Guidance

Decarbonising road freight, servicing and deliveries: local authority toolkit

Published 13 April 2022

Local authorities can support the decarbonisation of road freight through strategic changes to local planning policy and targeted interventions.

Action is required to reduce the impact of the freight system on carbon emissions, congestion and air quality while ensuring the flow of goods along our supply chains remains reliable and efficient.

The transition to zero emission logistics is underway for smaller commercial road vehicles. Rapid progress and investments are expected in zero emission options for heavy goods vehicles (HGVs) within the next decade. The transition is taking place in parallel with the national rollout of a supporting chargepoint and refuelling infrastructure. During the transition, low carbon fuels have an important role to play.

Why local authorities should look to decarbonise freight

The UK freight sector employs 1.7 million people and contributes more than £127 billion gross value added to the economy. It is highly efficient and is ranked by the World Bank as ninth in the world.

However, in 2020, HGVs and light vans were responsible for 19% (18.6 Mt CO2e) of the UK’s total domestic transport greenhouse gas emissions (98.8 Mt CO2e).

According to the National Infrastructure Commission (NIC), nearly 80% of goods in the UK are moved by road. By 2050, the movement of goods by heavy road and rail freight transport could increase by up to 45%. The number of trips by light goods vehicles (LGV) could also increase by 9% in the UK, under a business as usual scenario.

In the Transport decarbonisation plan, the government estimates that savings of 200 to 220 Mt CO2e could be achieved from the freight and logistics sector. This could generate up to £600 million in air quality benefits from 2020 to 2050.

Intervention by local authorities is vital to help the UK achieve change at the pace and scale required to reach a zero emission freight sector in line with announced targets. Local authorities have a facilitating and incentivising role, as well as policy levers within their control, such as local planning policy.

Local interventions should complement national policy and technological developments. Taking action will help local areas to benefit from reduced congestion, noise and air pollution and a growth in the jobs. These could be associated with zero emission vehicle (ZEV) manufacturing and infrastructure manufacturing, deployment and maintenance.

Actions for local authorities

1. Decarbonise the council fleet and procurement

Many local authorities are in the process of transitioning their fleets to ZEVs. This can generate cost savings and helps local authorities achieve net zero targets.

For more details on the steps that local authorities can take to analyse and electrify their fleet, see the Zero emission fleets: local authority toolkit. Energy Saving Trust offer a fleet decarbonisation review service and a local government support programme. Authorities can also use low carbon fuels in their own fleets.

Local authorities should lead by example through procurement. As a starting point, they can monitor the origin, volume and weight of incoming and outbound deliveries from council buildings, to evidence the scale of change required and indicate priorities.

Where possible, a council could then seek to ensure approved suppliers and couriers support the use of e-cargo bikes, electric vans or zero emission powered light vehicles (zePLVs) and include this as a requirement or quality criteria in future tenders.

See Element Energy’s cycle logistics study for further recommendations.

2. Encourage the uptake of ZEVs, low carbon fuels and efficiency measures by private fleets

The freight sector is diverse and encompasses over 205,000 organisations, including small- and medium-sized enterprises (SMEs), large companies with in-house fleets, national and multinational logistics providers. Many of these organisations are already improving their fleet efficiency and performance.

Local authorities may already engage with local freight operators and relevant membership bodies, for example, through local planning authority teams. This engagement provides an opportunity to offer scaled-up support to assist fleets with decarbonisation, highlighting the scale of the challenge and the need for urgency.

When engaging with road freight operators, local authorities should seek to better understand the varied requirements of fleet operators and the potential barriers to voluntarily reducing emissions.

According to 2020 research by Ipsos MORI, barriers preventing SMEs from reducing emissions include:

• small margins
• lack of time
• the impact of coronavirus (COVID-19)

ZEVs, zePLVs and e-cargo bikes

Electric vehicles (EVs) can be a cost-effective choice for fleets. Despite higher upfront costs, their lower running costs mean that the total cost of ownership can be less than petrol or diesel vehicles. Local authorities should engage with operators to raise awareness and build confidence in the operational capabilities of e-cargo bikes, zePLVs and the growing range and affordability of EVs.

Approaches to engage operators

Signpost to funding programmes

Innovate UK Smart grants allow UK organisations to apply for a share of up to £25 million for research and development innovations. This could include zero emission road freight innovations.

The Advanced Propulsion Centre’s collaborative research and development competitions allow UK organisations to apply for a share of up to £20 million specifically for automotive technology development. This could also include innovations in road freight.

Share impartial resources with fleet managers

This could include:

• the LoCity Fleet Advice tool
• advice from Energy Saving Trust
• guidance from Zemo
• the EcotransIT World emission calculator, which quickly estimates the carbon footprint of deliveries, based on European data

Provide opportunities for operators to trial electric vans, zePLVs or e-cargo bikes

Local authorities can loan e-cargo bikes or electric vans to businesses for a trial period, ranging from a week to several months. Vehicles can then become part of the authority’s fleet. National Highways is funding council-led try before you buy schemes in Sheffield, Coventry, Kent, Nottingham and Bristol.

Durham County Council is also offering a similar scheme.

Establish a freight forum or task group

This could help facilitate discussions between parties. It can also be a good opportunity for local authorities to engage with the logistics sector to better understand freight operations in their area.

Offer shared or pooled e-cargo bikes or electric vans

Local authorities could purchase e-cargo bikes or electric vans and make them available on an hourly or daily basis through a booking system to local businesses.

This allows a wide range of businesses to use them as and when they need and who could not justify a vehicle purchase for sole use or cannot securely store it.

Offer training

Local authorities could offer subsidised EV, Bikeability or specialist e-cargo bike training, or produce videos or checklists to familiarise drivers with the unique features of electric vans.

Energy Saving Trust offers free EV advice, training opportunities and tools for SMEs, funded by the Department for Transport (DfT).

Work with local dealerships or bike retailers

Local authorities should liaise with outlets to share information on council initiatives and encourage dealerships to become EV approved.

Signpost to free HGV reviews

Funded by DfT, a limited number of fleet and HGV reviews is available from Energy Saving Trust for public or private sector organisations.

The reviews analyse current operations and recommend actions to reduce emissions and fuel costs.

For more information on the benefits and steps for fleets to adopt EVs, see the Zero emission fleets: local authority toolkit.

Energy Saving Trust’s guide offers more detail on practical considerations for local authorities when implementing an EV or e-cargo bike initiative. They also have an online freight portal that provides further advice and support.

Low carbon fuels

Low carbon fuels are an important transitional measure on the road to net zero, especially where zero emission options are not yet viable or not affordable for certain fleet operators. Currently, low carbon fuels are typically blended into standard petrol and diesel. However, there are opportunities to go further.

A Zemo report on the opportunities to decarbonise heavy duty vehicles (HDVs) using low carbon fuels, identified 4 policy areas where local authorities could encourage the uptake of low carbon fuels.

The Department for Transport will also publish a low carbon fuels strategy in 2023 that will envision how the use of low carbon fuels could evolve up to 2050. It will examine what actions are required to provide certainty to stakeholders by addressing challenges and risks.

Procurement standards

Set standards for its own fleet (including HDVs) and for contractor vehicles. These could target use of low carbon fuels initially and be adjusted towards zero emissions options as the market develops. See action 1 for more detail.

Fleet emissions reduction targets

Include emissions reduction targets for transport services and a strategy to transition to low and zero emission vehicles. This could include encouraging the use of high blend (Renewable Transport Fuel Obligation certified) renewable fuels.

Offer an HDV upgrade grant

This would be to help smaller operators make the switch to lower carbon vehicles and fuels as an interim solution until zero emissions options are viable. This could include retrofitting vehicles or infrastructure to adapt them for use of higher blends renewable fuels.

LoCity has produced a range of tools and guidance on switching to low and zero carbon vehicles. Its fleet advice and commercial vehicle finder tools are designed to help operators make decisions and identify suitable low carbon options and vehicles for their fleets.

It has a best practice guide and case studies on businesses that have made the switch.

Operational changes for internal combustion engine (ICE) vehicles to increase fleet efficiency

In parallel to encouraging a switch to ZEVs or low carbon fuels, local authorities can encourage fleets to adopt practices that save fuel, money and reduce emissions from existing vehicles.

Actions can include driver training or fuel and tyre management. Measures with a short payback, such as driver training and telematics, tend to be most appealing, as evidenced by Ipsos Mori. Financial incentives (loans or grants for vehicle upgrades) also attracted interest.

To support engagement, local authorities can use guidance available on the Freight Portal including 6 quick wins and case studies.

The Fuel Cost Cutter estimates the impact on fuel consumption, costs and greenhouse gas emissions from common interventions, such as driver training, aerodynamics or route optimisation based on information about current fuel use and vehicles.

Local authorities can also promote fleet support schemes, such as the Fleet Operator Recognition Scheme (FORS), which enables operators to demonstrate they are achieving best practice in safety, efficiency and emission reduction.

Additionally, accreditation or membership could be used in local authority procurement as an expected standard for suppliers or stipulated through planning policies for construction vehicles, see action 6.

3. Support a charging and refuelling infrastructure provision for road freight

Local authorities can support operators by helping them to make the required changes to invest in a low carbon or zero emission fleet.

Support for operators may be through:

• providing advice
• planning for infrastructure delivery through local plans and local transport plans
• proactively engaging with infrastructure providers and considering appropriate strategies for infrastructure rollout
• considering road freight as part of any public EV infrastructure strategy or wider grid upgrade works

Depot based

Local planning authorities can support operators by working to appropriately plan for the rollout of rapid and high-powered EV chargepoints, hydrogen or other low carbon refuelling infrastructure.

They should also consider what additional measures, including the role local planning policy can play in supporting these ambitions.

The NIC notes that depot charging requirements for battery electric HGVs are likely to require a blend of grid reinforcement, smart charging provision and energy storage in its 2019 report. There will be additional considerations for hydrogen and other low carbon options.

Support may also include facilitating conversations between freight operators and relevant distribution network operators (DNOs). This will ensure that there is sufficient power available or that the freight operator is aware of the cost of any upgrade work needed.

Local authorities can encourage developers to consider future power demands so that expensive grid upgrades further down the line are not a barrier to switching to EVs.

Authorities can make use of the Office for Zero Emission Vehicles (OZEV)’s Workplace Charging Scheme.

This grant scheme has been expanded to offer greater financial support for SME installations in staff or fleet car parks and to small accommodation businesses and charities for visitor charging.

UPS: depot smart upgrades to enable EV charging

UPS wanted to switch all 170 vehicles at its Kentish Town depot to EVs but was constrained by the site’s grid capacity. UK Power Networks Services designed a smart grid solution that avoided the need for an upgrade while allowing all vehicles to switch to EVs.

The depot now uses energy storage and smart grid technology that balances available grid capacity with the needs of the business in a world-first solution for the logistics sector.

Public charging

The charging needs of vans are likely to be different to those of private cars. Not all operators will be able to charge solely at depots and require confidence in the public charging network before investing in electric vans.

Installing charging hubs that could be co-located with consolidation hubs, may play a role in encouraging uptake. See action 5.

Many van drivers take their vehicles home at night and therefore provision of on-street charging points in areas with limited off-street parking may also encourage uptake.

Authorities should consider the charging needs of freight operators when developing public EV charging strategies (see London’s 2030 EV charging infrastructure strategy). Charging needs will vary depending on the area and whether it is urban, rural or mixed. Local authorities may need to consider freight chargepoint provision in locations that may not otherwise be financially viable.

Vans will often not fit into a standard car parking space, so some EV charging spaces may need to be larger. Operators may need rapid chargepoints rather than fast chargepoints to maintain vehicle availability.

The Motorcycle Industry Association (MCIA) and Zemo Partnership published their action plan for government on zero emission powered light vehicles (PLVs) in February 2022.

Action 10 of the plan focuses specifically on engaging with industry to ensure zePLVs are considered and incorporated into the development of the EV charging infrastructure.

This will focus on improving access, ensuring compatibility with the high-power charging network, the provision of dedicated and secure charging bays and the creation of off-vehicle charging facilities.

4. Ensure policies support an efficient freight supply chain

Many local authorities and sub-national transport bodies develop freight strategies to supplement local transport and spatial plans.

Examples include freight strategies for:

• the West Midlands Combined Authority
• Transport for the North
• City of Westminster

As part of efforts to support the needs of the freight sector and help it to decarbonise, local authorities should consider developing their own freight strategies to sit alongside and support their own transport and spatial plans for their area.

These strategies should be kept up-to-date, reflect the latest updates to national policy and ensure the needs of freight are proactively planned for taking account of any cross-boundary and/or regional needs. See action 5.

Allocating land for storage and distribution

To operate efficiently, the freight sector requires land for distribution and consolidation centres at multiple stages within supply chains.

For instance, some hubs serve regions and tend to be located out-of-town near the strategic road network, while others are micro-hubs, based in an inner-city neighbourhood or business district. See action 5.

However, freight operators can struggle to compete with land values for housing, resulting in depots being located further from end consumers, increasing delivery mileage, congestion and emissions. HGV parking spaces are also in short supply.

The NIC observed that this problem is already acute in London and is being exacerbated nationally by the growing demand for faster, cheaper and more convenient deliveries.

The National Planning Policy Framework is clear that the movement of freight can have specific location requirements. It makes clear that planning authorities should plan for storage and distribution operations at a variety of scales and in suitably accessible locations.

In July 2019, updates were also made to planning practice guidance on housing and economic needs to reinforce this stance and allocate space for logistics, including last mile facilities.

Local planning authorities may wish to review how local plan policies and site allocations can reflect the wider needs of the freight and logistics sector.

Alongside this, they may also consider what information may be needed to support planning applications, including through the use of conditions or planning obligations, to show how schemes are compliant with local policies that seek to decarbonise freight, servicing and deliveries.

For more detail, see the government response to Better delivery: A Challenge for Freight.

5. Implement last mile consolidation hubs and related initiatives for new developments

The aim of consolidation hubs is to reduce the number of delivery vehicles making deliveries in an area. This reduces the number of miles travelled, emissions generated and ensures maximum utilisation.

As goods are combined from multiple suppliers or warehouses by single carriers, last mile hubs also provide an opportunity for goods to be transferred to zero or lower emission transport modes for the onward leg, including electric vans, , zePLVs, e-cargo bikes or on foot.

Without access to a hub, some zero emission options may not be feasible, for example, due to vehicle payload or range.

Local authorities are well placed to help freight operators overcome challenges to the creation and use of hubs, through making more land available and requiring action by businesses.

In addition to the lack of available and affordable land in suitable locations, barriers to establishing micro-hubs also include the need for HGV access or power demand for EV charging, requiring grid reinforcement.

Operators are also under pressure to deliver goods quickly. The additional processing posed by hubs risk adding friction. Some logistic providers also have highly integrated, complex supply chains and are reluctant to share facilities, for speed, cost and reputational reasons.

Options for local authorities

Depending on the nature of a local area, local authorities (or partners, such as business improvement districts) can support the establishment of hubs.

Strategically allocate land for logistics

This could include distribution centres and through their local plans and setting appropriate local planning policies to support the freight and logistics sector. See action 4. High streets could also be considered for distribution and consolidation centres due to their proximity to consumers.

Use council assets as micro-hubs

This could be through converting or leasing an asset for use as a micro-hub or allowing logistic providers to park a large vehicle or container unit in an under-utilised council car park to use as a base.

Off-site consolidation hub

Consider the use of planning conditions or obligations that require new developments or organisations within a specific zone to use an off-site consolidation hub. This approach was pioneered at 22 Bishopsgate in the City of London.

Some practical considerations for implementing this type of scheme are outlined in a 2019 study for Transport for London (TfL).

Delivery and servicing plans

Consider the use of planning conditions or obligations to secure delivery and servicing plans for new developments. Local authorities can require planning applications to be accompanied by a delivery and servicing plan (DSP), covering the physical design of the site to ensure adequate provision for deliveries and the day-to-day policies to be adopted by the occupiers. This would be required through tenant or management company contracts to minimise the impact of deliveries.

TfL and Transport for Greater Manchester (TfGM) provide further guidance.

Consider the needs of freight operators in assessing planning applications

Local authorities can ensure there is adequate provision of loading bays, parking, chargepoints, parcel lockers and connections to cycle lanes for e-cargo bikes.

Lead by example

Ensure council offices, schools and other public sector buildings and services establish or use consolidation hubs. Local authorities can also avoid priority deliveries and return services unless necessary to support the consolidation of deliveries and reduce additional vehicle movements.

Work with developers and other organisations to consider using preferred suppliers

This can target multi-tenanted buildings (such as offices) or sites (such as business parks) and result in joint procurement of common goods and services, reducing vehicle trips and benefiting businesses through economies of scale.

Further information on the appropriate use of conditions and planning obligations can be found in the government’s Planning practice guidance.

Implementing consolidation hubs: Guy’s and St Thomas’ Trust

Guy’s and St Thomas’ Trust receives more than 40,000 truck deliveries per annum, with one delivery every 3 minutes during peak hours, equivalent to a medium-size car factory.

The trust recognised the need to reduce the volume of in-bound deliveries to both improve local air quality and to future-proof the trust ahead of planned redevelopment which will lead to a further increase in clinical activity and traffic.

An off-site consolidation centre in Dartford was set up in partnership with CEVA Logistics with the aim of consolidating 90% of truck deliveries.

Delivery consolidation in the City of London

City of London has taken a pioneering approach to creating consolidation hubs and reducing the impact of deliveries, as described in Energy Saving Trust’s guide.

The authority’s draft local plan prioritises and protects sites for last mile logistics use. All major developments are required to use a consolidation service for deliveries.

The Amazon Last Mile Logistics Hub will be London’s first last mile logistics hub and convert 39 underused car park spaces. From the hub, deliveries will be completed on foot or by e-cargo bike. It is estimated that this will remove 23,000 vehicle trips per year. The City of London is aiming to deliver 5 hubs by 2025.

6. Implement measures to increase the efficiency of deliveries and collections

Strategies aimed at mitigating the impact of delivery and collection vehicles on congestion and road safety can also deliver decarbonisation benefits by enabling more efficient deliveries.

Retiming deliveries

Retiming deliveries aims to reduce the number of deliveries, collections and servicing trips being made at peak times, especially in the morning, to ease congestion, reduce noise and air pollution and improve safety.

Retiming deliveries can assist with decarbonisation through improving traffic flows and fuel efficiency and the quiet nature of EVs opens new opportunities to retime deliveries without disturbing residents.

After successful trials during the London 2012 Olympic and Paralympic Games, retiming deliveries has been a focus in London for several years. TfL offers detailed implementation guidance for local authorities and businesses.

The initiative is championed by Logistics UK and has involved close working with the Noise Abatement Society. Access is restricted on specific roads through the London Lorry Control Scheme for HGVs over 18 tonnes at night and weekends to reduce noise pollution.

Dynamic and digitalised kerbside management

Dynamic and digitalised kerb management is an emerging technological solution aimed at easing congestion and conflicts in areas where parking and loading for deliveries and servicing is an issue. Ultimately, efficient deliveries result in lower emissions.

Often app-based, the systems enable delivery vehicles to book kerbside space in advance, enabling more efficient, reliable deliveries and discouraging unsafe or illegal parking.

Some systems can be linked with fleet management systems to book loading spaces and adjust delivery windows according to the location and arrival time of vehicles. Some examples include Appyway and Vianova.

The systems can also allow for spaces to have multiple uses throughout the day, for example, a loading bay in the morning and later seating for pubs or restaurants. They can allow local authorities to prioritise loading over other uses, while gathering data on when and where loading bays are needed.

Local authorities could also use systems to prioritise ZEVs, clear space ahead of events or roadworks or manage demand through dynamic pricing.

In early 2022, DfT tendered for a research project (discovery phase) to determine user needs and barriers for improving kerbside management to support active travel, new forms of mobility and freight distribution, EVs and CAVs. Depending on the findings, there may be recommendations for local authorities and central government to take forward in due course.

Implementing dynamic kerb management will require support from the relevant highway authority, amendments to traffic regulation orders (TROs) and loading area restrictions, as well as updates to parking and travel management strategies.

Establish or enable pick-up and drop-off points

Pick-up and drop-off points (PUDOs) are common in many countries. Located within local shops or freestanding lockers, they enable residents to conveniently collect or return deliveries.

Compared to delivering to multiple individual homes, PUDOs are efficient for operators, reducing vehicle mileage and substantially increasing how many parcels a driver can deliver in a shift.

Authorities can enable the development of a network by providing access to appropriate locations on public land, most likely through a concession contract and/or revenue share arrangement with a PUDO provider.

Salford City Council partnered with InPost in June 2021 to install 65 parcel lockers in the local area, in locations such as libraries, community centres and car parks. It is estimated that the lockers have the potential to save 910 tonnes in CO2 emissions annually.

Local authorities will need to consider how to best support the delivery of PUDO. This may include supporting rollout by specific local planning policies and/or standards due to their environmental benefits and clarifying requirements to ensure that lockers are placed appropriately within the streetscape. They may also wish to consider work with PUDO providers to develop a strategy for PUDO rollout.

Factors for building a successful network include:

• distance from home (within 250 metres of users’ homes) – evidence suggests this is the maximum distance most people might walk or cycle to pick up a parcel
• population density – they work best in urban areas with around 1,200 people per bank of lockers
• agnostic network – there are growing numbers of lockers on private land, such as fuel stations, supermarkets or high streets, but research for TfL indicated that close-to-home lockers that are agnostic (not restricted to one delivery provider or retailer) are likely to have higher use and greater environmental benefits
• power requirements – lockers that do not require mains power have fewer restrictions on where they can be placed and less impact on the environment
• access – locations should be easily accessible, available at all times and deliveries could be made during off-peak hours to reduce congestion

Installing PUDOs in London

Delivering London was initiated as a TfL-funded project that has subsequently attracted private sector investment. It is delivering a network of open access PUDO lockers across London, with an aim to install lockers within 250 metres of all London residents.

Placed on public land, the units are free standing, battery powered and can be easily and quickly moved by Delivering London if needed. Some lockers will also incorporate maps, as part of TfL’s Legible London project.

Research conducted for Delivering London estimated that a dense network of lockers could reduce the number of delivery addresses in London from 3.5 million to 10,000.

This could potentially reduce CO2 emissions by 16,700 tonnes, PM2.5 and NOx by 83,000kg and delivery miles by more than 75 million annually.

Promote business waste consolidation

As individual businesses appoint their own local waste collection operator, this can lead to multiple waste operators serving the same area. By coordinating with neighbours, businesses can reduce emissions and benefit from negotiating with enhanced, collective buying power.

Voluntary waste consolidation has worked successfully in Bond Street in London. By recommending 2 preferred suppliers, New West End Company (NWEC) reduced the number of waste operators from 47 to 5 and vehicle movements from 144 to 9 within a year, leading to a 93.7% reduction in CO2 emissions.

A similar scheme has also been implemented in Copeland Park.

The role of local authorities is to promote and support where appropriate. Business improvement districts (BIDs), property managers, neighbourhood forums and multi-tenancy buildings are best placed to initiate a joint tendering process. TfL offers toolkits describing the process.

In 2021, the Department for Environment, Food and Rural Affairs (Defra) consulted on different cost reduction options for businesses in their Consistency in Household and Business recycling in England consultation.

Among the various cost reduction options, there were different zoning options that would limit the number of waste collectors permitted to collect commercial waste in specific zones. Defra is currently analysing responses to this consultation and will publish their government response in due course.

In the Transport decarbonisation plan, the government committed to a pilot allowing some local authorities to franchise certain delivery and waste management services.

For information on procuring electric refuse collection vehicles as a local authority, see the Zero emission fleets: local authority toolkit.

7. Encourage multi-modal freight integration

Local planning authorities, local transport authority and/or sub-national transport body should work together, along with the freight and logistics industry to explore opportunities for multi-modal integration and modal shift in their area and develop a strategy to support any initiatives.

Rail and waterborne freight have a lower carbon footprint than road freight. Better integration between different modes of transport can decrease emissions, increase efficiency and reduce congestion. In the Transport decarbonisation plan, the government committed to incentivising low carbon traction for freight and increase the use of rail.

The government’s Mode Shift Revenue Support grant and Waterborne Freight Grant schemes incentivise modal shift away from road freight. They support movement of freight by rail and water where road haulage has a financial advantage. Combined, they remove around 900,000 HGV loads off the road each year.

In 2021, Network Rail and Highways England published the first part of a multi-modal freight strategy for the Solent-Midlands route.

The strategy outlines the potential for change and the scale of benefits along with 4 recommendations for further work. These are:

• continued joint working
• removal of barriers to rail freight growth
• unlocking new markets
• decarbonisation

In 2020, London First, the Port of London Authority, TfL, the Greater London Authority (GLA) and the Port of Tilbury met to discuss the role of the Thames in London’s transport strategy. They agreed that the river could and should play a larger role in the movement of freight around the city.

TfGM’s Freight and Logistics Transport Strategy highlights the increasing importance of, and opportunities for, improved rail and waterborne freight links across the area.

Zero or low emission vehicle options

The market for low and zero carbon commercial vehicles is developing rapidly, as captured in the Advanced Propulsion Centre (APC) roadmaps, which highlight expected market developments.

The APC predicts that cost of ownership parity with diesel will be achieved for hydrogen and battery electric HGVs by 2035. The most appropriate replacement solution to replace a particular vehicle will depend on numerous factors, including available range, load capacity and vehicle duty cycle.

Urban and last mile delivery vehicle options

Energy Saving Trust’s Electrifying last mile deliveries: A guide for businesses outlines the benefits of using zero emission options for urban and last mile deliveries, such as e-cargo bikes, how they can be deployed and some important considerations for operators.

See the Zero emission fleets: local authority toolkit for more on replacing diesel fleet vehicles with EVs.

Battery electric vans (under 3.5t)

A variety of light duty, battery electric vans are already available, as identified in the APC roadmap. Many of these are eligible for the government’s plug in van grant. The price premium has fallen significantly and many already deliver lifetime cost savings.

According to Bloomberg, the price of electric vans up to 3.5 tonnes will be comparable to petrol or diesel equivalents by 2025. See the Zero emission fleets: local authority toolkit for more on replacing diesel fleet vehicles with EVs.

Cargo and e-cargo bikes

Cargo bikes are specifically designed to carry a load. E-cargo bikes have electric motors to assist the rider. They offer a good alternative to conventional light goods vehicles (LGVs) for last mile deliveries due to their lower purchase and maintenance costs. They are best deployed from freight consolidation hubs and suit dense urban areas. See action 5.

Cargo and e-cargo bikes can decrease delivery times by taking faster routes or spending less time in traffic compared with conventional delivery vehicles. They take up less road space, can be parked closer to destinations and contribute to a healthier workforce.

Energy Saving Trust has information and a factsheet to help organisations build a business case for e-cargo bikes.

Implementing e-cargo bikes: Box Bike Delivery

Box Bike Delivery used the government’s e-cargo bike grant fund to purchase a new e-cargo bike and e-cargo trailer, which has allowed its business to complete around 40% more deliveries each day due to the increased carrying capacity of the trailer.

The company estimates it has made carbon reductions of around 4-8t CO2 a year by using e-cargo bikes instead of a diesel van.

Promoting e-cargo bikes: local authority led e-cargo bike projects

Colchester, Glasgow and Wandsworth councils, as well as North East Scotland Transport, are offering residents and businesses the opportunity for businesses to trial an e-cargo bike to test their operational capabilities. Some are offering the loans for free and are linked to council e-cargo bike fleets for council use.

In March 2021, the Welsh Government launched support for e-bikes and e-cargo bikes in Wales.

Zero emission powered light vehicles

ZePLVs are 2, 3 or 4-wheeled vehicles that can be configured for passenger or cargo use. They take up less road space than cars or vans and some have different charging requirements to  other EVs. Removable batteries in the smallest zePLVs are becoming more widespread, allowing longer journeys.

In February 2022, the Motorcycle Industry Association (MCIA) and Zemo Partnership published their PLV Action Plan which sets out the actions that industry and government can take to realise the potential of zero emission PLVs.

Regional and long-haul road freight vehicle options

While there are currently fewer vehicle options to decarbonise heavy goods vehicles (HGVs) (over 3.5t) than for light goods vehicles (LGVs) (under 3.5t), the market is developing rapidly and is supported by DfT funded demonstrations.

Connected Places Catapult’s report identifies a pathway to zero emissions for long haul HGVs, but notes they are the most challenging segment of the road sector to switch due to their long journeys and heavy payloads. Some vehicles are in constant use and require rapid refuelling to meet operational requirements.

Reports by the European Automobile Manufacturers Association (ACEA) and the World Economic Forum (WEF) identify that to successfully decarbonise road freight, investment in widespread refuelling infrastructure, including grid reinforcement where needed, will be instrumental to regional and long haul freight decarbonisation.

However, new models produced in the UK are coming to market in this segment including:

• Electra e-Star 27-350
• Volta Zero, a 16 tonne fully electric delivery truck
• Tevva electric truck
• DAF LF Electric

The heavy-duty market logistics firm FSEW will run two 37-tonne DAF CF electric tractor units in partnership with Tesco. This is the first commercial operation of a battery electric articulated HGV in the UK. Amazon has also announced its intention to deploy 700 zero emission HGVs on UK roads in the coming years following a further £300 million investment in the UK in October 2022.

Battery electric HGVs

The International Council on Clean Transportation’s (ICCT) Race to Zero report gives an overview of the zero emissions truck market and identifies that, while still niche, many original equipment manufacturers (OEMs) either have launched, or plan to launch, a battery electric HGV in the next 2 to 3 years.

Some manufacturers have set their own phase out dates for diesel models that align with government commitments. The report includes a list of all vehicles available (or announced) by 2020 and their specifications.

There are existing, market-ready technologies for urban service vehicles. However, the APC roadmap for HGVs over 3.5t, reports that market-ready BEV technology for long-range applications will become more widely available after 2025.

Innovative technologies, such as electric road system powered EVs (using a catenary and vehicle mounted pantograph) may take until the 2030s to become viable and possibly only on certain high utilisation corridors, such as motorways.

Hydrogen fuel cell HGVs

The UK hydrogen strategy states that hydrogen will be central to achieving net zero in transport, complementing electrification across several sectors, including HGVs, buses and trains. It is also expected to contribute to the decarbonisation of aviation and shipping.

Hydrogen fuel cell HGVs are currently less common than battery HGVs. Some manufacturers are investing in their development as they offer a greater energy storage to weight ratio, faster refuelling and a longer range compared to battery HGVs, making them attractive solutions for long range use.

The APC roadmap highlights that several hydrogen HGVs are available, or expected, before 2025. These models will be suitable for some fleets but may not achieve price parity with battery HGVs before 2040.

The recent Net Zero Strategy committed to the expansion of the government’s zero emission road freight demonstrator programme into future years, where at scale demonstrations of several zero emission HGV technologies will be undertaken on UK roads, including both battery electric and hydrogen fuel cell.

These demonstrations will advance research, development and demonstration (RD&D) in the technologies and help inform how they can each best be used to decarbonise road freight. This will inform the commercial rollout of this new technology before the end of the decade.

Low carbon fuels

As the zero emission HGV market matures, reducing greenhouse gas (GHG) emissions from the existing fleet through use of low carbon fuels is important. This is particularly true for long haul HDVs.

Research by Zemo Partnership identified that wide-scale adoption of renewable fuels with a higher biocontent than that currently supplied in standard road fuels could deliver significant emission reductions, particularly for fleets with their own back-to-base refuelling infrastructure.

The Renewable Fuels Guide gives an overview of the main types of renewable fuels in the UK. It identifies the operational, financial and environmental factors for fleets to consider when assessing the suitability of renewable fuels.

The Renewable Fuels Assurance Scheme provides assurance that operators are using low carbon fuels that meet sustainability criteria for Renewable Transport Fuel Obligation support. To qualify, fuels need to meet strict sustainability criteria and GHG savings thresholds.

It should be noted that blending with low carbon fuels has limited air quality benefits, with any benefits specific to certain conditions and types of emissions, so are generally considered negligible.

Operators could also consider retrofitting vehicles to Euro 6 standards through the Clean Vehicle Retrofit Accreditation Scheme, which will benefit air quality but have limited carbon emissions benefits.

Implementing transitional fuels: HVO in council fleets

Fuels with a higher biocontent include those with higher than average blends of FAME biodiesel, HVO and biomethane. Different fuels may be appropriate for different fleets and local authorities will need to consider the supply chain to ensure the fuel supply is sustainable and delivers genuine carbon savings.

Examples of HVO use include:

London Borough of Hackney started using low carbon renewable biofuels in 2008 and is now running 198 vehicles on 100% renewable biofuel from hydrotreated vegetable oil (HVO). Independent testing of the HVO fuel in Hackney vehicles at Millbrook Proving Ground confirmed NOx emissions savings between 28% and 69% in real-world driving conditions.

Babergh and Mid Suffolk councils are the first rural councils in the country to switch their fleets to HVO. They are starting with their RCVs before moving on to convert other vehicles. The switch could reduce emissions of CO2 by 90%, NOx by 30% and particulate matter by 86%.

Bournemouth, Christchurch and Poole Council has an agreement with Crown Oil to trial HVO in 2 of its refuse vehicles and 1 large road sweeper. The council will consider the results based on general vehicle performance, sustainable and transparent supply chain and any relevant financial impact before implementing.

Refuse collection vehicles

Zero carbon refuse collection vehicles (RCVs) are already in use. Although their total cost of ownership can be higher than diesel equivalents, a business case can be made for their use. For more information on electric RCVs, see the Zero emission fleets: local authority toolkit.

Implementing battery electric RCVs

In 2021, Manchester City Council, in partnership with Biffa, introduced 27 electric RCVs into its waste collection fleet. The council invested £10 million in the fleet and is committed to phasing out diesel RCVs, alongside improving the efficiency of collection routes and increasing recycling.

The use of the eRCVs is helping Manchester achieve its aim of halving direct emissions by 2025 and being carbon free by 2038.