Logistics UK believes there needs to be greater recognition of the role low carbon fuels (LCFs) can play in the decarbonisation of road freight in the short to medium term, writes the organisation's Chief Executive Ben Fletcher
The transport and logistics sector is making great strides in its decarbonisation transition, with operators already making significant investments in battery electric vehicles (BEVs) and charging infrastructure to reduce emissions, as it strives to meet the government’s phase out date for ICE vehicles by 2035.
However, electrification is not a viable solution for all use cases with barriers such as vehicle duty cycles, payload requirements and infrastructure constraints risking impeding the rate of progress. To ensure our sector is as prepared as possible for the phase-out deadline and can deliver carbon savings now, Logistics UK believes there needs to be greater recognition of the role low carbon fuels (LCFs) can play in the decarbonisation of road freight in the short to medium term.
BEVs are an effective long-term solution for operators, as diesel use will drop and more businesses shift to electric, but in the short term there are challenges. Logistics businesses operate on narrow profit margins with significant cost pressures hampering the potential for investment, and as a result, electrification of the heaviest vehicles is not considered to be commercially viable. In Logistics UK’s road decarbonisation survey, almost 70% of operators cited vehicle cost as the largest barrier to electric HGV adoption, while almost half of respondents cited range as a barrier and an only slightly smaller number (48.1%) named securing depot charging infrastructure as a reason to delay decarbonisation decisions. Long waits for grid connections, alongside slow planning processes, are also impacting adoption of electric HGVs.
LCFs are a viable alternative to electrification because they are available today, offering well-to-wheel emissions savings between 76% and 125%, with the deployment of drop-in fuels like hydrotreated vegetable oil (HVO) requiring minimal vehicle modifications or additional infrastructure.
However, despite their contribution to emissions reductions, adoption of LCFs is being constrained by a lack of policy support, failing to provide operators with the certainty they need to invest in their use. Germany is one of the EU’s most established biofuel markets and a clear example of the benefits of explicit policy support for production, with the Renewable Energy Directive III (RED III) encouraging expansion of biofuel use.
Logistics UK is calling for a technology-neutral roadmap, co-designed between government and industry, that sets out how different technologies will contribute over time, recognising the role of LCFs. It should also provide the assurance that policies enabling the phase-out of ICE vehicles reflect the use cases that are challenging to decarbonise, as well as establish pathways to alternative solutions, including LCFs.
Establishing domestic production of LCFs would be a significant opportunity for the UK to grow its clean energy sectors and create thousands of high-skilled jobs in refineries and fuel supply chains. It would also have the added benefit of strengthening its resilience against volatility in international markets and price shocks, as evidenced by the energy crisis in 2022 and the Middle East conflict in 2026.
The adoption of BEVs is forecast to grow in the long term, but existing barriers make LCFs an attractive solution for immediate emissions reductions and deployment without vehicle modification. However, without explicit policy support for LCFs, operators will not be incentivised to invest, and decarbonisation progress will be hampered. To enable industry to meet the phase-out deadline, it is essential the government works collaboratively with it to create a roadmap that provides clarity about the role LCFs will play in the transition.
