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How to reduce Freight emissions?

Charles Dubouix

How to reduce Freight emissions?

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Identify freight emissions factors: Kaya’s equation for the freight industry

Identifying the factors that influence freight emissions is crucial for reducing them. Kaya's equation is here to help us.

Coined by Japanese energy economist Yoichi Kaya in Environment, Energy, and Economy: strategies for sustainability (1997), this equation highlights different levers for reducing CO2 emissions.

In particular, it reflects the debate between the proponents of decrease who advocate sobriety and the proponents of technological progress who focus on efficiency (carbon intensity reduction).

Sobriety levers

transport demand expressed as t.km.

modal shift represents the breakdown of your transport mode usage (expressed as a percentage of t.km).

load factor is the average utilisation of the transport mode (the higher the load factor, the lesser the km travelled).

Technological levers

energy efficiency is how much energy the transport mode requires to move one ton of goods over one kilometre.

carbon intensity of energy depends on how much CO2 the energy used emits (expressed as CO2e per kW).

Who is responsible for taking action to reduce the freight carbon footprint?

Actor	Available Levers	Actions
Vehicle manufacturers	Energy efficiency	- R&D - Manufacturing low emitting vehicules
Transport companies	Load factorCarbon intensity	- Fleet renewal ie. buying low emitting vehicules - Eco driving : speed reduction… - Routing optimization - Fuel management - Offer alternative fuels : biofuel, LNG… - Improve load factor : improve asset utilization and empty travel
Terminal operators	Modal shift	- Synchromodality : switch freely between transportation modes at particular times while a consignment is in transit
Shippers (advised by freight forwarders)	Modal shiftCarbon intensityLoad factorTransport demand	Read below
Public authorities	Transport demandCarbon intensityModal shiftLoad factorEnergy efficiency	- Mandatory Carbon reporting - Taxes, quotas… on high-emitting transport companies and shippers - Carbon Border adjustment Mechanism to encourage greener production and relocation thus bringing down transport demand - R&D subsidies - Mandatory environmental notation for end-product

Shippers available actions to reduce their freight carbon footprint

Shippers have the power to influence four factors: transport demand load factor carbon energy intensity modal shift .

However, there are two main factors that need to be prioritized: carbon energy intensity modal shift. Indeed, they are key to unlocking the maximum emission reduction.

Modal shift

Shift from air to sea and from road to rail or inland waterway.

Sometimes, switching to rail may not be the best solution since its emissions depend heavily on the energy mix of the country. In fact, many countries still generate a significant portion of their electricity using coal-fired power plants.

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💡 Modal shift may not be possible for all your shipments. However, you can leverage technology and data to restructure and optimize your supply chain. By doing so, you can identify shipments that can easily shift from air to sea, or from road to rail or inland waterway.

Carbon energy intensity

Buy transport fueled by alternative fuels (Biofuels, LNG , SAF) if available.
What’s more, once you have selected your transport mode, make sure you partner with the transport companies that use green energies, have energy-wise efficient motors or optimize their routings.

Other actions (Non exhaustive)

Increase load factor of FCL shipments (Load optimization, Load consolidation and asset sharing).
Choose the transport with less stopovers.
Nearshoring - produce more locally.

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🎉 Well done! You’ve completed the fifth session of the freight decarbonation academy on Freight emission reduction levers! 🗺️ Go back to the Academy 💪 Keep on learning, with the next session : Carbon Neutrality

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KEY TAKEAWAYS

Kaya's equation identifies different levers for reducing CO2 emissions in the freight industry, such as transport demand, modal shift, load factor, energy efficiency, and carbon intensity of energy.
Shippers can take actions to reduce their freight carbon footprint, such as shifting from air to sea or road to rail, buying transport fueled by alternative fuels, optimizing load factor, and nearshoring. Carbon energy intensity and modal shift are two key factors that need to be prioritized to achieve maximum emission reduction.