Freight and Trucking
Support the transition of the global trucking industry away from the use of fossil fuels and toward cleaner and more sustainable power sources.
The shipping industry accounts for nearly eight percent of greenhouse gas emissions worldwide, with road vehicles and trucks making up 65 percent of the industry's total greenhouse gas output. The total market for freight trucking, estimated at $2.2 trillion in the year 2022, is projected to expand by $3.4 trillion by 2030, which means adding a significant amount of trucks to the global fleet. In the US, 71.6 percent of U.S. goods are transported via large and small trucks, totaling $10.4 trillion. Decarbonizing trucking fleets can reduce greenhouse gas emissions, increase safety, and improve people's health in cities and near busy trucking thoroughfares. Some major fleets have committed to transitioning at least thirty percent of their new heavy-duty truck purchases to zero-emission vehicles, including electric models, by 2030. Still, many companies are daunted by the extra upfront cost of electric trucks, as well as challenges like the limited availability of chargers. The benefits of electric trucks, increased availability of more makes and models, investments in charging infrastructure, rapid improvement of the upfront and long-term economics, and policy incentives will all help shipping companies decarbonize their trucking fleets.
Action Items
Individuals
Learn about the impacts of the global freight and trucking industries. It is clear that the trucking industry releases appreciable amounts of CO2 into the atmosphere, which is a major factor in climate change. Increased trucking due to higher global demand for goods also leads to other detrimental conditions, such as city pollution. By 2030, e-commerce growth will lead to a 33% increase in delivery-related carbon emissions. Fifty percent of that is accounted for in the “last mile," a term used to denote the last leg of any delivery, and will disproportionately affect cities and dense urban areas. The increased levels of pollutants from diesel tailpipe emissions also affect habitat and wildlife along congested trucking corridors.
Reduce your personal shipping footprint. Reduce the amount of goods bought online. 37% of the carbon emissions of the global shipping and distribution industry are generated by e-commerce. Within the high levels of consumption globally, demand for urban last-mile delivery is expected to grow by 78% by 2030, leading to an increase in delivery vehicles in the world’s top 100 cities. In many ways, the power to reduce the amount of trucks on the road and delivery vehicles in towns and cities is in the hands of the individual consumer. For more information on shipping’s broader footprint, see Maritime Shipping Nexus.
- Buy local. One way to help reduce road freight emissions is by reducing your dependence on goods that need to be shipped long distances. When possible, buy locally sourced products or goods shipped via air or sea instead of road freight (see Localization Nexus). This will reduce the number of trucks on the road and help reduce emissions overall. This practice also supports your local economy and community. It is estimated that the average meal in the U.S. travels 1500 miles before it reaches your plate. Sourcing food from local farmers and food providers can make a considerable impact on reducing the harmful effects of unnecessary trucking (see Regenerative Agriculture Nexus). Organizations like Locally help consumers source goods they are searching for that are in stock at local stores.
- Avoid same-day and next-day delivery options. While home delivery can often be more ecologically friendly than driving to a store, the demand for same-day and next-day shipping has an increased climate impact from retail delivery. In order to meet consumer demand for same-day delivery or delivery within a few hours, companies prioritize speed over system efficiency, which leads to trucks being underutilized, delivering only a small number of packages.
Advocate for decarbonized delivery services. Many last-mile delivery projects are making a difference. Choose to use a service like this, and if there is not one in your city, start an initiative to create one. Raising awareness and educating others about the problem and successful solutions like this one is empowering and impactful.
- La Petite Reine, in Paris has operated since 2001, delivering groceries across the city with bicycles and e-bikes.
- The University of Washington's Urban Freight Lab spearheaded a pilot program in Seattle to replace trucks and vans with bicycles and local pick-up points, reducing carbon emissions by thirty percent per package.
Pressure government agencies to mandate cleaner trucking and delivery in your area. Speaking out in your community, educating friends and family, using social media, and encouraging local leaders to take action to reduce truck emissions are all ways an individual can effect change. Work with local legislators to enact low-emission zones (LEZs) in your city or town or encourage building electric car charging stations to promote greener transportation.
- There are many things cities can do to reduce the pollution attendant to delivery systems, especially if they are pressured by their citizens. Connect with your local chapter of the Citizens Climate Lobby for help organizing effective action.
- Citizens in Poland have set up information zones to inform people of the benefits of LEZ’s, so more people will advocate for their creation. In Madrid, a canceled LEZ plan was reinstated after thousands of concerned citizens marched on the capitol.
- Santa Monica, California, recently implemented the country's first Zero-Emissions Zone to study the benefits of prioritizing zero-emissions delivery options on air quality, traffic congestion, and quality of life.
Groups
Truckers
Understand the benefits of owning and operating an electric truck. Economically, electric trucks offer lower operating costs with cheaper electricity as a fuel source and fewer maintenance requirements due to their simpler drivetrains. Right now, the trucking industry is dependent on diesel fuel – and diesel is expensive and polluting. Choosing an electric or hydrogen-powered truck presents a compelling solution to these challenges. Recent analyses show that the total cost of ownership of an electric long-haul truck is below that of a diesel equivalent, and a new electric delivery truck can be thirty percent cheaper than a diesel one over its lifetime. Embracing this shift is not just a sensible economic choice; it's an environmental imperative that benefits us all. Truck drivers are also adversely and disproportionately affected by the toxicity inherent in diesel fuels. Switching to electric or hydrogen trucks can be healthier for truckers in the long run.
- Implement energy-saving driving techniques. A few small actions in the way a truck is driven can result in a marked reduction in CO2 emissions. Drive at consistent speeds and avoid aggressive acceleration and braking. Keep tires properly inflated and maintain the truck regularly to ensure it operates efficiently. Reduce idling time by turning off the engine when parked.
- Use Low-Carbon Fuels: Opt for alternative fuels such as biodiesel, renewable diesel, or compressed natural gas (CNG). Stay informed about the availability and benefits of electric and hydrogen fuel cell trucks and consider transitioning to these technologies. Consider the benefits of Hydrogen fuel, which offers zero emissions and faster refueling times (see Green Hydrogen Nexus).
- Optimize Route Planning. Use route optimization software to minimize mileage and avoid congested routes. Plan trips to maximize load efficiency and reduce empty backhauls.
- Participate in Training Programs. Attend training sessions on eco-driving techniques and the use of fuel-efficient technologies. Stay updated on the latest advancements in sustainable trucking practices.
- Support Regulatory Changes. Advocate for policies and regulations that promote clean technologies in the trucking industry. Engage with industry associations and unions to push for sustainable practices and incentives. The Clean Freight Coalition is an organization of truckers and trucking companies committed to decarbonizing the industry.
- Leverage Technology. Telematics and other technologies can monitor fuel consumption and driving behavior and make adjustments to improve efficiency. Trucks can also be modified aerodynamically, such as with side skirts and tail devices, to reduce drag and improve fuel efficiency.
- Collaborate, educate, advocate. Join programs and initiatives aimed at reducing the carbon footprint of the trucking industry, such as the EPA’s SmartWay program. Collaborate with other truckers and industry stakeholders to share best practices and promote sustainability, and share the information you know with others in the industry who are unfamiliar with what it takes to decarbonize.
Companies
Shipping Companies
Commit to switching from diesel-powered trucks to electric trucks. Use inventory management software that integrates with your other last-mile processes to source inventory from the location closest to the delivery destination. The Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act (IRA) made historic investments in vehicle electrification, particularly for medium- and heavy-duty (MHD) trucks, by addressing the costs related to MHD vehicles and charging infrastructure. The Electrification Coalition has conducted a thorough research study in collaboration with several international shipping companies to provide insights and information to help companies transition their fleets to electric. They also offer a database of grants and other funding opportunities to help companies make the transition. Many international companies have taken steps towards adopting electric delivery and shipping trucks, including:
- FedEx has the goal of zero tailpipe emissions by 2040, and is aggressively adding electric light trucks for their last-mile shipping needs. In Canada, FedEx is leading the way among delivery companies that are switching to bicycles for their last-mile delivery needs.
- Titan Freight Systems in the U.S. just added six electric trucks to their shipping fleet.
- Maritime Transport, the UK’s leading provider of integrated road and rail freight logistics, has placed a major order for 18 battery-electric, 42-ton tractor-trailer units. This is the first step in their plan to add 48 battery-electric trucks to their fleet. They are a leading participant in the Zero Emission HGV and Infrastructure Demonstrator in Europe.
- ASKO, Norway's largest food distributor, is close to completing its complete transition to electric shipping trucks. Because of the efficiency and reliability of electric trucks, coupled with the advent of self-driving technology, part of ASKO’s plan is to increase its fleet's operational hours, having it deliver 24 hours a day.
- Amazon co-founded The Climate Pledge in 2019 and made a commitment to achieve net-zero carbon by 2040. As part of that Pledge, Amazon also announced a partnership with Rivian to bring 100,000 electric delivery vehicles on the road by 2030 and got to work on designing a new state-of-the-art delivery vehicle. With its commitment to have all 100,000 electric delivery vehicles on the road by 2030, Amazon will eliminate millions of metric tons of carbon per year. In California, Amazon has also deployed fifty heavy-duty electric trucks to transport goods from ports to shipping centers.
Reduce emissions through intelligent route planning and implementation. Delivery route optimization and significantly improves operational efficiency. By using smart route optimization and understanding the implications of traffic congestion, road infrastructure, and vehicle capacity, a fleet of delivery vehicles can optimize their routes, reducing energy use and pollution levels per delivery.
- For the last mile, a move towards eco-friendly delivery includes ‘green’ vehicles that produce fewer carbon emissions than traditional delivery vehicles and the use of bikes and E-cargo bikes. Montreal has recently enacted a program where delivery companies can opt to have their goods brought to a warehouse outside the city center, where e-bikes will then finish the delivery (see Micromobility Nexus).
- Companies can optimize dispatch based on mileage. Dispatchers and operational managers can use digitized, automated dispatch software to customize dispatching based on which driver, carrier, or fleet will expend the least fuel and emissions to reach the delivery destination. For last-mile delivery, it has been shown that bicycles are not only cleaner but faster at getting packages where they need to go.
Governance
Offer tax credits and incentives for companies to transition their fleets. Governments have an outsized influence on how and when companies and municipalities decarbonize. Utilizing carbon pricing methods, such as carbon taxes or cap-and-trade systems, can be an effective way to force companies to take responsibility for their carbon emissions and convince them to make a change.
- Belgium and Finland offer many incentives for transition, including tax reductions. Portugal provides a one hundred percent tax reduction for electric trucks and sixty percent for low CO2 vehicles that use alternative fuels like hydrogen and natural gas.
- The Netherlands plans to reduce transportation CO2 emissions by sixty percent by 2050 and offers specific incentives for small entrepreneurs and non-profit organizations.
- Mexico is a leading force in the effort to transition to electric vehicles for last-mile shipping. Companies such as Grupo Bimbo are making significant commitments, pledging a fifty percent reduction in emissions from its delivery fleet by 2030 and to have zero emissions by 2050.
- China is a global leader in offering incentives for buying commercial-grade electric trucks and decarbonizing their current trucking fleets.
- The government of India offers rebates, tax exemptions, and priority access to roads, parking, and charging stations to trucking and shipping companies that are working toward decarbonization.
Provide loans and grants to companies wanting to transition to electric trucks. The US and Norway are leading the Green Shipping Challenge, issued at COP27, to encourage countries, ports, companies, and other actors in the shipping value chain to come forward with concrete announcements that will help put the shipping sector on a pathway this decade that is aligned with the goal of limiting global temperature rise to 1.5 degrees Celsius. And starting in 2024, any trucking or shipping company that acquires a new truck must also buy an electric model powered by batteries or hydrogen fuel cells. In order for this rate of change to be sustained, California will need 157,000 new chargers across the state.
Set strict guidelines and mandates for decarbonizing trucking. Governments can enforce the decarbonization of the trucking industry gradually over a specific time period by enforcing mandates that define a deadline by which the transition must occur. This can actually help companies by giving them the time needed for the transition.
- In California, by 2035, every drayage vehicle—large trucks that move goods between ports, rail yards, and distribution centers—must be a zero-emission vehicle.
- In the US, the EPA recently announced its most aggressive mandates for the trucking industry to date, and the European Union has set a ninety percent reduction in emissions from the trucking industry by 2040. The International Council for Clean Transportation has outlined a time frame for the global decarbonization of the transportation industry by 2050.
Invest in the necessary infrastructure to support decarbonization. Develop and expand charging and refueling infrastructure for electric and hydrogen-powered trucks. Invest in renewable energy sources to power this infrastructure, ensuring a sustainable energy supply.
- The UK recently announced a 200 million pound initiative to build critical infrastructure and help fund the purchase of 370 electric trucks. This is part of their comprehensive plan to decarbonize all transport in the country by 2050.
- The Netherlands has invested $150 million in hydrogen trucking. This includes trucks, vas, and hydrogen filling stations.
- Australia has committed $21 million to build infrastructure to assist the transition to a decarbonized trucking industry. Educating companies about how to better organize and plan their shipping logistics is also part of the plan.
- Alberta, Canada, is building a hydrogen filling station funded by the federal government as part of the Alberta Zero-Emission Truck Electrification Collaboration.
Support Research and Development. Fund research and development projects focused on innovative technologies for reducing emissions in the trucking industry. Partner with private companies and research institutions to accelerate the development of sustainable trucking solutions. The UK has created a new research hub to solve critical problems in decarbonizing trucking, and the US Department of Energy has created a Bioenergy Technologies Office to conduct research on the effectiveness of various biofuels for reducing carbon emissions in the heavy trucking industry. The Canadian government invested in projects to assess zero-emission truck performance and develop training materials, as well as the construction of a Commercial Vehicle Lab to accelerate research into the safe deployment of Medium- and Heavy-Duty Zero-Emission Vehicles.
Encourage Sustainable Logistics. Promote the use of logistics and supply chain management practices that reduce emissions, such as optimizing routes and consolidating shipments. Support the development of freight rail and other low-emission transport options as alternatives to long-haul trucking. Rail is four times more fuel efficient than long-haul trucking, and using hydrogen to fuel long-haul trucks can reduce greenhouse gas emissions by up to 71%.
Key Players
Organizations
Electrification Coalition (U.S.) is a nonpartisan, nonprofit organization that works to accelerate the widespread adoption of light-, medium-, and heavy-duty electric vehicles to overcome the economic, public health, and national security challenges that have long stemmed from America’s dependence on oil.
Green Shipping Challenge (International) was initially launched at COP27 and will continue to help put the shipping sector on a path this decade that is aligned with the goal of limiting global temperature rise to 1.5 degrees Celsius.
The Chartered Institute of Logistics and Transport (UK) is the world’s leading organization voice for professionals in logistics, transport, and supply chain.
The International Council on Clean Transportation (Global) is an independent, nonprofit research organization founded to provide exceptional, objective, timely research and technical and scientific analysis to environmental regulators.
Electric Vehicle Council (U.S.) brings organizations focused on EV charging infrastructure together to share insights and experiences relative to infrastructure deployment and operation, to initiate original research and education projects to fill in gaps in knowledge, and to further educate interested stakeholders concerning the opportunities, challenges and successful strategies associated with the installation and operation of EV charging stations.
Clean Freight Coalition (U.S.) is an alliance of truck transportation stakeholders committed to a clean energy future for America’s trucking industry.
Truckload Carriers Association (U.S.) is the only trade association whose sole focus is the truckload segment of the motor carrier industry.
Clean Air Task Force (International) is working towards a fully decarbonized global transportation sector by midcentury.
Transportation Decarbonization Alliance (U.S.) is a unique collaboration to accelerate the worldwide transformation of the transport sector towards a net-zero emission mobility system before 2050.
Center for Climate and Energy Solutions (C2ES) (U.S.) is working to secure a safe and stable climate by accelerating the global transition to net-zero greenhouse gas emissions, including decarbonizing transportation.
NDC Transport Initiative for Asia aims to facilitate a paradigm shift to zero-emission transport across Asia.
Smart Freight Centre (India) aims to minimize the climate impact of the freight and logistics sector in India.
Companies
Volteum (Hungary) makes the world's leading electrification and EV fleet software.
Einride (Sweden) designs state-of-the-art digital, electric and autonomous technologies that get global companies on track to reach their business goals.
Maritime Transport (UK) is the UK's leading provider of integrated road and rail freight logistics, delivering a range of services spanning container transport and storage, domestic distribution, warehousing, freight management, and truck sales.
Tesla (U.S.) is developing a powerful, efficient, and fully electric semi, dubbed the future of electric trucking.
Volvo (Sweden) wants to make the shift to electric trucking as smooth as possible and boasts a wide offering of models.
Mercedes-Benz (Germany) has introduced several electric truck models, showcasing its commitment to sustainable transportation.
Traton (Sweden) is a leading commercial vehicle manufacturer and is actively pursuing the electrification of its truck and bus portfolio.
BYD Global (Global) is dedicated to providing zero-emission energy solutions including R&D for new energy trucks and specialized vehicles, from whole-vehicle design to trial manufacturing and testing.
Nikola (U.S.) offers a range of heavy-duty commercial battery-electric and fuel-cell electric vehicles.
DAF Trucks (Global) offers industry-leading trucks and services for the highest transport efficiency.
Learn
Watch
Electric Fright Consortium by the Electric Freight Consortium (5 mins.)
$1 Trillion: The Cost to Electrify US Truck Fleets by The Road to Autonomy (15 mins.)
The Long Haul to Electrify Heavy Trucks by Financial Times (7 mins.)
The Future of Trucking by Jim Campbell Trucking (9 mins.)
The Billion-Dollar Campaign to Electrify Trucking by Monica Araya / TED Talks (12 mins.)
Read
Decarbonizing Freight Transport by Sarak Pfoser / Springer Gabler
Listen
Setting Realistic Expectations for Trucking Decarbonization by SAE International (35 mins.)
FreightWaves 4-Part Net Zero Podcast by Transporeon (101 mins.)
Freight Carbon Zero Podcasts (32 mins.)
Decarbonizing Freight and Trucking by Eight Minutes Podcast with Paul Schuster (9 mins.)
Advancing Clean Transportation by Shaping Sustainable PLaces Podcast (39 mins.)
Einride: Decarbonizing Trucking with EVs, Autonomization, and Digitalization by Climate Rising Podcast (33 mins.)
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