Deliberation


How National Logistics Policy can help Mahindra Logistics in achieving net zero carbon emission goal?

First of all, lets talk about net zero carbon emission goal. The net zero emission target talks about reducing emission of carbon dioxide and other GHGs to a net zero level. It means, whatever amount of emission you produce, you absorb the same amount of the emissions from the atmosphere or you release absolute zero carbon emission i.e. no carbon at all. When we talk about zero emission target, we usually talk about net zero carbon emission. Zero carbon emission can be possible for certain sector or activity in particular like electricity production.

All the problems that we’re facing due to carbon emission like global warming and its various impacts like climate change, unpredictability in weather pattern, flood, drought, heat waves, etc isn’t because amount of carbon has increased, its because of change in forms of carbon. Earlier these carbons were naturally maintained and regulated through carbon cycle. The amount of carbon that was released into atmosphere were naturally absorbed by forests, soil and oceans. But after industrial revolution, these cycles were significantly affected by huge release of carbon into atmosphere and lessening of natural sinks like forests,lands(peatland, permafrost) and polluting of oceans. This imbalance has caused increase in atmosperic carbon level and subsequent green house effects causing increase in global temperature. Due to disasterous effects of global warming, governments organisations and people are starting to think and find ways to mitigate this effect. In this regard this concept of net zero carbon emission has emerged.

Mahindra Logistics has recognised this urgency and importance of limiting global temperature rise to 1.5C. It has aimed to become carbon neutral by 2040 which is an ambitious target. It has adopted various practices to support its ambition like adopting sustainable transportation practices, reforestation initiatives, last-mile electrification, energy efficiency measures, piloting LNG and hydrogen fuels. It has brought into practice various sustainable practices like energy efficient warehouses and offices, large scale solar projects, EV charging infrastructure and effective water management systems. It prioritise the use of recycled materials, reusable packaging, rainwater harvesting and waste water recycling.

It has taken some great initiatives which further boosts its cause. These initiatives include; Green Warehousing Operations, Green Last Mile Mobility, Green People Mobility, Sustainable Workplaces, Sustainable Transportation and Tree Plantation.

National Logistics Policy, 2022 aims to improve logistics efficiency and cut logistics cost with focus on increasing efficiency in services (processes, digital systems, regulatory frameworks), and human resource. This policy will be implemented through a Comprehensive Logistics Action Plan (CLAP) with 8 key action areas:

Integrated Digital Logistics System: Develop a system of unified logistics interface to link multiple data sources and develop cross sectoral use cases for logistics stakeholders.

Standardisation of Physical Assets & Benchmarking Service Quality Standards: Enhance interoperability, minimize handling risks, undertake process optimisation and improve ease of doing business.

Logistics Human Resource Development and Capacity Building: Develop and overarching logistics human resource strategy, develop action plan to address skill related and internal capacity buliding challenges.

State Engagement:

EXIM Logistics: Create efficient and reliable logistics network, with transparent and streamlined cross-border trade facilitation.

Service Improvement Framework: Improving regulatory interface to enable seamlessness between sectors, promote standardisation, formalisation, interoperability; eliminate fragmentation in documentaton, formats, processses and liability regime; reduce gaps in regulatory architecture.

Sectoral Plan for Efficient Logistics: Address logistics issues pertaining to infrastructure, processes, digital improvements, policies and reulatory reforms and capaicty building for better workforce. And prioritise cross-sectoral cooperatoin to complement and not duplicate efforts and focus on optimisation of modal mix.

Facilitation of Development of Logistics Parks: Logistics parks (e.g. Multi Modal Logistics Parks, Air Freight Stations, Inland Container Depots, Container Freight Stations, Cargo Terminals, etc.) are hubs for intermediary activities (storage, handling value addition, inter-modal transfers, etc.) in supply chain connected by transportation network. It envisage to take following steps to facilitate development of logistics parks: 1. Draft framework guidelines to facilitate development of logistics parks in the country with focus on encourgaing private investment. 2. Create a network of logistics parks by mapping them on the PM Gati Shakti NMP, for enhanced visibility, improved logistics efficiency, optimum utilisation and connectivity.

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