Unprecedented research highlights the creation of tax incentives and recharging infrastructure as the main needs for the advancement of electric freight transport
May 26, 2022 – An unprecedented survey conducted by CEBDS (Brazilian Business Council for Sustainable Development), commissioned by iCS (Climate and Society Institute), presents a map of the main challenges and opportunities for Brazil in relation to the electrification of freight transport. The survey of the Brazilian business sector assessed the current scenario in several situations: from the logistics of delivering goods to the end consumer to the long-distance movement of equipment and supplies.
The challenges and opportunities cited by 16 large companies operating in Brazil point to the lack of regulatory frameworks and promotion of the use of electric vehicles as one of the central issues. In this sense, they believe that advances in legislation and standards can create a favorable environment, with legal certainty for private investments in the use of electric vehicles.
Still, the study shows that there is a positive movement in the sector towards investment in fleet electrification, even considering the incentive policy insufficient. Some of the companies interviewed have committed to zeroing their CO emissions.2 by 2030, they aim to reach a peak of 100% of energy purchased from renewable sources and are already users of electric vehicles.
The list of companies that participated in the survey includes giants from sectors such as retail (Carrefour Group), mining (Anglo American and CBA), energy (Neoenergia and Schneider Electric), technology (Sabará Group and Amazon), infrastructure (Ecorodovias), services (Sesc), telecommunications (Telefônica), beverages (Ambev), beauty (Natura), health (Intermédica), petrochemicals (Braskem), forests (Suzano) and paper and packaging (WestRock).
The list of identified topics also includes better charging infrastructure and a set of systems and technologies that facilitate data management; and the establishment and promotion of collaboration networks between all sectors involved, from energy generation to vehicle manufacturers.
Companies identify a comparative advantage in the operating prices of electric cars, since the costs of fuels such as diesel can vary greatly. The giants of the Brazilian economy also cite the development of new technologies for decarbonizing logistics, the increase in market commitments to global and intersectoral agendas, in a context of valuing the ESG agenda, and the generation of data and knowledge from existing concrete projects as important advances that can be achieved with the electrification of the fleet.
The transport industry is responsible for 14% of all CO2 emitted globally, according to the IPCC (UN Intergovernmental Panel on Climate Change). In Brazil, the energy sector was responsible for around 18% of total CO emissions2 in 2020, according to the Greenhouse Gas Emissions and Removals Estimation System (SEEG). Of this amount, the transport sector was responsible for approximately 47%, with an increasing trend.
This study sheds even more light on the need to stimulate the energy transition in the country. The topic is even cited as one of the 12 fundamental actions for the next government, listed by CEBDS in a recent open letter to the candidates for President of the Republic: “develop, in the first year of government, and put into practice a strategic energy transition plan, with short, medium and long-term measures, focused on the expansion of renewable energies, energy efficiency, the incentive and promotion of hybrid mobility – combining the electrification of vehicles with the use of biofuels -, the digitalization of the electricity sector and the empowerment of consumers”.
The unprecedented study also highlights how large companies have been working on decarbonizing their fleets as a relevant tool in the climate neutrality agenda. It is part of the effort to reduce the country's greenhouse gas emissions, in addition to other initiatives, such as reducing deforestation, advancing the agenda of improvements in industrial processes and low-carbon techniques in the agricultural sector.
About CEBDS
The Brazilian Business Council for Sustainable Development (CEBDS) is a non-profit civil association that promotes sustainable development through partnerships with governments and civil society, in addition to disseminating the most current concepts and practices on the subject. Founded in 1997, it brings together more than 90 of the largest business groups in the country, whose revenues represent 47% of Brazil's GDP and which generate 1.1 million jobs. In Brazil, it represents the World Business Council for Sustainable Development (WBCSD) network, which has almost 60 national and regional councils in 36 countries and 22 industrial sectors, in addition to 200 business groups operating on all continents.
About iCS
The Climate and Society Institute (iCS) is a philanthropic organization that promotes prosperity, justice, and low-carbon development in Brazil. The Institute acts as a bridge between international and national funders and local partners. iCS belongs to a broad network of philanthropic organizations dedicated to building solutions to the climate crisis. The Institute seeks the conditions and architecture so that society and decision-makers can make good choices that lead Brazil to a prosperous and climate-safe future.
