Decarbonizing Supply Chains & Logistics 2026

Executive Summary

Freight and logistics represent roughly 8–10% of global CO2 emissions when including heavy-duty road, shipping, aviation, and warehousing. Companies face mounting pressure from regulation, customers, and financiers to cut emissions while preserving cost efficiency and reliability. Energy Solutions analysis assesses which decarbonisation levers—efficiency, modal shift, electrification, hydrogen, and low-carbon fuels—are deployable at scale this decade and what they mean for cost per ton-kilometre.

Download Full Techno-Economic Report (PDF)

What This Market Intelligence Covers

Emissions Baseline and Cost Drivers

Supply-chain emissions are concentrated in a limited number of high-intensity links: deep-sea shipping, aviation, long-haul trucking, and energy-intensive warehousing. For many sectors, logistics accounts for 10–25% of Scope 3 emissions. Margins are often thin, so cost additions must be carefully managed.

The key levers are: (1) demand and distance reduction (network design, nearshoring), (2) efficiency and consolidation, (3) modal shift, and (4) fuel switching and electrification.

Indicative Emissions Intensity by Freight Mode (2025)

Mode Typical gCO2e/ton-km Cost Sensitivity to Decarbonisation Key Levers
Deep-sea shipping 8–20 Moderate Efficiency, slow steaming, alternative fuels
Rail freight 10–40 Low–moderate Electrification, loading factors
Heavy-duty trucking 60–120 High Aerodynamics, fuel switch, electrification
Air freight 500–900 High Modal shift, SAF, load factor

Emissions Intensity by Freight Mode (gCO2e/ton-km)

Source: Energy Solutions synthesis of public LCA and operator data (2024–2025).

Key Decarbonisation Levers by Mode

No single technology will decarbonise logistics. Instead, shippers build portfolios of measures tailored to lanes and products:

Stylised Emissions Reduction Potential by Measure (Road Freight)

Measure Emissions Reduction vs Baseline Indicative Cost Impact Deployment Horizon
Operational efficiency 5–15% Low / often cost-negative Now
Modal shift (road ? rail) 30–70% Low–moderate Now–mid term
Battery-electric trucks 70–100% (tank-to-wheel) Moderate–high CAPEX, variable OPEX Scaling 2025–2035

Projected Share of Zero-Emission Truck Sales

Source: Energy Solutions scenarios; medium-duty and heavy-duty combined.

Benchmarks: Cost and Emissions per Ton-Kilometre

The table below compares stylised logistics options for a continental lane (e.g., 800–1,000 km) in 2026.

Cost vs Emissions for Selected Freight Options (Illustrative)

Source: Energy Solutions modelling for representative EU lane in 2026.

Case Studies: Retail, Automotive, and FMCG

Case Study 1 – European Retailer Modal Shift and EV Pilots

A pan-European retailer redesigned its inbound logistics network to shift volume from road to rail and deploy electric trucks on regional legs.

  • Scope: ~180,000 TEU-equivalent movements per year.
  • Result: ˜ 32% reduction in logistics emissions on covered lanes.
  • Cost impact: ˜ 1.2% increase in delivered logistics cost, largely absorbed through efficiency gains and contract optimisation.

Case Study 2 – Automotive OEM Green Corridor

An automotive manufacturer implemented a "green corridor" for parts between a central plant and major suppliers, combining renewable-powered rail and battery trucks for first/last mile.

  • Lane distance: ~900 km door-to-door.
  • Emissions reduction: ~55% vs legacy diesel-only road.
  • Visibility: Corridor used as flagship Scope 3 disclosure and customer communications asset.

Global Perspective: EU, North America, Asia

Policy and infrastructure shape decarbonisation trajectories:

Stylised Logistics Emissions Reduction by Region (Index, 2024=100)

Source: Energy Solutions scenarios; regional freight emissions index.

Devil's Advocate: Trade-Offs and Execution Risk

Practitioners caution against oversimplified narratives:

Energy Solutions analysis emphasises staged portfolios of measures with robust TCO assessments and flexible contracting to manage these risks.

Outlook to 2030/2035: Towards Net-Zero Logistics

By 2030, leading firms are expected to have decarbonised a significant share of their high-visibility lanes, using a mix of zero-emission trucks, renewable-powered rail, biofuels, and operational measures. By 2035, under ambitious scenarios, zero- and low-carbon fuels could capture a substantial share of new shipping and long-haul demand.

Over the longer term, convergence between logistics decarbonisation and energy-system transformation— SMRs, green hydrogen, and V2G-enabled fleets—will shape the cost and availability of low-carbon transport energy.

Frequently Asked Questions

What is a realistic 2030 target for logistics emissions reduction?

For many diversified shippers, a 20–30% reduction in logistics emissions by 2030 is realistic using efficiency, modal shift, and targeted fuel-switching, assuming supportive policy and infrastructure in key corridors.

How should companies prioritise between electrification and low-carbon fuels?

Electrification is typically prioritised for short- and medium-haul routes with predictable schedules and depot charging. Low-carbon fuels (biofuels, e-fuels, hydrogen) often target long-haul road, shipping, and aviation where batteries face practical limits.

How can procurement teams embed decarbonisation into freight contracts?

Common approaches include specifying emissions-intensity targets, requiring reporting compatible with GLEC or similar frameworks, and using green corridors and preferred carrier programmes for low-carbon options.

Which tools support scenario analysis for logistics decarbonisation?

Shippers typically combine network and routing models with emissions calculators, cost simulators, and scenario tools aligned with corporate net-zero pathways.

Methodology Note: This report integrates Energy Solutions modelling, carrier disclosures, policy roadmaps, and benchmark cost data. Emissions intensities are expressed as gCO2e/ton-km; cost figures are indicative, in constant 2025 USD, and exclude idiosyncratic contractual terms and surcharges.