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

Green logistics encompasses a range of innovative technologies and business models designed to address the systemic challenges FIGURE 3 Green logistics include innovative technologies and business models to solve the systematic challenges in the logistics sectorTechnology Buisness model Geopolitical disruption and rising costsInfrastructure gaps and operational inefficiencyDecarbonization pressure and climate risksLabour shortage and skills mismatch Intelligent parcel analytics systemGreen warehouses and distribution centresCross-border delay tracking systemsReal-time transport data sharing system Electrification Same-day delivery orchestrationDrone-based inventory managementAdaptative supply chainsInfrastructure digital twinsAdaptive sourcing and supplier reallocation tools Smart lockers and urban micro-fulfillmentGuided workflows and digital instructionsEarly prediction and monitoringIntelligent route and schedule optimizationIntegrated proactive intermodal travel assistant (IPITA)Hydrogen and derivativesTrade re-routing optimization algorithmsSmart and green transport hubs and networksCircular logistics and reverse supply chainsWearable technology (AR* glasses, smart helmets etc.) Personalized delivery platformsAutomated multi-item recognitionCarbon and energy management platformsReal-time freight disruption alert systemsResilient multimodal routing platformsGreen fuelling and charging networksRenewable energy and biofuelsLast-mile and specialized delivery solutionsAutomation and autonomous operations Vehicle to everything (V2X) (infra, cloud etc.)Rising consumer expectations and service pressure Green logistics plays a pivotal role in emerging markets by improving efficiency, creating jobs and reducing environmental pollution. It contributes to local economic growth. The burden of logistics costs is high in many emerging markets, for example, logistics costs are estimated to be around 14% of GDP in India,5 18% in Brazil6 and 27% in the Philippines.7 This makes green logistics an economic growth driver in emerging markets through lowered transport and inventory costs. Green logistics also drives local industry growth through improving reliability and expanding small and medium-sized enterprise (SME) market access. These efficiency gains also drive significant job creation and cultivate greater social inclusion. Environmentally, green logistics mitigates local pollution, minimizes waste through circular packaging practices and accelerates the adoption of renewable energy. Collectively, these benefits highlight the importance of ensuring that the transition is inclusive. Emerging markets show different levels of maturity, reflecting their development stage, resource endowment and policy priorities. Beyond the shared areas of focus, distinct innovation pathways are shaped by local contexts: –China demonstrates how to shift consumer behaviour at scale and upgrade market practices within a vast domestic market. –Viet Nam offers a pathway for export-oriented economies that rely heavily on cross-border logistics to undertake a green transition. –United Arab Emirates, as a global transport hub, is using green transformation to sustain long-term competitiveness and unlock new growth opportunities. –Saudi Arabia shows how integrated, cross-sector planning can build a modern logistics sector and catalyse innovation through targeted pilots. –Brazil highlights the importance of context- specific strategies that harness its bioenergy resources effectively.Note: *Augmented reality Source: BCG analysis. Green Logistics Innovation for Emerging Markets: Driving Competitiveness and Shared Value 9