New freight emissions framework launched

A new framework for a national system to cut freight emissions has been unveiled at the Climate Change and Business Conference.

The Sustainable Business Council (SBC) announced the second phase of its Low Emission Freight Certificate (LEFC) collaboration, developed with members, the Energy Efficiency and Conservation Authority (EECA) and DETA Consulting, unveiling the initiative at the Climate Change and Business Conference in Auckland on September 8.

The LEFC system is designed to reward freight operators who invest in low-emission vehicles and give businesses a credible way to offset freight-related emissions through certificates.

Freight companies using hydrogen or electric trucks would generate certificates that could be purchased by other businesses wanting to reduce their supply chain emissions.

“This is a pivotal moment for the freight sector and a huge opportunity for New Zealand,” SBC head of climate and nature Antonia Burbidge says.

“If implemented this would be a world first scheme. SBC and our participating members have worked closely with industry leaders, government agencies, and technical experts to co-design a system that is practical, credible, and scalable. Now we need a provider to turn this into action to drive real emissions reductions across the supply chain.”

The framework, now complete, sets out the rules for transparency, accuracy and independent auditing to avoid double counting of emissions reductions. SBC says it is looking for a provider to establish a central registry, manage certificates and oversee annual verification.

DETA Consulting principal consultant David Taylor says setting up a system like the LEFC is essential to unlocking scalable, transparent decarbonisation in freight.

“It creates a way to recognise and reward low-emission freight activity, while giving businesses a credible way to report reductions in their supply chain emissions. This is a real and innovative opportunity to turn ambition into action.”

Member companies including NZ Post, Lyttelton Port Company, Hiringa, Coca-Cola Europacific Partners and CHEP contributed to the project, alongside input from the Ministry of Transport, Waka Kotahi NZ Transport Agency, Chapman Tripp, Retyna, Smart Freight Centre and Toitū Envirocare.

NZ Post head of sustainability Maddie Spence says industry collaboration on innovative solutions is essential to helping decarbonise heavy freight.

“We’re excited to see the Low Emissions Freight Certificate system move from concept to reality.”

Heavy vehicles account for around 5 per cent of New Zealand’s greenhouse gas emissions. SBC says the system could give the freight sector a world-leading tool to accelerate decarbonisation.

The business council is now inviting expressions of interest from any organisations interested in knowing more about implementing the system.

Click here for copies of the full LEFC project summary and LEFC demand report project summary detailing the design and framework of the LEFC system.