Net Zero Industry Tracker 2024 Trucking

PolicyTRUCKING Global trucking activity is highly concentrated in US, Europe, China and India. This underscores the importance of implementing effective and tangible policies to improve the adoption of zero-emission trucks in these regions. In 2022, more than 70% of heavy-duty vehicles (HDVs) sold were subject to fuel economy or vehicle efficiency regulations, an increase from 60% in 2017 – though this figure is down from a peak of 80% in 2020 due to rising sales in countries without such policies.280 While many countries are setting ambitious emissions targets, advanced economies could take cues from the European Union, the US and China by implementing a mix of regulations and incentives to effectively address CO2 emissions from HDVs. Trucking industry policy summary TABLE 9 Policy type Policy instruments Key examples Impact Market-basedCarbon price UK Carbon Pricing Mechanism281Establishes a financial cost for carbon emissions, incentivizing trucking companies to adopt cleaner technologies and reduce emissions. Border adjustment tariffEU Carbon Border Adjustment Mechanism (CBAM)282Imposes tariffs on imports based on carbon emissions, encouraging domestic trucking companies to lower their emissions and compete effectively against foreign firms. Product standard California’s Low-Emission Vehicle Program283Sets strict emissions standards for HDVs, promoting the development and sale of cleaner trucks and driving manufacturers towards zero-emission vehicles. Mandate-basedDirect regulations EU Revised CO2 emission standards for Heavy- Duty Vehicles284The revised CO2 emission standards for HDVs will be key to drive down emissions in the road transport sector and ensure the increasing supply of new zero- emission vehicles (ZEVs) to the market. Direct regulations EU Alternative fuels infrastructure285More recharging and refuelling stations for alternative fuels will be deployed in the coming years across Europe. This will enable the transport sector to significantly reduce its carbon footprint following the adoption of the alternative fuel infrastructure regulation (AFIR). Government targets EU Emissions Trading Scheme for transport286Revised CO2 standards for HDVs and the Alternative Fuels Infrastructure Regulation will aid heavy-duty ZEV deployment. Incentive-basedIncentives EU Eurovignette Directive287The directive is expected to incentivize the use of cleaner trucks, discourage the use of less-efficient trucks and reduce diesel consumption and emissions. Incentive-based subsidiesUS Federal Electric Vehicle Tax Credit288Provides financial incentives for purchasing electric trucks, lowering the upfront costs for fleet operators and accelerating the transition to zero- emission vehicles. Incentives California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project289Offers vouchers to fleet operators for purchasing clean trucks, incentivizing the shift to low-emission vehicles and helping offset initial costs. Direct R&D funds/grantsUS Department of Energy’s Vehicle Technologies Office290Funds R&D projects focused on advanced vehicle technologies, including electric and hydrogen fuel cell trucks, encouraging innovation and reducing costs over time. Net-Zero Industry Tracker: 2024 Edition 11