Logistics industry calls on government to recognise 'critical role' for low carbon fuels

Thu 20 November 2025 View all news

Logistics UK and the Sustainable Logistics Forum, representing operators, fuel suppliers, manufacturers and industry bodies, have issued a joint call for government to adopt "a pragmatic, technology-neutral approach" to decarbonising heavy goods vehicles (HGVs). 

The logistics industry is facing its biggest ever challenge – how to achieve decarbonisation targets within a challenging economic climate. The joint Low Carbon Fuel Coalition statement contends that low carbon fuels (LCF) such as biomethane and liquid renewable fuels should be considered an acceptable means of decarbonising HGVs in the UK, particularly in the hard to decarbonise 33-44 tonne category.  

While the statement acknowledges that zero-tailpipe emission HGVs remain the long-term objective, it says that current battery electric options are not yet commercially viable for most operations due to high vehicle costs, grid upgrade delays, payload loss and currently insufficent en-route charging. The coalition argues that low carbon fuels (LCF) such as biomethane and renewable liquid fuels can deliver immediate and medium-term emissions reductions, especially for heavier and specialist vehicles. Around 10,000 UK HGVs already use LCF, and adopting these fuels across half of the 44-tonne fleet by 2035 could cut emissions by 45%. 

The statement urges government to publish a co-created logistics decarbonisation roadmap, set a clear policy position on the role of LCF in decarbonising fossil fuels, and assist domestic LCF producers to increase UK production volumes in order to meet rising demand. It also calls for long-term fiscal incentives for LCF, including more ambitious RTFO target extended beyond 2032, an extended gas duty differential for biomethane differentials and a rebate for renewable liquid fuels used in HGVs. 

The Low Carbon Fuel Coalition received advice from Zemo Partnership in the development of its statement.

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