Business News | Maruti Suzuki's In-plant Railway Siding in Gujarat Becomes World's First Modal Shift Project to Generate Carbon Credits

New Delhi [India], February 25 (ANI): Maruti Suzuki India Limited's in-plant railway siding in Gujarat became the world's first modal shift transportation project to generate carbon credits under the Verified Carbon Standard (VCS) program of Verra. The automobile manufacturer announced on Wednesday that the project is registered to reduce approximately 1.7 lakh tonnes of carbon dioxide equivalent emissions over a 10-year crediting period starting from the 2023-24 fiscal year.

The project earns these credits by shifting the dispatch of vehicles from road transport to rail, which is a more sustainable logistics mode. According to Maruti Suzuki India, the emission reductions were quantified using the AM0090 methodology, which is prescribed under the Clean Development Mechanism of the United Nations Framework Convention on Climate Change. Verra, a global voluntary carbon credit registry, will issue 1.7 lakh carbon credits to the company following an independent verification of the emission savings.

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Hisashi Takeuchi, Managing Director and CEO of Maruti Suzuki India Limited, stated that the recognition marks a global benchmark in sustainable logistics. "This is a proud moment for Maruti Suzuki as our Gujarat in-plant railway siding is recognized as the world's first Verra-registered Modal Shift in Transportation project. By transitioning vehicle movement from road to rail, the project demonstrates how scale, operational efficiency and environmental responsibility can seamlessly go hand in hand. Leveraging the inherent efficiency of rail transport, the Gujarat in-plant railway siding has significantly reduced the carbon footprint of our logistics operations, while also easing road congestion and lowering overall fossil fuel consumption. We are honoured by the recognition from Verra. This milestone marks a significant step forward in our sustainability journey and reinforces our commitment to setting industry benchmarks that align with India's strong steps towards net zero emissions."

Since its operations commenced in March 2023, the company dispatched more than 6 lakh vehicles from the Gujarat railway siding. The facility at Hansalpur, Gujarat, was inaugurated by Prime Minister Narendra Modi in March 2024 as part of the GatiShakti program. Following this, the company also launched a larger automobile in-plant railway siding at its Manesar facility in June 2025.

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The company reported that this initiative aligns with United Nations Sustainable Development Goals, specifically focusing on climate action, decent work, and good health. "The project contributes to United Nations Sustainable Development Goals (SDGs), focused on Good Health and Well-being (SDG 3), Decent Work and Economic Growth (SDG 8), and Climate Action (SDG 13)," it said. (ANI)

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