Transport: The Second Largest Sector for Greenhouse Gas Emissions

The transport sector ranks second highest in terms of greenhouse gas emissions in Australia according to the 2023 Annual Progress Advice Report issued by the Climate Change Authority. The energy sector is by far the largest contributor at 54%, whilst the transport sector comes in at 19%.

Australian homeowners have taken up the mantle with solar panel installations, we have solar and wind farms sprouting up around the country and ongoing debate about the alternatives for coal-powered electricity generation. The energy sector is well and truly in the news and under scrutiny to reduce emissions.

But what about transport? At an individual level, we’ve seen the take-up of electric vehicles (EVs) and more recently a move toward hybrid vehicles instead. Like solar panels on home roofs, EV or hybrid vehicle purchases indicate consumers are embracing the need to change the way we look after the planet to reduce emissions to improve the environment.

At an industry level, transport companies are grappling with the capital cost associated with reducing their emissions, whether by converting to alternative energy, buying replacement vehicles with lower emissions or investing in systems that improve the efficiency of transport routes.

Most trucking businesses are either owner-operated or have less than 19 employees. There is no requirement for these companies to report their carbon emissions and worry about sustainability based on the current legislation. However, the larger companies that are required to report will ask their suppliers for their carbon emissions data so they can report more accurately.

With the goal of reducing carbon emissions to zero by 2050, every single business (and individual) needs to play their part. Every company will need to be working toward that same goal. Failure to do so may mean losing long-term contracts. We believe those contracts will be based not only on price and reliability but also on carbon emissions data.

The sooner every business in the transportation industry identifies their carbon footprint and devise a plan to reduce carbon emissions, the better the industry will be. Each business will benefit also from improved efficiencies, reduced costs in the long run whilst ensuring long-term sustainability.

We are proud to advise that this article was written by the team and not produced by AI.