Leaders of Gulf Cooperation Council (GCC) countries have committed to making their economies more environmentally sustainable. The transport and logistics (T&L) sector is pivotal in this transformation due to its substantial emissions footprint and interconnections with other industries. Achieving meaningful carbon reductions in T&L will require a paradigm shift beyond incremental technological changes, demanding coordinated action across the value chain.
A region-wide commitment to decarbonize
By 2021, GCC countries pledged to achieve net-zero carbon emissions by 2050 or 2060, reinforced by initiatives like the UAE’s ALTÉRRA investment fund and Saudi Arabia’s Green Initiative. These steps underscore the region’s dedication to addressing sustainability challenges, recognizing the need for proactive efforts to prevent rising emissions. With transport accounting for about one-quarter of global greenhouse gas emissions, T&L offers critical opportunities for innovation and impact.
Globally, the transport and logistics sector accounts for around a quarter of emissions
Global CO2 emissions by sector (gigatons, 2019–22)
2019-22
logistics
Key areas for action
Cross-border logistics activities are largely governed by international regulations. GCC countries need to align with global standards, such as the International Maritime Organization’s Energy Efficiency Existing Ship Index and ICAO’s CORSIA for aviation emissions. By fostering innovation in alternative fuels like green hydrogen and localizing industries such as shipbuilding, the GCC can lead in sustainable T&L practices. Developing low-carbon fuel infrastructure and green shipping corridors at regional ports will further enhance sustainability.
Domestic logistics, being under national control, provides significant opportunities for decarbonization. Initiatives include:
- Transitioning to electric and alternative-fuel vehicles.
- Adopting green warehouses with energy-efficient technologies.
- Shifting last-mile delivery to electric bikes or drones.
- Reimagining supply chain practices to prioritize sustainability over cost and speed.
A holistic supply chain management model balancing efficiency, cost, and environmental impact is essential. This entails:
- Moving from just-in-time delivery to optimized capacity management.
- Consolidating loads and optimizing routing for reduced emissions.
- Encouraging multimodal deliveries by integrating rail and maritime transport.
A collaborative agenda for decarbonizing T&L
Stakeholders across the T&L ecosystem must collaborate to achieve decarbonization:
Governments
- Support sustainable practices by choosing environmentally conscious suppliers.
Carriers and logistics providers
- Adopt international standards, optimize operations, and deploy electric fleets.
Cargo owners
- Balance rapid delivery expectations with sustainability goals using predictive analytics.
Consumers
- Support sustainable practices by choosing environmentally conscious suppliers.
The GCC’s net-zero ambitions by 2050 or 2060 require collective efforts from governments, businesses, and society. The T&L sector’s critical role in reducing emissions and influencing other industries makes it a priority for targeted and systemic changes. True transformation hinges on adopting a new logistics paradigm where sustainability takes precedence. Together, stakeholders can redefine the T&L sector’s role in achieving a net-zero future.
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