ACCELERATING DECARBONISATION

Following warnings from the Intergovernmental Panel on Climate Change (IPCC) that catastrophic environmental impacts are rapidly becoming inevitable and it is ‘now or never’ to take drastic action to avoid disaster, industry continues to push forward for a greener future.

Together, industry has been working proactively to address the issue, reviewing possibilities for modal shift, participating in trials and sharing knowledge on greener technologies. There is a real drive among industry to decarbonise however, operators are still facing substantial barriers which must be addressed as a priority. Battery electric has been widely adopted as a suitable alternative for Light Commercial Vehicles (LCVs) however, in addition to acquisition costs and long vehicle lead times, infrastructure remains a challenge. Members reported costs of over £1 million to upgrade depot power supplies to enable electric vehicle charging and Logistics UK has consistently called for a fair and equitable approach to funding depot charging, with a greater share of the cost of additional energy connections born by energy networks. It was therefore disappointing that there were no updates on this within the recently announced Spring Budget given the role that depot charging will play in decarbonising logistics. Another challenge is the real lack of public charging infrastructure. Figures released by the Department for Transport (DfT) showed that as of October 2022, the total number of public electric vehicle chargepoints across the UK was 34,637. This falls woefully short of the 300,000 target the DfT has set for 2030.Also within the figures released in October, was the breakdown by area. The number of public electric charge points per devices per 100,000 of population was significantly lower in Northern Ireland at just 18, compared to 122 for London. It is simply unacceptable to expect NI businesses to operate fully electric fleets with such little re-charging infrastructure available; especially for those that work within rural areas where there may even more limited access to public charging. It is vital that the pace of public charging installation increases to ensure targets are met in time for the phase-out dates of diesel and petrol vans and cars in 2030. There is much frustration within industry around the lack of certainty regarding alternatives for heavy goods vehicles (HGVs). While there are many trials taking place, the effects of these will not be apparent for many years and it is clear that a short-term solution is needed. Earlier this month Logistics UK organised a parliamentary roundtable to discuss Low Carbon Fuels (LCFs) and highlighted the need for a LCF strategy.

LCFs have largely received less attention in policy and political debate than electric vehicles however provide a viable option for reducing carbon emissions by up to 80% with immediate effect, without significant vehicle modifications needed. However, again, the main barriers regarding LCFs are the high alternative fuel costs and lack of infrastructure. Logistics has therefore called on government to produce an evidence-based long term LCF strategy that supports these challenges. As part of this, communication with industry is key. The logistics sector is at the heart of the research and development of these alternative fuels and can provide valuable feedback, however, ultimately, industry needs certainty from government regarding future infrastructure investments to provide greater clarity to businesses as to which alternative fuels to adopt.

Zero emission vehicles (ZEVs) are traditionally heavier, resulting in a loss of payload due to weight restrictions. Government has therefore increased the gross weight limit of an HGV to a flat two tonnes for certain ZEVs, and up to one tonne for certain Alternatively Fuelled Vehicles (AFVs). However, this applies to GB only and Logistics UK is calling for the same regulation to be introduced in NI. Additionally, Logistics UK is urging for the axle weight to be amended; without a proportional increase in axle weights, the additional gross weight allowance will be unusable. Industry is committed to reducing emissions however should this result in significantly reduced payloads, this will cause an increase in the number of vehicles needed and could have the opposite effect. It is vital a balance is struck between a practicable mileage range and efficient payload, with road safety remaining a priority, and members are committed to working with government to ensure solutions. With no mass-market solution to Euro VI available for HGVs, Logistics UK highlighted concerns that a reintroduction of the HGV levy would be challenging given the current economic crisis and that a further delay should be considered given the lack of viable alternatives and long vehicle lead times. The announcement within the Spring Budget that the HGV Levy is to be reintroduced in August is therefore disappointing for industry which is already facing increased cost pressures, such as total vehicle operating costs (which rose 12.6% for the 12 months to 1 October 2022).While using the levy to incentivise greener HGVs would be welcomed in the long term, currently it acts as an additional tax on businesses and deflects funds that could otherwise be invested in decarbonising operations. Industry stands ready and willing to play its part in transitioning to a green economy, however to do so, requires action from government. Targets alone do not create solutions and it is vital that government works proactively with industry to seek solutions to the challenges. Logistics is a hugely complex industry and the necessary changes will not happen overnight. As reinforced by the IPCC, to ensure we see these changes in the future, the time to act is now.