It accounts for 50% of emissions in the delivery sector. As India’s e-commerce market skyrockets, we’re hurtling toward 8 million tons of CO2 emissions by 2030 in the last mile of delivery alone—equivalent to 1.6 million petrol cars driven for a year or 20 gas-fired power plants. This is our moment to drive change.
Transport sector accounts for at least a quarter of all global emissions and the exponential growth of e-commerce, food delivery, and hyperlocal logistics has led to a substantial increase in last-mile delivery operations worldwide as a sub-set of overall transportation sector.
In India, the e-commerce sector has witnessed a remarkable doubling in size over the five years leading up to 2020. The surge in demand for delivery of goods is set to propel the last-mile delivery market, with an estimated growth of $165.6 billion between 2023 and 2027.
The Indian e-commerce market is expected to grow 10X from current levels of 4 billion parcels delivered per year to 40 billion parcels delivered a year by 2030.
Total annual emissions from the sector is expected to grow to 8 million (80 lakhs) tons of CO2 eq. by 2030 (This is the equivalent of the emissions from 1.615 million (16.5 lakhs) petrol cars driven for a year)
Simultaneously, India is emerging as a trailblazer in the Global South, showcasing progress in the adoption and implementation of electric vehicles (EVs) for last-mile deliveries. This positions the country on the cusp of assuming decisive leadership in policies, operationalisation, and the widespread uptake of EVs.
Recognizing the environmental and climate implications as well as opportunities, Niti Aayog has identified the last-mile delivery sector as a critical area for reducing dependence on imported oil, mitigating emissions, and combating air pollution, especially in urban centers.
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