From Green Freight to Smart Logistics

India’s logistics sector underpins the country’s economic growth—connecting farms to markets, factories to ports and warehouses to consumers. Rapid expansion driven by e-commerce, urbanisation and industrial growth has increased the urgency to make logistics efficient, affordable and low carbon. Tackling this challenge is central to India’s climate goals and its Net Zero 2070 target. 

Decarbonising freight and logistics—through efficient long‑haul modes, well‑planned and sustainable infrastructure, and the system‑wide adoption of innovative green solutions—will make a significant contribution to India’s NDCs. With the support from Germany´s International Climate Initiative (IKI), the ‘Climate Friendly Freight Transport in India’ (Green Freight) project, which ran from 2019 to 2024, tackled several key logistics challenges. Since 2025, the IKI project ‘Smart and Climate Friendly Logistics in India’ has continued this trajectory and broadened its scope.

Building on the Green Freight Project 

The Green Freight project focused on enabling frameworks, tools and capacity development—yielding tangible results. For example, a Warehousing Standards Handbook has been published, and training modules have been rolled out. A Freight GHG Calculator has been developed and adopted by the Ministry of Railways, while Model City Logistics Plans for Delhi and Bengaluru have been developed and notified.

In addition, more than 100 professionals have been trained in city logistics. Key studies were completed, including the Multimodal Logistics Parks (MMLP) Guidelines and a Roll-On and Roll-Off (Ro-Ro) corridor analyses. Together, these contributions strengthened policy alignment, technical capacity and awareness for green logistics in India.

Smart Logistics: Accelerating Momentum

Building on those foundations, the ‘Smart and Climate Friendly Logistics in India’ project, picks up where its predecessor left off — and even goes further. The emphasis is now on digitalisation, data-driven planning and system-level change. It supports AI-based decision tools for freight transport, Multi Modal Logistics Parks, city logistics, workforce skilling and capacity building, as well as pilot initiatives to test, evaluate and scale low carbon solutions — all aligned with the vision of Logistics 5.0 and India’s Net Zero target for 2070.

At its core is a simple idea: sustainable logistics is not just about technology, but also about people. The project works to develop advanced solutions for green and sustainable logistics, build green skills and create opportunities for women in a changing sector. It is also developing a knowledge platform to connect practitioners, policymakers and innovators, and supporting pilots to test solutions on the ground.

Over the next three years, the project will support the Government of India in implementing solutions linked to the National Logistics Policy and the PM GatiShakti National Master Plan for multi-modal connectivity by strengthening planning, scaling low-carbon solutions and enabling data driven decision making. 

The Bigger Picture

India’s freight volumes are rising rapidly, increasing emissions without timely intervention. Working with Indian government partners to embed climate considerations into logistics policy—from national frameworks to city plans—ensures green freight becomes mainstream.

The transition hinges on integrated, low carbon and digital solutions. The International Climate Initiative advances AI based and digital decision support tools and scales advanced green solutions to strengthen infrastructure and performance. Next steps: align with national priorities, deepen stakeholder collaboration and deploy targeted pilots to mainstream sustainable practices.

India’s road to net zero will run through its logistics corridors. The Indo German partnership, supported by the IKI, is building that road—step by step—with more advanced, reliable solutions.