GLIZP is aimed at widespread application of energy efficient green logistics technology (techniques and practices) in the logistics industry in Zhejiang Province. A barrier removal approach will be applied to achieve effective and extensive application of green logistics concepts in the province's logistics industry. The project is expected to transform the logistics industry in Zhejiang Province into one where the interplay of operational efficiency, environmental friendliness and energy efficiency/conservation ensures sustainable operation and development of the logistics industry in serving the commercial and manufacturing sectors in the province in the collection, storage and delivery of goods in an efficient, energy conserving, waste-reducing manner. This will be achieved through the implementation of activities grouped into three project components: (1) Policy and Regulatory Support for Green Logistics, (2) Green Logistics Systems Demonstration, and (3) Capacity Building and Promotion of, Green Logistics Systems. The project is financially supported through the GEF (USD 2,913,700) and co-financed by the UNDP (USD 250,000), the Zhejiang Provincial Government and Fuyang City Government (USD 3,480,000) and from partner logistics companies (USD 8,400,000). The total project cost is USD 15,043,700. The project is expected to benefit not only the province, but also the entire logistics industry in China in general. The estimated potential direct CO2 emission reduction attributed to the project is 1,749,273 ton CO2, which translates into a unit abatement cost of US$ 1.67/ ton CO2.