Based on the knowledge gathered through the Movin’On Community of Interest led by IDDRI and the SLOCAT Partnership on Sustainable Low Carbon Transport since 2020, this Note presents three structural business transformations which could support the implementation of systemic transitions contributing to reach zero emission in the freight transport sector and going beyond the development of zero-emission technologies.
- Carbon neutral freight transport requires strategic actions by companies in support of systemic transitions in industrial systems.
- Key business actions in support of carbon neutrality include:
a. Revisiting existing industrial processes and business models to reduce the number of freight movements;
b. Revamping industrial facilities and suppliers to reduce the spatially fragmented supply chains;
c. Changing logistics organizations and lowering transport service levels to support the consolidation of flows and facilitate modal shift.
- The capacity and incentive for companies to implement systemic transitions required by carbon neutrality depends on the environment in which they operate, which is in turn critically conditioned by public policy. Structured cooperation between business actors and national and local governments is therefore a critical enabler to accelerate action towards carbon neutrality.