By Cecilia Butini

Volkswagen AG said Tuesday that its logistics subsidiary Volkswagen Group Logistics is planning to switch all of its freight transport managed by the German railway operator Deutsche Bahn AG to green electricity by the start of 2021.

The German car maker said the switch will cut more than 26,700 tons of carbon-dioxide emissions per year compared with the electricity mix normally in use. The company also plans to increase its railway transport up to 60% by 2022 from the current 53%, it said.

The green electricity provided by Deutsche Bahn comes from wind farms and hydropower plants, Volkswagen said.

Write to Cecilia Butini at cecilia.butini@wsj.com