Toolbox of measures for zero emission trucks

Summary

The starting point

New policies have led to the gradual phasing in of electric vans in Oslo. However, heavier vans are still lagging behind, and even less progress has been made with trucks. There is also a very limited infrastructure for charging and tanking heavy-duty transport with electricity, hydrogen and biogas in place today.

At the beginning of 2021, there is a moderate selection of emission-free heavy vans and lighter trucks available on the Norwegian market. These vehicles are likely to become markedly more available by 2025. For now, the investment cost remains significant compared to fossil fuel alternatives.

The challenges

Our research in the industry shows that the most important barriers on achieving zero emission transport are finances, access to charging infrastructure and access to adequate type of vehicles. Additionally, an industry structure with many small businesses is typically more difficult to transform than actors with large fleets of vehicles.

Dialogue with the industry has shown that clear targets are needed towards zero emission in 2030, including a vocal goal of phasing out fossil fuels entirely. In order to achieve such a shift, measures are needed to reduce the financial burden on businesses. Infrastructure for charging and tanking needs to be ahead of the curve, and to be designed and scaled for a zero emission society.

The respondents say that to overcome the challenges they require measures like financial support to invest in vehicles and infrastructure, more environmental differentiation in the toll ring and other benefits like access to public transport lanes and dedicated parking for zero emission vehicles.

Three-stage approach

This report suggests the implementation of stronger local GHG mitigation measures in the toll ring, in procurements, usage benefits, regulations, support schemes and infrastructure for charging and refuelling. It also suggests measures for reduced transport and some larger pilot projects.

Some measures are most important for accelerating in the early stage (2021-22), other measures are more important for the rollout stage (2023-26) and some for the stage of phasing out fossil fuel vehicles (2027-2030).

Here, this three-stage approach is illustrated with implementation of the different measures on a timeline from 2021 to 2030.

Local measures

Early stage
2021 2022
Information to the transport industry Communication of GHG-targets and strategy for zero emission vehicles Webpage with information about zero emission trucks
Environmental differentiation in the toll ring Decision of minimum 5 years of free passing for zero emission heavy vehicles Reduced fee of biogas
Procurements Minimum requirement of zero emission/biogas transport if three suppliers can deliver All suppliers must use the same requirements in their procurements as the City of Oslo
Include long haul transport in the requirements Development contracts for new vehicles
Usage benefits All parking for commercial vehicles in city centre are dedicated to zero emission All cargo loading space in city centre are dedicated to zero emission vehicles
Access to public transport lane for zero emission vans and trucks
Zoning regulation Adopt zero emission zone in three stages to 2030
Support schemes from City of Oslo’s Climate and energy fund Support depot charging and more Loans to small businesses to shift to zero emission vehicles
Development of charging and tanking infrastructure of electric, biogas and hydrogen Basic tanking infrastructure and energy stations Energy stations established around the city
  Implement adequate charging infrastructure for heavy duty vehicles as described in the City’s charging strategy
Large pilot projects Zero emission route from Oslo port to the goods terminal
Cooperation on procurements
Information and influence
Reduce transport Consolidating centres

Table 1: Shows the first of three stages for the introduction of local measures for zero emission heavy-duty transport.

Local measures

Full rollout stage Phasing out all fossil fuel transport
2023-2026 2027-2030
Information to the transport industry
Environmental differentiation in the toll ring Increased fee in city centre

Increased fee for new ICE vehicles

Keep the difference in fee when pricing is introduced for zero emission vehicles
Procurements Minimum requirements of zero emission in all procurements
The vehicles park of the city is zero emission
Usage benefits Environmental lanes
Zoning regulation Phase 1: Zero emission zone in city centre (Ring 1) for vans

Phase 2: Zero emission zone for all vehicles in extended city centre (Ring 2)

Phase 3: Zero emission zone for all vehicles in all of Oslo
Support schemes from City of Oslo’s Climate and energy fund Wreck deposit to phase out last ICE vehicles
Development of charging and tanking infrastructure of electric, biogas and hydrogen
Large pilot projects
Reduce transport

Table 2: Three stages for the introduction of local measures for emission free heavy-duty transport. Stage 2: Full rollout and stage 3 phasing out all fossil fuel transport.

 

National measures

Early stage Full rollout stage Phasing out all fossil fuel transport
2021-2022 2023-2026 2027-2030
National measures
Environmental differentiation in taxes Increased CO2-tax

Increased registration tax large ICE vans

Introduction of registration tax for ICE trucks Keep the difference in fee when pricing is introduced for zero emission vehicles
More beneficial depreciation rules More beneficial depreciation rules for zero emission vehicles
National support schemes (Enova) National support scheme to zero emission/biogas vehicles and infrastructure Phase out of support schemes Wreck deposit for phase out of last ICE vehicles
Procurements Requirements of zero emission/biogas in all public procurements including transport

Table 3: National measures. Three stages for the introduction of national measures for emission free heavy-duty transport.

In the early stage the public sector needs to implement measures that can accelerate the market, while also ensuring predictability for the transport industry. The public sector also needs to ensure framework conditions like charging and tanking structure.

In the full rollout stage, there will be a wider selection of zero emission vehicles, which enables more regulations – for example the first zero-emission zones.

In the final stage, where fossil fuel vehicles are being phased out, special measures are needed in order to speed up the transformation of the vehicle fleets to zero emission. The necessary amount of effort needed in this stage will depend on the amount of fossil fuel vehicles sold earlier in the period.

Reinforced measures

The report suggests the introduction or reinforcement of the following local measures:

  • Increased environmental differentiated pricing in the toll ring, including long-term predictability for free passing for zero emission, reduced rate for biogas, increased rates for environmental differentiation in the area around the inner city, increased rate for new ICE vehicles and the removal of the quantity discount.
  • A reinforced procurement policy, including swifter and expanded demands for emission-free transport, stricter demands for the construction industry, a swifter renewal of the municipality’s vehicle fleet and supplier demands that their business must align with the municipality’s transport demands.
  • More usage benefits, including more dedicated parking spaces favourable night parking with charging, and access to public transport lanes.
  • Development of infrastructure for EV charging and tanking, including energy stations in all three ends of the city. Dealing with the barriers identified in the Urban Environment Agency’s charging strategy, and lower power grid rates through Elvia in order to ensure that EV turbocharging is always able to compete with diesel.
  • More support schemes through the Climate and energy fund, including financial support for depot charging and wreck deposit for fossil fuel vehicles in the years prior to 2030.
  • Zero-emission and low-emission zones, initially in limited areas of the city, and in the entire city from 2030.
  • Reduced transport needs, through initiatives like facilitating for more consolidation hubs and municipal initiatives to ensure shared deliveries to the city centre.
  • Large pilot projects, like initiatives for businesses and private actors to make the same procurement criteria as the municipality, zero emission routes and measures related to information, such as an information centre for emission-free heavy-duty transport in cooperation with actors like Grønt Landstransportprogram (Green Land Transport Program) and Enova (national support scheme).

Among all the local measures, the report considers three to be of particular importance, as they may be the most effective GHG-mitigating measures.

  • Stricter requirements for zero emission transport in procurements is an important measure, particularly in the early stage
  • Increased environmental differentiation in the toll ring is important in all three phases
  • Zero emission zones with increasing sizes could give a clear direction and predictability for the transport industry and forcing out the last ICE vehicles

Table 4 sums up how much each measure is estimated to cut emissions, in addition to the existing measures.

Information and influencing as tools to improve effect of the measures

Many different actors shall make decisions about vehicles, fuel, procurement criteria and other things in order for the municipality to reach its goals. Different actors have varying levels of knowledge and need of information, which may also affect decisions. For the measures from this report to lead to actual changes, information must reach all the decision makers. A clear and active information and influencing campaign towards specific groups can contribute to improving the effect of the measures.

National measures

The report also suggests enhanced national measures related to fee policies, support schemes from Enova, procurements, regulations and removal of financial and regulatory barriers. These measures are particularly important. Banning certain sales may be a last resort. Political and potentially judicial limitations are still in place, however.

Symbiosis between local and national measures

There is a need of a combination of local and national measures. More ambitious national policies reduce the need of stronger local measures. However, it is important to keep in mind that Oslo have much more ambitious GHG targets to reach than the national government. Regardless, it is important that Oslo get acceptance from the government to develop an ambitious toolbox of measures, even when this can affect national interests in the Oslo region.

Particular attention should be paid to the numerous small businesses in the heavy-duty transport sector. They could for example receive assistance with their Enova applications, vehicle testing and education on zero emission technology.

Measures that are adapted to different geographical areas

When implementing the different measures, particularly zero emission zones, it is important to pay attention to the entire city. The respondents in our study only have a small share of their traffic activity in the city centre. The areas around Alnabru (freight terminal) and the stretch of road between Alnabru and Oslo harbour is of great importance.

Measures

GMG mitigating effect [ton CO2/year]
2025 2030
Environmental differentiation in the toll ringMin. 5 years of free passing for zero emission vehicles

Reduced price biogas

Increased price heavy-duty diesel

Increased price new ICE vehicles

Remove quantity discount

7 500

10 000

5 500

13 000

4 500

10 000

13 000

20 000

78 500

6 000

ProcurementsMinimum requirements of zero emission in all procurements

Include long haul transport in the requirements

All suppliers must use the same requirements as Oslo

Requirements of zero emission transport in construction

Quicker introduction of zero emission in the City’s fleet

2 000

2 500

6 000

3 500

500

2 000

3 500

13 500

13 500

500

Usage benefitsDedicated cargo loading space and time slots for ZE

Access to the public transport lane
Environmental lane

6 000

13 000

4 500

6 000

13 000

26 000

Zoning regulationZero emission zones

Low emission zones or a fee-based zone

14 000

3 000

153 000

8 500

Support schemes from City of Oslo’s Climate and energy fundDepot charging

Assistance with applications

Wreck deposit for ICE vehicles

500

500

0

500

500

8 500

Development of charging and tanking infrastructure of electric, biogas and hydrogenIncreased erection of charging and tanking infrastructure Decreased grid rent and grid taxes for fast charging 8 500

2 000

11 000

2 000

Large pilot projectsCooperation on procurements

Zero emission route

Information and influence

3 500

1 000

2 000

8 000

1 000

3 000

Reduce transportConsolidation centres 2 500

4 000

Table 4: Evaluation of the effect of the measures for reducing GHG-emission for heavy-duty transport in Oslo. The GHG mitigating effects are calculated individually for each measures- The effect of the different