Green Logistics: the Carbon Agenda

Over the next few decades European companies will come under intense pressure to cut their greenhouse gas (GHG) emissions in an effort to achieve very ambitious carbon reduction targets at national, EU and global levels by 2050. This paper presents a framework for the decarbonisation of their logistical activities based on five key freight transport parameters: freight transport intensity, modal split, vehicle utilization, energy efficiency and the carbon intensity of the energy used in logistics. It examines the potential to cut GHG emissions by altering each of these parameters. Consideration is also given to the decarbonisation of warehousing operations. It is concluded that many of the GHG-reduction measures will also yield financial benefit. The decarbonisation of other sectors of the economy may, however, generate greater demand for logistics services.