Decarbonisation is becoming a trade imperative for India’s net-zero journey

As global supply chains recalibrate India’s pathway to Net Zero by 2070 is often framed as a climate commitment. In reality, it is rapidly becoming an economic and industrial transformation. As global supply chains recalibrate around low-carbon production, energy efficiency, and responsible logistics, decarbonisation is emerging as a defining factor in trade competitiveness. For a country positioning itself as a global manufacturing and export hub, the transition to cleaner energy and infrastructure is not only an environmental imperative but a strategic economic opportunity.

Decarbonising trade: The maritime imperative

As global supply chains move toward lower-carbon operations, sustainability of logistics systems is becoming just as important as the sustainability of manufacturing itself. Trade competitiveness is increasingly linked not only to what countries produce, but also to how efficiently and responsibly those goods move across borders.

Maritime transport sits at the centre of this transition. Over 80% of global trade by volume is carried by sea, making ports and shipping critical enablers of international commerce. For India, the dependence is quite substantial, with nearly 95% of the country’s trade by volume handled through maritime routes, positioning ports as vital gateways to economic growth and global market access.

Ports as catalysts of low-carbon trade

While shipping carries the bulk of global trade, ports connect maritime and land-based logistics. As a result, ports are emerging as pivotal actors in the decarbonisation of supply chains, with operational efficiency, digitalisation and cleaner energy adoption shaping the sustainability of maritime trade.

In this context, forward-looking ports are demonstrating what a lower-carbon operating model can look like in practice. Transitioning a significant share of the power consumption to renewable energy through long-term green power purchase agreements and on-site solar generation, electrification of cargo-handling equipment is what we have focussed on.

The maritime ecosystem is also exploring alternative low-carbon fuels and technologies to accelerate decarbonisation. Green hydrogen and hydrogen-derived fuels such as ammonia are being studied globally as potential options for shipping and port operations. At the same time, several ports are piloting battery-electric and hybrid harbour tugs to reduce emissions during port manoeuvring. In India, the Government’s Green Tug Transition Programme is an important step toward gradually replacing conventional diesel harbour tugs with cleaner propulsion systems.

Rail-based cargo evacuation is another critical lever. Moving a higher share of cargo through electrified rail corridors instead of road transport can dramatically reduce logistics emissions while improving supply chain efficiency. Integrating electrified double-stack rail connectivity and high rail-evacuation ratios demonstrate how infrastructure choices can significantly lower the carbon footprint of cargo movement.

Operational efficiency initiatives also play an important role. Continuous improvement frameworks that focus on eliminating process inefficiencies, inspired by Lean operational philosophies help reduce idle time, optimise asset utilisation and minimise energy waste across port operations.

Taken together, these shifts illustrate an important point that, decarbonisation in maritime   will not depend on a single technological breakthrough, it will be driven by a combination of- renewable energy adoption, electrification of equipment, efficient cargo evacuation systems and disciplined operational practices that reduce waste across the supply chain.

Carbon is entering trade policy

The global regulatory landscape is evolving rapidly. Measures such as the European Union’s Carbon Border Adjustment Mechanism (CBAM) signal a structural shift, where emissions are increasingly becoming a factor in international trade.

While current frameworks focus on specific sectors, the broader trajectory is clear. Supply chain transparency and embedded carbon are beginning to influence market access.

For Indian exporters targeting carbon-sensitive markets, the emissions profile of logistics networks will increasingly matter. Ports and logistics providers that can demonstrate measurable efficiency improvements will offer exporters a tangible competitive advantage. In this context, carbon performance is gradually becoming part of the export value proposition.

Policy momentum

Sustainability is increasingly becoming a defining pillar of modern port competitiveness. As the sector moves toward cleaner technologies, the regulatory environment will play an important role in accelerating this shift. In India, the government has already taken important steps through initiatives such as the National Green Hydrogen Mission and the Green Tug Transition Programme, which aim to position the country as a global hub for the production and use of green hydrogen. Building on this momentum, facilitating pilot projects, enabling infrastructure for alternative fuels, and supporting early adoption of emerging technologies will be critical to help ports, shipping operators and logistics providers advance their transition toward lower-carbon operations. Similar regulatory momentum is visible globally, with initiatives such as the European Union’s FuelEU Maritime framework and Singapore’s programmes supporting electric and hybrid harbour craft encouraging the adoption of cleaner maritime technologies.

At the same time, while India’s Net Zero roadmap is long term, infrastructure decisions are immediate. The objective is not to slow trade in the name of sustainability, but to strengthen India’s position in a global economy where carbon efficiency will increasingly influence capital flows, supply chains, and market access.

For ports and other heavy infrastructure assets that operate round the clock, the pathway to full decarbonisation is inherently complex. Achieving 100% renewable energy remains structurally challenging due to the intermittency of renewable sources, continuous operational requirements, and the need for reliable base-load power to support critical equipment and safety systems.

The next phase of sustainability for ports will therefore depend on ecosystem-level solutions, including advances in energy storage, greater availability of cleaner grid power, and the adoption of emerging technologies that enable the sector to progressively reduce its carbon footprint while continuing to support global trade demands.