Getting to Carbon-Free Commercial Fleets

Transport, a major greenhouse gas emitter, especially through internal-combustion engines (ICE), needs attention. Electrification is crucial, with the potential to contribute 15% of emissions reduction required to limit global warming to 1.5°C by 2030.

While electric passenger vehicles gain traction, commercial fleets face challenges. Electric light commercial vehicles (LCVs) represent just 2% of sales in that segment due to weight, distance, cost, and technology uncertainties. Despite hurdles, decarbonizing commercial fleets offers benefits, including emissions reduction and cost savings. Many operators commit to decarbonization, with increasing interest in electric vehicles. Drivers include customer demand, regulatory pressure, and green financing.

Lithium-ion battery advancements make electric LCVs competitive, especially for shorter distances. By 2025, electric LCVs are expected to match ICE vehicle costs, driven by fuel and maintenance savings. However, energy price fluctuations may affect these savings. Transitioning to a decarbonized fleet demands careful planning. Early adopters can secure assets, gain cost advantages, and lead in a growing sustainable market.