Low emission fuels are something logistics and supply chain organisations all around the world are worried about. There are many options but not all of them will deliver the same desired results. Rik Arends, Technical Manager at Smart Freight Centre, spoke to The Logistics Point about low emission fuels and how companies can understand where to start from.
What are the different types of low emission fuels?
Let me start by saying that there is not a single solution on low emission fuels out there. There’s actually quite a wide range of different fuels that exist, ranging from the different biofuels that are being produced from different feedstocks to electric and hydrogen solutions, and also depending on the mode of transport.
And how can companies choose out of all of them?
By definition, it is going to be about cost and the Total Cost of Ownership (TCO). At Smart Freight Centre, however, we want to add the concept of Total Emissions of Ownership (TEO). When you talk about the lifetime of operating a vehicle you have a certain cost but you also have the total emissions.
When we are talking about low emission fuels what are the biggest misconceptions?
The biggest misconception is that it is too far away and not necessarily important. It’s something that’s going to happen for everyone. And if you don’t invest in it now or in the very near future, it’s going to be a very costly affair for you. You can see it happening with the European Union ‘Fit for 55’ legislation. Carbon prices will go up and you will have to pay for the carbon costs of your emissions in one way or another. Therefore, already investing in different technology can pay out in the longer run.
What is the role of governments in this?
The biggest hurdle at the moment with low emission fuels is that cost is very high compared to other alternatives. The capital investment cost for an electric truck is significantly higher compared to the one for a diesel truck. Helping with subsidies and making it clear what the roadmap for the future is will be very beneficial. Support and clarity by governments is very needed for the long run.
The GLEC mission
The Global Logistics Emissions Council (GLEC) was established in 2014. GLEC has grown into a voluntary partnership of more than 150 companies, industry associations, programs, experts and other organizations. The mission of GLEC as an industry-led partnership is to drive emission reduction and enhance efficiency across global logistics supply chains. They do this through global, harmonized guidelines for reporting and reducing logistics emissions that work for business. The GLEC’s work together with GLEC partners involves the development of guidelines, testing with companies, and advocacy for industry-wide uptake and aligned policy.
Where can logistics companies find more information and how can Smart Freight Centre help?
We at Smart Freight Centre have established the GLEC Partnership to discuss Low Emission Fuels and develop industry standards. There are a lot of misconceptions about which fuels are really sustainable. There are certain fuels out there that are being presented as more sustainable but in fact are increasing your emissions. So we can guide companies with making sure that they choose the right fuel and actually reduce their emissions.
To learn which fuels are more sustainable and how to choose the one that is right for your operations watch the video interview with Rik Arends below. ✷
Fit for 55
The Fit for 55 package is a set of proposals to revise and update EU legislation and to put in place new initiatives with the aim of ensuring that EU policies are in line with the climate goals agreed by the Council and the European Parliament. ‘Fit for 55’ refers to the at least 55% emission reduction target which the EU has set for 2030. The proposed package aims to bring the EU’s climate and energy legislation in line with the 2030 goal.