Green Logistics Innovation for Emerging Markets Driving Competitiveness and Shared Value 2025

An effective regulatory framework can set direction, coordinate stakeholders and create enabling conditions for innovation and investment, particularly in emerging markets where systemic gaps in infrastructure, technology and finance persist. Build a robust regulatory framework: Clear national strategies can be translated into sector- specific roadmaps, underpinned by aligned policies and technical standards to drive implementation. Targeted demand-side incentives, such as tax benefits, green procurement mandates and low- emission zone regulations, need to be deployed where economic barriers and behaviour barriers exist to further accelerate market uptake and de-risk private investment. This would ensure a synchronized transition across the value chain. It is also critical to maintaining a regulatory framework that’s stable over time and consistent across various sectors and regions. National strategies could be clearly aligned with sector-specific policies and local implementation, cultivating coherence across all levels of policy execution.Institutionalized cross-regional and inter- departmental coordination: Ensuring a consistent and stable regulatory framework requires effective cross-regional and inter-departmental collaboration. Close coordination among local, regional, national and even cross-border stakeholders is crucial to harmonize implementation and avoid policy fragmentation. Additionally, innovation sandboxes such as pilot zones and economic free zones serve as valuable platforms to test new policies, business models and technologies, providing empirical evidence that supports adaptive, evidence-based refinement of regulations. Such comprehensive coordination ensures long-term stability, clarity and predictability within the regulatory environment. Ensure technological neutrality: Particularly in emerging markets, it is essential to recognize the practical constraints of deploying overly advanced or costly technologies. Policies can help ensure technology neutrality, supporting a diverse spectrum of mature, feasible and affordable solutions tailored to local contexts.3.1 Build an integrated policy and regulatory frameworkRecognizing the barriers observed from industry experience, as outlined in section 2.3, and given the sector’s inherent complexity, green logistics transformation in emerging markets not only relies on technological advancement, but calls for coordinated, cross-cutting ecosystem enablers: –Integrated policy and regulatory frameworks to steer direction and align incentives –Green finance, including transition finance instruments to de-risk investment –Workforce upskilling to ensure operational readiness –Ecosystem-wide collaboration to enhance interoperability and resource efficiency Unlocking the green logistics sector’s full potential requires an integrated blueprint for action across the logistics value chain. The framework that follows (sections 3.1–3.4) is structured around four identified enablers, collectively designed to dismantle the systemic barriers. Together, these interventions provide a coherent playbook – from policy and capital to execution – designed to systematically unlock a rapid and scalable transition to green logistics in emerging markets. Policies can help ensure technology neutrality, supporting a diverse spectrum of mature, feasible and affordable solutions tailored to local contexts. 21 Green Logistics Innovation for Emerging Markets: Driving Competitiveness and Shared Value