How-to: implement Freight & logistics decarbonization with a lean team (without regressions)

In 2024, ocean container shipping hit record-high CO2 emissions due to Red Sea diversions, with ships between 14,500–20,000 TEU emitting 24.2 million tons of CO2—a staggering 43% increase compared to 2023. Meanwhile, global investment in electrified transport reached $757 billion as part of a record $2.1 trillion energy-transition capital deployment (McKinsey, 2024). For lean teams tasked with decarbonizing freight operations, this paradox—rising emissions alongside unprecedented investment—presents both an urgent challenge and a strategic opportunity. Road freight alone accounts for 74% of global transportation sector emissions, while U.S. freight emissions have grown from 24% (1990) to 32% (2021) of total transportation emissions. This guide provides a practical roadmap for implementing freight decarbonization initiatives without creating operational regressions or overwhelming limited resources.

Why It Matters

The freight and logistics sector sits at a critical inflection point. With transport accounting for more than 33% of global CO2 emissions from end-use sectors, decarbonizing freight is no longer optional—it's a regulatory imperative and competitive necessity (International Energy Agency, 2024). The EU's FuelEU Maritime regulation now mandates a 2% greenhouse gas reduction starting January 2025, scaling to 80% by 2050. Similarly, the EU Heavy-Duty Vehicle CO2 law targets 45% emission cuts by 2030 and 90% by 2040.

For procurement teams and operations leaders, these regulations translate into immediate action requirements. The International Maritime Organization's 2028 targets will impose $380 per ton CO2 penalties for ships exceeding Tier 1 baselines, while California's Climate Corporate Data Accountability Act will require Scope 1-3 emissions disclosure for companies with over $1 billion in revenue by 2027. Lean teams cannot afford to wait for perfect solutions—they must build iterative capabilities now while maintaining operational excellence.

The business case extends beyond compliance. McKinsey projects total demand for green logistics at $350 billion by 2030, representing a massive market opportunity for early movers. Companies that establish decarbonization infrastructure today will capture preferential access to carbon-conscious customers, reduced regulatory exposure, and operational efficiencies from newer technologies.

Key Concepts

Understanding freight decarbonization requires familiarity with several foundational frameworks and metrics that will guide implementation decisions.

Scope 3 Emissions and the GLEC Framework: For most shippers, freight emissions fall under Scope 3—indirect emissions from value chain activities. The Global Logistics Emissions Council (GLEC) Framework provides standardized methodology for calculating and reporting logistics emissions across transport modes. Adoption of GLEC is accelerating, with major carriers now providing emissions data aligned to this standard.

Modal Shift Strategy: Different transport modes carry vastly different carbon intensities. Intermodal road-rail or road-waterway routes reduce emissions by 30–60% compared to truck-only transport. Research indicates that shifting just 25% of long-haul truck freight to rail would eliminate 13.1 million tons of CO2 annually in the United States alone (World Resources Institute, 2024).

Total Cost of Ownership (TCO) Parity: Battery electric and hydrogen trucks now exceed 500km range, with hydrogen expected to reach TCO parity by 2030 for all vehicle classes including heavy-duty trucks. This parity calculation must account for fuel costs, maintenance reduction, incentives, and residual value—not just acquisition price.

Book-and-Claim Mechanisms: For maritime shipping, book-and-claim systems like RMI's Katalist registry enable shippers to purchase emissions attributes from zero-emission fuels even when physical fuel delivery isn't feasible. This mechanism, tested with 29 organizations in 2024, provides a pathway for Scope 3 reductions while green fuel infrastructure scales.

Sector-Specific KPI Table

KPI	Baseline Range	Target Range	Measurement Frequency
CO2e per ton-kilometer (road)	50–120 g	<30 g	Monthly
Zero-emission vehicle share	1–5%	>25% by 2030	Quarterly
Alternative fuel adoption	<5%	>20% by 2028	Quarterly
Intermodal freight share	10–20%	>35%	Annually
Supplier emissions data coverage	20–40%	>80%	Semi-annually
Route optimization savings	Baseline	>15% reduction	Monthly

What's Working

Fleet Electrification at Scale

Companies are proving that electric fleet deployment works at commercial scale. PepsiCo operates 50 Tesla Semi trucks alongside 500 Ford E-Transit vans, achieving 8% renewable fuel usage across their distribution network. Schneider National runs approximately 100 Class 8 battery electric vehicles in Southern California, targeting a 60% greenhouse gas reduction per mile by 2035. Amazon has deployed over 25,000 Rivian electric delivery vans in the United States and 5,000 in Europe, delivering more than one billion packages via zero-emission vehicles in 2024 alone.

Green Fuel Partnerships

Strategic fuel procurement is accelerating decarbonization without requiring full fleet replacement. Maersk secured 700,000 metric tons per year of green methanol by 2025, enabling their dual-fuel methanol vessels to operate on zero-carbon fuel. CMA CGM and Maersk's joint framework for green-fuel procurement demonstrates how competitors can collaborate on pre-competitive infrastructure challenges.

Integrated Port City Strategies

Research published in Nature Communications (2025) demonstrates that combining fleet electrification with road network optimization in port cities achieves 34% reduction in peak CO2 emissions and 43% reduction in NOx compared to electrification alone. This integrated approach—coordinating municipal planning, port operations, and carrier incentives—provides a template for lean teams working within complex stakeholder ecosystems.

Autonomous and Optimization Technologies

Waabi's 10-year deal with Uber Freight for autonomous trucking software and Einride's electric truck fleet with charger-matching optimization represent the convergence of decarbonization and operational efficiency. Route optimization platforms consistently deliver 10–15% fuel savings with minimal capital investment.

What's Not Working

Scope 3 Data Fragmentation

Despite regulatory mandates, shippers continue struggling to obtain carrier-level emissions data including truck specifications, route details, and fuel efficiency metrics. This transparency gap undermines accurate reporting and prevents optimization. Lean teams often waste months attempting to aggregate data from dozens of carriers using incompatible formats.

Infrastructure Lag

Electric vehicle charging infrastructure rollout significantly lags regulatory requirements. Megawatt Charging System (MCS) stations for long-haul trucking remain sparse outside pilot corridors like the Terrawatt-Smart Freight Center electrified highway between Los Angeles and El Paso. Hydrogen refueling infrastructure is even more limited, concentrated in specific industrial clusters.

Policy Uncertainty

Regulatory shifts create investment hesitancy. U.S. policy changes under new administrations may reduce environmental mandates, making alternative fuels less financially attractive. This uncertainty particularly impacts long-cycle capital expenditures for fleet replacement and infrastructure development.

Competition for Renewable Fuels

Green methanol, sustainable aviation fuel, and green hydrogen face demand from multiple sectors simultaneously. Freight competes with aviation, shipping, and industrial processes for limited renewable fuel supplies, creating price volatility and supply constraints that complicate procurement planning.

Pilot Fatigue Without Scale

Many organizations have completed successful decarbonization pilots but struggle to scale results across their networks. The jump from 10 electric vehicles to 1,000 requires fundamentally different procurement, maintenance, and operational capabilities that lean teams may lack.

Key Players

Established Leaders

Maersk leads maritime decarbonization with over 300 heavy-duty electric trucks operating across North America and Europe, plus 20 dual-fuel methanol container vessels on order. Their Copenhagen e-methanol production facility represents vertical integration into fuel supply.

Amazon operates the largest private zero-emission delivery fleet, with more than 25,000 Rivian electric vans, 32,000+ installed chargers, and First Movers Coalition commitments targeting 10% zero-emission maritime fuels by 2030 and 100% by 2040.

Schneider National demonstrates Class 8 battery electric viability in demanding freight applications, with transparent reporting on their pathway to 60% per-mile emissions reduction by 2035.

DHL Global Forwarding leads EV adoption in emerging markets, particularly China, where battery electric heavy trucks reached 20.9% of new sales in December 2024.

FedEx has committed to 50% electric delivery vehicles by 2025, 100% by 2030, and 30% sustainable aviation fuel by 2030—backed by measurable interim milestones.

Emerging Startups

Einride provides turnkey autonomous electric trucking solutions with integrated fleet management and charging optimization, particularly strong in Scandinavian markets.

CO2Rail (Y Combinator-backed) develops on-board carbon capture systems for trains and trucks, having raised $117 million from Lowercarbon Capital, Valor Equity, and Union Square Ventures.

Parallel Systems creates autonomous electric rail vehicles enabling freight to shift from trucks to rail without traditional intermodal inefficiencies, having raised $53.3 million.

Infinium produces ultra-low-carbon renewable fuels compatible with existing truck engines, partnering with Amazon for drop-in decarbonization solutions.

NEOLINE Développement launched the Neoliner Origin in October 2024—a large-scale cargo sailing ship demonstrating wind-assisted propulsion for transatlantic freight.

Key Investors & Funders

Breakthrough Energy Ventures (Bill Gates-backed) manages $3.5 billion in assets focused on early-stage decarbonization including transport, with a $555 million "select" fund launched January 2024.

Lowercarbon Capital raised $550 million in September 2023 targeting carbon capture, clean energy, and decarbonization technology including freight applications.

Maersk Growth specifically invests in supply chain decarbonization, with portfolio companies including Vertoro (lignin-based marine fuels) and Forto (digital freight forwarding).

The Climate Pledge Fund (Amazon) deploys $2 billion toward technologies accelerating Amazon's net-zero pathway, with freight decarbonization as a core focus area.

Prologis Ventures invests in logistics infrastructure decarbonization including Baton (freight waste reduction), Cargomatic (emissions-reducing routing), and Emerge (freight procurement optimization).

Examples

1. PepsiCo Fleet Electrification Program

PepsiCo's fleet decarbonization initiative demonstrates pragmatic scaling for a lean operations team. By deploying 50 Tesla Semi trucks for beverage distribution alongside 500 Ford E-Transit vans for last-mile delivery, PepsiCo achieved 8% renewable fuel usage while maintaining service levels. Their approach prioritized high-frequency, predictable routes where electric vehicles maximize utilization. The company partnered with the Terrawatt-Smart Freight Center coalition to access dedicated charging infrastructure on the LA-to-El Paso corridor, reducing infrastructure capital requirements. Key success factors included starting with owned-and-operated facilities where charging installation faced fewer landlord constraints, and using telematics data to identify routes where current battery ranges exceed operational requirements with margin.

2. Union Pacific and CO2Rail Partnership

Union Pacific's collaboration with CO2Rail illustrates how legacy freight operators can participate in frontier decarbonization without disrupting core operations. Rather than replacing diesel locomotives—a multi-decade capital cycle—Union Pacific pilots on-board carbon capture technology that can retrofit existing equipment. The partnership includes Norfolk Southern, Ryder, and Werner, creating a multi-stakeholder coalition that shares development risk and validates technology across diverse operating conditions. For lean teams, this model demonstrates how joining industry consortia can accelerate learning curves without requiring internal R&D capabilities.

3. Walmart Canada's Electric Semi Deployment

Walmart Canada's deployment of Freightliner eCascadia electric semi-trucks showcases big-box retail decarbonization. The program focused on dedicated routes between distribution centers and high-volume stores where predictable scheduling enables optimal charging. Walmart's approach included negotiating charging infrastructure as part of vehicle procurement, ensuring total solution accountability from their equipment provider. The company shares emissions data with suppliers using GLEC Framework standards, creating accountability cascades through their supply chain. For emerging market procurement teams, Walmart's supplier engagement model provides a template for extending decarbonization beyond owned assets.

Action Checklist

• Baseline Current Emissions: Implement GLEC Framework methodology to calculate Scope 3 freight emissions with carrier-specific granularity; aim for 80% supplier data coverage within 12 months
• Identify Electrification-Ready Routes: Analyze route data to identify corridors where current EV ranges exceed requirements; prioritize owned facilities for charging infrastructure
• Join a Buyer Coalition: Engage with GMA Trucking Alliance or Zero Emission Maritime Buyers Alliance (ZEMBA) to aggregate demand and access preferred carrier rates for zero-emission services
• Establish Modal Shift Targets: Set measurable goals to increase intermodal rail/water share by 10–15 percentage points within three years for appropriate freight categories
• Pilot Book-and-Claim Mechanisms: Test RMI Katalist or equivalent registry for maritime shipments to begin Scope 3 reduction claims while physical fuel supply chains develop
• Build Supplier Accountability: Include emissions reporting requirements in carrier RFPs; weight decarbonization performance in procurement scoring
• Prepare for Regulatory Compliance: Map organizational exposure to EU CSRD (2025), California SB 253 (2027), and IMO 2028 requirements; assign compliance ownership
• Develop Internal Capabilities: Train procurement and operations staff on emissions accounting, alternative fuel technologies, and EV charging operations

FAQ

Q: How can a lean team prioritize freight decarbonization investments when budgets are constrained?

A: Focus first on operational efficiency measures that reduce emissions while cutting costs—route optimization typically delivers 10–15% fuel savings with software-only investments and minimal capital. Second, target fleet segments approaching replacement cycles where electric vehicles achieve TCO parity, avoiding early retirement of functional diesel assets. Third, leverage buyer coalitions like GMA Trucking to access zero-emission carrier services without direct infrastructure investment. Finally, use book-and-claim mechanisms for Scope 3 reductions in maritime where physical fuel switching isn't yet feasible.

Q: What metrics should we track to demonstrate decarbonization progress to leadership and regulators?

A: Establish a hierarchy of metrics aligned to regulatory requirements: CO2e per ton-kilometer as your primary intensity metric (required for EU CSRD reporting), zero-emission vehicle percentage for fleet transformation tracking, Scope 3 supplier data coverage to demonstrate supply chain visibility, and absolute emissions reduction against a verified baseline year. Report monthly on operational metrics and quarterly on strategic progress. Align measurement methodology to GLEC Framework to ensure regulatory acceptance and comparability with industry benchmarks.

Q: How do we manage the risk of investing in technologies that may become obsolete?

A: Adopt a portfolio approach across technology readiness levels. For proven technologies like battery electric vehicles in last-mile applications, proceed with deployment confidence. For emerging solutions like hydrogen fuel cells in long-haul trucking, engage through pilot programs and industry consortia that distribute risk across multiple participants. Maintain technology optionality by ensuring charging infrastructure supports evolving standards (particularly MCS for heavy-duty applications). Avoid exclusive long-term fuel supply contracts until market maturity enables competitive procurement.

Q: What's the realistic timeline for achieving meaningful freight decarbonization?

A: Lean teams should plan for phased transformation: 12–18 months to establish baseline emissions measurement, supplier engagement frameworks, and initial pilot deployments; 3–5 years to achieve 25–40% emissions reduction through fleet electrification in suitable segments, modal shift optimization, and operational efficiency; 7–10 years to approach net-zero through technology maturation in heavy-duty applications, alternative fuel scale-up, and infrastructure buildout. Regulatory timelines provide forcing functions—prepare for EU CSRD disclosure by 2025, California requirements by 2027, and IMO carbon pricing by 2028.

Q: How do we engage carriers who resist providing emissions data?

A: Make emissions reporting a procurement criterion with weighted scoring in RFP evaluations. Provide carriers with GLEC Framework templates to reduce their reporting burden. Offer longer contract terms or volume commitments to carriers demonstrating emissions reduction progress. Join buyer coalitions that aggregate shipper demand, creating collective pressure for transparency. For critical carrier relationships, consider co-investment in telematics or fuel efficiency technologies that generate emissions data as a byproduct of operational improvement.

Sources

• McKinsey & Company. "Decarbonizing Logistics: Charting the Path Ahead." June 2024. Analysis projecting $350B green logistics market by 2030 and $757B electrified transport investment in 2024.

• International Council on Clean Transportation. "Beyond Trucks: Toward a Greener Global Freight Transportation System." October 2025. Research on modal shift impacts and emissions reduction pathways.

• World Resources Institute. "Decarbonizing Freight: How U.S. Policies and Investments Are Reducing Emissions." 2024. Policy analysis including modal shift potential of 13.1M tons CO2 reduction.

• Nature Communications. "Reducing Road Freight Emissions Through Integrated Strategy in Port Cities." March 2025. Peer-reviewed research demonstrating 34% CO2 reduction through integrated electrification and network optimization.

• International Maritime Organization. "MEPC Guidelines on GHG Fuel Intensity and Carbon Pricing." April 2025. Regulatory framework establishing $380/ton CO2 penalties for 2028 compliance.

• International Energy Agency. "Transport Energy Outlook." 2024. Global analysis establishing transport sector at 33% of end-use CO2 emissions.

• Rocky Mountain Institute. "Maritime Decarbonization and the Katalist Registry." 2024. Documentation of book-and-claim mechanism tested with 29 organizations for zero-emission maritime fuel attributes.