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

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Ensure long-term development through climate investment: Climate-aligned investment is emerging as a critical enabler of long-term value creation in green logistics. By directing capital towards sustainable infrastructure and innovation, climate finance – including transition finance that supports sectors in gradually decarbonizing and shifting towards low-carbon operation – helps mitigate future regulatory, environmental and operational risks in emerging markets. In parallel, it supports the structural shift towards low-emission, resilient logistics systems. Investment instruments aligned with climate and ESG objectives increasingly reflect both return potential and risk reduction, making them powerful drivers of transformation. As green logistics transformation continues to accelerate, integrating such financing mechanisms into national and corporate strategies will be key to unlocking scalable, future-ready solutions. Source: International Finance Corporation (IFC).IFC investment in sustainable logistics estates to boost Indonesia’s E-commerce logistics BOX 8 The International Finance Corporation (IFC) is extending up to $120 million in green debt financing to Logos, a leading Asia-Pacific logistics property group, for the development of two modern logistics estates in Greater Jakarta, Indonesia.19 This strategic investment aims to deliver high-quality, sustainable warehousing infrastructure to support the country’s booming e-commerce market, thereby cultivating business expansion and enhancing overall competitiveness in the national logistics sector. By signalling bankability, the Asian Infrastructure Investment Bank’s climate finance in Hubei mobilizes co-investment and speeds green logistics buildoutBOX 9 The Asian Infrastructure Investment Bank’s (AIIB’s) investment focus is on green logistics infrastructure. –The AIIB’s mission is to finance “infrastructure for tomorrow”, with a core strategic focus on green infrastructure and connectivity. This mandate is highly synergistic with green logistics development, and the bank aims to deploy $75 billion by 203020 to narrow the infrastructure financing gap, creating a substantial pool of capital for this high-priority sector. Hubei Global Air Cargo Logistics Project as a regional flagship of blended finance.21 Project background: –The project will develop a 134.9-hectare bonded logistics park adjacent to Hubei Ezhou International Huahu Airport – Asia’s first dedicated freight airport. It will be configured as a climate-resilient, low-carbon, smart comprehensive bonded zone offering customs operations, bonded warehousing and processing, and integrated trade/freight services. Sustainability is foundational, with climate-resilient infrastructure, low-carbon energy and equipment, and smart digital systems optimizing operations across the park.AIIB’s involvement: –AIIB has issued a $400 million strategic loan with an ultra-long tenor of 24.5 years and an average annual interest rate of 2.5%. Impact: –Stable funding anchor: A $400 million AIIB loan provides long-term, stable financing for the Hubei International Air Cargo Zone, underpinning on-time delivery and de-risking the buildout. –Industry transformation: Capital is directed to green, low-carbon, smart infrastructure, accelerating the sector’s upgrade through special supervision zones, digital trade platforms and a zero-carbon logistics system. –Local capability-building: The programme develops local project-management capacity, embedding international ESG and operations standards within the implementation team. –Harness effect: The investment is expected to dedicate over CNY 10 billion for aviation manufacturing, cold-chain logistics and digital trade industrial clusters, amplifying the project’s impact. Green Logistics Innovation for Emerging Markets: Driving Competitiveness and Shared Value 26
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