Decarbonisation targets at significant risk of being missed, Logistics UK warns
In its recently launched report: Powering Change: building a credible plan for decarbonising road logistics, which draws on the expertise of the trade association's members and wider industry, Logistics UK highlights the growing gap between decarbonisation targets and industry readiness - particularly from smaller operators who form the backbone of the industry. It revealed that 80% of industry stakeholders, who contributed to Logistics UK's research, are not confident the phase-out dates for diesel vans and HGV will be met. The report calls for a pragmatic and cost-effective approach for logistics decarbonisation, planned through a co-owned industry and cross-government roadmap.
According to the research, industry's concerns are driven by a lack of confidence that there is sufficient support for the sector to switch to Zero Emission Vehicles. It reveals that over 85% of survey respondents express low confidence in the availability of suitable public charging; more than 80% disagree they can install chargers with sufficient capacity at their operating sites; and around 60% feel there is insufficient guidance and funding. The report calls for government policy mechanisms to be launched to help the sector achieve its decarbonisation goals.
These include prioritising grid connections at logistics hubs and ports, extending the ZEHID programme; targeted financial support for logistics operators; clear national guidance for managing the connection process supported by Distribution Network Operators (DNO) and scaling up use of low carbon fuel. Lamech Solomon, Logistics UK head of decarbonisation policy, said: "The date to end the sale of internal combustion engine vehicles is now less than 10 years away for the lightest road freight vehicles, and under 15 for the heaviest. Road logistics stands at a critical juncture on the pathway to decarbonisation.
"The urgent need to reduce emissions and address climate change is not in question: the sector is committed to decarbonising and across the sector we see investment in infrastructure, adoption of battery electric vehicles, large-scale trials of battery HGVs and greater use of low carbon fuel," he insisted. However, he warned that "there is no avoiding the reality that operators consider the current technology and policy landscape confusing and fragmented." The report highlights the resilience and determination of the industry to meet the need for low-emission logistics: diesel use is predicted to drop to 50% by 2030 from current use of 80% through increased use of low carbon fuel, as well as a rise in battery electric vehicles.
Solomon said: "Road freight is critical to the UK's way of life, 4.8 million light commercial vehicles, and over half a million HGVs operate on UK roads, delivering essential goods for consumers and businesses across the UK and beyond. "Road freight and its associated activities account for 18.4% of the GBP170 billion the logistics sector contributes each year to the UK economy, and 80% of UK freight travels on roads at some point on its journey to the end user. "Electrification will be central to decarbonising road freight but for an industry that operates on slim margins, the cost of the transition is currently considered prohibitive.
We all have an incentive for the transition to be delivered economically: logistics costs are embedded in all products so how much it costs for the sector to decarbonise, and how it affects supply chains, will impact us all," he concluded.
Copies of the report can be downloaded here[1].