Decarbonizing Supply Chains & Logistics 2026
December 2025
Supply Chain & Transport Decarbonisation Analyst
20 min read
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.
- Across typical supply chains, 15–30% reductions in logistics emissions by 2030 are achievable with efficiency, load consolidation, and modal shift measures that add less than 1–3% to delivered cost of goods in most markets.
- Battery-electric trucks are competitive on a total-cost-of-ownership (TCO) basis for selected regional and last-mile routes, while hydrogen and advanced biofuels target long-haul and shipping corridors; blended portfolios can cut well-to-wheel emissions by 40–60% in flagship lanes.
- By 2030, Energy Solutions scenarios suggest that 25–40% of new medium-duty truck sales in the EU and China could be zero-emission, with North America following at a slower but accelerating pace.
- Scope 3 disclosures, border carbon adjustments, and green freight programmes are shifting decarbonisation from isolated pilots to procurement criteria embedded in contracts and tenders.
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:
- Road freight: route optimisation, driver training, battery-electric trucks for short/medium haul, renewable diesel and hydrogen for longer routes.
- Shipping: energy efficiency devices, slow steaming, methanol and ammonia pilots, optimised port calls.
- Warehousing: high-efficiency HVAC, LED retrofits, on-site solar, and microgrids.
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:
- European Union: Strongest regulatory push, including fuel standards, CO2 standards for HDVs, and Fit for 55 measures; dense rail network aids modal shift.
- North America: Large distances and fragmented rail create challenges; state-level policies and corporate initiatives drive pockets of rapid change.
- Asia: Rapid freight growth; China leads in zero-emission truck deployment, while Southeast Asia focuses on efficiency and logistics digitalisation.
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:
- Cost and inflation risk: Green fuels and new vehicles are capital-intensive; poorly timed commitments may lock in high costs.
- Infrastructure bottlenecks: Rail capacity, charging hubs, and hydrogen refuelling are often missing on critical corridors.
- Data quality: Weak emissions data from carriers and subcontractors can undermine target-setting and reporting credibility.
- Carbon leakage: Without harmonised policies, freight may shift to less regulated regions or modes.
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.