New Report Highlights Urgent Need for Investment in Zero-Emission Commercial Vehicles to Achieve Decarbonization Goals
Published by Smart Freight Centre and commissioned by the Dutch Ministry of Infrastructure and Water Management, the report underlines Action Needed to Accelerate Growth of Zero-Emission Truck Market with data prepared by BloombergNEF.
New York, September 25 2024 — During a Climate Week NY 2024 session, hosted by Smart Freight Centre and research provider BloombergNEF (BNEF), a crucial report is at the table. This report has been released to underscore the urgent need for accelerating the adoption of zero-emission trucks.
The report, titled “Zero-Emission Commercial Vehicles: The Time is Now,” supported by the government of the Netherlands, offers an in-depth analysis of the current landscape for zero-emission vehicles (ZEVs). The report makes it clear: the logistics industry is at a critical juncture, and investments are essential to scale up the deployment of zero-emission trucks and meet global decarbonization targets.
The report can be downloaded here.
The Time to Invest is Now
Medium- and heavy-duty vehicles, responsible for a disproportionate share of transportation emissions, are far from being on a Paris Agreement-aligned pathway. Without decisive action, emissions from these vehicles will continue to exacerbate the climate crisis. The report stresses that increased investments in Zero Emission Vehicle technology and infrastructure will not only reduce harmful emissions but also yield significant co-benefits, including enhanced public health, energy security, and innovation.
Accelerating Policy and Market Momentum
Sales of medium and heavy trucks with zero tailpipe emissions are growing fast, but the market is still in the early stages. Adoption varies widely between countries and vehicle use cases, though economics are steadily improving as battery prices fall. There is a growing opportunity for creative financing and business models to help this market scale up. As market momentum continues to build, supported by progressive and ambitious policies, the time to act has never been more urgent.
The report also highlights that failing to act now will slow global progress toward decarbonization and place companies at a competitive disadvantage as demand for zero-emission solutions surges.
Petrouschka Werther, Director Sustainable Mobility from the Ministry of Infrastructure and Water Management of the Netherlands, stated:
“This report by Bloomberg NEF shows there is a growing global market for low- and zero-emission trucks. While China dominates the market in absolute numbers, Europe is quickly gaining pace as a result of policy ambition and industry leadership. The opportunity to invest in zero-emission trucks is now. Investments in zero-emission trucks are currently low and hampered by various barriers like high upfront capital costs, low infrastructure availability and lower range in comparison to diesel trucks. Nonetheless, zero-emission vehicle technology is developing fast, with battery-electric trucks reaching cost-parity with diesel in near future. Governments have an important role to play in the roll out of charging and refuelling infrastructure, as well as addressing related issues with grid congestion.”
Nikolas Soulopoulos, lead author of the report and head of BloombergNEF’s Commercial Transport research team stated,
“Electric trucks are fast becoming economically competitive to equivalent diesel vehicles, starting with shorter routes. As battery technology continues to improve and costs come down, we expect heavy-duty long-haul battery trucks to reach total cost of ownership parity in most markets by 2030.” “The challenges of high up front capital costs and getting enough charging infrastructure installed are very real, but we’re also seeing innovative business models and financing structures being deployed successfully around the world to tackle these” added Soulopoulos.
Christoph Wolff, CEO of Smart Freight Centre, stated:
“The report aims to inform the investment and finance community to engage more proactively in scaling up the investments in zero emission trucks. It is a new viable asset class that offers great opportunities. Smart Freight Centre will continue to engage with the investment community on ways to seize the clear opportunities. We strongly believe in the impact this sector will have in decarbonizing the logistics industry, and therefore we continue on this journey to promote Zero Emission Trucking as a Viable Asset Class.”
About Ministry of Infrastructure and Water Management of the Netherlands
The Ministry of Infrastructure and Water Management is committed to improving quality of life, access and mobility in a clean, safe and sustainable environment. The Ministry strives to create an efficient network of roads, railways, waterways and airways, effective water management to protect against flooding, and improved air and water quality.
About Smart Freight Centre
Smart Freight Centre (SFC) is a globally active non-profit organization for climate action in the freight sector. Our goal is to mobilize the global logistics ecosystem, in particular our members and partners, in tracking and reducing its greenhouse gas emissions. We accelerate the reduction of logistics emissions to achieve a zero-emission global logistics sector by 2050 or earlier, consistent with 1.5° pathways. www.smartfreightcentre.org
About BloombergNEF
BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities.