Decarbonizing the Freight and Logistics Sector

Freight and logistics are essential for economic and social development and are projected to grow significantly, but prevailing practices are unsustainable. This discussion paper explores the initiatives being adopted, implemented, and proposed in each of the three subsectors in a logistical chain, the maritime subsector, the interurban freight and logistics subsector, and the urban freight and logistics subsector. The paper describes the initiatives, and more importantly, how they may need to be adapted and financed to achieve the decarbonization of the freight and logistics sector, while meeting the needs, opportunities, constraints, and the broader climate change-related and development challenges of least developed countries (LDCs) and small island developing states (SIDS). This report provides an overview of the main technical issues, commencing with the maritime subsector, then the interurban subsector, and finally the urban subsector. The report will highlight some of the interventions needed, and where possible the required policy actions and financial implications, with the final section proposing some final thoughts about the way forward and summarizing key recommendations