilot projects for hydrogen-powered cargo trucks

Conclusion

The logistics industry is a big part of the world’s economy, but it also contributes to climate change. The shift toward low-carbon logistics is no longer limited to corporate social responsibility; it is now a strategic and regulatory necessity. By combining clean energy adoption, digital optimisation, and policy-driven innovation, the logistics industry is redefining its role — not merely as a mover of goods, but as a driver of global sustainability.From 2025 to 2030, the focus must be on reducing pollution through clean fuels, electric vehicles, smarter delivery, green buildings, and better packaging. These changes may take time and money, but they will help the planet and also improve company image, reduce long-term costs, and follow government rules. With planning and teamwork, the logistics industry can become much cleaner and greener.

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The views expressed do not represent the company’s position on the matter.Stay informed through Nitisara Platform and Blogs and adapt to emerging trends are poised to thrive in the competitive global marketplace. –  https://nitisara.org/category/blogs-updates

References

1. International Energy Agency (IEA). (2023). Net Zero by 2050: A Roadmap for the Global Energy Sector. Retrieved from https://www.iea.org
2. International Transport Forum (OECD). (2022). Decarbonising Transport: Pathways to Net Zero. Retrieved from https://www.itf-oecd.org
3. Maersk. (2023). Maersk’s Green Methanol Strategy. Retrieved from https://www.maersk.com
4. World Economic Forum. (2022). Delivering Net Zero: Decarbonizing the Logistics Sector. Retrieved from https://www.weforum.org
5. European Commission. (2024). Fit for 55: Emission Reductions and Transport Policies. Retrieved from https://climate.ec.europa.eu
6. International Maritime Organization (IMO). (2023). IMO Greenhouse Gas Strategy. Retrieved from https://www.imo.org
7. World Bank. (2021). Decarbonizing Logistics: Unlocking the Potential of Rail and Inland Waterways. Retrieved from https://www.worldbank.org