Deep dive: Freight & logistics decarbonization — what's working, what's not, and what's next

Freight transport accounts for 31% of all UK transport CO₂ emissions, yet zero-emission heavy goods vehicles represent just 0.19% of the national fleet. This stark disparity between ambition and deployment defines the central challenge facing logistics decarbonization in 2025. While the UK has committed to banning sales of non-zero-emission HGVs up to 26 tonnes by 2035, the path from policy announcement to operational reality remains fraught with measurement inconsistencies, infrastructure gaps, and what industry practitioners increasingly call "measurement theater"—the appearance of progress without verifiable impact.

This deep dive examines what's genuinely advancing freight decarbonization in the UK, what's stalling progress, and where sustainability leads should focus their attention to avoid costly missteps. The emphasis throughout is on data quality, standards alignment, and the practical realities of implementing emissions reductions across complex supply chains.

Why It Matters

The freight and logistics sector sits at the intersection of economic necessity and climate urgency. In 2024, UK domestic transport emissions reached 110.1 MtCO₂e, representing 30% of total national emissions—making transport the country's largest emitting sector. Within this, heavy goods vehicles contributed 18.2 MtCO₂e (16% of domestic transport), while light commercial vehicles added another 18.0 MtCO₂e. Combined, road freight accounts for approximately one-third of all UK transport emissions.

The operational scale is substantial. In 2024, HGV traffic reached 16.6 billion vehicle miles across the UK network, with 534,000 licensed heavy goods vehicles in operation. Yet the inefficiency embedded within this system is remarkable: 30% of trucks run with empty loads, representing a structural waste of fuel, capacity, and emissions that persists despite decades of optimization efforts.

The policy trajectory is equally demanding. The Climate Change Committee projects that surface transport emissions must fall 86% from 2023 levels by 2040, requiring approximately 63% of the HGV fleet to be electric by that date. The cumulative emissions savings from successful freight decarbonization between 2020 and 2050 are estimated at 200-220 MtCO₂e, with associated air quality benefits valued at up to £600 million.

For sustainability leads, the commercial stakes are considerable. Scope 3 emissions from purchased logistics services represent a significant portion of most companies' carbon footprints, yet accurate measurement remains elusive. The Corporate Sustainability Reporting Directive (CSRD) and evolving disclosure requirements from the Science Based Targets initiative (SBTi) are driving demand for verifiable emissions data—precisely the area where current practices fall short.

Key Concepts

Freight Decarbonization refers to the systematic reduction of greenhouse gas emissions from goods movement across road, rail, maritime, and air transport modes. Unlike passenger transport electrification, freight decarbonization confronts unique challenges: heavy payload requirements, extended range demands, and complex multi-modal supply chains that cross organizational and national boundaries. Effective decarbonization strategies combine vehicle technology transitions, operational efficiency improvements, modal shifts, and fuel switching.

Micromobility for Freight encompasses small-scale, low-speed vehicles used for urban last-mile delivery, including electric cargo bikes, e-scooters with cargo attachments, and small electric quadricycles. While representing a fraction of total freight volumes, micromobility solutions can reduce last-mile emissions by up to 96% compared to diesel vans. The City of London has targeted deployment of five micro-logistics hubs by 2025, enabling e-cargo bike and foot delivery networks to replace van traffic in congested urban cores.

Life Cycle Assessment (LCA) provides a comprehensive methodology for quantifying environmental impacts across a product or service's entire life cycle, from raw material extraction through end-of-life disposal. For freight decarbonization, LCA reveals that battery electric vehicle emissions are not zero—they are front-loaded in manufacturing—while tail-pipe-focused metrics understate the climate benefits of electrification. The GLEC Framework version 3.2 now incorporates enhanced LCA-aligned emission factors for accurate vehicle comparisons.

CAPEX (Capital Expenditure) represents the upfront investment required for fleet renewal, charging infrastructure, and operational changes. Electric HGVs currently carry significant CAPEX premiums over diesel equivalents, with hydrogen fuel cell vehicles even more expensive. The eFreight 2030 consortium estimates that achieving widespread electric HGV adoption will require £500 million in combined public-private infrastructure investment by 2030.

Scope 3 Emissions encompass indirect emissions occurring across a company's value chain, including purchased transportation and distribution services. For retailers and manufacturers, logistics-related Scope 3 emissions often exceed direct operational emissions by an order of magnitude. The challenge lies in obtaining reliable carrier-level emissions data rather than relying on industry averages that mask performance variations.

What's Working and What Isn't

What's Working

Standardized Emissions Accounting via the GLEC Framework

The Global Logistics Emissions Council (GLEC) Framework has emerged as the definitive methodology for calculating and reporting freight emissions. Version 3.2, released in October 2025, provides harmonized calculation approaches across all transport modes, full alignment with ISO 14083, and updated emission factors reflecting current fleet compositions. The framework's "Built on GHG Protocol" certification ensures compatibility with corporate carbon accounting standards, while its adoption by CDP and SBTi creates consistent measurement approaches across disclosure frameworks.

Critically, GLEC introduces a tiered data quality hierarchy—from primary measured data through modeled estimates to default values—that enables companies to report emissions even with incomplete carrier data while providing transparency about underlying uncertainty. This pragmatic approach has accelerated adoption among shippers who previously avoided Scope 3 reporting due to data gaps.

Electrification of Urban and Regional Distribution

Electric vehicle deployment in short-haul and urban distribution has demonstrated clear viability. Tesco's addition of 151 IVECO eDaily electric vans in March 2024 expanded their home delivery fleet to over 1,000 electric vehicles, with plans to reach 100% electric vans by 2030. The rapid charging capability—achieving 100km range in 30 minutes—addresses operational constraints that previously limited electric deployment.

DHL's £64 million investment in green heavy fleet delivered six fully electric 16-tonne Volvo trucks for London operations in 2022, followed by the UK's first Volvo FM heavy-duty electric tractor units (40 tonnes) in 2023. The JLR partnership achieved 84% carbon reduction across the UK core fleet, saving over 8,000 tonnes CO₂e annually by transitioning to alternative fuels by April 2024.

Rail Freight Expansion for Long-Haul Volumes

Amazon's 2024 launch of UK rail freight deliveries represents a significant modal shift, with over 5 million products expected to travel on electric rail in 2025. While over 40% of the UK rail network is electrified, most rail freight historically operated on non-electrified routes. Strategic corridor electrification and improved intermodal facilities are enabling cost-effective emissions reductions for appropriate cargo types without vehicle technology risk.

What Isn't Working

Heavy Long-Haul Electrification Remains Nascent

Despite headline announcements, zero-emission HGV deployment remains at marginal scale. The 990 zero-emission HGVs on UK roads in 2024 represent just 0.19% of the licensed fleet—a 34% increase from 740 units in 2023 that nonetheless leaves 99.8% of heavy goods vehicles operating on diesel. More concerning, 2024 saw a 7.3% decline in zero-emission HGV demand to just 213 units sold, representing 0.5% market share.

The infrastructure challenge is acute. Grid connection delays for commercial charging facilities can extend to six years in high-demand areas, while hydrogen refueling infrastructure remains effectively non-existent outside demonstration projects. Price parity between hydrogen HGVs and battery electric alternatives is not expected until 2040, creating technology pathway uncertainty for fleet operators making decade-long investment decisions.

Measurement Theater in Corporate Reporting

A significant gap persists between reported emissions reductions and verified impact. Many logistics decarbonization claims rely on purchased offsets, renewable energy certificates, or book-and-claim biofuel systems rather than actual operational changes. The lack of standardized verification requirements enables "measurement theater"—sophisticated-appearing disclosures that obscure whether physical emissions have actually decreased.

The 2024 Logistics UK survey found that 38.7% of logistics respondents were "not confident" in achieving 2050 net zero targets, suggesting internal skepticism about current trajectories despite public commitments. No monitoring frameworks yet exist for UK seaports to assess net zero progress, leaving maritime freight—responsible for significant international emissions—largely unmeasured.

Scope 3 Data Quality Remains Poor

Despite GLEC Framework availability, most companies still rely on default emission factors rather than carrier-specific primary data. This approach, while enabling compliance with disclosure requirements, fails to differentiate between high-performing and lagging carriers, removing incentives for operational improvement. When a shipper's reported emissions remain unchanged regardless of carrier selection, the measurement system has failed its core purpose of driving decisions toward lower-impact options.

The fundamental challenge is carrier reluctance to share proprietary operational data. Without regulatory requirements mandating emissions disclosure, competitive concerns prevent the transparency necessary for accurate Scope 3 accounting.

Key Players

Established Leaders

Tesco leads UK retail freight decarbonization with systematic fleet electrification across both heavy goods and delivery vehicles. Their net-zero target of 2035 for UK operational emissions drives ongoing investment in electric HGVs, biomethane trucks, and solar-powered refrigerated trailers.

DHL has committed €7 billion (approximately £6 billion) to sustainable fuel and clean technology by 2030, with a target of 60% electric delivery fleet by that date. Their UK operations include the country's first Volvo heavy-duty electric tractor units and comprehensive alternative fuel transitions.

Maersk drives maritime freight decarbonization with methanol-powered container vessels and industry-leading Scope 3 transparency. Their logistics division provides GLEC-compliant emissions data to customers, enabling accurate supply chain carbon accounting.

Network Rail operates the UK's electrified rail infrastructure and is investing in strategic freight corridor upgrades to enable modal shift from road to rail for appropriate cargo types.

Amazon Freight combines last-mile electric van deployment with the new UK rail freight initiative, targeting 300 middle-mile electric vehicles by end of 2025 alongside over 200 Mercedes-Benz eActros 600 electric HGVs ordered for European operations.

Emerging Startups

Zedify provides electric cargo bike logistics for urban last-mile delivery, achieving 96% lifecycle emissions reduction compared to diesel vans. Their network of urban consolidation centres enables efficient parcel aggregation for cargo bike distribution.

Sunswap eliminates diesel-powered transport refrigeration units with electric, battery, and solar-powered alternatives. Their €12.8 million funding supports scaling across temperature-sensitive supply chains.

Antonym targets the £2.5 trillion road freight market with smarter, safer, and cleaner logistics solutions through the Tech Nation Net Zero Programme.

Fin provides middle-mile logistics using an all-electric fleet for parcel delivery and Warehousing-as-a-Service, with €14.81 million funding supporting European expansion.

Qargo offers cloud-based transport management systems that optimize fleet efficiency and reduce empty running, addressing the 30% empty load problem through improved load matching and route optimization.

Key Investors & Funders

UK Research and Innovation (UKRI) funds the Decarbonising UK Freight Transport Network across 11 universities and 30 industry partners, providing foundational research for policy and technology development.

Breakthrough Energy Ventures backs freight-relevant technologies including Blue World Technologies (methanol fuel cells for maritime) and maintains partnership with the UK government through Breakthrough Energy Catalyst's $1+ billion demonstration project fund.

eFreight 2030 Consortium mobilizes £500 million in private investment for electric vehicles and charging infrastructure, led by Heriot-Watt University with members including John Lewis Partnership, Nestlé, and William Jackson Food Group.

Digital Catapult Logistics Living Lab accelerated over 40 startups and SMEs to secure more than £3 million in funding by November 2024, demonstrating 15-30% potential CO₂e reduction through technology deployment.

Innovate UK provides grant funding for freight decarbonization demonstrators, including the £49.2 million eFreight 2030 program supporting 100 electric HGV tractors and 32 megawatt charging locations.

Examples

Example 1: Tesco Wales Electric HGV Deployment

Tesco deployed two DAF 37-tonne electric articulated trucks on the Wentloog-Magor route in Wales, eliminating 65,000 diesel miles annually and saving 87.4 tonnes CO₂e per year. The route selection prioritized consistent journey profiles and overnight charging windows, demonstrating that even with current battery limitations, strategic deployment can achieve meaningful impact. Key success factors included predictable daily distances below battery range limits and depot-based charging infrastructure that avoided public network dependencies.

Example 2: DHL Parcel UK Heavy Electric Fleet

DHL Parcel UK's deployment of six fully electric 16-tonne Volvo trucks in London, combined with 30 LNG tractor units, represented a £64 million green fleet investment. The Volvo FL Electric Rigids feature four 200kWh batteries providing 120-mile range with 6-tonne payload capacity. This configuration targets urban distribution where daily routes match range capabilities and depot charging is feasible. The subsequent introduction of 40-tonne Volvo FM Electric tractor units in 2023 extended electric capability to heavier-duty regional operations.

Example 3: Smart Freight Centre GLEC Implementation

The Smart Freight Centre's certification program for GLEC-compliant calculation tools has enabled standardized emissions reporting across UK logistics providers. Companies including Searoutes, Squake, and Gryn now offer ISO 14083-aligned emissions calculation services that provide shippers with carrier-specific emissions data rather than industry averages. This infrastructure enables differentiated procurement decisions: a shipper can now compare actual emissions intensity between carriers rather than relying on assumptions that treat all road transport identically.

Action Checklist

• Audit current Scope 3 logistics emissions methodology against GLEC Framework v3.2 requirements and ISO 14083 alignment
• Request carrier-specific emissions data using primary operational metrics rather than accepting default emission factors
• Evaluate electric HGV viability for routes under 150 miles with predictable daily patterns and depot-based operations
• Map charging infrastructure requirements including grid connection timelines before committing to electric fleet expansion
• Establish data quality tiers for emissions reporting, transparently distinguishing primary measured data from modeled estimates
• Assess modal shift opportunities to rail for appropriate cargo types on electrified corridors
• Include biomethane and renewable diesel as transition fuels while electric infrastructure develops
• Engage with the eFreight 2030 consortium or Digital Catapult Logistics Living Lab for technology validation before large-scale deployment
• Develop supplier engagement requirements that mandate GLEC-compliant emissions disclosure for new logistics contracts
• Establish internal verification processes to prevent measurement theater and ensure reported reductions reflect actual operational changes

FAQ

Q: When will electric HGVs achieve cost parity with diesel? A: Current projections suggest battery electric trucks will reach total cost of ownership parity with diesel by the mid-2020s for urban and regional distribution, primarily due to lower fuel and maintenance costs offsetting higher purchase prices. However, long-haul applications may not achieve parity until the early 2030s, and hydrogen fuel cell HGVs are not expected to match battery electric costs until 2040. Fleet operators should model route-specific economics rather than relying on generalized projections.

Q: How should companies handle the gap between carrier data availability and Scope 3 reporting requirements? A: The GLEC Framework provides a pragmatic hierarchy: use primary carrier data where available, supplement with modeled estimates based on vehicle type and route characteristics, and apply default emission factors only as a last resort. Critically, companies should transparently report their data quality mix—the proportion of emissions calculated from each tier—rather than presenting all figures with equivalent precision. Engaging carriers early with data-sharing requirements in contract negotiations improves primary data availability over time.

Q: What distinguishes genuine decarbonization from measurement theater? A: Genuine decarbonization produces verifiable physical changes: electric vehicles replacing diesel, modal shift to rail reducing road miles, improved load factors reducing total vehicle trips. Measurement theater typically involves accounting changes without operational impact: purchasing offsets for unchanged emissions, applying book-and-claim certificates to conventional fuels, or switching emission factor methodologies to show improvements. Sustainability leads should require evidence of operational change—vehicle registrations, route documentation, telematics data—not just revised carbon footprint figures.

Q: Is hydrogen a viable pathway for freight decarbonization in the UK? A: Hydrogen may prove essential for specific niches—long-haul routes exceeding battery range, heavy-duty applications with weight constraints, and operations requiring rapid refueling—but near-term focus should remain on battery electric deployment where viable. The UK hydrogen refueling infrastructure remains minimal, and hydrogen production costs exceed grid electricity costs per mile traveled. Companies should monitor hydrogen developments without betting entire fleet strategies on technology that remains commercially immature.

Q: How does the GLEC Framework interact with CSRD requirements? A: GLEC Framework emissions calculations provide the methodological foundation for CSRD-compliant logistics emissions disclosure. The European Sustainability Reporting Standards (ESRS) require Scope 3 emissions reporting including purchased transport services, and GLEC's ISO 14083 alignment ensures methodology meets CSRD's reasonable assurance requirements. Companies subject to CSRD should implement GLEC-compliant carrier data collection now, as retrospective data gathering for baseline periods proves significantly more difficult.

Sources

• UK Department for Transport, "Road Freight Statistics 2024" and "Transport and Environment Statistics 2024" (GOV.UK, 2024)
• Logistics UK, "The Logistics Report 2025" (logistics.org.uk, 2025)
• Smart Freight Centre, "GLEC Framework Version 3.2" (smartfreightcentre.org, 2025)
• Parliamentary Office of Science and Technology, "Decarbonising Surface Transport" (post.parliament.uk, 2024)
• Decarbonising UK Freight Transport Network, "Accelerating Investment for Decarbonising UK Freight Transport: Synthesis Report" (decarbonisingfreight.co.uk, 2023)
• Digital Catapult, "Logistics Living Lab: New Solution Set to Decarbonise the UK's Transport-Logistics Sector" (digicatapult.org.uk, 2024)
• Climate Change Committee, "Progress in Reducing Emissions: 2024 Report to Parliament" (theccc.org.uk, 2024)