Logistics UK calls for Low Carbon Fuels strategy

Thursday 09 March 2023

Logistics UK is seeking a long-term plan from government for utilising Low Carbon Fuels (LCFs) across transport modes. Speaking following a parliamentary roundtable on LCFs, chaired yesterday (07 March 2023) by Transport Committee member Greg Smith MP, the business group highlighted the need for a low carbon fuel strategy if decarbonisation targets are to be met. 

Kate Jennings, Director of Policy at Logistics UK, comments: “The logistics industry is fully committed to the UK government’s decarbonisation targets and is looking to work productively with government to ensure the plans are achieved. During the roundtable meeting, members from all modes of transport highlighted the need for a low carbon fuels (LCFs) strategy to enable the sector to meet the phase out dates for traditional vehicle fuels and technologies.  

“To date, LCFs have received significantly less attention in policy and political debate than electric vehicles. However, current battery technology is not widely available in every type of logistics vehicle, and LCFs can provide a viable option for reducing carbon emissions by up to 80% with immediate effect, without significant vehicle modifications needed. With several LCF options available, it is now vital that the government works with the sector to agree the way forward, so businesses can invest in decarbonisation in confidence.    

“At the meeting, members urged government to publish a long-term plan for utilising LCFs across transport modes. This should be evidence-based and look beyond tailpipe emissions to the carbon emissions impact of the whole fuel lifecycle. It is also vital that it is backed by investment in infrastructure, research and development and a clear regulatory framework.” 

Speaking at the event, Greg Smith MP commented: “Decarbonisation goals will only be met across the logistics sector if there is a more open-minded approach to both transitionary fuels and long-term fuels for the future. Battery electric is not a suitable alternative for many heavy applications and the sector needs certainty from government that the innovative approaches they are taking will meet with regulatory approval, and the infrastructure to support them.  The session in Parliament was extremely useful to hear all voices around the table and listen to everyone’s priority, from road, rail, air, sea and inland waterways.” 

Logistics UK has also highlighted the need for a LCF strategy within its Spring Budget submission, as well as calling for the current fuel duty rate to be maintained. The business group has warned government how a disproportionate rise in fuel duty could impact inflation and the UK economy, as well as hampering the industry’s progress towards decarbonisation. Ms Jennings continues: “Businesses are already facing a reduction in energy support and a 12.6% rise in vehicle operating costs; a rise in fuel duty would only increase the financial burden on businesses and occupy funds that could have otherwise been directed at greener technology investments and therefore could result in failure to meet decarbonisation targets. As a result, we are urging government to retain the 5ppl fuel duty cut introduced in March 2022, while maintaining revenue levels through VAT and other sources.” 

Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods.