Maruti Suzuki Registers World's First Modal Shift Carbon Credit Project
170,000 tons over 10 years
2.8 million
580,000 vehicles
What Happened
Maruti Suzuki's initiative uses the in-plant railway siding at its Hansalpur Plant in Gujarat to dispatch vehicles by rail instead of truck. The project is registered under Verra's Verified Carbon Standard, making it the first of its kind. Emission reductions are calculated using UNFCCC Clean Development Mechanism methodology, and carbon credits will be issued after independent verification.
170,000 tonsover 10 years
From FY2023 to FY2032 across the project
Maruti Suzuki becomes first Indian automaker approved as an Automobile Freight Train Operator
Commences vehicle transportation by railway
In-plant railway siding at Hansalpur Plant begins operations
In-plant railway siding commissioned at Manesar Plant in Haryana
Record-high annual railway transport volume of over 580,000 vehicles; cumulative reaches 2.8 million vehicles
Why this matters
This allows Maruti Suzuki to earn carbon credits for shifting vehicle transport from trucks to rail, reducing CO2 emissions by an estimated 170,000 tons over 10 years and setting a precedent for similar projects globally.
Terms in This Story
- Modal shift
- Transporting goods by a more efficient mode, such as shifting from truck to rail, to reduce environmental impact.
- Verified Carbon Standard (VCS)
- A carbon credit certification program run by Verra that verifies emission reduction projects and issues tradable carbon credits.
- Carbon credits
- Permits representing the reduction of one ton of CO2 emissions, tradable in carbon markets.
- In-plant railway siding
- A dedicated railway track inside a factory for loading and dispatching goods directly by train.
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