Keeping Freight Green

The freight and logistics industry is one of the most important parts of our economy, moving goods around the world every day. But here’s the problem: freight transportation has a huge impact on the environment. In fact, road transport alone is responsible for around 25% of global greenhouse gas emissions, making it a major player in climate change. To help protect our planet, governments are stepping in with rules and regulations to make sure companies reduce their carbon footprints and keep things green.

In this blog, we’re going to talk about some of the most important rules and regulations that are pushing the freight industry to become more eco-friendly and what businesses can do to stay ahead.

Why Freight Needs to Go Green

Before we dive into the rules, let’s take a quick look at why green freight is so important. As we mentioned earlier, transportation is a major contributor to global emissions. In fact, in 2020, the U.S. transportation sector was responsible for 27% of the country's greenhouse gas emissions, with road freight vehicles making up 83% of that number.

If nothing changes, emissions from urban deliveries alone are expected to rise by 32% by 2030. That’s a scary thought. But the good news is that companies can make a real difference. By adopting more sustainable practices, businesses not only help the environment, but they also save money, improve worker conditions, and stay ahead of future regulations.

Rules and Regulations Pushing for Change

Governments all around the world are starting to recognize the importance of green freight. That’s why they’ve put rules and regulations in place to help guide the industry toward a cleaner future. Let’s take a look at a few examples:

Carbon Pricing and Emission Limits

As of October 2023, 68 countries and regions have already implemented or announced carbon pricing mechanisms. These policies cover over 22% of global greenhouse gas emissions, meaning companies must now pay for the carbon dioxide (CO2) they release into the atmosphere. This gives companies a strong incentive to reduce their emissions, as paying for carbon emissions can get expensive.

The European Union’s Carbon Border Adjustment Mechanism (CBAM)

In 2022, the European Union introduced a new rule called the Carbon Border Adjustment Mechanism (CBAM). This rule is designed to level the playing field between countries with strict climate rules and those with weaker ones. Under CBAM, companies that import goods into the EU will have to pay a carbon tax if their goods come from countries with fewer environmental regulations. This is a clear message to businesses around the world: the environment matters, and if you’re not part of the solution, it’s going to cost you.

Advanced Clean Trucks (ACT) Regulations in the U.S.

In the U.S., states like California have introduced strict regulations for freight trucks. The Advanced Clean Trucks (ACT) rule, for example, requires manufacturers to sell an increasing percentage of zero-emission vehicles, like electric trucks, starting in 2024. This is part of a bigger push to reduce emissions in the transportation sector, and it’s a clear signal to trucking companies that the days of relying on traditional diesel trucks are numbered.

What Can Companies Do?

It’s clear that governments are tightening the rules, but what can companies do to stay ahead of the game and go green in the process? Here are some actionable steps businesses can take:

Switch to Eco-Friendly Vehicles

One of the best ways to reduce emissions is by using cleaner vehicles. Electric and hybrid trucks are becoming more common in the freight industry, and many companies are investing in these eco-friendly alternatives. These vehicles can drastically cut down on carbon emissions compared to traditional diesel-powered trucks. Although the upfront costs can be higher, businesses can save money in the long run thanks to lower fuel costs and reduced maintenance.

Optimize Routes with Technology

Technology is a game-changer when it comes to reducing emissions. Using route optimization software can help businesses reduce fuel consumption by finding the most efficient paths for deliveries. By avoiding traffic jams, bad weather, and unnecessary detours, companies can save time, money, and reduce their carbon footprints. Some advanced Transport Management Systems (TMS) can also help maximize vehicle load and eliminate empty miles—another big win for both the environment and the wallet.

Adopt Sustainable Packaging and Practices

Freight is about more than just the vehicles—it’s also about what’s being transported. By switching to eco-friendly packaging materials like recycled cardboard or biodegradable plastic, companies can reduce waste. It’s also important to eliminate paper-based processes where possible. Going paperless in shipping and invoicing reduces waste and saves trees!

Participate in Carbon Offsetting Programs

For companies that still have unavoidable emissions, participating in carbon offset programs is another way to go green. Carbon offsets allow businesses to invest in projects that reduce emissions elsewhere, such as reforestation or renewable energy projects. This helps balance out the emissions they can’t avoid.

Collaborate with Eco-Conscious Partners

Sustainability is not something a company can do alone—it takes a whole network. Working with eco-friendly partners and suppliers who also follow sustainable practices can amplify your efforts. For example, partnering with road carriers that use green vehicles or adopting cleaner energy sources in your supply chain can make a big impact. It’s all about working together toward a common goal: a cleaner planet.

The Future of Green Freight

Looking ahead, green freight is only going to become more important. As regulations tighten and consumers continue to demand greener products, companies that don’t adopt sustainable practices could fall behind. In fact, a 2022 McKinsey survey found that 95% of CEOs believe sustainability is important to their company’s long-term success. Being environmentally responsible isn’t just good for the planet—it’s good for business, too.

As regulations continue to evolve and governments push for cleaner practices, freight companies will need to be proactive. By staying ahead of the curve and adopting green transportation methods, businesses can reduce their emissions, save money, and strengthen their reputation.

Thoughts

The road ahead may be challenging, but it’s also full of opportunities. As governments around the world push for cleaner transportation practices, businesses must adapt to new rules and regulations. The good news is that there are plenty of ways to reduce emissions and protect the environment—while also saving money and staying competitive.

So, whether it’s switching to electric trucks, optimizing delivery routes, or using eco-friendly packaging, every step toward greener freight counts. It’s time for companies to take charge of their environmental impact and keep freight green for the future.

What do you think ?

Now, let's hear from you—what do you think about all these green and environmental issues in the freight industry? Do you think the push for sustainability is truly feasible, or is it just a trend? Is it really sustainable for businesses to go green in the long run? How soon do you think we can reach this level of sustainability? And lastly, what do you think will be the effect on the economy as more companies start adopting green practices?

We'd love to know your thoughts—let’s keep the conversation going!