CO2 from Logistics – First Annual Report

truck-on-motorway-f.jpg

The development of a voluntary scheme to reduce carbon dioxide emissions from HGVs and vans has published its first annual report to coincide with Climate Week (21-27 March).

Plans to develop an industry-led voluntary scheme to reduce carbon dioxide emissions from HGVs and vans were announced in December 2009. Since then the Logistics Carbon Reduction Scheme (LCRS) has attracted the support of nearly 50 leading businesses operating in excess of 40,000 commercial vehicles, ranging from major high street retailers and third party logistics providers to utility companies.

The scheme, which is managed by the Freight Transport Association (FTA), involves businesses providing details of their fuel usage, fleet and activity data.  These are datasets which are collected routinely by operators to manage their businesses, so the administrative burden of providing data is minimal.

Scheme members commit at a senior director level to participate in the scheme and to have their data independently verified by FTA as part of the reporting process. In the first annual report of the scheme, emissions from the sector are tracked from 2005 to 2009.

Participants in the scheme are committing collectively to an 8 per cent reduction in the intensity of carbon dioxide emissions by 2015 (compared to 2010 levels).  Future annual reports will monitor the progress towards meeting the 8 per cent carbon dioxide intensity target by 2015.

The 2010 LCRS annual report highlights the early progress that has been made in establishing the scheme, including:

* The putting in place of a robust set of data requirements from scheme participants, which quantifies the carbon dioxide emissions created from fuel used in commercial vehicles (which represent over 90 per cent of all domestic freight transport emissions), as well as introducing a series of business indicators through which carbon efficiency can be measured in the light of changing business conditions.

* The establishment of historic trends in carbon dioxide emissions from commercial vehicles operated by scheme participants between 2005 and 2009 to test the proof of the concept of the emissions datasets and normalisers.

* The establishment of a series of five logistics efficiency indicators to create a framework around which carbon reduction initiatives can be identified and on which a target for the scheme can be based.

* The setting of an activity-based reduction target for the scheme, where participants are collectively committed to reducing emissions by eight per cent by 2015 compared to a 2010 baseline.

Unlike national carbon dioxide reduction targets which commit the UK to an absolute cut in carbon dioxide emissions, the scheme’s target focuses on producing less carbon per unit of resource or activity.

Whilst the scheme’s development has been industry-led, there is considerable potential for government action to reinforce the progress made by businesses to reduce their carbon dioxide emissions. The target reflects a business as usual scenario and current government policies which are not as helpful as they could be.

Simon Chapman, Chief Economist said: “Carbon dioxide emissions from freight represent 30 per cent of all transport emissions, and the industry recognises it has an important role in bringing overall levels of emissions down. Analysis of fuel use emissions data since 2005 by scheme members suggests that some progress has already been made, particularly through driver fuel efficiency training, use of biofuels and increases in vehicle carrying capacity. However, better visibility of fuel costs which the scheme promotes suggests there is still a big prize for operators to aim at. The cost of fuel continues to represent over a third of the costs of running a truck.

“The eight per cent intensity reduction in just five years is challenging. However we believe it is achievable given the opportunities that alternative fuel and vehicle technology offer in improving fuel efficiency and the contribution that telematics and traffic office IT can make to working resources harder.

“Setting an absolute cut in emissions, whilst superficially attractive as it would tie into national targets, is impractical. Freight demand and therefore absolute levels of fuel use is heavily dependent on economic growth and changes in business of scheme members. These are not factors that businesses can predict with any certainty. What operators can commit to is how they will make use of low carbon technologies and fuels and leveraging greater productivity out of their resources.

“If government wants more then it can help us by looking at higher capacity trucks, defending double deck trailers against a possible European height limit of 4 metres, making rail freight cheaper and easier to use, restoring rail freight grants and biofuel duty incentives and maintaining a fairer deal on fuel.”

Welcoming the first report of the Logistics Carbon Reduction Scheme, Climate Week Chief Executive Kevin Steele said: “We support the aim of the Logistics Carbon Reduction Scheme of seeking to reduce emissions of greenhouse gases in the freight industry, and we are very pleased that the Freight Transport Association is working to increase commitment amongst UK companies to the low carbon agenda.”

The FTA continues to actively encourage new participants to join the Logistics Carbon Reduction Scheme, which is open to any operator with at least one commercial vehicle and is free to join. For an information pack, visit www.fta.co.uk/carbonreduction , call 08717 11 22 22 or email carbon@fta.co.uk

3.  The Logistics Carbon Reduction Scheme First Annual Report can be found on the FTA website at www.fta.co.uk/lcrsreport