GMS Green Freight Initiative (2013-2017)

The freight and logistics sector in the GMS plays a pivotal role in supporting the expansion of trade, and in turn, economic growth. A 2010 Core Environment Program study of the GMS East-West Economic Corridor – connecting Lao PDR, Thailand and Viet Nam - found that promoting green freight through improved logistics management and fuel efficiency measures could reduce GHG emissions and lower freight company fuel costs.

During the study, a detailed freight sector assessment was carried out and found that the widespread use of old, inefficient diesel-fuelled trucks – particularly in Lao PDR and Viet Nam – was largely responsible for high emissions.  Sector inefficiencies were seen as a compounding factor, characterized by a fragmented transport industry, especially for small-medium companies which lacked logistics management and capital investment.   A survey of trucking companies found that 25-50% of journeys were being run with empty loads.

In 2012, consultations were conducted with government agencies and small-medium trucking companies and associations to conceptualize a Green Freight Initiative to pilot approaches to reduce emissions. The $1.2 million initiative is being implemented in target provinces in each of the three countries, and will focus on the following interventions:

  • Increase access to financing for green technologies and truck fleet upgrades
  • Improve logistics management to reduce empty running
  • Improve driver behavior to be more fuel efficient 

The project will establish a funding mechanism, and will work with 25 trucking companies in each country to reduce fuel use by 10% against a baseline. If the initiative proves successful, the Core Environment Program will work with stakeholders to investigate options for scaling up through climate change funding streams.


See also

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When Chea Leng learned about environmental impact assessment (EIA) in the mid-1990s it was a concept few in Cambodia knew much about. Two decades on, the country’s attempts to mainstream EIA have met with mixed results. But Leng, who is the deputy director of the Ministry of Environment’s Environmental Impact Assessment Department, believes that is soon going to change.

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Risk Financing for Rural Climate Resilience

31st March 2018
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In 2014, the CEP conducted a study to assess how risk financing could help strengthen the climate resilience of rural households.  Such financing mechanisms have been set up in other parts of the world, but little was known about their potential in the GMS until this study.

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