Reducing Energy Consumption and Emissions in the Logistics Sector

Logistics is a relatively energy-intensity sector which is rapidly expanding mainly as a result of globalisation. This chapter assesses its share of global energy consumption and greenhouse gas emissions and considers how this is likely to change over the next 40 years. It then reviews the numerous ways in which energy consumption by logistical activities and related emissions can be reduced. This is done within a framework built around a series of seven key parameters. By altering these parameters companies and governments should be able to decouple the growth in demand for logistics from the associated energy requirements and externalities. The parameters relate to the freight-intensity of the economy, the division of freight traffic between modes, the utilisation of vehicle capacity, the energy efficiency of logistics operations (comprising transport and warehousing) and finally the ratio of emissions to energy use. While changes in these parameters will offset much of the underlying growth in demand for logistical services, there seems limited prospect of energy use and carbon emissions in this sector dropping sharply in absolute terms over the few decades.