UK Freight Sector Accelerates Towards Green Logistics: Key Developments

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

The UK’s freight sector is gaining momentum on the path to decarbonisation, with a number of significant developments emerging in recent months across infrastructure, technology and policy support.

Royal Mail has reported an impressive 20% reduction in average carbon emissions per parcel delivered in the past year from 206 gCO₂e to 165 gCO₂e. This progress stems from the expanded use of hydrotreated vegetable oil (HVO), deployment of 1,900 electric vans, energy‑efficiency initiatives across its estate, and a marked reduction in Scope 3 emissions, including nearly halving the number of domestic flights. The total emissions for 2024‑25 amounted to 1,173 ktCO₂e, reflecting a 25% reduction since 2020‑21, and the organisation has reaffirmed its ambition to achieve net‑zero by 2040 under its ‘Steps to Zero’ strategy.

Alongside that, the market for zero‑emission heavy goods vehicles (HGVs) has seen a substantial 59% year‑on‑year rise in registrations in the first half of 2025, reaching around 183 units roughly 1% market share. Despite this encouraging trend, industry representatives stress that the rate of uptake must accelerate rapidly to meet the UK’s goal of zero‑emission sales for HGVs up to 26 tonnes by 2035. Key obstacles include the high upfront cost of depot electrification and prolonged grid connection delays, which can extend up to 15 years the same timeline as the non‑zero sale cut‑off.

Infrastructure support is coming into focus with the Department for Transport’s £30 million Depot Charging Scheme administered by Cenex in partnership with Energy Saving Trust. This grant covers up to 75% of charger procurement and installation costs (capped at £1 million per site), and is expected to fund over 3,000 van charging points and 200 for HGVs across the UK. The scheme, announced in mid‑2025, remains open until funding runs out or until November 2025.

On Scotland’s net‑zero freight front, a new consortium led by Voltempo has formed under the name SCALE (Scotland Charging to Accelerate Logistics Electrification), working to reduce the 12.8% of national CO₂ emissions from HGVs. Backed by Transport Scotland’s £2 million HGV Market Readiness Fund, the SCALE proposal set for review in early 2026 aims to roll out electric HGV charging infrastructure later in the year, in collaboration with hauliers such as Creel Maritime’s Net Zero Timhaul and James Jones & Sons.

Meanwhile, the Electric Freightway programme led by GRIDSERVE and Hitachi ZeroCarbon under the Government’s Zero Emission HGV and Infrastructure Demonstrator programme has logged over half a million zero‑emission miles across the UK. Its latest report underscores that total cost of ownership for eHGVs can surpass diesel under certain conditions, as eHGV deployment and infrastructure rollout progress. The Government has committed £200 million to accelerate these efforts.

Perhaps most notably, Aegis Energy has secured £100 million in funding from Quinbrook Infrastructure Partners to build the UK’s first clean multi‑energy refuelling hubs for commercial vehicles. An initial network of five stations is scheduled for completion by the end of 2027, with the first opening in early 2026. The hubs set for locations such as Sheffield, Immingham, Warrington, Corby and Towcester will support electric charging as well as alternative low‑carbon fuels like HVO, hydrogen and bio‑CNG, with each capable of serving over 40 HGVs and 25 vans simultaneously, and expected to yield emissions savings of around 14,300 tonnes of CO₂e per hub annually.

Finally, industry advocacy is being formalised with the launch of the Sustainable Urban Freight Association (SUFA), introduced at the Fleet Electrification Forum. SUFA brings together freight providers to champion ultra‑low emission delivery modes, such as e‑vehicles, cargo bikes and multimodal solutions, and to advocate for policies, research and networking that support decarbonisation and just transition for logistics operators.

What this means:
The UK’s freight sector is showing real signs of change as decarbonisation momentum continues to build. Major logistics players like Royal Mail are delivering tangible emission reductions today, while rapid growth in zero‑emission vehicle registrations and supportive government schemes underscore that the infrastructure and policy landscape is evolving. Innovation is also key from multi‑energy hubs and consortium‑led initiatives to real‑world electric miles demonstrating viability and total cost competitiveness. Collaborative efforts like SUFA exemplify how industry actors are uniting to advocate for practical, scalable solutions. Looking forward, delivering reliable infrastructure, speeding up grid access, securing funding, and maintaining clear policy focus will be critical for sustaining this transition to green logistics at scale.

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