Government support needed to drive meaningful progress in decarbonisation

Lamech Solomon, Head of Decarbonisation Policy, Logistics UK, discusses a recent report, which showed a growing focus on sustainability among all businesses

As the logistics sector grapples with geopolitical uncertainty and ongoing economic pressures, it is also facing the urgent need to decarbonise in line with the UK’s legal commitment to reach net zero greenhouse gas emissions by 2050. Despite these headwinds, the sector continues to engage actively with the decarbonisation agenda and is beginning to make tangible progress.
 
In 2024, transport emissions declined compared to 2023, yet domestic transport remains the UK’s highest-emitting sector, responsible for 30% of total emissions. While it is clear more needs be done to reduce emissions further, something the sector fully appreciates, the Logistics Report 2025 - Logistics UK’s annual benchmark assessment of all aspects of the industry - reveals that the sector is equally clear that there needs to be more government support to achieve a fair transition to decarbonisation.
 
The report canvassed over 500 Logistics UK members and shows that there is a growing focus on sustainability among all businesses, with 30.2% of respondents planning to increase their investment in decarbonisation in 2025 compared with 2024. Despite this, confidence in the logistics sector’s ability to decarbonise by 2050 is generally low, with more than a third  of respondents stating they are “not so confident”.
 
When asked about whether existing government mechanisms are adequate to support sector decarbonisation, over 40% of respondents disagree, indicating widespread pessimism about whether current government initiatives are enough to drive meaningful progress in decarbonisation.
 
The sector continues to face financial challenges as a result of a sluggish economy and cost was identified as the most significant factor likely to impede intended investment in alternative fuels during 2025. The economic climate, vehicle availability and lead times further contribute to uncertainty. While customer requirements influence some decisions, government policy, finance access, and phase-out dates are less decisive.
 
Despite the challenges, the Logistics Report 2025 shows a sector that is engaged, aware, and beginning to invest in change to achieve the government’s decarbonisation goals. The report offers a comprehensive benchmark for the industry, combining the latest official statistics, expert insight, and survey data to reflect on the past year and identify future trends. A summary and details of how to obtain the full report can be found here.