Page 14 - ITLN May June 2023 Magazine
P. 14

Cover Story
             Sustainability



                                                                                constant efforts by the government to
                                                                                promote electric vehicles or alternate
                                                                                fuels such as natural gas or green
                                                                                hydrogen as the better transportation
                                                                                fuel will only decrease carbon
                                                                                emissions,” said Anand.
                                                                                  The need to reduce carbon emissions
                                                                                from deliveries and shipping has
                                                                                encouraged consumers to prefer
                                                                                companies implementing green
                                                                                logistics strategies over traditional ones,
                                                                                according to a recent study published
                                                                                in the Journal of the Transportation
                                                                                Research Board by Singapore University
                                                                                of Technology and Design (SUTD).
                                                                                  “India has huge potential when
                                                                                it comes to green logistics. It is not
         The need for sustainable transportation                                only in terms of consuming green
         solutions has grown crucial, especially                                logistics and reducing the overall
         given India's fast economic expansion                                  carbon footprint in the country, but it
         and the resulting increase in demand for                               is also in terms of being a supplier of
         products and services.                                                 green logistics. We believe India could
           As a result of the Covid-19 lockdown,                                be a key partner in transitioning from
         there has been a growth of Ecommerce                                   traditional maritime fuels to more
         and direct-to-consumer channels,                                       climate-friendly sustainable solutions
         outpacing logistics and delivery services                              such as e-methanol. We are in a
         across the country. While this is                                      good and constructive dialogue with
         beneficial to the startup community, the                               potential partners exploring a strategic
         negative externalities in terms of carbon                              partnership about opportunities for
         impact are concerning.                                                 green methanol production in India,”
           “Green logistics in India is expected                                said Agarwal.
         to grow significantly in the coming        Our commitment                Overall, green logistics is a developing
         years. Logistics account for 14.4%          to sustainability          trend that is assisting the logistics sector
         of India's GDP, and its growth is          is reflected in the         in reducing its environmental effect.
         projected to continue at a 10-12%         installation of solar        Green logistics is expected to be a focus
         CAGR, reaching $380 billion by 2025.       panels across our           for the sector in the coming years as
         India is the third-largest carbon emitter                              corporations grow more concerned of
         globally, producing 2.35 gigatonnes       sites, reducing the          their environmental effect.
         of carbon emissions in 2021. The         environmental impact            The industry can adopt green
         logistics industry is becoming more      of our operations. We         logistics by using both hydrogen and
         environmentally conscious, and the      also leverage real-time        electric vehicles. In order to fulfil India's
         government is paving the way towards      data intelligence to         2070 net-zero goal, 79 percent of trucks
         green initiatives through initiatives   achieve sustainable fleet      should be electric and the remaining
         like Gati Shakti, National Master Plan,                                20 percent should operate on hydrogen,
         the GST reduction, and the Sagarmala          operations.              according to the Council on Energy,
         Programme,” said Singhai.                    Vivek Juneja              Environment, and Water (CEEW). As they
           The ESG scenario in India is                Varuna Group             use power generated from renewable
         quickly changing, increasing demand                                    hydrogen, fuel cell electric trucks can
         for sustainable solutions and their   to grow by 24.3% in less than a decade.   also be introduced to the market.
         integration throughout the supply   On the other hand, the market size   The initiative can change the game
         chain. The increased purchasing power   of India Electric Vehicle industry is   for logistics, where costs are currently
         of younger consumers, along with a   projected to grow from $3.21 billion   at 13-14% of GDP in India. Led by the
         movement in consumer desire to pick   in 2022 to $113.99 billion by 2029 with   NITI Aayog, the National Industrial
         brands for social and environmental   a CAGR of 66.52%. Initiatives such   Corridor Development Corporation
         values, notwithstanding cost premiums,   as the Gati Shakti NMP have been   Limited (NICDC) is developing this
         has resulted in an overall change in the   planned to combine all the multimodal   platform by gathering all the milestones
         Indian consumer's buying patterns.  connectivity projects that will enhance   under the Unified Logistics Interface
           “EV has taken the world by storm   the efficiency of the movement of   Platform (ULIP), to help the logistics
         with the global market being projected   people and goods. This along with the   sector grow. 
     12
         May - June 2023                                                                                 www.itln.in
   9   10   11   12   13   14   15   16   17   18   19