How can we decarbonise the last-mile delivery?

It is essential to have a multi-dimensional approach to effectively tackle the environmental impact of last-mile delivery.

Optimising delivery routes can considerably reduce the distance covered and improve vehicles' fill efficiency rates. Route optimisation software can help to plan effective delivery routes, whereas cargo consolidation strategies combine several customers' or companies' deliveries to maximise vehicles' capacity. Delivery lead time management, allowing customers to choose all the way to specific delivery windows, can even rationalise operations and minimise congestion.

From the perspective of the fill rate, the idea is to pool delivery needs with those of other companies: co-loading, co-delivery… options that bring certain benefits. We are thinking in terms of the reduction in costs, transit times and the number of lorries on the road.

The constraints include ensuring compatibility of parcels, orders (separating those containing electrical components and those with chemical elements, for example), and the need for adapting to logistics that are already well-established.

Have you ever received an order in an oversized box? Packing more efficiently can save space, transport costs, and emissions.

In the supply chain, many parcels are bundled together, which makes them more difficult to pack and deliver. By reducing the empty space in parcels, we decrease the overall shipping volume, which has lots of practical benefits.

More compact parcels are easier to load efficiently, since trucks can carry more. We can use software to split parcels into a suitable size.

Electric vehicles could be a good solution for reducing carbon emissions during last mile delivery. They are:

Permitted in low emission zones (LEZ): Electric vehicles can zip around ‘Clean Air’ zones without paying tolls. They’re also contributing to better air quality in our city centres.

Reducing CO₂: A huge amount of CO₂ emissions are linked to transport. By replacing petrol or diesel with electric vehicles, we can significantly reduce emissions. (There’s a proviso: the electricity used to recharge them should come low-carbon.)
Reducing sound pollution: Electric motors are much quieter than internal combustion engines. They’ll help to reduce environmental noise, especially in urban areas.

Perfect for the last mile: Electric vehicles are well-suited to “last-mile” urban use. They’re designed for urban mobility, especially short distances and numerous stops. Their capacity to accelerate quickly is ideal for driving in town.

There’s one potential drawback: the EV's environmental impact depends on the energy source used during recharging. Using electricity generated by a coal-fired power station creates emissions at source. Using a renewable energy source like solar panels, wind power, or hydropower makes EVs much more sustainable.

Right now, hydrogen-powered light vehicles don’t provide the ideal solution for last-mile delivery, or for service in general. Why?  Using gray hydrogen will affect carbon intensity. The reason for this loss of energy efficiency is that when water is electrolyzed using electricity to obtain hydrogen, 50% of the energy is lost. This hydrogen must then be converted back into electricity in the vehicle. Here, another 50% is lost. In total, this represents a loss of 65 to 80%. This means that energy efficiency is four times lower than that of battery electric vehicles.

Using green hydrogen (from clean energy sources) is an option in countries where electricity comes from carbon sources, but the risk of using "grey" hydrogen (from fossil-based sources) makes this option uncertain.

The mass balance approach enables us to track and measure raw materials and products throughout the supply chain.  It can be used to monitor fossil raw materials, renewable raw materials, recycled products, and finished products.

The "credits" show us the greenhouse gas emissions which we have avoided. It’s a great tool for evaluating our efforts as we transition to decarbonisation.

When we’re thinking about last-mile delivery, especially in major cities, bikes quickly come to mind!  

But while a bike is well-suited to towns, it’s not ideal for all deliveries.

Right now, the manufacture of bikes produces comparatively more emissions than  the manufacture of vans for the same quantity transported.

If cargo bikes durability were to improve in the future - becoming more durable and covering more miles - then they’d have a lower carbon footprint.

Cargo bikes are not necessarily powered by renewable electricity. However, their energy consumption is very low (25Wh/ton.km compared to 250Wh/ton.km, i.e., ten times less), which makes them attractive compared to vans, even in countries with a very carbon-intensive electricity mix.


What about electric cargo bikes? These have a number of advantages for urban environments:

They’re permitted in Clean Air / Low Emission Zones (LEZ). Thanks to no-exhaust emissions, electric vehicles can circulate freely in urban areas where traffic restrictions exist. This contributes to better air quality.

They deliver a notable reduction in CO₂. Electric bikes produce significantly fewer CO₂ emissions compared to electric vans in most cases.

The technology is already here. Electric cargo bikes are already a working solution.
They drastically reduce noise pollution. Bikes are quieter than vans, improving noise levels in towns.

However, there are disadvantages too:
They have a limited charge and range. Electric bikes are mainly suited to short-distance deliveries (3-4 km) in densely populated urban areas.
They’re an expensive investment, particularly due to labor costs (a courier on a cargo bike will transport much less cargo than a courier in a van).

Electric cargo bikes are useful for short-distance urban deliveries in large, polluted cities, especially in countries using a lot of carbon-based electricity. However, their limited range and higher cost make electric bikes a less commonplace solution for last-mile logistics.