Clarity needed from Government to progress HGV decarbonisation

By Michelle Gardner, deputy director – policy, Logistics UK

Decarbonisation is a priority for the logistics industry, with Logistics UK’s EV report noting that 62% of all survey respondents stating they plan to have decarbonised their van fleets by 2030.

However, in the view of Logistics UK, further progress – primarily regarding heavy goods vehicles (HGVs) – is being hampered by the lack of clarity and long-term strategy needed from government.

While the deadline to achieve net zero by 2050 may seem a future challenge, action is needed now.

Natural fleet replacement cycles are ongoing and operators need answers to inform future investments and to help them make reductions to their emissions today.

Sufficient, practicable infrastructure must also be in place to support alternatively fuelled vehicles ahead of the deadline, especially in relation to the upcoming vehicle phase out dates.

Logistics UK strongly supports the government backed trials to test what infrastructure will be needed for 40-44t battery electric or hydrogen HGVs, but the winning bidders are still yet to be announced.

The industry is eager to see these trials progress as the learnings and outcomes will take time to evaluate, and as we are seeing with smaller vehicles, recharging and refuelling infrastructure will take significant time and investment to be in place to fully to support the zero-tailpipe emission vehicle fleets of the future.

While government has committed to publishing a Zero Emission HGV Infrastructure Strategy next year, which is a positive step, government must urgently progress the trials to test practical solutions and ensure viability regarding infrastructure.

While these trials look to the future, some operators are starting to adopt Low Carbon Fuels (LCFs), such as hydrotreated vegetable oil (HVO) and biomethane, to reduce HGV emissions now.

However, publication of government’s Low Carbon Fuels strategy is now over six months late.

With LCFs able to produce immediate carbon emission reductions of up to 80% without the need for large vehicle modifications, the lack of strategy – and thus clarity for operators – is creating wasted opportunities for vital wider emission reductions.

Currently, LCFs come at a high cost and lack the necessary infrastructure, such as refuelling stations. This, along with questions regarding government’s long-term commitment to LCFs – following its response to the Transport Committee’s Fuelling the Future report – is a significant barrier to uptake.

Throughout multiple parliamentary roundtables organised by Logistics UK, the business group’s members have consistently highlighted the need for reassurance on what long-term infrastructure will be available and how the high costs of these alternative fuels will be considered.

When published – which in the view of Logistics UK must be sooner rather than later – the strategy must include how government intends to address the cost, supply and infrastructure challenges.

While it is the heavier vehicles that face the most uncertainty across the road sector, some barriers still remain surrounding the electrification of light commercial vehicles that, if targets are to be met, must be addressed by government.

These challenges are primarily centred around charging infrastructure, both depot and public.

As of 1 January 2023, there were a total of 37,055 public electric chargepoints recorded in the UK. Monthly installations would have needed to rise by 288% since January to meet the 300,000 by 2030 target set by the Department for Transport (DfT) – an unlikely task considering an overall increase of just 7% between 1 October 2022 and 1 January 2023.

As well as this, businesses have reported costs between £100,000 and over £1 million to upgrade depot energy supplies. Energy prices are also proving volatile with one business told that every additional megawatt of electricity will cost around £5,000.

To address these challenges, Logistics UK is urging government to provide an EV charging and refuelling infrastructure roadmap designed in collaboration with industry.

With many Logistics UK members also reporting issues surrounding suitability of public charging infrastructure for logistics vehicle use, this roadmap must work for logistics vehicles and be backed with clear guidance and incentives for local authorities.

As well as this, government must outline much-needed support for depot power supply upgrades which will be essential for both small and large logistics vehicles.   

The logistics industry is complex and achieving decarbonisation will require significant input from both government and industry.

Conversations between Logistics UK, its members and government have been positive as everybody looks to achieve the same outcome, however, action must follow this and it is vital the government provides the support needed to achieve these combined goals.