The ESG Push: Powering A Greener Future For Cold Storage In India
In the future, India's cold chain industry is poised to shift from being high-consumption utilities to being circular, intelligent, and sustainable infrastructure
As India speeds towards its Net-Zero and ESG objectives, perhaps one of the most energy-intensive but under-leveraged industries, cold storage, is facing a transformational crisis. Conventionally driven by heavy electricity consumption, cold storage warehouses use as much as 25 kWh of electricity per square foot annually, with over 70% of that demand met by refrigeration alone. This means high operational expenses and high carbon footprint concerns now firmly in the limelight of sustainable development.
By way of response, the Government of India, through the Ministry of Agriculture & Farmers Welfare, has come out with national guidelines for solar-powered cold storage. Rolled out in early 2025, these units come equipped with Thermal Energy Storage systems capable of holding critical temperatures (-5°C to 4°C) day and night, allowing for constant refrigeration with minimal dependence on the grid. (As per Ministry of Agriculture & Farmers Welfare)
This transition has already been seen in rural India, where 1,400+ solar cold storage units have been installed for smallholder farmers through April 2025. These distributed units are proving critical in post-harvest loss management in terms of minimizing food waste in vegetables (by 4.87–11.61%) and fruits (by 6.02–15.05%), as reported by the Ministry of Food Processing Industries. Through facilitating greater shelf life and reducing wastage, they not only promote food security but also farmer revenues, upholding the twin objectives of sustainability and rural empowerment.
Meanwhile, the Bureau of Energy Efficiency (BEE) is adding cold storage equipment and deep freezers to the Star Labeling scheme. These reforms empower stakeholders to make informed choices and push market penetration of energy-efficient technologies. There are also new technical standards in development aimed at maximizing energy efficiency without affecting product quality, as per Bureau of Energy Efficiency (BEE).
The economic rationale for ESG-compliant cold storage is no less compelling. A 2025 Research and Markets report estimates India's cold chain market to grow from ₹2 lakh crore to ₹5 lakh crore by the year 2030, driven by increasing demand in e-commerce, pharmaceutical, and organized retail. Reduced energy usage directly converts to lower OpEx and superior ROI for both public and private players.
Technology is at the center of this shift. IoT-based monitoring technologies now offer real-time data regarding temperature, energy use, and asset condition to facilitate predictive maintenance and maintain product integrity, while at the same time driving efficiency in operations.
In the future, India's cold chain industry is poised to shift from being high-consumption utilities to being circular, intelligent, and sustainable infrastructure. The cold chain facilities will not only help avoid food waste and reduce environmental footprint, but also earn carbon credits, save water, and create long-term economic resilience for supply chain players.
The way ahead needs to be sustained cooperation among industry captains, technological innovators, and policy makers. But this much is certain: the cold chain industry is no longer merely about preservation but progress. And with the right investment and innovation, it can become a model for ESG-driven industrial growth in India.
Views are personal
What's Your Reaction?
