United for Net Zero Public Private Collaboration to Accelerate Industry Decarbonization 2025

Opportunity 2: Engage your sector to co-develop financial mechanisms for net zero According to the Exponential Roadmap Initiative, industry-wide decarbonization roadmaps are crucial to inform industry and policy decisions. These roadmaps should be developed in collaboration with suppliers, customers and governments and should include financing plans and policies.13 As significant investment in low-carbon materials and processes is required to accelerate the transition, sectoral roadmaps pinpoint key barriers that must be addressed with policy measures or in public-private collaboration, and ensure mutual understanding and benefits are met. Examples include the United Nations Framework Convention on Climate Change (UNFCCC) textiles charter 11, Fossil Free Sweden’s 13 industrial roadmaps and Denmark’s Climate Partnerships 2030. Creating these joint roadmaps also means engaging in responsible climate policy engagement. According to Climate Action 100, only one-third of most emitting companies are committing to conduct their engagement with the public sector for policy design in line with the Paris Agreement. Case study 2 depicts how a sector (in this case, the UK’s logistics sector) proactively informs the government on effective public financial mechanisms supporting their decarbonization. CASE STUDY 2 UK logistics sector proactively co-developing financial conditions for its net-zero transformation Challenge The UK logistics sector, a key economic regional growth driver, faces significant challenges in meeting upcoming net-zero deadlines while maintaining profitability and productivity. The sector must invest heavily to decarbonize while addressing three main challenges: 1) protecting supply chain resilience while preserving service level, 2) unlocking investment for decarbonization, and 3) improving multi-modal transport infrastructure planning and delivery. Solution In January 2024, a few months before political elections, Logistics UK, gathering over 21,000 members, released a manifesto calling for public-private collaboration to tackle these challenges and deliver a fair transition to a green economy. The manifesto highlights key areas for policy collaboration and dialogue creation, including: –Shared vision: Joint work to agree on a consolidated logistics net-zero roadmap, embedding fossil fuels phase out, and based on technology infrastructure investment availability and regulatory reforms and tax incentives –Dedicated financial mechanisms: Tax incentives supporting business investment, including full expensing for capital investments required to update vehicle fleets and fees paid to energy network operators for the necessary upgrades to vehicle charging infrastructure. Additionally, a review of road pricing and fuel duty mechanisms is needed to align with sustainable transport goals. –Supportive regulatory framework: Unified reforms to end the heterogeneous local charges adding inefficiency Impact Following the manifesto, both political wings have included logistics sector transformation in their political agendas, reflecting the influence of the industry’s unified voice. Logistics UK estimates that partnering with policy-makers could boost economic growth by up to £7.9 billion annually by 2030, driven by productivity gains. The generated impact of the proposed action plans will be measured in the coming years. Source: Logistics UK. (2024). Logistics UK manifesto: Unleashing the power of logistics to drive growth across the whole economy. https://logistics.org.uk/CMSPages/GetFile.aspx?guid=3352c27c-bb9c- 4793-9a15-948d0faea40b&lang=en-GB. United for Net Zero: Public-Private Collaboration to Accelerate Industry Decarbonization 15