Green logistics expands as global demand for sustainability rises

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🗞️ Driving the news: The global green logistics market is expanding rapidly as demand for environmentally sustainable supply chains intensifies
• Spurred by regulatory mandates, carbon neutrality goals, and rising consumer expectations, green logistics — covering sustainable warehousing, distribution, and transport — has become a cornerstone of the transition to low-carbon economies

🔭 The context: Green logistics refers to operations that minimize environmental impact across the logistics chain
• While manufacturing is a key driver of green logistics adoption, distribution remains dominant due to its efficiency and scalability
• Asia Pacific currently leads the global market, powered by government-backed decarbonisation initiatives, while North America is seeing fast-paced growth driven by green technology investments and the automotive sector’s sustainability pivot

🌍 Why it matters for the planet: Logistics accounts for a significant share of global emissions, particularly from transport
• Greening these operations is vital to meeting climate targets and reducing the carbon footprint of global trade
• Innovations such as sustainable aviation fuel (SAF) and optimized freight systems offer high-impact solutions, though cost and scale remain hurdles
• Industry-wide commitment is essential to decarbonise supply chains at the speed required by the Paris Agreement

⏭️ What's next: Technological innovation, regulatory frameworks, and cross-sector collaboration will shape the next phase of green logistics
• As governments and companies increase investment in decarbonising transport and storage, the sector is expected to experience substantial compound annual growth
• Key players, including Envision Group, are targeting breakthroughs in green fuel production to overcome cost barriers and enable large-scale emissions reductions

💬 One quote: “Sustainable fuel represents a critical frontier in the transition to zero-carbon emissions but is currently trailing targets largely due to high costs,” — Zhang Lei, Chairman of Envision Group

📈 One stat: India’s logistics market was valued at US$107.16 billion in 2023, highlighting the scale and opportunity for sustainable transformation

See on illuminem's Data Hub™ the sustainability performance of DHL and its peers Maersk, and FedEx

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