London, UK: Urgent action is required to electrify the HGV sector in the UK in order to meet net zero targets for transport, according to a new report from the Green Finance Institute.
The report, Delivering Net Zero: Unlocking Public and Private Capital for Zero Emission Trucks, urges collaboration between the government, industry and private investors to unlock a £100bn investment opportunity and decarbonise the HGV sector.
The report states that “a failure to overcome barriers puts the transition to a zero-emission road freight and logistics sector at risk”. Action is required urgently as many operators have just one more cycle of replacing their fleet before the new diesel truck end of sale date is implemented in 2035, warns the report.
Although the HGV sector represents only 1% of vehicles, it takes up a disproportionally large share of the country’s transport emissions with around 20%, the report says. It points out that several barriers are restricting the wider distribution and uptake of zero-emission trucks (ZETs). The report highlights key barriers to the decarbonisation of HGVs, including perceived technology risks, higher costs and inadequate charging infrastructure.
According to the report, by implementing charging infrastructure across the country, including depots and the strategic road network, the entire HGV fleet could be decarbonised, leading to a reduction in carbon emissions equivalent to removing 12 million cars from the road (18.6 million tonnes of carbon dioxide).
Lauren Pamma, programme director, Green Finance Institute, said: “There is a £100bn investment opportunity that we can unlock through innovative finance products, providing a massive opportunity to decarbonise the HGV sector before the government’s target of phasing out diesel trucks by 2040.
“Our report sets out some of the financing mechanisms that will help us roll out electric charging points and get more electric lorries on our roads to decarbonise the HGV sector.”
Chris Ashley, head of policy for environment and vehicles at the Road Haulage Association, welcomed the report. “With its clear illustration of the complexity and costs involved, ensuring the switch away from diesel is seamless whilst supporting our vital small businesses – the lifeblood of logistics – will be essential,” he said
“The GFI has provided a framework that allows industry to navigate and debate the investment conditions needed to deliver a sustainable net zero.”
The Green Finance Institute outlined several policy recommendations:
- Supporting supply chain development for ZETs through a regulatory pathway or a ZEV mandate
- Amend grant and tax incentives to support ZETs
- Develop a ZET Infrastructure Strategy
- Simplify and create nationally consistent processes for grid connections and installing charging/refuelling infrastructure at depots
- Address energy price volatility to help operators make a business case to switch
- Government should support intermodal opportunities for the decarbonisation of transport, including road, rail and shipping.
