What is Green Logistics in UAE?
With a sustainability wave in UAE, every sector is poised to show a significant growth rate under the sustainability category. Moreover, the UAE cold chain and logistics sector is also in a rush to reconstruct its dynamics by putting the sustainability agenda first.
The present cold chain solutions give very little importance to green practices which ultimately lead to excessive energy consumption, carbon emissions and massive waste generation - posing a significant threat to the earth in every negative way possible.
Read our blog on Sustainability in the Cold Chain Industry.
Green Logistics or Eco-friendly logistics is the systematic approach to lowering the environmental impact that may occur during the delivery and logistics process.
The green logistics market in the UAE is expected to reach a projected revenue of US$ 28,067.6 million by 2030. Green logistics includes the carbon footprint of the supply chain, which deals with carbon emissions from waste management and waste disposal, packaging, recycling, reducing energy consumption, etc.
Every other company in the world emphasises a sustainability agenda pledging zero-net targets to go as green as possible.
Today, we will see why green logistics is important to us and how this is fast-paced in the UAE.
The green logistics market in the UAE is anticipated to reach US$ 28,067.6 million by 2030 and the results are expected to even go higher in the forthcoming years - thanks to the ultimate aim of reducing the carbon footprint and tackling climate change.
UAE's Importance to Eco-friendly Logistics is as follows,
1- UAE's Government Vision - The UAE's government along with the entire Middle Eastern Government is one of the most forward-looking, strong, influential and acceptable governments in the entire world that acknowledges the need to have sustainability at the forefront.
In a recent report, it has been reported that the UAE is very well utilizing Electric vehicles (EVs), e-cargo bikes, electric trucks etc. to dispatch their goods and services.
Recently, FedEx Express - which is the world's largest express transportation company has brought the first three EVs to its fleet in the UAE.
Not only they are supported by the Government but also hold the power to reduce the environmental impact.
● UAE Vision 2021 - UAE's green logistics initiative aligns with UAE's Vision 2021 where it strives to create an environment which is safe, affordable and accessible for all the logistics infrastructure.
● UAE's Net-Zero Strategy - The UAE's Green Logistics effort aligns with the UAE Net Zero 2050 strategic initiative which states we must be ready to tackle greenhouse gas (GHG) emissions and limit the rise in global temperature to 1.5 C compared to pre-industrial levels with proper plan of action. If you want to know more about UAE's Net-Zero Strategy, Click Here.
2 - Global Competitiveness - UAE is strongly leading by example and we get to see sustainability - in every other sector - thanks to its visionary government putting a lot of effort. Into making a safe space to stay by implementing - digital readiness, a stronger sustainability agenda, strategic vision, clean energy initiatives and logistics waste management techniques.
To learn more about what the UAE is doing to enable a sustainable approach - read the UAE Logistics Landscape.
3 - Ample of Technology - World Bank's Logistics Performance Index (LPI) which is an interactive assessment tool to identify opportunities and challenges in the trade logistics sector has marked UAE as a leading logistics hub positioning it at no. 12 in 2023.
UAE's green logistics sector is also based upon,
● Indispensable Technology - As the UAE progresses, so does its technology. With the use of Blockchain, Artificial Intelligence and the Internet of Things, UAE can achieve faster delivery routes, saving on resources and ensuring a transparent and eco-friendly supply chain. Read the report here.
● Strategic Investments - UAE is making a big investment in the field of cold chain and logistics industry. Masdar City Abu Dhabi and Sustainable City in Dubai are strongly supporting this effort. Moreover, the country's "We the UAE 2031" also supports the UAE's logistics sector to go green and eco-friendly.
In short, we see that the UAE is doing a lot of commendable work in the UAE's cold chain and logistics sector which is why it needs cost-effective and affordable - but very innovative technologies and solutions.
If you have them, do exhibit them at the Middle East's one of the most awaited and innovative cold chain and logistics expos - the 2nd World Cold Chain Expo 2025 Dubai.
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