India’s e-commerce sector is at a juncture where business growth and climate action can increasingly coexist—a reality best embodied by Udaan, a leading Indian e-commerce platform. While Udaan’s core operations focus on streamlining small business procurement across the country, it has recently emerged as a pioneer in the fight against climate change, serving as a model for startup-led green tech innovation in India’s rapidly evolving carbon economy.
The Carbon Challenge and Opportunity
India faces significant challenges as one of the world’s fastest-growing economies, with carbon emissions from industry and logistics rising each year. Against this backdrop, national initiatives such as the Indian Carbon Market Framework and the Green Credit Programme are catalyzing both regulation and opportunity. The core drivers? Ambitious net-zero targets (India aspires to achieve net-zero by 2070), rising costs from carbon-intensive imports, and looming international trade barriers like the EU’s Carbon Border Adjustment Mechanism, which increases scrutiny on exporters.
Udaan’s Approach: Blending Tech, Logistics, and Climate Action
Udaan is uniquely poised to leverage the “next wave” of carbon tech, integrating carbon capture, utilization, and storage (CCUS) into its logistics and supply chain networks. By collaborating with climate startups, Udaan invests in micro-forestry initiatives, partners on renewable energy for warehousing, and supports pilot projects that convert captured CO2 into valuable products (like biofuels and building materials). Several of these projects are verified under international standards, generating tradeable carbon credits—a powerful new revenue stream for Indian startups.
The company’s green logistics vision includes piloting low-emissions vehicles, facilitating the use of green building materials, and optimizing route planning to minimize fuel usage. Udaan’s warehouses have implemented on-site solar through partnerships with startups, reducing both emissions and operating costs.
Ecosystem Impact: Startups, Policy, and Carbon Credits
Beyond immediate operational gains, Udaan is also helping to foster a “circular innovation ecosystem.” By offering microgrants and order guarantees to green startups—particularly those focused on carbon reutilization or alternative fuels—the company is driving demand for new climate technologies. This aligns with India’s ambitious renewable energy roadmaps in states like Rajasthan, Gujarat, and Tamil Nadu, and the government’s supportive stance towards CCUS and low-carbon hydrogen.
The company’s procurement policies incentivize suppliers to participate in carbon sequestration projects—planting trees, restoring degraded lands, and even employing digital MRV (Measurement, Reporting, Verification) tools for transparent tracking of impact. Udaan is thus uniquely positioned to generate and utilize carbon credits, creating both environmental and business value.
National and Global Significance
India’s policy support is accelerating, with a regulated carbon market set to launch by 2026. This will allow companies like Udaan—and the entire ecosystem of startups it nurtures—to trade credits, offset emissions, and comply with increasingly strict international climate standards. The synergy between e-commerce scale and startup agility is putting India on track to become a global leader in low-carbon business innovation.
The Road Ahead
While scaling carbon reutilization nationwide will require persistent innovation and infrastructure investment, Udaan’s journey demonstrates how Indian corporates and startups can lead the way. With the right blend of technology, partnerships, proactive policies, and market incentives, startups like Udaan are poised to make a significant dent in India’s emissions—while building a new era of sustainable economic growth.
