Sustainability challenge and related SDGs
The freight industry is literally the wheel of the global economy: billions of tonnes of goods are transported around the world every year by trucks, planes, ships and trains.
Unfortunately, this sector is still highly dependent on fossil fuels. Freight transport accounts for 8% of global greenhouse gas emissions and as much as 11% if warehouses and ports are included. While almost three quarters of the world's freight is carried by ocean shipping, road transport is the largest emitter of CO2 in international, trade-related transport: road vehicles such as trucks and vans account for the largest share of freight emissions at 62% and cause more than half of all trade-related freight transport emissions.
Emissions from road haulage continue to increase. E-commerce and home deliveries are two reasons for this. Thus, the transportation of freight has a significant share in the global climate crisis and the rise in temperatures.
Possible solutions and their contribution to achieving the SDGs
In view of the devastating effects of the climate crisis, emissions in the freight industry must be reduced. To achieve this, measures are needed to reduce CO2 emissions in the logistics chain. Companies associated with #CleanCargo offer solutions to decarbonise freight transport, e.g., through products that electrify processes in the logistics chain. These include electric and hybrid material handling equipment, electric marine engines, key components for electric and hybrid vehicles or components and infrastructure for rail transport.
#CleanCargo contributes to the Sustainable Development Goals by promoting clean technologies powered by renewable energy. This reduces air pollution in cities as well as global CO2 emissions.
Primarily related SDG Targets: 7.1.2, 7.a, 7.b, 11.6.2, 13.2, 13.3
Investment Rationale and Growth Potential
Global trade is growing and with it the amount of goods that are being moved around. Trends such as e-commerce or home delivery, as well as the growing economies in Asia, Africa and Latin America, are expected to triple freight transport by 2050. For this reason, companies that provide solutions to reduce greenhouse gas emissions in freight transport will grow in the future and offer investors interesting investment opportunities.
