$5 billion for Clean Transport

The United States now offers the transport industry a choice of funding incentives to help vehicle operators and technology providers get near-term action rolling out clean transport equipment and refuelling infrastructure across the country. 

On top of US$2.925 billion made available from the Volkswagen emissions scandal settlement, being shared between all States to accelerate deployment of advanced clean transportation technologies and reduce harmful emissions, various State and public utility schemes are offering millions of dollars to support residential charging station construction and the electrification of medium- and heavy-duty vehicles.

“The problem faced by fleets and other stakeholders will no longer be where they can find the funds, but how they can secure the right funding opportunity.”

Read the full story here: https://www.act-news.com/news/clean-transportation-funding/

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Act Now to Achieve IMO Carbon Targets – ITF

The International Maritime Organization (IMO) target of reducing greenhouse gas emissions by “at least 50% by 2050 compared to 2008” aligns the shipping sector with the Paris Agreement temperature goals. Strong actions are needed. The IMO strategy relies on technological innovation and alternative energy sources for global shipping, and support of governments and shipping customers will be essential to realise this new level of ambition.

With intuitive timing, a tremendous amount of guidance has just been made available by the International Transport Forum, releasing a series of reports over the last month that provide comprehensive analysis of the options and actions needed by a host of players in the global maritime industry. They suggest a path forward based on assessments of advancing technologies and best practices in operational management and government policy being used around the world to tackle the issue.

Decarbonising Maritime Transport – Pathways to zero-carbon shipping by 2035

This report explores the full range measures to effectively reduce shipping emissions, which represent 2.6% of total global emissions, and offers recommendations on policies to incentivise decarbonisation. The business-as-usual scenario projects 23% growth in carbon emissions from international shipping by 2035, yet with maximum deployment of currently known technologies it’s possible to reach almost complete decarbonisation in that time.

Alternative fuels and renewable energy can deliver much of required reductions, combined with technological and operational measures to improve energy efficiency. Clear guidance and interventions from governments will be essential to accelerate commercial viability, technical feasibility and investment in sustainable technologies and fuels.

The associated Case of Sweden report analyses why the Swedish shipping industry are pioneers of low-carbon shipping and how other countries can learn from their success. Their remarkable progress in LNG, electric and methanol-powered vessels can be explained by stakeholder cooperation between shipping companies and large Swedish shippers dedicated to green supply chains, along with financial support and regulation from government.

ship CO2 visual

Visualisation of CO2e emission across global shipping routes in 2015. Source: ITF

Reducing Shipping Greenhouse Gas Emissions – Lessons from Port-Based Incentives

Ports have a crucial role to play in facilitating the reduction of shipping emissions. This report identifies port-based incentives currently in place, examining their features and impacts. Most common is the environmentally-differentiated port fee, applied in 28 of the 100 largest ports, yet impacts on global shipping emissions are only marginal. It argues for wider, harmonised application of green port fees, green berth-allocation policies, green procurement and carbon pricing schemes to help enforce the “polluter pays” principle.

Fuelling Maritime Shipping with Liquefied Natural Gas – The Case of Japan

Japan is positioning itself to become the Asian hub for bunkering LNG-fuelled ships on the main East-West trade lanes. Still a marginal share of the world’s fleet, 118 LNG-fuelled vessels currently operating globally will double by 2020 and CMA CGM’s order of nine LNG-enabled mega-container ships is expected to be followed by competitors. Other Asian ports are developing similar bunkering facilities, with Singapore and Japan collaborating on an Asian bunkering network.

LNG’s growth is driven by regulations to reduce SOx and NOx emissions from maritime transport. Its advantages over conventional fuels can reduce ship carbon emissions by 20% but “methane slip” releases fugitive emissions that can negate its greenhouse gas impact. Further technological development is needed to enhance LNG as a greenhouse-friendly transition fuel in shipping.

ship LNG heatmap

 Heatmap of LNG-fuelled ship positions. Source: DNV GL

Important themes for Australia

Two red spots on the above graphic represent the two dual-fuel LNG/diesel powered vessels now operating in Australia – the Siem Thiima platform support vessel services Woodside oil & gas fields on the North West Shelf, and the SeaRoad Mersey II Ro-Ro carries passengers, vehicles and freight across Bass Strait. Several vessels plying Bass Strait are due for replacement, with operators considering LNG-enabled vessels to be covered for the IMO sulphur rules coming in 2020.

Japan is the world’s biggest importer of LNG, much sourced from Australia. Woodside, Australia’s biggest LNG producer, is leading a ‘green corridor’ initiative to develop LNG as a marine fuel for iron ore carriers operating from north-west Australia to China and north Asia. The project aims to build LNG infrastructure and bunkering facilities in the Pilbara, and Woodside has partnered with key mining and shipping players to design vessels and bunkering facilities for a grand vision with a range of benefits beyond emissions reduction, including energy security, regional development and upskilling workforce capability. Yet Australia’s climate policy focus on renewable energy means there’s little government support available. The irony of Japan fuelling LNG ships coming to the Pilbara with Australia’s own gas is wasteful not just in a ‘food miles’ sense, but also the lack of value-add to our plentiful raw resources.

The ITF reports highlight the role of leading ‘green ship index’ RightShip in actions that shippers, charterers, banks and ports can take to decarbonise shipping. Their GHG Emissions Rating covers 76,000 ships, and RightShip recently announced Australia’s major ship charterer Incitec Pivot as the first customer for its new carbon neutral shipping solution built on its carbon accounting tool that measures the ship-sourced scope 3 emissions of shipping customers. While some shipping lines and freight forwarders offer a carbon offset service for containerised freight movements, the size of the environmental benefit of offsetting 73,000 tonnes of CO2e each year from 200 bulk ship charters is a game-changer for supply chain emissions reduction.

Global Shippers Forum

It’s timely also then that next week Australia hosts the world’s most senior gathering of shippers, trade logistics providers and government representatives at the Global Shippers Forum in Melbourne. There’s keen interest in the Global Reform session tackling the issue of carbon emissions in the international supply chain, touching on the work of the Global Logistics Emissions Council who’ve developed a universal method for calculating logistics emissions from road, rail, air, sea and transhipment centres to help control greenhouse gas emissions across whole logistics supply chains.

As part of the global multi-modal supply chain that will keep growing with international trade, shipping’s carbon reduction target fills another piece of the puzzle in a world now aiming for net zero emissions, and we must act now.

#GLECFramework

@smartfreightctr

Transport Emissions Policy: Kicking the Big, Growing Can down the Road

Transport has Australia’s biggest emission reduction task – and little government support.

The 2017 Review of Climate Change Policies released over Christmas presents a re-hash of current policies and policy reviews, deferring new progress to after the 2019 federal election. Transport emissions will continue growing at record levels in the meantime, begging the question:

How long can we keep kicking the transport emissions Can down the road?

Australia’s Fast-Growing Transport Emissions

trend target 2

Transport is the main culprit in Australia’s rising greenhouse gas emissions story, it’s emissions now at record highs driven by ever-growing demand for freight and passenger movement. The sector contributes 18% of Australia’s emissions and has the largest abatement task ahead to help meet Australia’s reduction targets – one third of Australia’s total task to 2030. With Australia’s Paris commitment effectively a ‘floor’, our reduction targets will increase in ambition. To meet science-based targets that will slow down climate change below 2 degrees warming, Australia’s abatement task should be doubled.

Either way, there’s much work ahead for the Transport sector.

This without considering emissions from the long shipping and air routes we depend so heavily on for trade. Shipping remains the only industry without global legislation to limit or offset greenhouse gas emissions.

can small      Global policy challenge

“Of all the myriad ways that energy is produced and used,

transportation has the greatest promise to change our lives for the better,

and yet it is languishing under business as usual.” – Rocky Mountain Institute

Neglecting Transport in climate policy is a global problem starting to get some attention. The Bonn COP23 climate negotiations in November introduced several transport initiatives to achieve the Paris 2050 goal of a net zero emission world economy, noting “without rapid and ambitious mitigation action, transport emissions could more than double by 2050”.

Far from its climate policy leadership a decade ago, Australia is stuck with growing transport emissions, relying on voluntary action with no strategic goals or policy to reverse the trend.

Change will come with China’s emissions trading scheme, where scope 3 emissions from transporting bulk minerals to market may be counted in Chinese carbon footprints, applying a carbon price that exposes our policy vulnerability and drastically reduce competitiveness.

can medium      Weak current policy

black spot

Transport is trapped in a carbon policy Black Spot nation-wide, often specifically excluded from energy policies at federal and state levels, while energy and emissions are a side show in transport policies. Vague notions of improving productivity and supporting low emission technologies instead of clear emission reduction targets and integrated supporting actions.

How much decarbonising of transport is evident in the policies identified by the 2017 climate policy review?

POLICY REVIEW TABLEThe industrial sector needs huge amounts of carbon offsets for Australia to meet its 26% emission reduction target by 2030, but with large volumes of low-cost offsets available from the land sector, Reputex expects no Transport abatement in its ACCU supply curve outlook.

Business-as-usual won’t accelerate take-up of new technologies, practices, or – critically – management focus; a bold strategic vision is needed.

can big jpg      2018 opportunity & risk

Several current policy reviews can together help address the task effectively at least cost:

POLICY REVIEW TABLEThey offer hope that 2018 could instead be a year for strong policy action, integrating suites of co-ordinated measures at all levels of government to guide and provide certainty for business investment in low carbon transport.

With the fastest growing emissions of any sector, Transport has the biggest decarbonisation task of them all. When the Can gets so big we can’t kick it any further, we may look back to 2018 and ask why we didn’t address it sooner, when action was less difficult and expensive than when we’re further down the road.

 

 

 

“Run on Less” proves more is possible, now

The “Run on Less” truck fuel efficiency experiment achieved outstanding results over 10 miles per gallon, crediting its’ success to conscientious drivers taking advantage of the best fuel-saving technologies available today.

Trucks from 6 fleets and an owner-operator traversed a range of cross-country USA routes, duty cycles and truck profiles over 17 days in the experiment backed by the US EPA Smartway program.

Despite enduring two major hurricanes and their operational consequences, the vehicles carrying real customer loads smashed the US national average of 6.4 mpg to show transport operators around the world what’s possible in fuel-efficient trucking.

Interestingly for Australian operators, aerodynamic technologies played a big role in lowering fuel consumption, especially trailer tails which aren’t legal in this country. Solar technology is also becoming viable, with 3 trailers using solar power for hotel loads, charging batteries or assisting auxiliary systems.

A collection of learnings about fuel-saving technologies and practices are available at the Run On Less website, where a webinar on the experiment will soon be available. Find detailed Confidence Reports on particular technologies with indicative paybacks at www.truckingefficiency.org, where operators can assess the pro’s and con’s of a range of fuel-saving techniques to suit their business needs.

Fuel is a linehaul truck’s biggest variable cost, so what would a 50% improvement do for your competitive position and bottom line?

China’s carbon trading to capture supply chain emissions

https://uk.news.yahoo.com/china-emissions-trading-scheme-puts-170005461.html

The carbon intensity of Australia’s exports to China will come under increasing scrutiny when its Emissions Trading Scheme is launched this year, joining moves both planned and already underway by a host of other Asian countries.

Scope 3 emissions, such as transport & distribution, are generated outside an organisation’s direct control and are often the largest part of their emissions. Exposure to highly carbon-intensive products and supply chains will meet an explicit price signal that could harm the competitiveness of Australian products, and needs our increasing attention.

Freight Transport needs a Finkel clean energy target

As another Australian energy policy neglects Transport, our highest energy using sector, we now await the outcomes of the climate change policies review to arrest the sector’s rising emissions intensity and declining fuel security.

Under our Paris Agreement commitments we need to halve per capita emissions and a two-thirds reduction in emissions intensity of all economic activity, so for the freight and passenger transport sectors to contribute their shares, ambitious, effective and integrated government policies at many levels will be critical. To reach the required emissions reduction trajectory, one estimate is that one billion tonnes CO2-e needs to be reduced from the Australian economy by 2030. With Transport contributing about 18% of Australia’s current annual emissions (93 of 527 Mtco2e), its share would be 180 million TCO2e reduced by 2030, roughly 12 million tonnes pa.

emissions by sector

Source: Australia’s emissions projections 2016, Commonwealth of Australia 2016

Current Policies Inadequate

Under the Emissions Reduction Fund transport methods, only three projects have been contracted to deliver a total of 1.2 million tonnes CO2-e contracted over 7 years, averaging 170,000 TCO2-e p.a., about 1.5 per cent of the average required annual mitigation for the transport sector, and 0.6 per cent of total ERF funds committed in the five ERF auctions held to date.

combinedresultsVolumeofAbatement April 17Source: Clean Energy Regulator June 2017

Greater mitigative action from the sector is needed, and quickly, because the long lives of transport vehicles such as trucks, buses, trains and ships, and their enabling infrastructure, means that decisions made over the next few short years may lock-in emissions-intensive transport equipment for decades.

Use of low carbon transport fuels such as biodiesel, natural gas and ethanol has declined significantly in recent years, due to a variety of factors including low oil price, technology performance and a lack of refuelling infrastructure and supply chain development, and the continued closure of local refining capacity means imported fossil-based fuels are relied upon for freight transport more than ever. An assessment of transport energy productivity growth, like those undertaken for other critical networks in the electricity, water and gas sectors, would better inform climate change policy development for transport generally, showing productivity growth or deterioration trends in network efficiency and its impact on national productivity and emissions.

New Policies & Infrastructure

Enhanced incentives and support are needed to dramatically improve emissions reduction activities in a sector that will grow 25% in the next decade. Freight transport needs policy leadership and strategic vision with clear objectives for energy use and emissions reduction with a single source of overall responsibility to integrate programs at all levels.

Significant freight infrastructure capacity building projects that dramatically improve the business case for shifting freight to less emissions-intensive modes should be of the highest priority to change business-as-usual growth in road freight and its consequences for greenhouse gas emissions, congestion, air pollution and road safety. Initiatives could include increasing rail payload capacities and more dedicated rail lines between ports and hinterland intermodal terminals, while re-building capacity for domestic shipping will need strategic investment in dedicated coastal shipping terminals for intermodal and roll-on/roll-off cargoes and regulatory change that currently limits is use.

Key policies required to effectively and sufficiently encourage emissions reduction in freight transport include:

  1. Establish an explicit carbon pricing mechanism
  2. Make the ERF more financially attractive for transport projects
  3. Encourage mode shift with full cost-reflective road pricing, specific mode shift incentive schemes and including key opportunities under the ERF land and sea transport method
  4. Fuel-efficiency standards for light commercial and heavy vehicles
  5. Incentives for accelerated retirement of older rail and heavy road vehicles
  6. Measure productivity and productivity growth in the transport energy network
  7. Freight transport efficiency remains one of the largest opportunities for additional initiatives under the National Energy Productivity Plan, and the 2XEP Freight Roadmap details a list of 70 initiatives that could also be included in the NEPP or other existing policies for government and industry to action together. A key for these will be piloting the use of the Australian Standard for Transport Energy Audits, a world-best practice standard developed by an Australian government-industry partnership that will underpin many emissions reduction measures.

Taking a Finkel-like approach by establishing clean energy targets and a single point of responsibility for their achievement are critical first principles for freight transport to help Australia reach its emission reduction goals for 2030 and beyond.

How to lift energy productivity in Freight Transport

A Roadmap to double energy productivity in Freight Transport by 2030” is now released for comment, and yours will be most welcome.

Urgent action is needed to generate more economic value from the energy used to move freight in Australia, as congested cities increasingly constrain productivity across the economy. Decisions made today can lock-in energy-intensive freight transport activities for decades.

Published by the Australian Alliance for Energy Productivity using extensive consultation with leading transport businesses, industry associations and government stakeholders, the roadmap aims to agree actions and priorities for both industry and government under the National Energy Productivity Plan (NEPP).

Transport is now Australia’s largest energy user, and with the freight task to grow 25% over the next decade, it will have ever-greater influence on congestion, climate change, air pollution and economic productivity across all sectors. The transport sector has some of the most cost-effective opportunities for energy and emissions savings, yet as the NEPP 2016 annual report notes, raising energy productivity in freight and commercial transport relies largely on voluntary action, and little progress is being made.

The Roadmap considers trends that will shape future energy use in the sector, including increasing urbanisation, a shift to renewable energy, vehicle electrification, connectivity and intelligent transport systems, automation and business model transformation. It gauges the extent of improvements possible via known technologies; it highlights the uncertainty expected from various levels of disruption that is coming; and it identifies measures to help the transition to a much more energy-productive freight sector.

Key suggestions will be incorporated into its final version, so please check it out and contribute your ideas.