BANGKOK, THAILAND (2 June 2016) – “Greening” road freight in the Greater Mekong Subregion (GMS) will help participating countries achieve their Sustainable Development Goals, as well as providing economic benefits, delegates at a workshop in Bangkok heard today.

The 2-day Green Freight and Logistics in Southeast Asia regional workshop is co-organized by the Asian Development Bank (ADB) and Gesellschaft für Internationale Zusammenarbeit (GIZ). It has brought together government, private sector, and development organization representatives to discuss and develop regional and national agendas for scaling up green freight approaches.

“Green freight approaches can greatly reduce fuel costs for transport companies, along with reducing their carbon footprint, which will help countries meet their commitments to lower greenhouse gas emissions,” said Pavit Ramachandran, an ADB Senior Environment Specialist.

More than 80% of goods in the GMS are transported by road and ageing fleets of trucks are leading to high fuel costs which is hurting many companies, particularly small and medium-sized ones. In addition, inadequate driver training and weak logistics is adding to inefficient fuel use.

“Targeting fuel efficiency gains for small to medium-sized truck companies is essential,” said Roland Haas, Program Director, for GIZ. “We need the right balance of regulations and incentives to ensure companies have access to technologies, driver training, and improved logistics management. Financing will be a key challenge.”

During the workshop a €2.4 million project to support green freight in the GMS was also announced. Funded by the European Union, and implemented by GIZ, the project will build on pilot work conducted by ADB’s GMS Core Environment Program.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.