The People’s Republic of China (PRC) is taking the green freight approach to improve fuel efficiency and reduce carbon emissions in the transport sector. With support from the World Bank and the Global Environment Facility (GEF), the country will step up efforts to shift freight transport from roads to railways and waterways, and improve urban logistics systems.

The World Bank announced last month the approval of an $8.2 million GEF grant for the project.

In a news release, the World Bank said the freight sector is a major consumer of energy in the PRC and has the highest growth rate of carbon dioxide emissions among all sectors. The project will help the country meet its nationally determined contribution under the Paris Agreement to prevent severe global warming. It will focus on the promotion of a multimodal freight transportation system and optimization of urban freight distribution.

The project will also pilot key policy, strategy and analytical tools in Guangdong and Hubei provinces and the municipalities of Yantai, Weifang, and Xiamen.

Read the news release from the World Bank.