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
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