In January 2020, the World Economic Forum’s report The Future of the Last-Mile Ecosystem forecasted that, by 2030, the number of delivery vehicles in cities will increase by 36%, leading to a 32% rise in emissions and 21% increase in congestion. This is no small challenge to manage emissions given that freight transportation is a particularly tricky sector to decarbonize. The industry is extremely fossil-fuel dependent today, with most freight being transported by road. In almost any major city, about 30% of transportation emissions can be attributed to the freight industry.

The rapidly growing sector forecasts the global market for trucks of 6 tons and higher will increase from about $177 billion in 2015 to $283 billion in 2025. Trucks also account for 40% of the expected growth in oil demand up to 2040 and are targets for governments and manufacturers who need to decarbonize to reach net-zero carbon goals.

Designing Programs To Reduce Emissions And Costs

Here are 6 ways the industry can reduce carbon emissions and costs.

1. Improve powertrain efficiency
2. Low-emission and electric engines
3. Aerodynamic retrofits
4. Low-rolling-resistance tires
5. Reduced idle time and lightweight materials
6. Fewer carbon fuels

Business and government sectors are focused on smart mobility, smart energy grids and electrification, with a specific focus on logistics. Several key themes include:

Traffic Management

• Traffic management and optimization facilitated through connected smart sensors, location-based applications, intelligent infrastructure and IoT swarm algorithms all working together to make traffic, driving, loading/unloading, and parking more efficient.

Smart Infrastructure

• Exhaust-related and uninterrupted tolls can reduce emissions, as can smart truck parking. IoT connected, clean electric vehicles mean connecting people, infrastructure, and intermediaries with low-to-no carbon emissions. For example, mobile apps and data distribution can enable truck-sharing and smart automation platforms to help organize trans-shipment processes for carbon-neutral distribution services.

Route Optimization

• Real-time information and data sharing can also influence carrier route choice and driver behavior towards lower-carbon options. Connecting vehicles, products, and freight cargo information improve route and fuel optimization while reducing carbon waste in the system.

 Public And Private Sectors Must Collaborate

At the core of any urban freight transport decarbonization initiative are four things:

1. 1. Cooperation
   2. Functioning business models
   3. Innovative around procurement and regulation
   4. Low-emission and electric vehicles

Any changes directed to decarbonization must involve both the public and private industry sectors. The core focus of modern-day research looks at creating business models for urban freight solutions. The public authority plays a vital role in creating the right framework, access, and conditions for a higher level of sustainability.