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Maruti Suzuki Gujarat Railway Siding Becomes World’s First Modal Shift Project To Generate Carbon Credits

Maruti Suzuki’s Gujarat in-plant railway siding
Maruti Suzuki’s Gujarat in-plant railway siding

Maruti Suzuki India Limited has achieved a global sustainability milestone, with its Gujarat in-plant railway siding registered as the world’s first Modal Shift Transportation Project under the Verified Carbon Standard (VCS) program of Verra — the world’s largest voluntary carbon credit registry.

The landmark project focuses on shifting vehicle dispatch operations from road to rail, a more efficient and environmentally sustainable mode of transportation. Over a 10-year crediting period from FY 2023-24 to FY 2032-33, the initiative is expected to reduce approximately 1.7 lakh tonnes of CO2 equivalent (CO2e) emissions.

Maruti Suzuki’s Gujarat in-plant railway siding
Maruti Suzuki’s Gujarat in-plant railway siding

1.7 Lakh Carbon Credits Over 10 Years

The emission reductions have been quantified using the AM0090 methodology prescribed under the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC). Following independent verification of carbon savings, Verra will issue approximately 1.7 lakh carbon credits to Maruti Suzuki under its VCS program. This makes the Gujarat in-plant railway siding the first project globally in the modal shift transportation category to be registered under Verra’s framework.

Boost To Sustainable Logistics

By leveraging rail transport for vehicle dispatches, Maruti Suzuki has significantly reduced the carbon footprint of its logistics operations. Rail transport not only lowers greenhouse gas emissions per vehicle moved but also helps reduce road congestion and fossil fuel consumption.

Maruti Suzuki’s Gujarat in-plant railway siding
Maruti Suzuki’s Gujarat in-plant railway siding

Commenting on the achievement, Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India Limited, stated that the recognition marks a proud moment for the company. He noted that transitioning from road to rail demonstrates how operational efficiency and environmental responsibility can go hand in hand, while reinforcing the company’s commitment to sustainability and India’s broader net-zero ambitions.

Contribution To UN Sustainable Development Goals

Beyond carbon reduction, the project also contributes to multiple United Nations Sustainable Development Goals (SDGs), including Good Health and Well-being (SDG 3), Decent Work and Economic Growth (SDG 8), and Climate Action (SDG 13). With this initiative, Maruti Suzuki not only sets a benchmark in automotive logistics but also highlights how large-scale industrial operations can integrate sustainability into core business practices.

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