SYLLABUS

GS-3: Infrastructure: Energy; Environmental Pollution and Degradation.  

Context: According to a new SFC–TERI report, India’s freight sector could see carbon dioxide emissions surge by nearly 400% by 2047 if left unchecked, underscoring the urgent need for institutionalised emissions accounting and policy integration. 

More on the News

• The whitepaper, titled Institutionalising Freight Emissions Accounting in India: Pathways for Clean Freight Programs and Policy Integration, has been released by Smart Freight Centre (SFC) India in collaboration with The Energy and Resources Institute (TERI) and IIM-Bangalore.

• The report argues that India’s current freight emissions measurement is fragmented and non standardised, undermining both corporate disclosure and policy design. 

• It calls for a nationally harmonised accounting framework as the foundation for decarbonisation.

• The issue is closely linked to India’s broader commitments toward sustainable logistics transformation and Net-Zero emissions by 2070, making freight decarbonisation a strategic priority. 

Key Highlights of the Report

• Projected Emissions Surge: Without intervention, freight-related CO₂ emissions may increase fourfold by 2047, driven mainly by rising freight volumes, continued dependence on diesel-based road transport, and fragmented and inefficient logistics systems.

• Measurement Gap: The whitepaper identifies measurement gaps as the core barrier to decarbonization, as companies use different methods, emission factors and system boundaries, making company level freight emissions data difficult to compare and aggregate. 

• Need for Institutionalised Emissions Accounting:

• It proposes a nationally harmonised freight-emissions accounting framework aligned with the ISO 14083 global emissions-measurement standard, and the Global Logistics Emissions Council (GLEC) framework.
• It stresses the development of India-specific emission factors (including for electric vehicles) and a digital Monitoring, Reporting and Verification (MRV) system to ensure credible and audit-ready data.

• Institutional and Policy Integration: The report stresses embedding emissions accounting within the National Logistics Policy, PM Gati Shakti infrastructure initiative, and broader clean-freight and carbon-market readiness strategies.

• Implementation Challenges: 

• The freight ecosystem is highly fragmented, dominated by small and medium fleet operators with limited digital capability, making data collection and standardisation difficult.
• The whitepaper therefore recommends capacity building, phased implementation, digital integration and inter-ministerial coordination to avoid overburdening smaller players while still improving accountability.

Significance of the Report

• Foundation for Freight Decarbonisation: The report reframes emissions accounting as infrastructure for climate action, not merely a reporting requirement, enabling performance benchmarking, targeted policies and clean freight programmes.

• Support to Net Zero: Given India’s 2070 Net Zero goal and the projected tripling of freight demand by mid century, building this measurement backbone now is presented as essential to avoid locking in high-carbon logistics systems.

• Alignment with Global Markets and Standards: By aligning with ISO 14083 and GLEC, the framework is designed to make Indian logistics compatible with global clean freight programmes, strengthening Indian exporters’ positions as carbon disclosure norms tighten worldwide.

• Strategic Boost to Logistics Competitiveness: Integrating emissions metrics into logistics planning can drive efficiency improvements—optimised routing, higher load factors, and modal diversification—that lower both costs and emissions. 

• Air Quality and Public Health Co-Benefits: The report notes that reducing freight emissions can also cut local air pollutants, delivering Improved urban air quality and lower health burdens.

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TERIIN
TERIIN