Decarbonising Transport: From Planning to Action
By Charlie Mortimer-Bell, Propositions Lead
This autumn has been a busy season for the e-mobility industry, with a new Government pledging to revive the 2030 ICE ban, new bus franchise legislation set to impact electrification planning and the ZEV mandate starting to bite manufacturers which prompted a government announcement to conduct a swift ZEV consultation.
It’s also been peak event season and we’ve attended several key industry events including Cenex EXPO, Euro Bus Expo, ERM, and the Waste Collection Conference, all of which provided platforms for fleet operators and industry experts to share their decarbonisation experiences and plans. We’ve been at the heart of critical discussions about how the transport sector will transition to a low-carbon future.
The Zemo Partnership Summit in Westminster brought together 200 industry leaders, planners, and decision-makers and Professor Sir Jim Skea, Chair of the IPCC, delivered a keynote that underscored the urgency of decarbonisation.
The professor highlighted that the more carbon we emit, the faster the world needs to decarbonise and the greater the impact on environments and economies as we respond.
At the Logistics UK Delivering Decarbonisation Event, leading transport businesses engaged in candid discussions about the operational realities of decarbonisation.
The energy in the room was palpable – these weren’t abstract debates but urgent conversations about transformation in action.
Dr Gary Kendall from the University of Cambridge and Natwest gave a compelling and sobering presentation about our progress (or lack of progress) since the climate change Paris Agreement of 2015 to limit the global temperature increase to 1.5 Celsius.
One of Dr Kendall’s charts showed that the UK halved its carbon footprint between 1991 and 2020 – but transport emissions remained unchanged during that time period.
Dr Kendall’s presentation reminded us all what we’re trying to achieve with transport electrification. It underpinned the importance of decarbonisation for the transport sector as the next major phase of emissions reduction to follow efforts to decarbonise the grid.
These are VEV’s key takeaways from the conversations we’ve been having with fleet operators in a range of industry sectors from public transport to logistics and waste collection.
We’re moving from planning to delivery
One thing is clear: the market is moving into the delivery phase. The time for planning for many large fleets, especially in public transport, is almost over. It’s now all about execution. The question of ‘why’ we need to transition has been answered; the focus has shifted to ‘how.’
Due to the support of ZEBRA funding, buses are leading the way in electrification to support the climate emergency goals set by over 300 local authorities. Of the 32,000 buses in the UK, 4,000 are electric today, so there’s more to do in terms of scaling out the progress.
Electric LCVs have benefitted from an early mover advantage, resulting in more mature technology and economies of scale thanks to early Government incentives for fleets to purchase vehicles and install chargers. LCV fleets are still stuck on the return-to-home challenge, but interesting solutions are emerging to provide shared charging infrastructure for commercial fleets.
The HGV sector is slower, but long-range electric vehicles are now emerging, prices are reducing, and pilot schemes are proving feasibility. It’s still early days, with more charging infrastructure, further price reductions and range increases required before we hit scale.
As Sean Clifton, Fleet Director at Wincanton said at the Logistics UK event, “you’d be surprised just how many vehicle/journey use cases can be successfully transitioned to electric today”.
BEVs (battery electric vehicles) are leading the way
Eighteen months ago, many believed hydrogen would play a major role in heavy trucking. Today, the consensus has shifted towards BEVs. Improved understanding of the technology and business case has highlighted hydrogen’s limitations, positioning BEVs as the future of transport—even for HGVs in most cases.
This sentiment was strong at the Logistics UK Conference and Professor David Cebon from the Centre for Sustainable Road Freight presented his comparison of BEV to hydrogen in terms of energy output/efficiency.
Professor Cebon found that after the conversion processes required to convert renewable AC electricity and power a vehicle via battery or fuel cell, a hydrogen vehicle will deliver 23% of the original power and a BEV 69%.
Scope 3 emissions are a catalyst for change – but what about the cost
UK brands’ sustainability and procurement teams are increasingly demanding action to help meet their scope 3 emissions targets. Transport and logistics fleets are having these conversations with every customer and strict net zero requirements are increasingly showing up in contracts.
Kate Broome, Sustainability Director at Kuehne & Nagel said at the Logistics UK event, “every conversation with a customer is how quickly can you get me to my net zero goals?”
While brands and logistics partners are aligned on the need for decarbonisation, a critical challenge remains – customers may not be willing to pay premium rates for sustainable services.
This creates an opportunity for fleets to differentiate themselves. Those who can deliver sustainable solutions at competitive prices will have the advantage in the market.
Alternative fuels are a transitional strategy
Alternative fuels like HVO and biogas have a role in the transition. However, we believe they are an interim solution, focused on routes or vehicles that are hard to electrify today. Their cost, and limited availability will prevent use at scale and a consensus is emerging that these fuels are best reserved for hard-to-decarbonise sectors like aviation and shipping.
Interestingly, the higher cost of some alternative fuels can actually improve the total cost of ownership (TCO) comparison for electric vehicles, strengthening the business case for electrification.
Act now, perfect later
We can’t wait for perfect technology or sweeping systemic changes. Delaying action means adding carbon to the atmosphere, carbon that will need to be painfully “earned back” later. Waiting for technology or systems to improve before acting only worsens the problem.
For organisations ready to act, the message is clear: start now. Even small steps, like electrifying a few vehicles or specific routes, can make a difference.
The transition to electric fleets is underway, it is happening, and the question for businesses operating fleets is ‘when to start?’
As ever, early adopters will have a competitive advantage and become leaders from learning and acquiring the necessary new skills and knowledge to run an EV fleet. Those who are slower to make the shift, risk lagging behind and facing a future supply chain crunch which could wipe out any anticipated lower costs from the delay or cause significant delays to their transition.
Scale matters because the economics are more attractive when depots are fully electrified. Done well, you end up with lower costs, streamlined depots, efficiency gains and happier drivers and passengers.
Collaboration is key
As energy systems across the UK and Europe decarbonise, transport faces growing pressure as a significant emitter. What’s encouraging is the spirit of collaboration emerging across the industry. Even direct competitors are coming together to tackle shared challenges.
Pioneering fleets are not just transforming their own operations but actively sharing their experiences to help others progress. This collaborative approach – of open knowledge sharing and mutual support – is a powerful tool in addressing the decarbonisation challenge.
Fleet operators that act decisively, embrace change, and execute quickly will learn fast and lead in this new economic era. The time to start is now.