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

Executive summary The global logistics sector is a strategic enabler of trade and development, projected to reach nearly $8 trillion in value. Maritime transport remains the backbone of global freight, while road and rail transport are expanding rapidly, driven by supply chain reconfiguration, surging e-commerce and the adoption of digital and low- carbon technologies. Beyond its economic importance, logistics carries a substantial environmental footprint, contributing 11% of global emissions. The sector also plays a vital role in inclusive growth, supporting 10% of global employment. Yet logistics faces five major challenges: 1 Geopolitical disruptions and rising costs 2 Infrastructure gaps and inefficiencies 3 Decarbonization pressures and climate risk 4 Labour shortages and skills mismatches 5 Rising consumer expectations These vulnerabilities highlight the need for sustainable, resilient solutions. Green logistics offers a pathway, harnessing technology and innovative business models to improve efficiency, reduce emissions, and align practices with evolving regulations and societal expectations. Emerging economies make notable progress Emerging economies, despite varying readiness, are making progress and demonstrating that green logistics is both feasible and economically viable. Drawing on leading practices, this report showcases innovative levers and case examples that illustrate scalable pathways for transformation. It identifies 15 levers for systemic change across four themes: –Green fuel production and use – Green vehicle and propulsion manufacturing and adoption –Green infrastructure construction –Digital and green operational enhancement These must work in combination to unlock system-wide decarbonization and efficiency.However, scaling requires overcoming systemic barriers in emerging markets: –Policy and regulatory fragmentation create uncertainty. –Limited resources, high costs, and skills gaps constrain adoption. –Lack of ecosystem-wide alignment and persistent data fragmentation impede progress. To address these, the report offers a practical playbook: –Build an integrated policy and regulatory framework. –Mobilize green finance, including transition finance. –Upskill the workforce. –Cultivate ecosystem collaboration. Call to action: a global agenda for green logistics Scaling green logistics cannot be achieved by any single actor. It demands coordinated action by governments, industry, customers, finance, academia and civil society. –Governments: Establish coherent regulation, mobilize capital through incentives, nurture industry development and encourage global collaboration. –Industry: Engage in multistakeholder dialogue, upskill workforces and scale solutions through alliances and public-private partnerships (PPPs). –Shippers and cargo owners: Secure long- term agreements and aggregate demand to reduce risk. –Financial institutions: Expand blended financing to unlock large-scale investment. –Academia and civil society: Build talent pipelines, translate research into application and provide knowledge support. Together, these actors form a shared agenda. The window for pilots is closing, and the moment for scaling green logistics is now.The imperative green transition in logistics calls for collaborative value chain actions to deliver economic, environmental, and societal benefits. Green Logistics Innovation for Emerging Markets: Driving Competitiveness and Shared Value 4