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Adrian Gault Chief Economist, Committee on Climate Change The climate change challenge for freight Meeting Carbon Budgets: the climate change challenge for freight Adrian Gault, Chief Economist ([email protected]) 13 May 2015 Structure of Presentation • The Climate Change Act • Performance against existing targets • The challenge for transport and freight • Next steps The Climate Change Act The Climate Change Act 2008 • A statutory 2050 target for emissions reduction • Legally-binding 5-year ‘carbon budgets’ • Requirement to develop policies and proposals to meet budgets • Establishes the CCC as independent advisor The Committee on Climate Change • How fast? Level of 2050 target and carbon budgets • How? Sectoral contributions, technologies and policy options • Progress? Monitoring: are we on track to meet budgets? Annual progress report to Parliament • Who? Advice for UK as well as specific consideration of Scotland, Wales and Northern Ireland – including reporting to their governments and carrying out work specific to them • Adaptation Sub-Committee Process: Committee of eminent economists and scientists weighs the evidence Structure of Presentation • The Climate Change Act • Performance against existing targets • The challenge for transport and freight • Next steps The 2050 Challenge 628 MtCO2e International aviation & shipping* UK non-CO2 GHGs Other CO2 Industry (heat & industrial processes) 75% cut (= 80% vs. 1990) Residential & Commercial heat Domestic transport 160 MtCO2e Electricity Generation * bunker fuels basis 2010 emissions 2050 objective 8 Cost effective path to 2027 has been agreed in line with 2050 target Greenhouse gas emissions (includes aviation and shipping) Further action likely to be needed to meet 4th Carbon budget, and 2050 target Today 4th carbon budget Climate Change Act: “It is the duty of the Secretary of State to ensure that the net UK carbon account for the year 2050 is at least 80% lower than then 1990 baseline.” Note: figure is non-traded sector only, statutory duty covers trade and non-traded. DEC central scenario based on CCC modelling of DECC evidence, uncertainty around CCC scenario based on DECC uncertainty analysis. Structure of Presentation • The Climate Change Act • Performance against existing targets • The challenge for transport and freight • Next steps 4th Carbon Budget scenario for the transport sector Central scenario in 2030 Cars Vans HGVs • New car efficiency = 80gCO2/km. • EVs = 60% of new cars (c.30% of stock). • Smarter Choices reduce car km by 5%. • New van efficiency = 120gCO2/km. • EVs = 60% of new vans (c.25% of stock). • New HGV efficiency improvement of c.30%. • Improved logistics and eco-driving to reduce fuel consumption. • Conventional new bus efficiency improvement of c.25%. • Hydrogen = 50% of new buses in 2030. Buses Bio-fuels • Limited use of sustainable biofuels – c.8% in 2020. Freight demand-side measures in the 4th Carbon Budget • By 2030, a 6.5% reduction in vehicle-kms from: • More efficient routing / use of consolidation and distribution centres. • Better vehicle utilisation / improved lading / reduction of empty running. • Double-deck / high cube trailers. • Off-peak travel to avoid congestion. • A shift to less carbon-intensive travel modes such as rail. • Also a fuel saving of 4% due to eco-driving. • We have commissioned a new research project with Centre for Sustainable Road Freight to improve the evidence base in this area and make policy recommendations. CfSRF project methodology • Department for Transport Road Freight Statistics used to establish a baseline: • Mix of vehicle types and sectors • Kilometres travelled • Industry consultation, workshops and literature review to establish uptake of efficiency measures: • Vehicle fuel efficiency • Current uptake of measures (logistics measures and technology solutions) • Future potential uptake of measures • Future emissions reduction modelled by considering: • Commercial decision making and payback period (capital costs vs fuel savings) • Low, medium and high uptake scenarios • Non-financial barriers to uptake within the sector Emerging recommendations – Key themes • The project is ongoing and recommendations are yet to be finalised, but a few key themes have emerged: • Data: Improving the availability of logistics relevant data should help to facilitate collaboration and improved planning • Competition law: It would be helpful to clarify permissible forms of collaboration in the context of competition law • Longer, heavier vehicles: Use of longer, heavier vehicles would help to reduce emissions but concerns over safety need to be fully addressed • Land use: Land use planning policy should have some consideration of the benefits of urban consolidation centres • This list is not exhaustive and specific recommendations have not been finalised. Structure of Presentation • The Climate Change Act • Performance against existing targets • The challenge for transport and freight • Next steps Key statutory reports from the Committee in 2015 • Statutory Progress to Parliament (end June): • progress made to meet the existing carbon budgets and the 2050 target • what further progress is needed • Fifth Carbon Budget advice (by end December): • Recommended level of 5th carbon budget (2028-32) • Extensive engagement and analysis ongoing: direct links into industry, workshops (business, science, power, scenarios), call for evidence, commissioned research, peer review, engagement with Departments • Publications in Autumn leading up to final advice • June 2016: deadline for legislation on 5th Carbon budget Logistics Carbon Reduction Conference 2015