Reports suggest that the global market for zero-emission trucks is projected to soar to around USD 60.78 billion by 2032
The roar of diesel engines has long been the soundtrack of global trade, but with mounting environmental concerns, the transportation sector faces a crucial moment. Trucks, major polluters, need urgent greener solutions, both globally and particularly in India, where they handle 70 per cent. of domestic freight demand, as per a Niti Aayog report. It’s clear: “green trucking” practices are essential to curb emissions and enhance sustainability.
The urgency arises from trucks contributing a staggering 20 per cent to global greenhouse gas emissions. Reports suggest that addressing this problem, the global market for zero-emission trucks is projected to soar to around USD 60.78 billion by 2032, signifying a shift to cleaner technologies for sustainable freight transport. Globally, there’s momentum for green trucking. Stricter regulations, incentives for electric and hybrid trucks and infrastructure development for alternative fuels are propelling this shift. As ecological issues arising from rising greenhouse gas emissions (GHG) grow and regulations tighten, the trucking industry is quietly transitioning to sustainability.
Shift Towards Sustainability: Global Trends
The current green trucking revolution can transform transportation and reduce GHG emissions by decreasing our dependence on fossil fuels. Leading the charge are countries with stringent emission regulations, like those in the European Union (EU) and China. The EU’s CO2 emission standards for new heavy-duty vehicles are becoming increasingly strict, pushing manufacturers to develop cleaner technologies. China, the world’s largest truck market, is also implementing stricter regulations and offering subsidies for electric trucks (EVs). In fact, the Global LNG Truck Market is expected to surge from USD 1.2 billion in 2022 to around USD 3.96 billion by 2029, with a projected CAGR of 12.9 per cent during 2023-2029.
In various parts of Europe, the adoption of electric and battery-operated trucks is gaining momentum. In Norway, electric trucks for long-haul transport are currently in the works. Tesla is developing a battery-electric semi-trailer that they claim will have a range of 475-800 km. Meanwhile, Nikola is working on both hydrogen and battery-electric long-haul trucks while traditional manufacturers are also getting into the game, developing and selling heavy electric trucks to comply with the EU directive on truck CO2 emissions by 2025 and 2030. London has introduced two road pricing schemes aimed at reducing carbon emissions and other air pollutants: a Low Emission Zone (LEZ) for heavy goods vehicles established in 2008 and a 24-hour Ultra Low Emission Zone (ULEZ) launched in 2019, which also applies to residents.
Governments around the world are also looking at LNG trucks as an alternative to gasoline and diesel vehicles, aiming to reduce CO2 emissions and ultimately enhance the efficiency and productivity of commercial transportation. LNG offers a cleaner alternative to diesel, with significant reductions in particulate matter and nitrogen oxide emissions. China and the United States are leading the adoption of LNG trucks, boosted by readily available LNG infrastructure and government subsidies. Europe is also witnessing a rise in LNG trucks, particularly in long-haul operations.
Transport, like climate change, is not going away. These two areas of global concern are inextricably linked. Right now, we need more stakeholders to join us in our efforts to promote green transport systems. Hence, collaboration between truck manufacturers, fuel providers, and infrastructure developers is creating a sustainable ecosystem for green trucking. Joint ventures and strategic partnerships are helping accelerate technological advancements and infrastructure development.
India’s Green Trucking Journey
Incorporating LNG into trucks has numerous advantages for India, such as reduced adverse impact on the environment, quieter engines, and a decrease in the need for gasoline and diesel. India is accelerating its efforts to go green in the freight movement. In fact, trucks can play a prominent role in this decarbonisation journey. Niti Aayog has, meanwhile, proposed two models for Zero Emission Trucks (ZET): battery electric trucks and fuel cell electric trucks powered by green hydrogen. Additionally, to encourage LNG truck adoption, Niti Aayog, in its report titled ‘LNG as a Transportation Fuel in Medium and Heavy Commercial Vehicle Segment’, suggests a combination of financial incentives and supportive measures, including expanding the production-linked incentive program and establishing a demand aggregator. These initiatives aim to cut carbon dioxide emissions and progress towards the national goal of achieving a 15 per cent share of natural gas in the primary energy mix by 2030.
ZET can emerge as a game changer from a competitiveness and sustainability point of view. Since diesel fuel costs make up the majority of transportation expenses, adopting ZETs could substantially decrease fuel costs by up to 46 percent over the vehicle’s lifetime, thereby impacting the Indian economy significantly. With cost competitiveness and technological maturity, nearly 9 out of 10 trucks sold in 2050 could be ZETs.
The government has recognised the need for cleaner transportation and has implemented initiatives like the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) scheme to incentivise EV adoption. Additionally, the focus on LNG infrastructure development, with numerous upcoming LNG stations, holds promise for wider LNG truck adoption. Governments and private players are investing heavily in building LNG refuelling stations and expanding EV charging networks. Within the next three years, the government plans to proactively build 1,000 LNG stations along major highways and by the following year, it aims to increase LNG capacity by 17 million tons.
A Collective Shift Towards a Greener Future
The global shift towards green trucking is driven by environmental concerns, economic factors and technological progress. Both on a global scale and within India, there is a heightened focus on adopting eco-friendly trucking practices. Yet, various technologies and solutions such as EVs and LNG are concurrently being explored for diverse applications in the heavy-duty trucking sector. Leading nations like those in the EU and China are spearheading this transition, supported by stringent regulations, infrastructure advancements and collaborative efforts within the industry.
India, with its expanding transportation sector and emerging green initiatives, stands ready to embrace this global trend. However, overcoming challenges associated with infrastructure development and initial investment costs will be pivotal. By enacting effective policies, nurturing industry alliances and prioritising infrastructure enhancement, India can chart a course toward a more sustainable and environmentally friendly future for its trucking industry. This proactive approach will not only benefit the environment but also contribute to economic growth and enhance the nation’s competitiveness on the global stage.
