Freight Decarbonisation for Australia addresses transport emissions says new ClimateWorks report

Decarbonising freight is critical to decarbonising the transport sector and meeting Australia's climate targets. ClimateWorks has just published a report on Delivering freight decarbonisation: Strategies for reducing Australia’s transport emissions.

In 2021, the transport sector contributed approximately 20 per cent of Australia’s domestic emissions and is likely to become the largest contributor by 2030. Freight makes up a considerable share of transport emissions, estimated by Climateworks to be just under 40 per cent of the transport total. This represents approximately 7 per cent of Australia’s total emissions.

Passenger transport emissions can be addressed through uptake of Electric Vehicles, Fuel Efficiency standards, policies that encourage active transport (walking and cycling) and micro-mobility and use of public transport. This report does not focus on passenger transport emissions.

Decarbonising freight needs to overcome a number of hurdles:

• Long lead times for investment decisions means that planning and action on early priorities must start now. 
• A fragmented industry with a vast array of small businesses and owner–drivers needs planning to achieve a just and equitable transition.

Report recommendations

Overall recommendation:

• Set a pathway to freight transport decarbonisation with clear interim targets

Recommendations to decarbonise short-haul freight:

• Build demand for zero-emissions trucks and vehicles by making them competitive assets for business investment
  • Offer tax breaks or other credits until required market share is achieved
  • Implement emissions-based access and charges
  • Formulate incentives to help small operators purchase zero-emissions trucks and vehicles
• Build an environment that supports market innovations and optimisation
  • Formulate policies and programs to support market innovations in last-mile deliveries
  • Provide reliable data, tools and analysis to support industry decarbonisation
  • Support training and skills development to create jobs and ancillary industries
  • Collaborate with industry to deploy charging and refuelling infrastructure and efficiency measures
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Recommendations to decarbonise long-haul freight transport:

• Undertake a comprehensive cost-benefit analysis to determine optimal roles for different modes, fuels and technologies
• Make rail a competitive mode-choice for long-haul freight
  • Prioritise policies that increase operational efficiencies and reduce costs
  • Link mode shift subsidies to clear decarbonisation targets
  • Invest in rail, port and intermodal infrastructure to facilitate an expanded role for rail freight
• Reduce technological uncertainty by providing guidance, supporting vehicle trials and demonstrating integrated use-cases for long-haul trucks
  • Assess the gaps and opportunities for zero-emissions technology in long-haul road freight
  • Demonstrate working pilots with industry
• Set a clear role for advanced biofuels

Role for ebikes and e-cargo bikes

The report includes recommendations for utilisation of ebikes and e-cargo bikes for 'last mile' deliveries within cities. This trend is already underway in European cities. This adds to the impetus in Melbourne for more protected bike lanes and linking the Principle Bicycle Network and Strategic Cycling Corridors.

4.1 Formulate policies and programs to support market innovations in last-mile deliveries

Last-mile urban deliveries in high-density areas are relatively easy to decarbonise (International Transport Forum [ITF] 2023) by shifting to e-cargo bikes, e-three wheelers or non-motorised modes. Similar incentives used to encourage uptake of zero emissions vehicles and trucks can be applied to encourage investment in and use of these modes. Solutions can also include optimised delivery service such as distribution hubs, parcel lockers, relay-points in high-density areas and precinct delivery models that reduce motorised vehicle-kilometres.

Implementation of these modes and solutions can be supported through initiatives that bring together industry, government – including local government – and research. This can be aided by pilots and collaboration with local businesses across areas such as central cities (C40 2023).

Benchmark policies:

++E-cargo bikes are being used in many cities for freight, including through shared e-cargo bike schemes. Transport for London’s 2023 Cargo Bike Action Plan, sets out a suite of actions to support cargo bikes as the leading option for last-mile freight (Transport for London 2023).

In 2020, Germany released the first standard to specify testing methods and safety requirements for e-cargo bikes. This has already been adopted in a number of European countries (European Standards 2020).

The report concludes:

"Three types of solutions to reduce freight emissions have been set out in this report. First, solutions that make trips shorter or reduce the level of transport activity. Second, solutions that shift freight to lower-emissions modes such as rail or e-cargo-bikes; these also offer major benefits in terms of reducing congestion on Australia’s roads as the freight task grows. Third, decarbonisation solutions can be achieved through improved energy intensity of vehicles and reduced carbon intensity of fuels. Enlisting a suite of solutions in an integrated way, can help Australia reach its emissions targets and also improve other outcomes, such as productivity and impacts on health and liveability"

Now we need Federal, State and local Governments to work together on pathways forward for decarbonising freight.

References:

Climateworks Centre, 19 October, 2023, Delivering freight decarbonisation: Strategies for reducing Australia’s transport emissions. https://www.climateworkscentre.org/resource/delivering-freight-decarbonisation-strategies-for-reducing-australias-transport-emissions/