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Environmental issues – are they more challenging than Brexit?


The election of a European Commission president with a green agenda will inevitably bring significant changes to European transport policy, including cost increases, but also opportunities.


BIFA recently published an article regarding the need for the transport and logistics industry to reduce its emissions. Other sectors such as power generation, by moving to renewables, have been more successful than the transport sector in doing so. At its simplest level, it seems easier to reduce emissions in a static environment than a mobile one. Whilst Extinction Rebellion has caught the


headlines focusing on the problem, the reality is that there is no simple solution and much will depend on changing consumer habits, when in fact all current predictions are pointing to a growth in international trade in goods and private travel. Transport accounts for 25% of Europe’s greenhouse gas emissions, and a reduction of 90% by 2050 is required for the sector to play its part in meeting Europe’s emissions reduction target. However, a start has to be made, and our sector will need to play its part. In many ways things will have to be done differently – for


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instance more goods may be moved in bulk between cities with road providing the final leg from terminal to final delivery. Particularly for larger consignments, longer delivery times may have to be accepted, because such networks will not be as quick or flexible as the door-to- door service possible using trucks and vans. It is envisaged that the transport sector will be


forced to significantly cut emissions following the election of future European Commission president Ursula von der Leyen. She has made a Green Deal the platform of her presidency. But while there will be inevitable cost hikes and significant change, there are also opportunities – or commercial imperatives. The EU has long based its environmental policies on “user pays, and polluter pays principles” and the commission will introduce an energy tax, renew its Emissions Trading Scheme and reduce aviation exemptions. However, there is greater emphasis on the use


of technology; one of the main pillars of change is digitalisation and the reduction of inefficiency in the supply chain. The most commonly cited example is the need to address trucks returning empty from making a delivery. However, this is a problem that the industry has failed to resolve for many years due to the simple reason that there is more freight to be transported in one direction than the other.


Green Deal The Green Deal will see paperless freight transport across modes, countries and supply chains, with a harmonised EU framework. It includes a “maritime single window” to reduce bureaucracy and paperwork, while digitalisation it is argued will boost automation, optimisation of assets and new logistics concepts. The EU is anxious to engage with business, an


official stating: “We have to listen very carefully to the sector, and not over-regulate.” It is envisaged that the next five years will be essential in formulating policies. After speaking to BIFA Members, it is clear that there is considerable confusion about this issue and the correct course of action: • How to measure carbon emissions? And against what criteria?


• What is the correct type of fuel to use and its availability?


December 2019


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