By Lilly Gebert, Emin Khalilov, Sebastian Schöttke, and Michael Palocz-Andresen
Introduction
With road freight transportation holding a significant share of approximately 75% in the EU market, it stands as a cornerstone in freight logistics. The environmental impact of road freight transportation is closely tied to the increasing demand for goods driven by factors like the growing population, international treaties. The flexibility of door-to-door service underscores the dominance of road transport [1].
This dominance comes with environmental costs and raises concerns, with a projected doubling of the CO2 emissions by 2030. The transport-related greenhouse gas emissions (GHG) reach nearly 30% in 2021, demanding immediate sustainable solutions.
Addressing these environmental challenges posed by road freight transportation necessitates a multifaceted approach, including after-market solutions for existing trucks and fleet modernization. In the Netherlands for example the replacement cycle for a truck fleet spans about seven years, underlining time required for comprehensive fleet modernization.
In Terms of fuel diesel remains the dominant fuel source, but a study conducted in the Netherlands claims that electric trucks are anticipated to become more common in the next years. Despite this prediction, diesel trucks still maintain a considerable dominance in the present context. That is why it is necessary to reduce the emissions of the fuel consumption by using eco-friendly fuels. Furthermore, it is not only the sustainable operation of a truck itself, supporting factors like the materials for the trucks, the tires or the streets have a substantial share of environmental pollution in this sector.
Balancing sustainability with economic viability is crucial, particularly with the increasing tolls and higher CO2 pricing in the EU, leading to elevated costs for all Stakeholders. In Germany, road freight transport holds a 70% of total freight transportation, emphasizing its position as the major driver in climate protection and sustainability efforts within the transport sector.
Exploring concepts of sustainable trucking
In the realm of road freight transportation, sustainability is becoming a driving force, encouraging innovation across major brands. The industry focuses on two primary alternatives: fully electric and hydrogen-powered trucks. Sustainable truck concepts take both long-haul and short-haul applications into account and must be tailored to the operational requirements.
The Clean logistics SE pioneers the conversion of 40-ton diesel trucks into fuel cell-powered trucks with the HyBatt model. This approach, ranging 400-500 km (mass production vehicles up to 1,000 km), with 45 KG of hydrogen per truck, offers a material-friendly solution for climate-friendly fleets without the need for new vehicle purchases.
Mercedes-Benz introduces the eActros, a fully electric truck with a 400-500km range, and the GenH2, a hydrogen-powered truck achieving a record distance of 1,047 km in 2023. Emphasizing high-capacity utilization and carbon-neutral production from 2022, Mercedes-Benz prioritizes efficiency and sustainability throughout the lifecycle.
Scania adopts a diversified strategy focusing on alternative fuels, electromobility, and hybrid solutions. They want 50% of vehicle sales in the electric sector by 2030, Sancia’s combustion engines run on various alternative fuels achieving significant emission reductions.
Efficiency is crucial in drive concepts. Fuel cells offer approximately 60% efficiency, outperforming diesel, and petrol engines. Electric drives, with around 90% efficiency, present low-wear challenges but require climate-neutral electricity and vehicle production for zero emissions.
The exploration of sustainable truck concepts embodies a dynamic industry landscape, where innovation aligns with environmental consciousness, shaping the future of road freight transportation.
Volvos electric truck
In those changing conditions Volvo came up with an electric truck using lithium-ion batteries.
In one truck there are 5 to 6 Battery complexes. One Battery complex weights about 505 kg and has a capacity of 90 kWh. The range of one charging cycle is about 450 km.
A lithium-ion battery typically consists of several key components. The anode is commonly made of carbon or graphite and stores lithium ions during charging. Cathode materials may include lithium cobalt oxide, lithium nickel manganese cobalt oxide, or lithium iron phosphate. The electrolyte, comprising a lithium salt dissolved in an organic solvent, facilitates the movement of lithium ions between the anode and cathode during charge and discharge cycles. Lithium-ion batteries exhibit several characteristics that make them highly desirable. They offer high energy density, meaning they can store a large amount of energy in a compact and lightweight package. These batteries also provide relatively stable voltage output during discharge, ensuring consistent power delivery to electronic devices. Furthermore, they can be charged at a relatively fast rate, enabling quick recharging of devices when needed. With a low self-discharge rate, lithium-ion batteries retain their charge well during periods of inactivity, making them suitable for applications requiring long-term storage. Materials like Nickel, Cobalt and Lithium are rare materials.
The known reserves of nickel in 2021, totaling more than 95 million tons, will only last for approximately 35 years at the constant production level of 2021. According to experts the reserves of cobalt will last for another 11 years, if consumption is not reduced. The current reserves amount to approximately 15 million tons of lithium. This means that with a demand of 240,000 tons, the resource’s lifespan would be around 60 years. However, if we calculate the static range using the demand for 2050, we arrive at approximately 13 years. Experts predict a linear increase in the demand for nickel, cobalt, and lithium. By 2025, the demand for each material is still below 500 kilotons. By 2040, the demand for lithium is expected to reach 3000 kilotons, while the demand for nickel is projected to reach 4000 kilotons. The demand for cobalt is expected to increase only to 500 kilotons.
Figure 1: Global demand for raw minerals to 2040
Due to the rarity and increasing demand for rare materials, it becomes evident that a transition to alternative batteries will be necessary in the long term. In consideration are Lithium Iron Phosphate batteries. It is a type of lithium-ion battery using lithium iron phosphate as the cathode material. The Lithium Iron Phosphate battery offers significant advantages over conventional Lithium-ion batteries. It boasts enhanced safety, extended cycle life, robust thermal stability, environmental sustainability by eliminating toxic cobalt and nickel, and price stability due to reduced reliance on costly resources. While Lithium Iron Phosphate batteries offer numerous advantages, they do come with some drawbacks compared to traditional Lithium-ion batteries. One notable disadvantage is their lower energy density, which results in a reduced capacity to store energy per unit volume or weight. This lower energy density can lead to larger and heavier battery packs, making Lithium Iron Phosphate batteries less suitable for applications where space and weight are critical factors.
As the global transition to electric mobility gains momentum, the question of sustainability emerges with increasing urgency. Among the challenges posed by this transition, the issue of battery disposal and recycling from electric trucks stands out as a critical concern. Not only due to the limited materials, recycling of old batteries is increasingly gaining importance, but also because of the strict recycling quotas of the EU. For instance, nickel and cobalt must be recycled to 90 percent by 2027, and to 95 percent by 2031. For lithium, the minimum requirements are set at 50 and 80 percent, respectively. However, currently, recycling batteries is still very labor-intensive [2].
Redwood Materials has emerged as a leader in the burgeoning field of battery recycling. They try to create a circular supply chain for electric vehicles by recycle, refine, and remanufacture the old batteries with a recovery rate greater than 95 percent. Redwood Materials expands into Europe through a partnership with Redux Recycling GmbH, the premier lithium-ion battery recycler in the European Union, making it well-equipped to meet the growing demand in the fastest-growing electric vehicle market globally. Recycling represents the final step in the battery lifecycle. Once a battery has reached the end of its usable life, recycling allows for the recovery of valuable materials such as lithium, cobalt, and nickel, which can be used in the production of new batteries or other products [3].
Volvos truck out of fossil free steel
Volvo, as a leader in the automotive industry, has set a remarkable example by committing to the production of trucks that minimize environmental impact, not only through their operational efficiency but also through the materials used in their construction. The use of sustainable materials in the production of e-trucks is an essential aspect of ensuring environmental responsibility.
In October 2021, Volvo Group and SSAB revealed the world’s first vehicle constructed from fossil-free steel. This pioneering development marks a significant milestone in the quest for sustainable transportation solutions. The global steel industry is responsible for a substantial 8% of CO2 emissions worldwide. Considering that approximately 70% of a truck’s weight is derived from steel and cast-iron components, the adoption of fossil-free steel presents a transformative opportunity to mitigate carbon emissions in the transportation sector. Furthermore, Volvo Trucks has set ambitious goals to achieve net-zero greenhouse gas emissions by 2040. This objective encompasses a transition away from fossil fuels and a gradual substitution of truck materials with fossil-free and recycled alternatives. This achievement is facilitated by SSAB’s pioneering HYBRIT technology, which revolutionizes conventional steel production methods.
Traditional steel production is a significant contributor to carbon emissions, as it relies heavily on coal and other fossil fuels. However, HYBRIT employs hydrogen as a reducing agent, emitting water rather than carbon dioxide during the process. Despite the departure from traditional techniques, SSAB’s fossil-free steel retains equivalent quality and properties to conventional steel, a pivotal consideration for Volvo [4]. By incorporating fossil-free steel into the manufacturing of trucks, Volvo Trucks is taking a proactive step towards reducing the environmental impact of its vehicles. Approximately 30% of materials utilized in its new trucks originate from recycled sources. Additionally, Volvo anticipates that up to 90% of a truck can be recycled at the conclusion of its operational life, demonstrating Volvo’s comprehensive approach to sustainability, which includes both production and end-of-life considerations [5]. By embracing these materials, manufacturers like Volvo Trucks are not only reducing their environmental impact but also positioning themselves as leaders in the transition towards sustainable mobility.
Economic and legal dimensions in sustainable trucking
In sustainable trucking, it’s essential to not only focus on the trucks, but also consider economic and legal factors. What steps can the government take to support and promote sustainable trucking? Understanding the Supply Chain Act is key to addressing this.
Act on Corporate Due Diligence Obligations in Supply Chains
The legislation ensures that companies operating in Germany uphold human rights and environmental protection standards throughout their global supply chains. Firms are now obligated to exercise caution not only within their own operations but also in dealings with their partners and suppliers, prioritizing the well-being of both individuals and the environment across the entire supply chain.
Initially, companies must identify and comprehend any issues within their supply chains. Then, based on what they find, they have to take action to prevent or reduce harm to people and the environment. Furthermore, the legislation specifies the exact actions that companies must undertake. Additionally, they are mandated to establish a mechanism for individuals within the supply chains to file complaints and regularly disclose to the public how they manage their supply chains.
This law helps everyone involved – people in the supply chains, companies, and consumers. It provides a comprehensive framework of regulations for companies to adhere to, ensuring responsible management of their supply chains for the betterment of both people and the planet. Consequently, consumers can have confidence that major companies in Germany are placing increased emphasis on ethical production practices.
Who has to follow the Supply Chain Act? Since 2023, it applies to large companies with at least 3,000 employees. In 2024, it also applies to companies with at least 1,000 workers in Germany. This way, companies of different sizes can slowly get used to and follow the new rules [6]. The European Commission also decided that by 2040, new trucks need to emit 90% less pollution compared to how much they emitted in 2019 [7]. In line with the European Green Deal, this proposal will also have a positive impact on the energy transition, as more energy will be saved and used more efficiently in the EU’s transport sector. This shows that trucks are often responsible for a significant portion of greenhouse gas emissions in the transportation sector. Sustainable freight transport methods can help reduce these emissions. This is relevant in the context of the Supply Chain Act and regulations in the European region that aim to decrease environmental impacts.
If companies violate the Supply Chain Act, they may face significant penalties. The responsibility of monitoring compliance with the regulations rests with the Federal Office for Economic Affairs and Export Control (BAFA). Non-compliance can result in legal and financial consequences, damage to a company’s reputation and exclusion from public projects for a period of up to three years. Fines for breaches can reach as high as eight million euros or two percent of a company’s global sales revenue.
Figure 2: VuMa Survey: prioritizing ecological responsibility when buying products
However, these violations harm companies and their reputations. In recent years, there has been a growing awareness of sustainability and many consumers place great importance on companies implementing sustainable supply chains. A survey by VuMA shows that more people prioritize ecological responsibility when buying products. In 2017, 25.44 million
Germans agreed with this, increasing to 28.85 million by 2021. This rise in consumer demand highlights the growing importance of sustainability in business. Tesla is a prime example, as its electric vehicles help reduce CO2 emissions while boosting its success in the automotive industry. Integrating sustainable solutions not only benefits the environment but also strengthens market position, creating value for both the company and its stakeholders.
The Government´s role in improving the environmental impact of trucks
The following section examines the role of the state in promoting environmentally friendly trucks. It also explains what measures the state can take to promote the spread of environmentally friendly trucks and highlights the current challenges in this endeavour.
The government can implement measures to enhance the environmental performance of trucks. In 2018, the German government provided approximately 65.4 billion euros in subsidies that supported environmentally harmful activities, with nearly half of the amount directed toward the transportation sector. This is a chance for the government to help companies use more eco-friendly trucks. It is paradoxical that the government allocates funds for climate protection while simultaneously endorsing practices detrimental to the environment. It is imperative to promptly cease these harmful subsidies, not only to conserve financial resources but also to redirect investments towards environmentally sustainable approaches. At the same time, bureaucratic hurdles that hinder innovation in the industry must be removed in order to facilitate the transition to sustainable means of transportation.
More than two thirds of companies complain that bureaucracy restricts their innovations. This includes complex approval and licensing procedures as well as detailed documentation requirements. This should be made easier so that the added value also remains in the country or throughout Europe. Another advantage of sustainable financing is that it promotes innovation in technologies and processes essential for a sustainable economy. This can lead to new business opportunities and growth and improve the competitiveness of the state. A study by the Global Commission on the Economy and Climate found that a comprehensive shift to sustainable economic practices could generate around USD 26 trillion in economic benefits and create 65 million new jobs by 2030 [8].
CO2 Tax
The carbon tax is an environmental tax on the emission of greenhouse gases such as carbon dioxide (CO2). This puts a price on emissions, which creates incentives to reduce emissions. A CO2 tax increases the price of products whose production and/or use is associated with greenhouse gas emissions. The higher these greenhouse gas emissions are, the higher the price will generally be. This creates incentives to demand fewer greenhouse gas-intensive products and to give preference to those products that cause the lowest emissions. Studies show that CO2 taxes effectively reduce emissions [9]. There is a broad scientific consensus that CO2 taxes are an effective and efficient instrument for combating climate change:
- Incentive for low-emission vehicles: A CO2 tax can serve as an economic incentive to promote the use of environmentally friendly trucks. By taxing CO2 emissions, companies are motivated to switch to cleaner and more energy-efficient means of transportation.
- Costs for CO2 emissions: The CO2 tax sets a price for the emission of carbon dioxide. Companies that operate trucks with higher CO2 emissions must therefore pay higher taxes. This creates a financial incentive to modernize the vehicle fleet and use more environmentally friendly vehicles.
- Promotion of sustainable technologies: A CO2 tax can promote the development and use of technologies that help to reduce CO2 emissions from trucks. This could encourage the use of electric vehicles, hydrogen drives or other low-emission technologies.
Supporting factors on sustainable trucking
As mentioned, the pursuit of sustainable trucking extends beyond the vehicles themselves. Equally crucial as the operation of trucks are supporting factors like roads, tires, electricity/hydrogen, or steel. A multifaced perspective is vital, ensuring that every aspect of the logistics ecosystem aligns with environmentally friendly practices.
Supporting factors: Sustainable roads
The functionality of freight transportation relies heavily on road construction maintenance, and infrastructure, making it essential that these factors are designed with sustainability in mind.
One of the most important components of roads is bitumen, traditionally produced form crude oil or as a by-product of fuel production, relying on fossil fuels and contributing to the GHG-emissions. Recognizing the need for alternatives, recent studies have investigated sustainable options, providing valuable insights into reshaping the landscape of road construction.
Studies have found that incorporating bio-based materials like wood oil into conventional bitumen can offer both benefits and challenges. Adding up to 15% wood oil showed no negative effects on bitumen’s performance and improved low-temperature resistance. However, mixing conventional bitumen with bio binders from various sources like bio-oil revealed issues such as reduced ductility, decreased water stability, and lower fatigue performance. Despite these challenges, organic binders, especially from pulp and paper industry residues, showed potential to enhance self-healing properties. Overall, the use of sustainable bio-binders in road construction holds promise but requires further research and improving [10, 11].
The studies highlight the ongoing exploration and experimentation in the realm of sustainable road construction, underscoring the importance of innovative approaches in minimizing the environmental impact of critical infrastructure components.
Noteworthy is the collaboration with STRABAG, one of Europe’s largest construction companies, with B2Square to produce sustainable asphalt with synthetic bitumen. This innovative asphalt aims to be entirely petroleum-free and capturing 1561 KG CO2 per ton, achieving CO2-negative results. However the effectiveness of this invention is yet to be fully realized, but this collaboration presents an optimistic outlook for integrating eco-friendly materials in road infrastructure.
Supporting factors: Tire Wear
Today’s tires blend natural and synthetic rubbers, primarily sourced from petroleum. When these tires meet the road, a microscopic but impactful phenomenon occurs tire wear releases particles into the environment. This process, prevalent in both combustion and electric vehicles, poses a complex challenge for sustainable trucking. In electric vehicles, the increased weight intensifies tire wear, resulting in approximately 20% more abrasion than their traditional counterparts.
Figure 3: Way of mircoplastics from streets into the oceans because of the abrasion
Tire abrasion is a significant contributor to microplastic pollution, as emphasized by the Fraunhofer Institute. Germany grapples with tire abrasion emerging as one of the largest sources of microplastics. The potential global implication of these numbers underscores the urgent need for a fundamental shift in tire design and manufacturing. Microscopic fragments infiltrate ecosystems, threatening aquatic life and terrestrial habitats [12].
Figure 4: Per capita emissions of microplastics sorted by sources in Germany (2017)
Addressing this environmental concern requires a transition to sustainable tire concepts. While current initiatives focus on recycling used tires, the focus should be in preventing tire abrasion emissions. A Transformation leading to the development of emission-free or sustainably emitting tires is essential. As we steer toward a sustainable trucking future investing in innovative tire technologies becomes a crucial step in minimizing the ecological footprint of road freight transportation.
Conclusion
Sustainability in road logistics stands as a decisive factor in the global fight against climate change. With road freight transportation holding a significant market share in the transport sector and offering unparalleled flexibility towards other sectors of freight transport, it is indispensable in meeting the demands of modern logistics. As such, it is essential that the entire sector shifts towards a more climate-friendly future.
The current landscape of projects and initiatives illustrates that this shift is not merely a vision anymore but a graspable reality. From the adoption of climate-neutral operation of vehicles to the implementation of more sustainable practices in material production, such as steel manufacturing, significant steps are being made. However, it’s important to acknowledge that the journey towards sustainability includes more than just vehicle technology. Important supporting factors such as sustainable road construction and the development of emission-free or biodegradable tries, must be integrated into the overreaching strategy for sustainable trucking. Despite the progress made, ongoing innovation and investment are crucial in each of these areas to ensure their long-term sustainability, profitability, and accessibility to all stakeholders. Governments have a significant role in facilitating these developments through supportive legislation and incentives that foster innovation and uptake of sustainable practices.
Nevertheless, it’s crucial to recognize that the transformation to a green transport sector will be both expensive and time-consuming. Achieving this sustainable future demands a balance between environmental goals and the economic feasibility within the industry. However, despite the challenges, it should be noted that this transformation is already in full swing, with industry stakeholders and policymakers alike recognizing the urgency and importance of transitioning towards more sustainable road freight transport practices.
Acknowledgement
The authors would like to thank Dr. Volkan Filiz Microporous polymers, Department head in the Hereon Helmholtz-Zentrum Geesthacht for years of support in the scientific area of material technology.
About the Authors
Sebastian Schöttke is a student from Hamburg, Germany. He has been studying law and business psychology at Leuphana University Lüneburg since 2022. He focuses on the connections and implications of law and business as well as on future developments in the field of organizational psychology. In addition to his studies, he works as a student assistant at a company specialized in renewable energy. This involves assisting with contract management, M&A and other legal matters.
Lilly Gebert has been studying law and economic law since 2022. In her studies, she focuses on tax law, exploring the legal and financial dimensions of business operations. She works as an student assistant in the field of tax law at Leuphana University of Lüneburg, Germany. As the Finance Board Member of a university finance club, she played a pivotal role in transforming and strategically reshaping the organization to enhance its impact and effectiveness.
Emin Khalilov has been studiying Law and Business Administration at Leuphana University of Lüneburg since 2022. He has completed highly regarded internships at the German Parliament, the European Parliament and a leading business law firm. Additionally, he gains consulting experience as a working student at a top consulting firm, providing strategic advice to the German government. As Finance Board Member of his university’s finance club, he has successfully implemented strategic initiatives to enhance its impact.
Michael Palocz-Andresen is a guest professor at BUAP Benemérita Universidad Autónoma de Puebla. From 2018 to 2021, he worked as a Herder-professor supported by the DAAD at the TEC de Monterrey in Mexico. He became a full professor at the University of West Hungary 2005- 2017. Currently, he is a guest professor at the TU Budapest, the Leuphana University Lüneburg, and the Shanghai Jiao Tong University. He is a Humboldt scientist and instructor of the SAE International in the USA.
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