Government carbon budget: What’s in store for HGV and rail freight?

November 11, 2025

2 min read

The government’s carbon budget and growth delivery plan confirms it will consult on options for phasing out non-zero emission HGVs.

The government’s carbon budget and growth delivery plan was published on 29 October. It outlines how the government plans to harness clean energy to strengthen energy security, lower costs, and drive economic growth through investments in renewables, nuclear, and hydrogen.

Publishing the plan was a legal requirement, placed on the government by the high court last year after a legal challenge by charities including Friends of the Earth and ClientEarth.

The “Unlocking the benefits of the clean energy economy” paper, published alongside the plan, states that “a zero-emission fleet of vans and heavy goods vehicles will be at the core of a cleaner and more efficient freight and logistics sector,” but acknowledges that “the market and policy framework for the transition to zero emission HGVs is less mature than for cars and vans,” and highlights many of the challenges.

The plan confirms that the government will “consult on regulatory options for phasing out the sale of new non-zero emission HGVs and are developing a Zero Emission HGV and Coach Infrastructure Strategy to provide industry with certainty.”

Regarding rail, it says the government will “explore new schemes for freight in-fill electrification,” but with a timeline from 2046. The Carbon Budget also includes previous plans and commitments on Sustainable Aviation Fuel and maritime decarbonisation.

Logistics UK’s Head of Decarbonisation Lamech Solomon said: “While we welcome the government’s continued commitment to delivering a cleaner energy economy, the logistics sector needs a much stronger and clearer policy framework to make that transition a reality.

“Healthy scepticism is right — progress will depend on more than ambition alone. To decarbonise effectively, businesses need long-term certainty, targeted investment, and practical support to build the infrastructure and technology that will power a affordable and fair transition.

“On rail, we urge government to accelerate electrification plans to realise carbon savings sooner. Logistics UK will continue to work on behalf of its members with the government to help deliver a practical and achievable route to decarbonise.”