Low-CO2 logistics services: new market or business as usual?

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paolopaga's picture
paolopaga
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Joined: 03/12/2010

A widespread opinion among experts and policy makers is that when (mind: when!) we exit from the current crisis, it will be with a fundamentally changed economic model. Sustainability and C02 reduction will be growth factors, i.e., key elements in almost any company’s value proposition, rather than being simple cost factors and policy constraints.
The transport logistics sector is, in this respect, a perfect candidate for change: few industries have such huge margins for CO2 reduction, and these translating into economic savings (at least in theory).
We have tried to analyze this new scenario, and the ICT implications, in this extract from the Logistics for LIFE Roadmap.
Apart from long-term visions, during our talks with the industry two attitudes emerged:

  • a new market might be out there, ready to be unlocked, of customers willing to pay for “greener” logistics services, or
  • logistic services will in the end become greener by themselves, through incremental improvements on technology and processes, but that will be transparent to the users (who actually don’t care to the point of paying for greenness). This is the “business as usual scenario”.

Please let us know what you think about either of these views.
I am known as a “disruptive innovation” supporter, so I admit to hope for a “new market” scenario, especially since incremental innovations are unlikely to change markets and customers’ habits, and that is exactly what we need for logistics to be sustainable on the long term.
On the other hand, I recognize that there are unresolved issues about market viability of low-carbon services: what are clear value elements for the end users? how do we overcome the barriers that are evidently blocking the take-up of intermodal services?
Please let us know your opinions.
 

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L4LIFE_Roadmap_lowCO2_services.pdf261.82 KB
Guest
CO2 - water

Just an idea: do you take into account the secondary, tertiary, etc. effects??

I mean: for example in the case of an electrinic/hybrid car how much extra CO2 is needed to produce thhe double motor, or the battery, or what about extra acids and led, and the encironment, etc.

Or, how much extra water is used for the production of a CO2 poor thing??

Guest
I totally agree with this

I totally agree with this view.

This year I have been conducting interviews with dozens of cargo owners to analyse the potential for modal shift from road to co-modal transport.

The attitude I am getting is somehow different from what it was 3 or 4 years ago, when price was the only driver for change.

Most of the cargo owners indicate now that being able to promote a green supply chain can become a competitive advantage. And something that can be perceived as adding value to their products.

I seriously believe that there is a large scale emerging market for low-carbon, or at least less-carbon services