Identifying the high cost of battery electric HGVs, reduced payloads, and the cost and time associated with installing grid upgrades as barriers to progress on decarbonisation, logistics businesses are calling on the government to recognise the role for LCF. Describing it as critical to achieving climate change goals, they suggest that without it, the sector’s ability to decarbonise effectively and at pace will be compromised.
The warning came in an Industry Statement, coordinated by Logistics UK in partnership with the Sustainable Logistics Forum and signed by 48 organisations industry stakeholders. More support is needed “if decarbonisation targets are to be achieved”, according to the signatories, and LCF such as biomethane, high blend biodiesel and renewable diesel (HVO) needs to be considered an “acceptable means of decarbonising HGVs in the UK”.
A ministerial letter sent to Kier Mather, Minister for Aviation, Maritime and Decarbonisation and Chris McDonald, Minister for Industry in the Department for Energy Security and Net Zero suggests that, while battery electric vehicles are widely accepted as the primary route to decarbonise HGVs, the technology is not yet commercially viable across most vehicle weights or operational use cases.
Balancing decarbonisation and economic reality
Logistics UK Head of Decarbonisation Policy Lamech Solomon commented: “The logistics industry is facing its biggest ever challenge – how to achieve decarbonisation targets with limited infrastructure while faced with a challenging economic climate.
“Using LCF reduces greenhouse gas emissions by up to 80% so can have an instant impact. This Industry Statement makes it clear the logistics sector recognises zero tailpipe emission HGVs are the long-term goal, but highlights how LCF can help support businesses decarbonise in a pragmatic and cost-effective manner – something that is critical for a sector where 99.7% of companies are small to medium enterprises and profit margins are typically 1-3%.”
In addition to outlining industry’s concerns, the statement makes specific recommendations where the government can help the sector. Solomon continues, “It is essential that the government adopts a technology-neutral approach to decarbonising HGVs and develops a long-term, stable policy environment that supports the wider adoption and production of LCF. Our industry needs the government to establish and maintain fiscal incentives to ensure operators can adopt these fuels more widely.
“All viable pathways to decarbonise HGVs and specialist use cases must be considered: the government needs to recognise that LCF is complementary to battery electric vehicles.”
Calling for “meaningful dialogue with the government” the coalition is seeking a decarbonisation route that is “achievable, pragmatic and cost-effective.”
Coinciding with the Industry Statement, Logistics UK has published a comprehensive report which can be downloaded here: “Logistics industry position paper on the role of Low Carbon Fuel in decarbonising HGVs”
Image provided by Logistics UK