LCVs contribute 40% of All-Logistics Related Emissions Says McKinsey Report

LCVs contribute 40% of All-Logistics Related Emissions Says McKinsey Report

The light commercial vehicles (LCVs) segment contributes almost 40 percent of all-logistics related emissions, compared to 5 percent from air freight or 21 percent from ocean freight finds a McKinsey study. On the other hand, trucks contribute 11 percent of emissions in logistics space. 

McKinsey analysis indicates that demand for green logistics could reach an estimated $350 billion (INR 29,158 billion) in 2030, comprising around 15 percent of total global logistics spend and conservatively not accounting for potential price premiums on green shipping.

The study found that among various factors that at present new decarbonisation technologies have a range of challenges beyond cost, such as disposal of residual assets, strains on OEM capacity, production-capacity limits on biofuels, and uncertainty around the total cost of ownership (TCO). Many incumbent companies are testing low-carbon technologies but are reluctant to scale until there is greater technological certainty.

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