Being one of the critical enabler of economic activity, road freight remains one of the most fragmented and energy-intensive components of the transport sector in India. During 2024-25, the transport sector accounted for 24% of the nation’s total final energy consumption, with road transport alone consuming nearly 85% of the domestic energy demand[1] and facilitating 66% of the total freight movement. [2]
Despite accounting for only 3% of all vehicles, the trucking sector contributes over a third of CO2 emissions linked to the transportation sector.[3] As per TERI analysis, emissions from medium and heavy-duty vehicles (MHDVs) are expected to increase from 27% in 2019-20 to 35% by 2030-31. Given the scale and growth of emissions from road freight, particularly MHDVs, mitigation efforts in this segment must be prioritised.
India’s freight decarbonisation efforts have largely focussed on supply side regulations, such as stricter emission norms and fuel economy standards. However, demand side strategies are often left to shippers, carriers and logistics service providers (LSPs). A Clean Freight Program can complement existing regulations by encouraging collaboration, emissions measurement, and adoption of cleaner logistics practices.
Missing link: Standardised emissions accounting framework
A critical barrier to decarbonising road freight is the absence of a standardised freight emissions accounting methodology/framework tailored to the Indian context. Without credible baseline data and harmonised methodologies, it is difficult for stakeholders to quantify emissions, monitor progress or take informed decisions related to decarbonising freight operations. This gap also limits the ability of businesses to manage Scope 3 emissions (which feature in corporate sustainability commitments) and make informed procurement decisions. While SEBI has mandated the top 1,000 listed entities to report emissions, current disclosures indicate limited reporting of category-wise Scope 3 emissions.
Road freight is an ecosystem involving shippers, carriers, LSPs, financiers, and policymakers. If these stakeholders continue to operate independently, the transition will remain slow and fragmented. This is where learnings from Clean Freight Program comes into picture.
Global experience: Leanings for India
Many countries have addressed this challenge through voluntary clean freight programs that bring together shippers, carriers, and public institutions under a common emissions accounting and benchmarking framework. Instead of relying solely on regulations, they create transparency and reward operational efficiency and environmental performance.
These programs enable companies to compare emissions across logistics operations, improve fuel efficiency, identify opportunities for cleaner technologies, and establish credible reporting systems for supply chain emissions. They also foster collaboration between shippers and transport operators, creating market-driven incentives for decarbonisation. International clean freight programs have been illustrated in Figure 1.
Figure 1: International Clean Freight Programs
Source: TERI
The success of these initiatives demonstrates that credible measurement is often the first step towards meaningful mitigation. Businesses cannot effectively manage what they do not consistently measure.
There is an opportunity for India to institutionalise a voluntary Clean Freight Program (in a phased manner, starting with large shippers) for measuring freight emissions, allowing transparent benchmarking of carrier performance, and fostering a collaborative platform where major shippers voluntarily commit to reducing emissions across their supply chains.
The benefits extend beyond corporate sustainability. A well-designed Clean Freight Program can complement India’s climate and energy objectives by improving fuel efficiency, encouraging the adoption of cleaner vehicle technologies (such as electric trucks), strengthening emissions monitoring and verification, and potentially integrating with emerging market-based mechanisms such as the Carbon Credit Trading Scheme (CCTS). Most importantly, it can create a level playing field where environmental performance becomes a competitive advantage rather than an afterthought.
But its success will depend on the willingness of major shippers[4] to collaborate. A collective commitment from industry leaders to measure, disclose, and reduce freight emissions can transform fragmented sustainability efforts into collective benefits for businesses, transport operators, and the environment.
A key lesson from successful international programs is that shippers must be at the centre of the transition. The companies that procure freight services (such as large manufacturers, retailers, e-commerce platforms, and industrial producers, etc.) influence how goods are moved and can drive change by rewarding carriers that adopt fuel-efficient practices, digital monitoring systems, and low-emission technologies. When large shippers act collectively, they create a strong market signal that encourages investment in cleaner logistics solutions.
Collective action and shippers’ commitments
While many Indian companies have announced ESG ambitions and net-zero targets, freight emissions continue to be managed in isolation. A national Clean Freight Program could address this gap by bringing together major shippers, carriers, LSPs, industry associations, and government agencies under a common emissions accounting and benchmarking framework.
A voluntary alliance of major shippers committed to measuring, disclosing, and reducing freight emissions could create the scale needed to transform the sector. India has successfully used collaborative platforms to drive transformation in sectors such as energy efficiency and renewable energy. Beyond supporting Scope 3 reporting, such a program can incentivise carriers to adopt fuel-efficient and zero-emission technologies, improve fleet level operational efficiency, reduce logistics costs, and enhance transparency through standardised emissions reporting. By leveraging market driven procurement signals and credible benchmarking, a shipper-led Clean Freight Program has the potential to become a key institutional mechanism helping businesses reduce Scope 3 emissions while making the country’s logistics sector more competitive, transparent, and future-ready.
The path to low carbon freight begins with credible measurement and collective action. A voluntary Clean Freight Program offers India a practical opportunity to align business incentives with national climate goals and build a future ready freight ecosystem.
[1] MoSPI. (2026). Energy Statistics India 2026. Available at
<https://www.mospi.gov.in/uploads/publications_reports/publications_reports1774859128428_05e8ebb5-0598-4112-844c-bbe00e04aab8_33rd_Edition_of_ES-2026_Final.pdf>
[2] NITI Aayog.(2026). Scenarios Towards Viksit Bharat and Net Zero – Sectoral Insights: Transport (Vol. 3) Available at
< https://www.niti.gov.in/sites/default/files/2026-02/Scenarios-Towards-Viksit-Bharat-and-Net-Zero-Sectoral-Insights-Transport.pdf>
[3] Office of the Principal Scientific Advisor, GoI. (2024). Bharat ZET Policy Advisory. Available at
<https://psa.gov.in/CMS/web/sites/default/files/psa_custom_files/Bharat%20ZET%20Policy%20Advisory.pdf>
[4] TERI identified major shippers for potential inclusion under a voluntary clean freight program. Details available at
https://teriin.org/sites/default/files/files/TERI_Clean_Freight_Program_Report.pdf
This opinion article is authored by Piyush Saxena. He is an Associate Fellow at The Energy and Resources Institute (TERI), where he works on projects related to heavy-duty vehicles, freight emissions, electric mobility, fuel efficiency standards, and carbon markets. All views expressed in this article belong to the author and don’t necessarily reflect those of Logistics Insider.
