Maruti Suzuki secures VCS registration for Gujarat rail logistics shift project

Maruti Suzuki India Limited has received registration under Verra’s Verified Carbon Standard for its Gujarat in-plant railway siding, marking it as the first modal shift transportation project recognised under the programme. The initiative is expected to generate about 170,000 carbon credits over a 10-year period.

Maruti Suzuki India Limited has obtained registration for its Gujarat in-plant railway siding under the Verified Carbon Standard administered by Verified Carbon Standard (VCS) program of Verra, according to an official announcement.

The initiative has been recognised as the first modal shift transportation project globally to qualify under the VCS framework.

The project involves transitioning vehicle dispatches from road carriers to rail transport, reducing logistics-related greenhouse gas emissions. Over the crediting period from FY2023-24 to FY2032-33, the company expects to generate approximately 170,000 carbon credits following third-party verification of emission reductions. The quantification has been carried out using the AM0090 methodology under the Clean Development Mechanism framework of the United Nations Framework Convention on Climate Change.

The development is significant for India’s automotive and logistics sectors, where outbound vehicle transportation constitutes a substantial share of supply chain emissions. Rail-based distribution can improve fuel efficiency, lower congestion and reduce exposure to volatile road freight costs, while supporting national decarbonisation objectives.

For manufacturers, freight operators and carbon market participants, the registration signals expanding opportunities in transport-related carbon credit generation. It also illustrates how industrial companies can monetise verified emission reductions while strengthening environmental, social and governance performance metrics relevant to institutional investors.