Industry strives towards net zero but “will struggle without significant support from government,” says Logistics UK

But, as the industry body representing the whole sector, Logistics UK is concerned that support from the government will be required to achieve the industry’s ambitions. 

Despite participating in trials across the industry, Logistics UK is concerned that undertaking the additional financial burdens of investing in greener technologies will prevent further progress without further support and infrastructure development from government. Within this article we’ll discuss the significance of decarbonising each mode and the current barriers industry is facing.  

ROAD  

Logistics businesses throughout the country are transitioning their light commercial vehicle fleets to electric vehicles (EVs) in efforts to reduce their emissions, as the deadline for the phasing out of diesel, petrol and hybrid vehicles in the UK from 2030 approaches.  

However, while figures from Logistics UK’s latest EV Report show that since 2019 there has been a 0.6% increase in plug-in van usage, many operators remain hesitant to fully invest in EV technology due to increasing financial pressures and uncertainty surrounding power supply infrastructure and how it will be implemented, as well as both the availability and accessibility of public chargepoints.  

“Logistics UK is therefore urging government to provide an EV charging and refuelling infrastructure roadmap designed in collaboration with business to work for logistics vehicles, backed with clear guidance and incentives for local authorities,” says Ellis Shelton, Policy Advisor at Logistics UK. “As well as this, the business group is also calling for support with depot power supply upgrades; operators have reported costs of between £100,000 and over £1 million, with one business being quoted around £5,000 for every additional megawatt of electricity.”   

There also remains much uncertainty regarding the transition of HGVs, and while trials are taking place – the outcomes of which will not be implemented for many years - Low Carbon Fuels (LCFs) offer up to 80% reduced emissions without the need for large vehicle modifications. However, these alternative fuels are currently too expensive for operators, and lack the necessary supporting infrastructure. 

“Logistics UK and its members have been engaging with government closely on this,” says Shelton, “and are pushing for support to make this a more viable transitional option.”  

RAIL  

It is estimated that rail freight removes 1,000 heavy goods vehicle (HGV) movements per day from London’s roads alone, with each tonne of freight transported by rail producing 76% fewer carbon emissions compared to road. As a result, the rail industry contributes significantly to decarbonising the industry and continues to provide a sustainable and energy efficient mode of freight transportation.  

“Programmes such as the Mode Shift Revenue Support (MSRS) scheme, which supports freight customers in moving their goods by rail, are crucial for industry to effectively decarbonise and reduce the amount of carbon emissions being emitted,” says Shelton. “However, as customers look to make the modal shift to rail there must be capacity on the rail network to accommodate this growth and costs need to be kept low to remain competitive.  

“Additionally, only 10% of freight trains in the UK are hauled by electric locomotives,” he continues, “and so Logistics UK is urging government to commit to a long-term programme of electrification to enable greater capacity across the rail freight sector and support decarbonisation efforts.”  

AIR  

Alongside trying to reduce the nation's aviation sector greenhouse gas emissions by 2050, the industry has also been set the ambitious goal for all airport operations in England to be zero emission by 2040.  

When fully replacing Kerosene, the fuel used in aeroplanes, Sustainable Aviation Fuel (SAF) can reduce lifecycle carbon emissions by 70% compared to conventional fossil jet fuel. And if combined with carbon removal through biochar credits – a material which traps and stores carbon taken from the atmosphere – SAF will successfully achieve net zero flights and provide industry with sustainable air freight. However, the air cargo sector is still facing barriers when trying to scale production and distribute globally.  

“Logistics UK is calling on government to collaborate with the sector to allow greater usage and accessibility of SAF, through both UK manufacturing and financial incentives,” says Shelton. “This will enable SAF to reach its full potential and contribute to decarbonising aviation through lowering aircraft emissions, of which Logistics UK supports the SAF mandate of 10% by 2030.”  

WATER 

Logistics UK supports the government’s net zero ambitions and works closely with its members to promote their own decarbonisation efforts, but the maritime sector is still waiting for clear targets including phase out dates, a defined fuel of the future and standardisation of equipment.  

“13% of domestic freight is moved by water and this needs to be recognised on a larger scale by both industry and government,” urges Shelton. “Logistics UK is asking for additional support from government for research and development to decarbonise port, maritime and inland waterway operations. The sector requires certainty, targets and direction on where the future lies for technology, fuels and propulsion.” 

Overall, there is encouraging progress across the sectors in decarbonising logistics operations. Nevertheless, without significant support from government, industry will struggle to meet the net zero target in the current time frame allocated.  

“Logistics UK will continue to work with its members across the various modes to seek solutions to these challenges,” assures Shelton, “and communicate with government to ensure full consideration is given to each mode individually and a plan implemented on how to best deliver decarbonisation schemes.  

“It’s crucial that in addition to setting targets, government continues to work proactively with industry to ensure they are achievable, and must be prepared to match the sector’s willingness to invest in future technologies, with their own readiness to provide the public infrastructure needed to ensure the supply chains remain moving.” 

*www.logistics.org.uk/campaigns 

Published On: 08/06/2023 12:00:00

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