Source: Sustainable Business Council
The Sustainable Business Council (SBC) has successfully completed the second phase of its Low Emission Freight Certificate (LEFC) collaboration, marking a major step in the development of a new national system to help reduce emissions from Aotearoa New Zealand’s heavy freight sector.
SBC collaborated with a number of its members, the Energy Efficiency and Conservation Agency (EECA) and DETA to design a market-based mechanism to facilitate decarbonisation, launching the framework of the system at the Climate Change and Business Conference today. This is the final piece in a multi-year SBC project to help members and businesses move the needle on heavy freight emissions.
The LEFC system is designed to reward freight companies that invest in low-emission vehicles and to give businesses a clear and credible way to decarbonise their freight emissions. If implemented this would be a world-leading initiative, allowing New Zealand businesses to demonstrate their efforts to reduce emissions.
The system works by allowing freight operators using cleaner vehicle technologies, such as hydrogen and electric, to generate certificates. These certificates can then be purchased by businesses wanting to reduce their Scope 3 emissions – indirect emissions which come from a company’s supply chain like the transport of goods and services.
The design follows international best practices to ensure transparency and accuracy, and avoids double counting of emissions reductions. If implemented, it will support both freight providers investing in low-emission trucks, as well as businesses looking to reduce their environmental impact.
Now the design of the framework is complete, SBC is looking for a provider to bring the system to life, including setting up and running a central registry, managing the certificates, and ensuring the operation is verified and audited each year.
“This is a pivotal moment for the freight sector and a huge opportunity for New Zealand,” says SBC Head of Climate and Nature Antonia Burbidge.
“If implemented this would be a world first scheme. SBC and our participating members have worked closely with industry leaders, government agencies, and technical experts to co-design a system that is practical, credible, and scalable. Now we need a provider to turn this into action to drive real emissions reductions across the supply chain.”
DETA Consulting is the project’s design partner.
Principal Consultant David Taylor says, “Setting up a system like the LEFC is essential to unlocking scalable, transparent decarbonisation in freight. It creates a way to recognise and reward low-emission freight activity, while giving businesses a credible way to report reductions in their supply chain emissions.”
“This is a real and innovative opportunity to turn ambition into action.”
The LEFC initiative has been developed as an SBC-led collaboration. Contributing member businesses include NZ Post, Lyttelton Port Company, Hiringa, Coca-Cola Europacific Partners and CHEP. Additional participating organisations and technical experts who have worked on developing the framework design and legal considerations include the Ministry of Transport (MoT), and Chapman Tripp, New Zealand Transport Agency (NZTA) and Retyna. The Smart Freight Centre (SFC) and Toitu Envirocare were engaged as part of the process.
NZ Post Head of Sustainability Maddie Spence says, “Industry collaboration on innovative solutions is essential to helping decarbonise heavy freight. We’re excited to see the Low Emissions Freight Certificate system move from concept to reality.”
SBC is now inviting expressions of interest from any organisations interested in knowing more about implementing the system and supporting New Zealand’s transition to a low-emissions and climate resilient economy.
Background
Member-led collaborations in hard to abate sectors form a critical part of SBC’s work programme.
The transport sector is New Zealand’s second-largest source of greenhouse gas emissions, with heavy vehicles accounting for approximately 5% of New Zealand’s emissions.
Copies of the full LEFC Project Summary and LEFC Demand Report project summary detailing the design and framework of the LEFC system can be accessed here.
This work has been part funded by SBC, EECA and participating member organisations.
