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

Logistics is increasingly recognized as a global strategic priority, with the industry estimated to be valued at nearly $8 trillion by 2028.1 It encompasses a broad spectrum of activities (including freight transport) and infrastructure (such as ports, airports and warehouses), along with supply chain management and various related services that collectively enable the efficient movement and storage of goods across domestic and international markets. As globalization deepens and e-commerce expands, logistics plays a critical role in connecting producers, consumers and markets. In the wake of disruptions such as the COVID-19 pandemic, the unprecedented stress on global supply chains underscored the necessity of robust, agile and risk-resilient logistics networks. Businesses and governments are now placing significant strategic focus on enhancing logistics capabilities to safeguard supply continuity and mitigate potential vulnerabilities. The global logistics sector is growing rapidly, especially in the road and rail sectors, driven by increasing market demand and sectoral transformation. Maritime transport will remain the backbone of global freight, accounting for more than 60% of the mode share. Rail freight is projected to reach approximately 2.7 times its 2019 level by 2050, and road freight is expected to more than double over that same period.2 This expansion reflects demand-side shifts such as supply chain reconfiguration and regionalization, the rapid rise of e-commerce and innovation in last-mile delivery. Widespread adoption of digital and smart technologies and a stronger focus on sustainability and low-carbon logistics also support the expansion. The logistics industry exerts a significant impact on global economic and social development, and its operations can lead to a significant environmental footprint. Economically, the sector accounts for a substantial share of nations’ gross domestic product (GDP) – up to approximately 8% in most countries and exceeding 10% in certain economies such as Lithuania (11.0%) and Kenya (10.7%).3 The sector also supports approximately 10% of global employment across regions.4 This vital role, however, comes with a substantial environmental footprint, accounting for 11% of global greenhouse gas (GHG) emissions from freight transport, ports and warehousing, creating an urgent imperative for systemic transformation. Despite the ever-growing importance of logistics systems worldwide, they face five critical challenges (see Figure 1): –Geopolitical disruption and rising costs –Infrastructure gaps and operational inefficiency –Decarbonization pressures and climate risks –Labour shortages and skills mismatches –Rising consumer expectations and service pressures1.2 Green transformation as a strategic imperative for logistics growth1.1 Logistics as a key driver for global development This vital role comes with a substantial environmental footprint, accounting for 11% of global GHG emissions from freight transport, ports and warehousing. Green Logistics Innovation for Emerging Markets: Driving Competitiveness and Shared Value 6