December 10, 2024

How Green Corridors Support EU Climate Goals

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BEV, Digitalization, Intermodal, Logistics Services, Market Insights, Sustainability, Sustainable Logistics

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Spreading all across the EU, road freight networks carried 61,3% of total freight transport in 2023[1]. As the EU strengthens its push for a greener future, more and more attention is drawn towards not only individual means for road transport decarbonization and optimization of logistics solutions but also towards sustainable mechanisms that combine individual initiatives, enhancing their effect and future-proofing these emerging networks on an international scale.

En route to a new era for the logistics sector: green corridors

Green corridors are an excellent example of a multi-layered approach. In the context of European logistics, a green corridor is a specific trade route between major ports or transport hubs where zero-emission or low-emission solutions are implemented. Such positioning not only boosts the impact and effectiveness of green corridors but also offsets high initial investments needed for the implementation of innovative technology, as multiple examples will show later on.

As part of the European Union’s strategy to develop coherent, efficient, and high-quality transport infrastructure across member states, today green corridors serve as testing grounds for sustainable shipping and logistics solutions, with the potential to scale these innovations industry-wide[2]. The main effects of green corridors include reduced greenhouse gas emissions, improved traffic management, lower dependence on fossil fuels, and improved overall logistics efficiency[3]. These benefits have been observed in road, sea, and rail routes alike.

Meeting regulatory standards: why is a multi-layered approach necessary?

Approved in 2020, the European Green Deal set an ambitious goal to reduce transport-related greenhouse gas emissions by 90% by 2050 and CO2 emissions by 55% by 2030, compared to 1990 levels. The Fit for 55 package, which was introduced in December 2021, is a central part of this regulatory initiative. It contains 13 interlinked proposals to revise existing EU climate and energy laws and six new legislative proposals, providing a comprehensive roadmap to achieving the ambitious targets. Out of these, nine apply to the transport sector, and seven of them are highly relevant to road transport[4].

Key measures[5] affecting the road transport sector include:

The introduction of stricter CO2 emission performance standards for heavy-duty vehicles, mandating a gradual shift to zero-emission fleets.
The implementation of the Emissions Trading System (ETS) for road transport and buildings, making carbon pricing an essential part of operational costs for freight companies.
Revisions to the Renewable Energy Directive (RED II), promoting a higher share of renewable fuels in road transport.
Energy Taxation Directive (ETD) updates that encourage greener energy consumption by revising minimum tax rates for fuels based on their environmental impact.

For the road freight sector, these proposals present both significant challenges and new opportunities. With that said, however, changes such as transitioning to lower-emission technologies, optimizing logistics, and adopting sustainable fuels are no longer optional – they are necessary for compliance and alignment with evolving industry standards.

Balancing costs and sustainability: finding a collective approach

Meeting the ambitious goals set out by the Green Deal and adjacent regulatory initiatives requires a unified and proactive approach from national governments, manufacturers, stakeholders, carriers, customers, and other involved parties. These regulatory changes place substantial demands[6] on carriers, including but not limited to:

Upgrading fleets to include more energy-efficient and/or electric vehicles;
Securing access to greener fuel alternatives;
Leveraging digital tools to enhance route planning and reduce emissions;
Developing intermodal solutions that incorporate more sustainable modes of transportation.

Besides high initial investments, these changes also demand careful planning and resource allocation. To tackle the transition more efficiently and avoid operational disruptions, carriers are increasingly driving collaboration across the supply chain, engaging stakeholders, producers, customers, and other involved parties to mitigate these costs. Some of the key co-creation strategies include sustainability partnerships with vehicle manufacturers, feedback loops with manufacturers to improve electric truck technology, sharing data and insights from ongoing operations with partners, fostering cross-border team collaboration, and developing integrated solutions that combine different sustainable transport modes, like BEVs and intermodal rail. Besides those means, carriers are also relying heavily on support offered by regulatory incentives or schemes, especially regarding fleet upgrades.

With the Fit for 55 package shaping the future of road transport, while these efforts require significant maneuvering and resources, businesses that adopt such multi-faceted strategies will not only meet regulatory standards but also drive innovation in a decarbonizing economy, paving the way for a more sustainable future.

Broader challenge #1: infrastructure gaps

In addition to internal and supply chain challenges, infrastructure gaps significantly hinder the implementation of solutions like HVO supply, electric truck charging, and intermodal transport – especially on an international scale. Addressing these gaps is crucial to supporting the development of green corridors and meeting the ambitious goals set by the European Green Deal.

First and foremost, despite the growing demand for alternative fuel vehicles (particularly electric and HVO-powered trucks), the network of charging and refueling stations is insufficient, especially along key freight routes. This disparity between vehicle adoption and station availability makes it difficult for carriers to adopt cleaner technologies with confidence.

Today, Eurowag offers the largest network of more than 1500 HVO fueling stations in Europe[7], and DKV Mobility runs approximately 650 service stations across Europe[8]. The first HVO corridor in Central Eastern Europe has also been implemented.

Despite this progress, some regions still struggle with limited access to alternative fuel infrastructure. This is where corporate initiatives can play a crucial role. For example, Girteka, a major European logistics company, runs an Alternative Fuel Program, which aims to mitigate infrastructure gaps and support the transition to cleaner fuels. This proactive approach helps mitigate the financial burden of fleet upgrades while still helping carriers move closer to meeting modern sustainability targets.

As for EVs, while the overall network of charging stations is expanding, it doesn’t match the real demand – especially for heavy-duty electric vehicles (EVs). According to the Q1 2024 report, the EU-27 has almost 600,000 public AC charging points and over 90,000 DC charging points[9], but most of them are located in Western European countries, creating gaps in other areas with high transport volumes. The Netherlands is the leader in this area, with over 150,000 available charging points, and Germany and France follow closely. But in comparison with current infrastructure requirements, this is far from enough. The Alternative Fuels Infrastructure Regulation (AFIR) mandates more recharging stations for heavy-duty vehicles: by 2025, recharging stations with a minimum output of 350 kW are required every 60 km along the TEN-T core network and every 100 km along the extended network. In total, the EU estimates that 3.4 million public charging points will be needed by 2030, including 100,000 charging points specifically for trucks and buses. This estimation raises the optimal installation pace from 1,600 per week in 2021 to 10,000 per week by 2030[10].

With regard to intermodal transport, the main issue is that intermodal solutions have limited and inconsistent accessibility across Europe. This limitation creates additional challenges during mode shifts, resulting in higher costs and logistical inefficiencies. One major project in development is the Magistrale for Europe – a high-speed railway line that connects Paris to Bratislava (1,592 km) with a branch to Budapest[11]. This network could significantly improve cross-border transport efficiency in Europe. More upgrades are due in maritime ports, inland ports, and railroad terminals as well. For instance, maritime ports like Antwerpen (Belgium), Gdańsk (Poland), and Ravenna (Italy) are well-connected but still need more facilities for intermodal integration, and so do inland ports, such as those along the Albertkanaal in Belgium, the Meuse river, and various locations in Germany and Italy[12].

Translating efficiency into sustainability: the potential of digitalization

The rising sustainability standards are drawing a lot of attention to such deficiencies as infrastructure gaps and high initial investment, but ambitious players who are looking to future-proof their solutions and improve operational efficiency are also taking this opportunity to look inwards. This is where digital solutions and tools enter the picture, offering promising results that not only make a difference upon their implementation but also lay the groundwork for long-term resilience and further improvements.

Fleet management, route optimization, supply chain integration, real-time tracking – these are only a few use cases for modern digital solutions[13]. As the importance of data continues to grow, the way it is collected, processed, and utilized in decision-making will be a tie breaker in terms of operational efficiency, cost-effectiveness, and the ability to stay competitive in an increasingly data-driven market[14].

Paving the way forward: corporate initiatives

Coming back to the importance and development of green corridors, several corporate initiatives are already paving the way toward their realization. Some of the most prominent examples include the Milence initiative, Smart Freight Centre’s global efforts, and emerging ocean freight corridors.

A joint venture between Daimler Truck, the TRATON Group, and the Volvo Group, Milence is setting a new standard for electric freight transport in Europe with a goal to establish 1,700 public charging points by 2027[15]. By strategically placing these charging stations along high-traffic transport routes and close to key logistics centers, this initiative aims to facilitate long-haul electric freight transportation, reducing emissions while providing more efficient access to charging infrastructure. Following an inauguration of the first charging station in Venlo, the Netherlands, at the end of 2023, new stations are already functional in France, Germany, Sweden, and Belgium. An upcoming introduction of the Megawatt Charging System (MCS) is set to accelerate the transition to electric trucks further, enabling batteries to charge from 10% to 80% in just 30 minutes[16].

Another example is the Smart Freight Centre, which aims to decarbonize the global freight and logistics sector through data-driven solutions and collaboration. Among other initiatives, one of its flagship programs is the Global Logistics Emissions Council (GLEC), which has developed guidelines for calculating logistics greenhouse gas (GHG) emissions[17]. This framework allows logistics companies to measure their emissions accurately, providing a productive working ground for informed decision-making and progress tracking.

With regard to ocean freight corridors, this concept is an emerging sustainable solution for reducing emissions from the shipping sector. Essentially, initiatives that fall within the development of ocean freight corridors include optimizing shipping routes, encouraging the use of sustainable fuels, and adopting cleaner technologies, such as wind-assist and energy-efficient hull designs[18].

Conclusion: green corridors as a strategic necessity

By promoting modern green solutions and interlinking various modes of transport, green corridors represent a transformative approach to logistics in Europe, offering a vision for a sustainable and efficient future in goods transportation. However, their success depends on collaboration between carriers, shippers, manufacturers, regulatory bodies, charging point operators, energy companies, and other involved parties. This collaborative approach will be crucial in sharing costs, aligning strategies, driving innovation, and, ultimately, decarbonizing the transport sector while maintaining its competitiveness.

[1] https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Road_freight_transport_statistics

[2] https://www.weforum.org/stories/2022/01/green-corridors-zero-emission-shipping/

[3] https://www.movinonconnect.com/en/coi/marchandises-corridors-verts-multimodaux-europeens/

[4] https://epthinktank.eu/2024/08/01/fit-for-55-package/

[5] https://www.fuelseurope.eu/fit-for-55-package

[6] https://www.deloitte.com/global/en/issues/climate/pathways-to-decarbonization-heavy-road-transport.html

[7] https://www.eurowag.com/services/fuel/alternative-fuel

[8] https://www.dkv-mobility.com/en/news-and-press/co2-reduced-diesel-dkv-mobility-opens-hvo-supply-network-to-all-customers.html

[9] https://www.girteka.eu/electric-truck-charging-stations/

[10] https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/europes-ev-opportunity-and-the-charging-infrastructure-needed-to-meet-it

[11] https://en.wikipedia.org/wiki/Main_Line_for_Europe

[12] https://en.wikipedia.org/wiki/Main_Line_for_Europe