Globalization and the associated geographical fragmentation of international production processes have characterized growth in international trade. Logistics networks have connected more economic cities across oceans and continents have become longer and more complex. Global trade largely neglects the long-term impact of CO2 emissions and is highly determined by changes in consumer preferences and new manufacturing demand. The International Transport Forum (ITF) predicts that around 30% of all transport-related CO2 emissions are caused due to international trade-related freight transport.
Transport accounts for a significant share of the global fossil fuel combustion-related CO2 emissions. Total fossil fuel-related CO2 emissions increased from 20.9Gt in 1990 to 28.8Gt in 2007, of which transport accounted for 4.58 (1990) and 6.63 (2007) Gt, representing an increase of approximately 45%. [1] According to the World Energy Outlook 2009, global energy-related CO2 emissions could increase to over 40Gt by 2030, and transport emissions would make up over 9Gt. [1]
Shown below is a graphical representation of the projected world energy-related CO2 emissions.
Source: (2009, IEA)
From the above graph, we can see that transport is the 2nd largest cause of CO2 emissions. Road transport has been one of the major CO2 emission sources for international commercial transport because it produces more than half of all trade-related freight emissions, with high emission per tonne-kilometer in comparison with other modes.
Greenhouse gas emissions from the EU’s transport increased in 2018 and 2019 and have not followed the EU’s general decreasing emissions trend. [2] National projections compiled by the EEA suggest that transport emissions in 2030 will remain above 1990 levels, even with measures currently planned in the Member States. [2] In recent years in the EU, a steady decrease in Greenhouse Gas (GHG) emissions has been observed. The transport sector, however, has not followed this general trend, thus increasing its relative contribution to Europe’s emissions of GHGs.
The chart below shows the increase in the greenhouse gas emissions from transport in the EU over the years.
Source: Greenhouse gas emissions from transport in the EU — European Environment Agency (europa.eu)
According to this chart in 2019, the EU’s transport emission was increased by 0.8%. The above projections in the charts show that by the end of the year 2030, the Greenhouse Gas (GHG) emissions from transport will relatively decrease from the current level. These projected trends suggest that the transport sector is unlikely to contribute to the emission reductions needed to achieve the EU’s new targets for 2030 or to achieving climate neutrality by 2050. [2] Additional measures need to be considered that are planned in national policies and all the transports sub-sectors will need to be much more ambitious to achieve the EU’s target.
Green technology is seen as the most cost-effective way of reducing carbon emissions without jeopardizing economic competitiveness. Green technologies developed both domestically and internationally in upstream sectors help foster environmental performance, regardless of the type of GHG emissions. In that regard, a vital mechanism through which environmental technologies spread throughout the economy and shape environmental performance is a sustainable supply chain.
According to the Paris agreement on climate change, the EU has set the target to cut Greenhouse Gas (GHG) emissions at least by 40% compared to 1990 levels in all the economic sectors by the year 2030. [3] Also, to achieve the target set by the EU, Member of European parliaments (MEP) have taken the following steps to fulfill this commitment:
- The EU Emissions Trading Scheme (ETS): Although the EU is the world’s third-largest CO2 emitter, the emissions trading system (ETS) is one of the tools set by the European Union to cut emissions substantially by 2030 and bring them down to net zero emissions by 2050. [4]
- Binding national targets to cut greenhouse gas emissions from non-industrial sectors: The Regulation on Effort Sharing sets obligatory targets for reducing the emissions of greenhouse gas for each EU country. Emissions in sectors such as transport and farming, buildings, and waste management will reduce to 30% by 2030, as compared to 2005. [5]
- The use of forests to offset carbon emissions: The EU has 182 million hectares of forest covering 43% of the territory. The coverage of forests may vary significantly from Member State to Member State. Just seven countries account for more than 70% of the EU’s forested areas: Finland, France, Germany, Italy, Poland, Spain, and Sweden. [6] The current EU emissions reduction target is 40% by 2030 (compared with 1990 levels). On 8 October 2020, MEPs called for a more ambitious reduction target of 60% to achieve climate neutrality by 2050. [6]
Strategies to reduce CO2 hence primarily focus on automotive technology, and technological improvements. However, the sector can implement many other measures, including the time-to-time maintenance of vehicles, driver training, loading of vehicles, routing, and scheduling. Improving operational efficiency can contribute significantly to reduce CO2 emissions while enhancing productivity for the business. Better route planning, for example, can provide companies with substantial efficiencies with reduced fuel costs and at the same time contribute to the reduction of emissions.
References
[1]
World Energy Outlook, Paris: Internantional Energy Agency, 2009.
[2]
“European Environmental Agency,” [Online]. Available: https://www.eea.europa.eu/data-and-maps/indicators/transport-emissions-of-greenhouse-gases-7/assessment.
[3]
“CO2 emissions from cars: facts and figures (infographics),” News European Parliament, 2019. [Online]. Available: https://www.europarl.europa.eu/news/en/headlines/society/20190313STO31218/co2-emissions-from-cars-facts-and-figures-infographics.
[4]
“The EU Emissions Trading Scheme (ETS) and its reform in brief,” News European Parliament, 2017. [Online]. Available: https://www.europarl.europa.eu/news/en/headlines/society/20170213STO62208/the-eu-emissions-trading-scheme-ets-and-its-reform-in-brief.
[5]
“Binding national targets to cut greenhouse gas emissions from non-industrial sectors,” News European Parliament, 2018. [Online]. Available: https://www.europarl.europa.eu/news/en/headlines/priorities/climate-change/20180208STO97442/cutting-eu-greenhouse-gas-emissions-national-targets-for-2030.
[6]
“The use of forests to offset carbon emissions,” News European Parliament, 2017. [Online]. Available: https://www.europarl.europa.eu/news/en/headlines/society/20170711STO79506/climate-change-using-eu-forests-to-offset-carbon-emissions.
[7]
V. Costantini, F. Crespi, G. Marin and E. Paglialunga, “Eco-innovation, sustainable supply chains and environmental performance in European industries,” 2016.
[8]
“Reducing Transport Greenhouse Gas Emissions: Trend and Data 2010,” International Transport Forum, [Online]. Available: http://www.internationaltransportforum.org/Pub/pdf/10GHGTrends.pdf.
[9]
“The Carbon Footprint of Global Trade Tackling Emissions from International Freight Transport,” International Transport Forum, [Online]. Available: https://www.itf-oecd.org/sites/default/files/docs/cop-pdf-06.pdf.
