Aligning India’s freight emissions accounting with global frameworks can accelerate low-carbon transition and enable participation in emerging carbon markets
India’s freight transport sector is both a backbone of economic growth and a significant source of greenhouse gas emissions. Road freight dominates the logistics landscape, with heavy-duty diesel trucks forming the bulk of long-haul transport. Rising demand driven by urbanisation, e-commerce expansion, infrastructure development, and industrial output, has led to steadily increasing fuel consumption in this segment.
Decarbonising freight presents structural challenges that are more complex than passenger mobility. Electrification of heavy-duty vehicles is technically and economically demanding, particularly for long-haul routes. Infrastructure constraints that include limited high-capacity charging networks, grid readiness, and alternative fuel ecosystems further slow transition efforts.
In this scenario, without targeted policy interventions, freight emissions could become one of the key challenges to India’s pathway toward achieving its net-zero target by 2070. According to a white paper released by Smart Freight Centre (SFC) India, in collaboration with The Energy and Resources Institute (TERI) and IIM-Bangalore, India’s freight transport demand is “projected to increase sharply, from 2,682 billion tonne-kilometres (BTKM) in 2019-20 to 7,260 BTKM by 2030-31, with road transport accounting for nearly 85% of the total freight movement in 2030-31.”
While it maintains that corporate disclosures and regulatory expectations on value-chain transparency are increasing, there is “limited and inconsistent” reporting of scope 3 emissions that underscores “the need for a standardised and credible emissions accounting framework.”
“A robust freight emissions accounting system is the backbone of any credible decarbonisation strategy. It allows shippers, carriers, logistics service providers (LSPs), policymakers, and financial institutions to quantify emissions consistently; identify high-impact operational levers; track year-on-year progress; and create verifiable pathways for incentives and market mechanisms,” the paper titled “Institutionalizing Freight Emissions Accounting in India: Pathways for Clean Freight Programs and Policy Integration” it argues.
The recently released paper proposes “a nationally harmonized approach to institutionalizing freight emissions accounting in India, aligned with ISO 14083:20233 and the Global Logistics Emissions Council (GLEC) Framework, and adapted using India-specific emission factors” while also outlining a roadmap to operationalise a Clean Freight Program for India.
Fig 1: A Windrose electric truck is seen near the Golden Gate Bridge in San Francisco, California, U.S., in this
May 2024 handout picture provided by Windrose on July 23, 2024. Windrose/Handout via REUTERS/File Photo
Why Is Freight Emission Accounting Crucial For India
Freight emission accounting in India becomes critical as it underpins credible climate planning, policy design, and investment prioritisation in one of the fastest-growing segments of the economy. As global trade increasingly incorporates carbon considerations through various measures like the European Union’s carbon border adjustment mechanism, Indian exporters and logistics operators will need verifiable emissions data to remain competitive.
The white paper pointed out that the road transport sector accounted for 94% of the total GHG emissions from the transport sector, followed by civil aviation 4%, railways 1% and water-borne navigation 1%. “Trucks represent just 3% of the total vehicle fleet (including both passenger and freight) yet are responsible for a staggering 53% of PM emissions, placing freight at the centre of both climate and air-quality strategies,” it said.
“You cannot decarbonise what you cannot measure. The development of standardised methodologies and India-specific emission factors strengthens the technical basis for informed, targeted interventions. Hence this whitepaper provides India with a practical, institution-ready blueprint to make freight emissions accounting credible, comparable, and actionable at scale.” said Ms Deepali Thakur, Principal – Technical, Smart Freight Centre India.
The paper argues that despite freight being one of the hard-to-abate parts of India’s transport sector, emissions measurement, however, remains fragmented, constraining data comparability, limiting credibility of emissions estimates, and slowing coordinated action by industry and government.
“Measuring freight emissions is the critical first step. Institutionalising freight emissions accounting in India, aligned with global clean freight programs can support emissions reduction, provide a credible foundation for effective decarbonisation and enable participation in emerging compliance and carbon- market mechanisms,” said Mr Sanjay Seth, Senior Director, Sustainable Infrastructure Programme, TERI.
Freight Emission Accounting In India: Way Forward
After studying best practices and models adopted by several other countries, the white paper also advocated for adoption of ISO 14083 as the national reference standard for freight emissions accounting. ISO 14083 is the first comprehensive international standard for quantifying and reporting greenhouse gas (GHG) emissions across the entire transportation and logistics supply chain.
“India should formally recognise ISO 14083 as the reference methodology for freight transport emissions accounting, with India-specific emission factors and guidance layered on top. ISO 14083 has emerged as the globally accepted standard for transport emissions accounting and is increasingly referenced by regulators and market mechanisms,” the paper suggested.
Noting that India should also establish a centrally administered Clean Freight Program, the paper said that global clean freight programs demonstrate that centralised administration by a government body or a designated neutral institution is essential to ensure methodological consistency, data integrity, and long-term continuity.
For India, such a programme can “act as the institutional backbone for: standardised emissions accounting using ISO 14083/GLEC-aligned methods, data aggregation and benchmarking across shippers and carriers and coordination with national policy instruments and market mechanisms.
“Given the fragmented nature of India’s trucking sector, institutionalisation should follow a phased implementation strategy, starting with large shippers and fleet operators who already report emissions and have greater access to data and capital. These actors can establish credible baselines, demonstrate value, and create procurement-led demand signals that gradually pull smaller carriers into the program,” the paper recommended.
It also called for Integrating emissions accounting with policy and market instruments while also recommending building an industry collaboration platform to drive action beyond reporting.
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