UK Freight Goes Green: Funding, eHGVs and Roadmap to Net Zero

Welcome to Net Zero News, your daily briefing on the UK’s transition to a low-carbon future.

The UK’s freight sector is accelerating its shift towards zero-emission operations, driven by a mix of government funding, pioneering deployments by logistics operators and industry-led strategic planning.

In early January 2026, the UK Government injected an additional £18 million into the Plug‑in Truck Grant scheme, extending generous discounts on electric heavy goods vehicles (eHGVs). The grant now offers up to £120,000 off the cost of the largest electric trucks, scaling down to £20,000 for smaller e‑vehicles. This funding boost, part of a wider £318 million green freight package, aims to reduce upfront investment barriers and support businesses transitioning to clean fleets. A consultation on phasing out new diesel HGV sales by 2040 was also launched to provide long-term certainty for industry.

Meanwhile, the ZENFreight consortium, under the UK Government’s Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme, has deployed its first electric Heavy Goods Vehicle in Liverpool. DFDS introduced an electric Volvo FM HGV on a closed-loop route between Sandhills Business Park and Liverpool Port. A high-capacity charging hub at the depot enables the vehicle to recharge fully in about two hours, allowing three to four delivery cycles per day. This marks a critical proof point for eHGV viability and paves the way for broader roll-outs backed by further electrification and hydrogen trials.

In Scotland, a new consortium named SCALE (Scotland Charging to Accelerate Logistics Electrification) is spearheading HGV decarbonisation. Supported by Transport Scotland’s £2 million HGV Market Readiness Fund, SCALE led by Voltempo and involving local hauliers aims to reduce the 12.8% share of national CO₂ emissions attributed to HGV fleets through infrastructure deployment and operational uptake.

These developments are underpinned by strategic collaboration across industry. The Welch Group’s TwentyForty platform recently launched its “12 Pillars of Change”, a freight-focused decarbonisation roadmap developed by freight ecosystem leaders. The initiative offers an operationally grounded, industry-led strategy ahead of the UK’s 2040 ban on new fossil fuel truck sales.

What this means:
The combined momentum of policy, deployment, and planning demonstrates that green freight is shifting from concept to reality. Government funding is making electric HGVs more financially viable; pioneering deployments are proving technical and operational viability; and strategic roadmaps are guiding industry-wide transitions.

However, challenges remain. Operators cite charging infrastructure deficits and procurement timelines as impediments. Continued government certainty on policy and long-term funding will be key to sustaining investment and scaling zero-carbon freight across the nation.

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