How to reduce your carbon footprint without slowing down

Transport emissions are a difficult topic not only from the point of view of sustainability reporting, but also - and perhaps most importantly - the potential for their reduction. In order to meet the EU's ambitious targets as set out in the European Green Deal, it is essential to reduce CO₂ emissions from transport by 90% by 2050. This effect can be achieved by a variety of methods and means, and while electric propulsion and hydrogen are the most widely discussed, biofuels can play a key role in the transition phase.

The TFL sector is entering a phase of intense transformation driven on the one hand by regulatory changes and customer expectations, and on the other by the need to reduce anthropogenic greenhouse gas emissions which are responsible for climate risks. Their materialisation can permanently and adversely affect not only the business environment, but also the ability of societies to function.

Setting emission reduction targets is not a local initiative affecting only the European community. On the contrary, it is a global trend in response to the Paris Agreement adopted in 2015. It is intended to limit the global temperature rise to 1.5°C relative to the pre-industrial era. In addition, the 193 countries that have accepted the agreement have pledged to strive to reduce the risks and damage caused by man-made climate change.

The challenge facing the transport industry today is to reduce emissions while maintaining operational capacity and the stability of supply chains (whose role in the functioning of the global economy was highlighted by the COVID-19 pandemic). In this situation, the simplest option, i.e. reducing emissions by reducing activities, is not the solution. This means that governments, companies and organisations have 25 years to move to a new model of economy with reduced environmental impact. To achieve this, all actors must commit to the transformation without delay, using all solutions that will have a measurable effect on the environment and no negative impact on business. With a long-term goal in mind, it is important to first reach for solutions that are available now. Simultaneously, new technologies should be monitored and those that promise well in the long term should be tested. In this context, a quarter of a century is both a lot and little.

Electricity races against hydrogen                                                                

Today's road transport is mainly based on diesel engines. And although the fuel used in them contains a small admixture of bio-component, they are still a very carbon-intensive mode of transport. Battery Electric Vehicles (BEVs) and, in the longer term, hydrogen-based Fuel Cell Electric Vehicles (FCEVs) are expected to become alternatives. This seems to be confirmed by the objectives of the truck manufacturers themselves who declare a systematic reduction in the production of combustion-powered vehicles. At the same time, technological change is being forced by regulatory pressure (the introduction of zero-emission zones in cities, additional emission charges or, finally, plans to reduce the share of fossil-fuel cars in the European fleet mix).

Electric cars have become an everyday reality in many European countries and beyond, confirming the development of this technology. However, what is sufficient for the efficient operation of even light commercial vehicles (up to 3.5 tonnes) does not always work for heavy transport. Electric transport in logistics still faces significant barriers to its scalability. Here it is worth noting that the truck market, like the car market, is changing very rapidly, with the pace of development varying from country to country.

The first barrier is still the high investment cost: the price of an electric 'delivery van' can be up to three times that of a diesel tractor. This makes the cost of investment - especially for small carriers - sometimes difficult to bear. The solution to this situation may lie in strengthening the customer-supplier business relationship and implementing joint decarbonisation projects.

Secondly, the charging infrastructure for electric vehicles is not yet sufficiently developed. There are still too few charging points adapted to the needs of the transport sector. The EU-level adoption of the Regulation on the deployment of alternative fuel infrastructure (AFIR) is supposed to be the answer, however the implementation of commitments requires both time and financial resources.

The third limitation is the range of electric vehicles. Although work is continually underway to increase this to 500 or even 700 km on a single charge, today the realistic capabilities of such a vehicle remain within 350 km. Electrified transport seems at this stage to be a solution applicable to local distribution, 'last mile' deliveries or short linehauls, as evidenced by the project we are undertaking with Ikea Industry and Volvo Trucks.

Hydrogen transport, in which the industry has high hopes, will probably begin to gain more importance before long. However, it is still too early for it to make a significant contribution to reducing emissions. Currently, hydrogen-powered cars are in the advanced testing phase and major manufacturers are only just planning for larger-scale deployment. They should therefore be considered as a potential alternative to the current drives.

Like electric cars, hydrogen-powered ones also face insufficient charging infrastructure. An additional challenge is the need to increase green hydrogen production capacity across Europe. Fortunately, the major energy companies are taking this into account in their strategies.

Plants with potential

In these circumstances, alternative fuels - biogas and biodiesel - can play a key role. Moving away from fossil fuels is indisputable, not only because of climate change, but also because of resource depletion. At the same time, there are and will be a huge number of diesel vehicles on the market, which cannot be replaced by electric and hydrogen cars any time soon. Despite the systematic replacement, internal combustion vehicles will stay on the road for some time to come. Biofuels offer an opportunity to use the existing fleet while significantly reducing emissions.

HVO 100, or biodiesel, has a very high reduction potential in itself: with the right raw materials, it can reach up to 90% compared to conventional diesel. It can be a stand-alone alternative fuel or a component added to conventional fuel. It does not require any special infrastructure (it can be refuelled at an ordinary petrol station, simply by replacing the contents of the dispenser) or technical changes to the vehicles. Car manufacturers confirm that the use of biofuels is safe for modern engines.

As with BEVs and FCEVs, price can be a barrier - biodiesel, like biomethane, is more expensive than regular fuel. Furthermore, it is characterised by limited availability as it can only be refuelled in selected countries, including Sweden, Finland, the Netherlands and Germany. The environmental impact of capacity expansion is also problematic. The increase in biofuel production is coupled with an increased demand for feedstock, the extraction of which can lead to unsustainable practices, including, for example, deforestation.

Trucks to trains

An alternative to technologies - both conventional and low- or zero-emission - is intermodal transport whose cumulative environmental impact is much lower. However, irrespective of the impact of emissions, in the case of rail freight we are faced with limited flexibility of connections and potentially longer delivery times. This in turn may force operational changes throughout the chain, which is not always possible.

This issue was raised by the European Commission in Greening Freight Transport, noting that sustainable transport should combine the reliability and flexibility of road transport with the environmental efficiency common to inland waterway and rail transport. It also flagged the problem of not having enough terminals, which prevents the potential of intermodal transport from being used more effectively.

At the crossroads

The European Commission predicts that freight demand in the EU will increase by up to 50% by mid-decade compared to 2015. This growth represents a major challenge in terms of greenhouse gas emissions, air pollution and noise. The answer is to systematically build a more sustainable transport system. The goal is ambitious but achievable so we should give every tool available a chance to get us there. Especially at the beginning of this journey - which is where we are now.