Sustainable freight transportation is pivotal for addressing environmental, economic, and social challenges associated with traditional freight practices.
To facilitate the transition toward sustainability in freight transportation we must embrace innovative digital and deep-tech solutions. This encompasses many advancements - from hydrogen and battery-electric trucks, and heavy-duty charging infrastructures to green ports and smart multimodal optimization.
By leveraging these innovative technologies and practices, the industry can mitigate environmental impacts, improve energy efficiency, and build resilient and equitable supply chains, ultimately fostering a more sustainable and prosperous future for all.
Key challenges in the global freight transportation scene
GHG emissions: The global freight transportation sector poses significant challenges related to greenhouse gas (GHG) emissions, contributing 8-10% of total emissions worldwide, and even 11% when considering ports and warehouses. In 2020, trucks and vans accounted for 65% of these emissions, emitting approximately 2.2 billion tons of CO2. Global sea freight contributed around 700 million tons of CO2 emissions, while rail and air freight emitted approximately 170 million and 160 million tons, respectively. The transport sector remains a major emitter in the European Union, with road transport alone responsible for over 70% of GHG emissions from transport in 2019.
Achieving climate neutrality: Europe aims to reduce transport emissions by 90% by 2050. Regulatory requirements and increasing CO2 and fuel prices drive the industry to act.
Barriers: Vehicle and vessel availability, infrastructure limitations, fuel affordability, total cost of ownership, and regulatory uncertainty hinder the sustainability transformation of freight transportation. Overcoming these challenges requires collaborative efforts from all stakeholders, including vehicle manufacturers, fuel and energy providers, infrastructure operators, transport companies, and customers, to ensure a sustainable and efficient freight transportation system for the future.
Sustainability and Sovereignty Impact Potential for Europe
Developing and implementing sustainable freight transport solutions in Europe is crucial for several reasons:
Decarbonization: Firstly, it is necessary to achieve the region's decarbonization targets by reducing greenhouse gas emissions from the transport of goods within, to, and from Europe.
Reducing health risks: Sustainable solutions can help mitigate the health risks associated with air pollution caused by trucks and ports, particularly from moored ships, benefiting European citizens.
Dependency on imported fuels: By reducing dependency on imported fuels for freight transport, Europe can enhance its energy sovereignty.
Efficient transport services: Finally, ensuring a strong European transport sector is vital for providing essential, efficient, and affordable services to European society.
New deep tech and digital solutions needed
A wide array of deep tech and digital innovations are being considered to tackle the abovementioned challenges. These innovations encompass various aspects, including zero-emission solutions for trucks, trains, ships, and planes using battery-electric and fuel cell technologies, as well as alternative fuel solutions such as bio- and e-fuels.
Additionally, innovations in heavy-duty charging infrastructures, fueling infrastructures (especially for hydrogen), integrated routing and charging/fueling planning tools leveraging AI, vehicle and ship efficiency technologies, green ports and airports, autonomous and guided vehicles for ports, airports, and warehouses, AI-powered smart multi-modal transport tools are being explored.
Key success factors for these innovations include scalability, compliance with regulations, acceptance by industry stakeholders, and manageable costs compared to less sustainable alternatives, considering future CO2 pricing and regulatory requirements.
What’s ahead of Europe’s freight industry
The European transport and logistics industry is a powerhouse, contributing significantly to the economy and providing jobs for millions of people.
Analysts have varying estimates of the total European Freight and Logistics market size, but it's substantial, ranging from 30 billion to 1 trillion USD, with continued growth projected. Europe is home to many major transport companies and manufacturers, playing a crucial role in driving sustainability efforts.
Big players in industries like fast-moving goods and construction lead the charge for a greener future. To decarbonize ships alone, billions of dollars in investment are needed annually, highlighting the scale of the challenge and the opportunity for innovation (UNCTAD review of Maritime Transport 2023).
D2XCEL extends an invitation to deep tech and digital ventures across Europe, operating in sustainable freight transportation, to check the eligibility requirements and join our scaling programme!
Apply here and join one of our live webinars for interested companies or network stakeholders, where you can learn more about the programme and the benefits of participating!
This project has received funding from the European Union under grant agreement Nº101121100. Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and SMEs Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.