Maruti Suzuki’s Gujarat rail project earns global carbon credit recognition
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Maruti Suzuki India Ltd. has secured global recognition for its Gujarat in-plant railway siding, which has been registered as the world’s first Modal Shift Transportation Project under the Verified Carbon Standard programme.
According to the release, the project has been registered with Verra, which runs the world’s largest voluntary carbon credit registry under its Verified Carbon Standard (VCS) programme. The initiative is expected to generate around 1.7 lakh carbon credits over a 10-year period from FY24 to FY33 by shifting vehicle dispatches from road to rail.
The emission reductions have been calculated using the AM0090 methodology under the Clean Development Mechanism of the United Nations Framework Convention on Climate Change. Following independent verification, Verra will issue the carbon credits under its VCS programme.
Global sustainability milestone
Calling it a key milestone, Hisashi Takeuchi, Managing Director and CEO of Maruti Suzuki, said, “This is a proud moment for Maruti Suzuki as our Gujarat in-plant railway siding is recognised as the world’s first Verra-registered Modal Shift in Transportation project.”
He added, “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.”
The company estimates that the modal shift will help reduce around 1.7 lakh tonnes of CO₂ equivalent emissions over the crediting period.
Rail push gathers scale
The Gujarat railway siding, operational since March 2023, has cumulatively dispatched over 6 lakh vehicles. It was inaugurated under the government’s GatiShakti programme. In addition, the company’s Manesar facility houses what it describes as India’s largest automobile in-plant railway siding.
The project is aligned with key United Nations Sustainable Development Goals, including climate action, decent work and economic growth, and good health and well-being.
With growing investor focus on environmental, social and governance metrics, the carbon credit issuance is expected to strengthen Maruti Suzuki’s sustainability credentials while offering potential value from voluntary carbon markets.