How can we modernise freight and improve our health?
Air pollution is a public health crisis that's being exacerbated by freight. So what policies can the government put in place to create a shift away from polluting diesel vans and improve air quality in towns and cities? Patrick Lee from Impact on Urban Health, shares his thoughts
It might not be a question we ask often, but how does freight affect our health? Air pollution is responsible for up to 43,000 deaths, as well as GBP700m in costs to the NHS, every year in the UK. It's a public health crisis that's being exacerbated by the freight used to transport goods and services around the country.
While freight underpins the flow of commerce, it produces harmful nitrogen oxide (NOx) and particulate matter (PM2.5 and PM10) emissions. Long term exposure to those chemicals has devastating effects on people's health, including by increasing the risk of cancer, heart disease, stroke, and dementia. Road freight usage is increasing.
Changes in consumer behaviour have led to an increase in demand for delivery services. Diesel van sales increased 82 per cent during the pandemic and petrol van registrations increased twofold. This trend looks set to continue as the number of parcels delivered is expected to double by 2030.
In cities like London, heavy good vehicles (HGVs) and large goods vehicles (LGVs) contribute to over 25 per cent of all transport-related NOx, PM2.5, and PM10 emissions. This is at a time when more than forty cities in the United Kingdom exceed WHO's limits for air pollution. Business productivity is suffering
Our outdated system for transporting goods and services isn't just bad for health. Business productivity also suffers from an inefficient freight delivery system. Many businesses require several shipments from multiple suppliers all in the same day, while drivers can spend an average of 71 hours a year in gridlock during peak hours.
More freight means more congested streets, more noise pollution, and more collisions. The social and environmental cost of diesel vans is eight times that of e-cargo bikes. Indeed, the hidden social and environmental costs associated with diesel vans in London total GBP2.46 billion annually.
All the while, freight patterns are reinforcing structural inequalities. The places we grow up, live and work determine how healthy we are as individuals. From London to Coventry, Swansea, and Belfast, road freight is excessively contributing to the breach of legal air pollution limits.
That air pollution disproportionately affects children, people living in lower income areas, people from minoritised communities, and people with pre-existing health conditions. Impact on Urban Health's work to reduce air pollution from freight At Impact on Urban Health, we believe that by removing the obstacles to good health we can make urban areas healthier places for everyone to live.
Our Health effects of air pollution programme supports equitable solutions for poor air quality in cities. For the last few years, we've been working with partners throughout Lambeth and Southwark to test ways to reduce air pollution from freight in cities. From those partnerships, we've learnt about what makes policies to reduce air pollution from freight cost-effective and impactful.
We would like to see the UK government consider implementing key policies. Taken together, they have the potential to encourage a modal shift away from polluting diesel vans and improve the air we breathe in towns and cities across the UK. Create a Last Mile Taskforce
Air quality and freight are competing competencies in the Department for Transport and the Department for Environment, Food and Rural Affairs. Meaningful change in the freight system will need joined up thinking at the national Government level. We propose a central Government Last Mile Taskforce - modelled on the Storm Overflows Taskforce, for example - bringing together relevant departments, government agencies and businesses, as well as those most affected by the health effects of air pollution.
As well as facilitating a more joined-up approach from government, a taskforce will enable the information-sharing required to implement informed future policies on freight. Develop a national, open network of pick-up and drop-off points A significant number of delivery vans are involved in last mile deliveries.
In London alone, home deliveries were responsible for an estimated 100 million kilograms of CO2 emissions between 2020-2021. To promote a modal shift towards an active last mile, parcel pick-up and drop-off (PUDO) lockers must be more widely available in residential areas, as well as on our high streets. According to research by Delivering London, increasing the number deliveries made to PUDO points in London from 17 per cent to 50 per cent would be the equivalent of electrifying 20 per cent of delivery vehicles in London.
That's why we recommend the Government takes steps to promote a national, "carrier-agnostic" or "open" network of PUDO points, with the aim of ensuring that 90 per cent of people in urban areas are within 250 metres of such a point. An open network would rationalise the currently fragmented network of carrier-specific PUDO points across the UK. As it stands, the siloed approach pursued by delivery companies is underserving communities.
In one study of a London borough, no PUDO operator had more than eight per cent of residents within 250 metres of a PUDO point, and just 21 per cent of residents were within 250 metres of any PUDO point. An open network, where anyone can collect a delivery from any point, has the benefit of increasing convenience for consumers. This also benefits councils, enabling more people to use PUDO lockers without increasing street-side clutter with multiple carrier-specific lockers.
Economic incentives to reduce air pollution from freight There are several ways the government can incentivise businesses to reduce their polluting emissions from freight. One of those ways is for the government to offer interest-free or fixed low-interest loans for SMEs who otherwise lack the ability to invest in more sustainable delivery vehicles, like cargo bikes or electric vans.
This scheme could be delivered via the government-backed British Business Bank, under its commitment to helping small businesses transition to net zero and as part of its role to address market failures and increase access to finance for small businesses. At Impact on Urban Health, we've worked in partnership Team London Bridge and MP Smarter Travel to help hundreds of businesses make the switch from vans to cargo bikes. Similarly, the Department for Transport's eCargo Bike Grant Fund, which offered grants covering up to 40 per cent of the cost of e-cargo bikes, was extremely popular among small businesses.
While cargo bikes may not suit every business model, they are highly effective for specific types of businesses, especially in urban environments. For local deliveries, waste collection, or maintenance in dense areas, cargo bikes can navigate traffic more efficiently and faster, reducing delivery times and improving service efficiency. While interest-free or low-interest loans involve an upfront cost for government, they offer long-term benefits: reduced congestion and emissions and improved public health.
Rewards to track and reduce air pollution The government should also incentivise businesses to reduce air pollution from freight by introducing a tiered business rates relief system that rewards businesses that calculate and report their polluting emissions. To support businesses, government should provide an accessible emissions calculator.
At Impact on Urban Health, working in partnership Ricardo, we've developed a tool for businesses to report air pollution emissions alongside or as part of existing greenhouse gas reporting. That tool is being piloted with businesses nationally. A potential model for this recommendation is the government's 2021 decision to provide 100 per cent rate relief to heat networks, to incentivise the service they provide (i.e. supplying heat to businesses and households).
A new scheme could be used to reward businesses who report and reduce their emissions, which similarly benefits the public. Crucially, as with the relief for heat networks, the government should reimburse local authorities for the revenues lost in business rates. More efficient, healthier freight
Leading delivery companies are pioneering a shift toward electric fleets. Similar innovations will position companies as leaders in sustainability and enhance their brand reputation among a consumer base that's increasingly concerned with environmentally responsible business. Businesses that are already working to reduce their polluting emissions are being rewarded by customers; 85 per cent of consumers are more likely to buy from a business with a reputation for sustainability.
Crucially, these steps toward sustainability offer a win-win, in which businesses achieve cost savings through more efficient operations, while fostering a healthier and more productive workforce.
Low carbon, low pollution British freight can be a pioneer for a sustainable economy.
It's part of the solution for unlocking richer, happier, healthier lives in our towns and cities.