Logistics UK warns that UK decarbonisation targets face critical infrastructure and policy hurdles

A new report by business group Logistics UK has sounded the alarm over the significant risks the UK logistics sector faces in meeting government decarbonisation targets. The study reveals overwhelming low confidence among industry stakeholders, with 80% doubting that the phase-out dates for diesel vans and heavy goods vehicles (HGVs) will be achieved. The findings underscore longstanding industry concerns about inadequate government support, fragmented policy approaches, and persistent infrastructure challenges, which collectively threaten to delay the sector’s crucial net-zero transition.

The report highlights some of the critical barriers to progress. Public charging infrastructure remains a major issue, with over 85% of respondents expressing concern about the availability of suitable charging points for electric vehicles. More than 80% disagree that they have the capacity to install sufficient chargers at their operating sites. Additionally, around 60% of surveyed operators feel that current guidance and funding remain insufficient to facilitate the transition.

Logistics UK’s head of Decarbonisation Policy, Lamech Solomon, emphasised the urgency of the challenge, noting that the ban on new internal combustion engine vehicles for light freight comes within less than ten years, and under 15 years for heavier vehicles. While the sector is committed to reducing emissions, with investments underway in battery electric vehicles, low carbon fuels, and large-scale trials of electric HGVs, operators find the existing technology and policy landscape confusing and fragmented.

While diesel currently powers around 80% of UK road freight vehicles, the industry projects a fall to 50% by 2030, driven by increased adoption of low carbon fuels and electric vehicles. Road freight is vital to the UK economy, contributing £170 billion annually and accounting for over 80% of freight journeys by road. However, given the historically tight operating margins in logistics, the cost of transitioning to low emissions technologies is widely perceived as prohibitive. This raises concerns about the broader economic impact, as logistics costs affect supply chains and consumer prices across sectors.

The report calls for a pragmatic, cost-effective, and collaborative approach to decarbonisation. It suggests a co-owned roadmap developed jointly by industry and government to align priorities, address infrastructure challenges, and provide clear guidance. Key policy recommendations include prioritising grid connections at logistics hubs and ports, expanding government programmes such as the Zero Emission Heavy Duty Vehicles Infrastructure Demonstrator (ZEHID), offering targeted financial support, and scaling up the use of low carbon fuels like biomethane, high blend biodiesel, and renewable diesel (HVO).

The role of low carbon fuels has gained increasing recognition within the sector. An industry statement, signed by 48 organisations, stresses that while battery electric HGVs face challenges related to high costs and lengthy grid upgrade timelines, low carbon fuels offer a pragmatic alternative for achieving near-term emissions reductions. Hydrotreated Vegetable Oil (HVO), in particular, can reduce carbon emissions by up to 80% overnight when used in existing diesel engines, without requiring modifications. Logistics UK has urged government policymakers to formally integrate these fuels into the decarbonisation framework, highlighting their potential as essential transition tools.

In tandem with these calls, the scale of electrification required presents its own hurdles. Research from Logistics UK shows that fully electrifying the UK’s road freight fleet could demand up to 32 terawatt hours of electricity annually, substantially more than Scotland’s current consumption. Most transport managers anticipate charging will happen primarily at depots or operational sites, making the provision of robust, high-capacity energy infrastructure at these locations critical. Consequently, the report advocates for a national logistics energy infrastructure roadmap, designed to synchronise grid upgrades, energy supply, and vehicle transition timelines to ensure seamless integration within the wider energy system.

Despite increasing awareness of sustainability, confidence remains low. A separate survey of over 500 Logistics UK members found that while 30% plan to increase their decarbonisation investment next year, more than a third are “not so confident” about the sector’s chances of meeting the 2050 net zero goal. Over 40% disagreed that current government mechanisms sufficiently support decarbonisation efforts, reflecting widespread pessimism about the adequacy of existing policy frameworks and incentives.

In response to these challenges, a new government-industry Freight Energy Forum has recently been launched. This initiative represents a collaborative effort aiming to accelerate freight sector decarbonisation across all modes, including road, rail, air, maritime, and warehousing. The forum seeks to accelerate the rollout of future energy infrastructure and explore innovative solutions to help the sector reduce emissions immediately, focusing on practical steps to overcome current roadblocks.

Overall, the Logistics UK report conveys a clear message: the UK logistics sector has the resilience and determination to achieve low-emission road freight, but success depends on coordinated government support, pragmatic policies, and significant infrastructure investment. Without an aligned industry-government roadmap and recognition of the role of low carbon fuels alongside electrification, the sector risks missing vital climate targets, with profound implications for the UK’s economy and environmental commitments.