WEEKLY NEWS


ACCELERATING GREEN CORRIDORS FOR COMPETITIVE TRADE


AIR CARG O WEEK


BY Ajinkya GURAV


AS sustainability becomes a non-negotiable element of global trade, the airfreight sector—responsible for an estimated 2 percent of global CO2 emissions—finds itself at a strategic crossroads. Amid rising


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expectations from regulators, customers, and investors alike, the sector is under growing pressure to develop credible environmental, social, and governance (ESG) frameworks—not as an afterthought, but as core infrastructure for trade competitiveness. This urgency was brought into sharp focus during the Air Cargo Forum India (ACFI) Annual Conclave


2025 in a pivotal session titled “Green Corridors and Sustainable Trade Lanes – Airfreight’s ESG Imperative.” The panel, comprising airport operators, freight integrators, ground handlers, and global policy voices, explored the complex path towards a decarbonised cargo supply chain—and the institutional gaps that remain.


Gateways to market access Sustainability, once a reputational bonus, is now becoming a gatekeeping condition for trade access— particularly with Europe and North America. The European Union’s Emissions Trading System (ETS), which from 2024 covers all intra-European flights, and ICAO’s CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), entering its first mandatory phase in 2027, will increase compliance pressure on cargo operators from non-OECD countries, including India. “The decarbonisation of airfreight is not just about climate—it’s about staying eligible for trade,”


said Glyn Hughes, Director General of The International Air Cargo Association (TIACA). “If India’s airfreight industry cannot report, reduce, and verify emissions in line with international standards, its access to premium trade lanes will diminish.” Hughes urged the Indian government and private sector stakeholders to accelerate alignment with reporting protocols and carbon offsetting schemes. Inaction, he warned, would amount to regulatory non-alignment—effectively creating trade barriers.


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From infrastructure to climate enablers Kadhir Kadhiravan, Deputy CEO of GMR Hyderabad Airport, highlighted the evolving role of airports as environmental intermediaries. “We are no longer just physical infrastructure—we are climate infrastructure,” he said. Hyderabad Airport, widely recognised for its early green investments, has reduced emissions at


its cargo terminal by 17 percent since 2022. This was achieved through the electrification of ground support equipment


(GSE), increased solar capacity, and energy-efficient cooling systems. Yet


Kadhiravan cautioned against premature celebration. “We have built the pilot projects, but scaling this across India’s cargo airports requires standardisation, policy support, and investment in SAF [sustainable aviation fuel] infrastructure.” Notably, India’s SAF availability remains negligible. According to the International Renewable Energy


Agency (IRENA), India produced under 50,000 tonnes of alternative aviation fuels in 2023, compared to the EU’s 1.5 million tonnes.


The sector’s emissions blind spot While aircraft emissions attract the most regulatory scrutiny, emissions from ground operations remain largely unregulated—despite accounting for up to 30 percent of airport-related emissions, according to industry estimates. “Handling operations are often the ‘invisible carbon’ in air logistics,” noted Anupama Kachhap, Head


of Commercials at Worldwide Flight Services (WFS). “But if we are serious about ESG, they can no longer remain a blind spot.” WFS data suggests that electrified ground handling equipment can reduce on-site emissions by 40


percent. Yet India’s adoption remains below 15 percent, mainly due to fragmented ownership models and limited access to capital. Kachhap proposed linking ESG performance to concession renewals and cargo terminal access, using commercial levers to drive behavioural change.


ACW 28 JULY 2025 www.aircargoweek.com


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