Readiness key takeaways Technology 3 –Compressed and liquified biogas and synfuels technologies (being the most mature) are in the early adoption stage (TRL 9).237 –Hydrogen fuel cell technology is in the demonstration stage (TRL 8), and battery electric trucks are in commercial operation in the relevant environment stage (TRL 9). However, hydrogen internal combustion (hydrogen IC) trucks are in the prototype stage.238 Infrastructure 1 –Current infrastructure capacities are insufficient, as less than 1% of the necessary infrastructure is in place. This falls short of what is needed to enable the adoption of battery-electric trucks (BETs) and hydrogen-electric trucks (HETs).239 –Approximately 700 GW of clean power and 50 MTPA of hydrogen infrastructure is required for net-zero emissions by 2050.240 Demand 2 –Approximately 4% of current trucking fuel consumption comes from low- emissions sources.241 –The green premium is estimated at 80% for manufacturers and original equipment manufacturers (OEMs), which translates to 1-3% for end consumers.242 Capital 1 –Up to $9 trillion243 additional cumulative investments are required by 2050 to achieve net- zero emissions by 2050, translating to an additional $320 billion annually until 2050. –Currently, the trucking sector has an annual CapEx of $286 billion.244 Policy 3 –Stricter GHG standards and ambitious ZET targets are being announced by governments. There is an increasing set of policies for infrastructure deployment strategy, incentives, subsidies, weight and dimension allowance, and carbon tax. Sector priorities Company-led solutions Mid-term (by 2030) –Accelerate the adoption of drop-in biofuels and synfuels in the interim. –Invest in the development of BETs and HETs. –Make use of efficiency and design improvement opportunities at an accelerated pace.Long-term (by 2050) –Accelerate the development of hydrogen- and battery- electric technologies for long-haul applications. Ecosystem-enabled solutions Mid-term –Invest in clean power infrastructure to increase access to renewable energy sources.Long-term –Invest in R&D to accelerate the deployment of ultra-fast charging infrastructure. –Coordinate with other sectors to achieve economies of scale for biofuels, hydrogen and grid requirements. Net-Zero Industry Tracker: 2024 Edition 64

Net Zero Industry Tracker 2024