Transportation leads in Emissions | Weekly News Update

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Last week the EIA announced that the transportation industry surpassed power as the leader in CO2  for the first time in over 40 years. Anheuser-Busch pre-orders 40 of Tesla’s electric semi and LTL pricing structures start to shift towards density-dependent models.

Transportation Becomes the Top Sector for US CO2 Emissions

According to data compiled by the US Energy Information Administration (EIA), the transportation sector has replaced the electric power sector as the top carbon dioxide emitter in the nation in 2016.  This represents the first time that the power sector was removed from the top emissions source since 1984, when industrial emissions were the leading sector and transportation CO2 emissions were 12.5% below that of the power sector.  The most recent transition is a result of significant declines in power emissions and more modest changes in overall transportation figures.  The power sector has benefited from a move away from coal towards natural gas and renewable sources, as well increased efficiencies in the generation process.  This led to 2016 CO2 emissions of 1.82 billion MT, which is 25% below the level from 10 years prior.  The transportation sector registered 1.88 billion MT (7% below 2007 emissions).

What does this mean for shippers?

This new data reinforces the importance of managing energy in transportation.  Vehicle and freight technology will likely drive efficiencies in transportation in the future, both for the movement of people and goods.  More substantial improvements will require a more active approach – including decisions of mode, fuel type, and overall network decisions – to help curb the nation’s number one sector of emissions.  In addition, continued improvements in the power sector will likely blend into transportation with the development of electric vehicle options.  Emissions continue to move toward a lifecycle approach, and the source of power generation will become key to understanding the full impact of an electric fleet.  Both transportation and power generation will have a big impact on shippers; especially those that look to take advantage of the improvements in each sector.

In Other News

12/6

Carbon Pulse: Ontario auction under-subscribed for first time

Ontario sold 20.9 million of a total 25.3 million current allowances on offer during its fourth auction, the first time a quarterly sale has failed to sell out.

12/7

CNNMoney: Anheuser-Busch is Getting Teslas’s Trucking Party Started

Anheuser-Busch pre-ordered 40 Tesla semi-trucks as part of its strategy to reduce the company’s carbon emissions by 30 percent by 2025. “At Anheuser-Busch, we are constantly seeking new ways to make our supply chain more sustainable, efficient, and innovative,” said James Sembrot, Anhesuer-Busch’s head of logistics strategy. “This investment in Tesla semi-trucks helps us achieve these goals while improving road safety and lowering our environmental impact.”

12/8

Bloomberg – BlackRock Wields Its $6 Trillion Club to Combat Climate Risks

BlackRock Inc., the world’s biggest asset manager, is telling companies that now is the time to start reporting clear information on climate risk to their businesses. BlackRock sent letters to about 120 companies this week, urging them to report climate dangers in line with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures. The task force concluded in June that companies affected by climate change should conduct scenario analyses and include those results in their financial reports.

Transport Topics: Many LTL Carriers Lean Toward Density-Based Pricing

The use of dimensioners is expanding in the less-than-truckload industry, enabling carriers to more accurately calculate shipment density.  In fact, many LTL carriers are leaning toward the adoption of a pricing system that is based on density alone.

This weekly publication is designed to highlight relevant industry news to provide professionals in the transportation, supply chain, and energy sectors with up-to-date information in a rapidly changing marketplace. This update is purely a compilation of industry news and as such, does not necessarily reflect the opinion of Breakthrough®Fuel. We do not warrant or guarantee accuracy or completeness of information. For additional information, please contact us at info@breakthroughfuel.com.

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