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

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CASE STUDY 8 Strategic deployment of bioenergy benefits through mandatory policy in Brazil As the second-largest biofuel producer worldwide, Brazil is harnessing its biofuel advantage to promote green logistics transformation with strong policy mandates and decarbonization targets. Mandatory biofuel use for the logistics sector: –Brazil has had a mandatory ethanol blend since the 1970s and now has one of the largest global fleets of flex-fuel on-road vehicles14 – most fuelling stations nationwide provide ethanol-blended fuel or pure-ethanol fuel. –Brazil’s Fuel of the Future law mandates a 1% reduction in aviation-sector GHG emissions through the use of SAF starting in 2027, with a phased increase to 10% by 2037.15Impacts achieved: –Domestic economic growth driver: Brazil’s push for ethanol and biodiesel has created a robust domestic industry that helps bolster the economy. Sugar and ethanol are among Brazil’s top export earners (about $11 billion, fourth in agribusiness exports16) and provide opportunities for the country to expand into greener fuel exports. –Employment opportunities and rural development: The biofuel industry’s growth has led to significant social impact by both creating jobs and supporting rural communities. It is estimated that the expansion of sugarcane cultivation for ethanol and biodiesel production has generated 4.5 million direct and indirect jobs.17 CASE STUDY 7 Green logistics is a national-level strategic priority in Viet Nam Under the Prime Ministerial Decision No. 882, logistics is identified as one of 18 priority areas in the National Action Plan on Green Growth in Viet Nam.11 Green logistics is emerging as a key component of both Viet Nam’s sustainable development strategy and its roadmap to achieving net-zero carbon emissions by 2050. Impacts achieved: –Enhanced competitiveness and cost efficiency: Embracing green logistics can help reduce Viet Nam’s notoriously high logistics costs, thereby improving economic competitiveness. For example, the application of digital tools such as IoT, big data and automation has enabled many local enterprises to reduce logistics costs by approximately 23% and shorten order processing time by approximately 35%.12 –Job creation and workforce development: A recent United Nations Development Programme (UNDP)-supported study finds that Viet Nam’s adoption of green transport policies, such as electrifying road freight and using renewable energy, could generate approximately 99,000 new jobs by 2030.13 The government and industry are responding by investing in training and upskilling programmes to support the logistics workforce in adapting to new technologies. Green Logistics Innovation for Emerging Markets: Driving Competitiveness and Shared Value 23
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