Low-carbon roadmap for the Finnish logistics and transport sector

About one fifth of Finland’s emissions come from transport, which makes the sector’s emission reductions an important contributor to the carbon neutrality target. The Finnish government has decided to cut transport emissions in half by 2030 (compared to 2005 levels) and to eliminate emissions by 2045. The roadmap for the logistics and transport sector examines the emission reduction measures to meet the government target by covering domestic road, water and rail transport in Finland.

Current and target state

Current emissions from Finnish logistics and transport are about 11.7 Mt CO2/a and with immediate and determined measures they can drop to 5.4 MtCO2/a by 2035. Currently about half of the emissions are from passenger traffic and the second biggest emission source is lorries which emit around 3 Mt CO2/a. Although greenhouse gas emissions from transport have barely shifted in the last 30 years, the segment can be made low-carbon in the appropriate conditions. Without additional measures, the industry emissions are estimated to be 7.5Mt CO2/a in 2035.

The government’s goal of halving emissions from traffic by 2030 is achievable with determined measures.

Main solutions

A combination of measures can accomplish the targeted emission reductions, with the principal ones being: accelerated replacement of old cars with new (electric) cars, public transport and sustainable modes of transport in cities, renewable fuels, sustainable transport services and, finally, digitalisation and infrastructural investments in the transport system. Modernisation and spread of low-emission cars can be advanced by changing the focus of motor vehicle taxation from the point of sale to an annual vehicle tax, by scrapping incentives and purchase subsidies for heavy vehicles and adjusting the taxation of company cars.

Infrastructure investments in the transport system consist of improving the maintenance of road networks, increasing the number of HCT vehicles and also the share of railway transport. Renewable fuels have a primary role in decarbonising freight transport in addition to passenger transport. Digitalisation can enable emission reductions in freight transport, with transport optimisation and substituting transport with telecommuting and services. Public transport measures have a minor but important role in promoting sustainable commuting.

Needs and requirements

The roadmap states that incentives and investments are a demand from both the logistics and transport sector and also the government to maintain industry competitiveness. The price tag of needed investments is estimated in the roadmap. Furthermore, zero-emission alternatives must be made attractive to customers and consumers to leverage the transition.

Future and positive impacts

Low-emission transport solutions, particularly those using information technology, have major export potential as assessed in the roadmap. Finland has the potential to develop, implement and subsequently export such solutions by combining strong technological know-how, experience from successful start-ups in the field of logistics and the availability of critical raw materials needed for the manufacturing of batteries.

This roadmap has been produced in cooperation between the following organizations: Service Sector Employers Palta, Finnish Freight Forwarding and Logistics Association, Finnish Information Centre of Automobile Sector, Association of Logistic Enterprises in Finland, Finnish Public Transport Association, Finnish Bus Association, and Intelligent Transportation Society of Finland – ITS Finland.