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Tesla is developing an all-electric battery-powered Class 8 semi-truck.


Policy & Compliance


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planning than technical measures such as better vehicle aerodynamics. In the main this is because the former measures are easier to implement quickly and offer additional benefits, such as driver productivity and greater transparency. In many ways these measures are well known


Carbon reduction in the road freight sector


Pressure will continue mounting on the ever expanding logistics sector to cut its carbon emissions. However, research has found very differing attitudes between large and small operators towards cutting emissions


The logistics sector, and especially the roadfreight sector, is in one particular sense unusual in today’s business environment. It has proven highly resistant to consolidation and there are numerous small operators competing for business from larger competitors, or in many cases acting as a sub-contractor on their behalf. The scale of the problem is highlighted by the fact that roadfreight, unlike other sectors such as electricity generation, has actually increased its emissions since 1990. Also, 20% of greenhouse gas (GHG) emissions are generated by heavy duty road vehicles.


Road freight growth


Given rising consumer demand, it is estimated that in Europe road freight demand will increase on average by 1.1% per annum between now and 2050, or 47% over the whole period. Current statistics show that in Europe, 99% of


all hauliers employ less than 50 staff. This makes it more important than in other sectors to engage with small and medium-sized enterprises (SMEs) in order to reduce carbon in the transport fleet. Whilst 66% of SME hauliers accept that decarbonisation is important, and 77% view fuel


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efficiency as important in daily operations, there are barriers to taking the necessary steps to achieve change. There is a sharp difference of view between


large and small road operators, with the majority of the latter group believing that their efforts to implement improvements yielded few business benefits for them. The sector is extremely price sensitive and many smaller operators associated implementing environmental improvements with high upfront costs, with uncertain potential benefit and return on investment. One of the most confusing issues for many is how to measure and report their GHG emissions, with around 60% of the carriers with fewer than 10 vehicles having no emission measurement capability. At the other end of the scale, only 10% of truckers operating over 100 trucks lack these capabilities. These are worrying statistics because there is a consensus that only by measuring emissions can meaningful reduction targets be set. In general terms, the smaller haulier is more


likely to adopt an operational measure to reduce emissions such as driver training, fuel consumption monitoring and better route


and proven, whilst the benefits of other measures are not so clear. In particular, there is considerable doubt about the availability, distance, and infrastructural requirements of the different types of alternative powertrain technologies. To many there is no meaningful alternative to the current diesel powerplants. This knowledge is further strengthened because it is well known that EU legislation requires trucks produced from 2025 to be at least 15% more fuel efficient than the average new truck built in 2019, and 30% by 2030. Small hauliers have identified four main factors affecting business – and in particular decarbonisation plans.


The first and most important factor by some way was cost saving, which reflects very low profit margins in a highly competitive market. It was anticipated that the return on investment of such measures would be very high. The second most important factor and highest ranked among external factors, ranking in front of legislation and public opinion, was customer demand. Truck manufacturers were considered the third most important driver of decarbonisation in the road freight sector. Of the factors internal to the carriers, company culture and values were highly rated and were the fourth most highly rated influence.


Encouraging change There are external stakeholders who, like government, can legislate or provide grants to force or encourage change. As we have seen, customers and HGV manufacturers can significantly influence the smaller haulier’s decision-making process. One issue that no one really touches on is the


simple fact that many find the calculation of emissions to be extremely complex and in many ways impractical.


The same is even more true of freight


forwarding with multiple modes and additional functions, such as warehousing, to factor into calculations. Much of this needs to be simplified and de-mystified, and greater consideration should be given to using inexpensive IT solutions to provide accurate calculations. Two things are clear – firstly that the world needs to reduce the amount of greenhouse gases such as carbon dioxide it generates and, secondly, that all parties must work together to achieve this aim.


March 2021


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