Sustainability & Climate Change

by

Hamish Ninan Hien Le Thi Rohit D Shah Sunny Jose Yachun Yuan

Methodology
We have collected information from Reports of Agencies like Intergovernmental Panel for Climate Change (IPCC) Organisation for Economic Development and Corporation(OECD) World Economic Forum (WEF) Journals Articles and Books Then we have further segregated into different mode of transport: Air, Shipping and Land (Pipeline, Rail and Road)

Outline
International Logistics & Climate Change International Logistics & Carbon Emissions Strategies to Make Logistics Sustainable
Policy Options Other Solutions

Ranking of the Most Serious Problems

Climate change Poverty, lack of food & drinking water International terrorism A major global economic downturn The increasing world population Armed conflicts The spread of an infectious disease The proliferation of nuclear weapons
30% 24% 19% 17% 43% 42% 60% 58%

Signicance of the Study

According to the Green Trends Survey (N.A. 2%, N=1,800)

Climate change & logistics

According to Logistics Today (2010), Logistics accounts for 9% of global GDP
Share of Sectors in GHG Emissions 1,500
GHG emissions (mega-tons CO2 e per yr)

GHG Emissions of Logistics Activities

1,200 900 600 300 0

d Roa

Industry 19%

Residential & commercial buildings 8% Transport 13% Agriculture 14%

Energy supply 26%

Waste & wastewater 3% Source: IPCC, 2007

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ight fr e

ight fr e Air

gs ight re ldin ui lf Rai cs b ti ogis L

Source: WEF, 2009

Total mobility emissions: 2,500 mega-tons CO2e

Forrestry 17%

Logistics emissions
Climate change & the role of transport There are different types of emissions in sea, land & air transport
E.g., Uherek et al. (2010) has compared the road & rail transport
Year 2000 CO2 equivalent emissions from Road Transport
5,000 3,000 1,000 -1,000 GWP-20 GWP-100 GTP-20 GTP-50 GTP-100 GWP: Short- & Long-term Global Warming Potentials GTP: Global Temperature Potentials of emissions from Road & Rail transport Carbon Intensity of Transport Modes Air-short haul Road-light capacity Road-long haul Sea-short haul 0 0.25 0.5 0.75 1 1.25 1.5

Emissions factors in CO2 e kg/ton-km

Year 2000 CO2 equivalent emissions from Rail Transport

400 300 200 100 0 -100 GWP-20 GWP-100 GTP-20 GTP-50 GTP-100

CO2 NOx CO NMVOC soot direct BC soot direct OC sulphate direct CFC-12 HFC-134a

Policies for reducing emissions

Policy options to reduce GHG emissions in transport
Traditional regulatory instruments
- Emission standards - Fuel efciency standards - Top runner approach (for emission & fuel efciency standards) - Vehicle access restrictions - Low emission zones - Speed limits

Economic instruments
- Emission trading - Carbon taxes - Vehicle taxation - Road charges - Financial support for R&D - Green investment incentives

Infrastructure instruments
- Physical transport infrastructure - Improvement of administrative management - Removal of market barriers

Example
Top runner program in Japan to improve fuel efciency

Example
European Union Emission Trading System

Example
Single European Sky Liberalisation of Road Cabotage

Government Target to reduce GHG emissions Encourage alternative fuel, tax punishment less environmental friendly technology Regulation might decrease demand on logistics Regulation force companies to seek other logistics solutions

World Ports Climate Initiative (WPCI) Involves 55 worlds key ports Equipment replacement Renewable energy Aim: assessment, reduction, optimisation and neutrality

Strategies for sustainable environment

Organisations can lower their emissions & costs by following key strategies (Aronsson & Brodin, 2006):
- Standardisation - Consolidation

Suggestions from Uherek et al. (2010)

- Improving vehicle technologies - Alternative fuels

Signicance of the study

The study attempts to identify the impact of international logistics on climate change for a more sustainable future. Collaborations between companies and government are the need to bring about reduction in carbon emissions. May be achieved by vertical and horizontal integration of supply chain partners. Just as logistics contributes to the economic prosperity around the globe, it needs to contribute to create an ecologically-sustainable, low-carbon economy To recognise that the logistics industry is a major source of CO2 emissions and thereby, to identify opportunities as well as to provide recommendations for rms to follow sustainable operations

References
Beckmann, C et al. 2010, Delivering Tomorrow: Towards Sustainable Logistics, Deutsche Post, HG, Germany- Company Report Uherek, E. Halenka, T. Borken-Kleefeld, J. Balkanski, Y. Berntsen, T. Et al., 2010, Transport impacts on atmosphere and climate: Land transport, Atmospheric Environment, 44, 4772-4816 Aronsson, H. & Brodin, M., 2006, The environmental impact of changing logistics structures, The international Journal of Logistics Management, Vol. 17 Iss:3 pp. 394-415 Chapman, L., 2007, Transport and climate change, Journal of Transport Geography, 354-367