Actions for Accelerating the Decarbonisation of Commercial Vehicles in Wales
Executive Summary
Zemo Partnership was commissioned by the Welsh Government to assess the policy options to decarbonise the commercial vehicle (CV) sector in Wales utilising the main technology pathways. This report represents the findings of Zemo Partnership, working together with Zemo's members and a broad cross section of stakeholders involved in the freight and logistics sector, which is presented to Welsh Government to consider and respond. This will be followed by further consultations with stakeholders.
Pathways to Decarbonisation
Electrification is the main long-term solution for decarbonising commercial vehicles, but since it's not currently viable for all operations, multiple approaches must be used together. Low carbon fuels can reduce emissions from existing diesel fleets, and some vehicles can be retrofitted for zero emissions. Over time, replacing old diesel vehicles with electric ones will lower energy use and emissions. Hydrogen may also play a role from the late 2030s, once low carbon hydrogen supply is available.
The Role for Electrification
Electrification is the most energy-efficient and greenhouse gas-saving transport solution when powered by renewable energy. Car electrification is progressing rapidly, which will help improve charging access for vans, though infrastructure limitations remain. The UK's ZEV Mandate will boost electric van adoption, requiring support for community vans lacking charging facilities. While trials for electric HGVs are ongoing, high costs are a barrier; innovative financing, as used in the bus sector, could help. With 50% of new HGVs expected to be zero emission by 2030, operators need education and support to plan for the transition. Wales is advancing Local Area Energy Plans to align transport and energy needs, sharing data with electricity network operators for future planning. However, more detailed data is needed for pre-emptive grid investment. Coordination between national and local energy plans is crucial. Temporary power solutions like second-life battery power banks can help in areas with limited grid capacity during upgrades.
The Role for Low Carbon Fuels
Low Carbon Fuels (LCFs) offer an affordable, immediate way to reduce emissions, especially for HGVs where zero-emission options are limited. The UK's Renewable Transport Fuels Obligation (RTFO) mandates small proportions of sustainable fuels in petrol and diesel, but there's potential to increase biodiesel use in commercial vehicles as car diesel use declines. FAME biodiesel, renewable diesel (HVO), and biomethane gas trucks are already being used in HGVs. Expanding infrastructure support will enhance LCF benefits over the next decade. Since diesel vehicles will remain in use through the 2030s and 2040s, ensuring the RTFO supports Wales effectively is vital for achieving climate goals.
The Role for Hydrogen
Hydrogen will play a role in transport, mainly for hard-to-electrify applications like long-haul HGVs, due to benefits such as quick refuelling and lighter weight compared to batteries. Its impact depends on affordable, low carbon hydrogen and strong refuelling infrastructure. Hydrogen can be distributed through centralised production or local electrolysis near refuelling sites, with each model offering different benefits. Collaboration with heavy industry and the use of Wales’ renewable energy resources can support large-scale, low-cost hydrogen production for transport and industry decarbonisation.
Key Actions
There are many immediate, low-cost actions the Welsh Government and industry can take to accelerate the decarbonisation of commercial vehicles. These actions can create economic opportunities, upskill workers, reduce emissions, and improve vehicle operating costs.
- While reaching price parity for zero-emission vehicles is key for 2050 targets, low carbon fuels (like HVO, FAME biodiesel, and biomethane) can significantly reduce emissions from existing diesel fleets, which will operate into the 2040s.
- Operators are already switching to renewable fuels and electric or gas-powered HGVs due to customer demand. The Welsh Government can support this shift by facilitating access to capital, especially for SMEs, fostering partnerships, enabling innovative finance models, and simplifying infrastructure deployment.
- Collaboration with the UK Government is crucial to resolve regulatory issues. Local authorities can support community charging, while operators can use telematics and data to plan for the zero-emission transition.
- Education campaigns are needed to raise awareness of evolving technologies and debunk myths.
- Planning reforms, international trade links, and Wales’ renewable energy potential, including offshore wind and low carbon hydrogen, offer long-term support for decarbonisation in transport and beyond.