Logistics and Transportation: The Path to Decarbonization

Regardless of the sector, it is clear that every economic activity, analyzed throughout its chain, that is, from cradle to grave as life cycle analysis is usually summarized, from the simplest transformation and production technique to the most sophisticated, depends on or is related, at all stages, to logistics and transportation. Logistics being the management of the entire process of moving goods and services of the activity (with special attention to itineraries) and transportation being the physical movement of vehicles (fleet characteristics and operation). Hence the statement: the path to decarbonization passes through logistics and transportation.

Along these lines, just to give an example, important economic sectors, including mining, have transportation as the largest contributor to CO2e emissions. All others, if they are to pursue a true decarbonization process, will have to consider the major challenge of managing and controlling emissions from what is called Scope 3 – emissions that occur in the value chain of the core activity, from sources not owned or controlled by that activity, including all relational processes between suppliers, buyers, products sold, business trips, among others. In other words, logistics and transportation.

Therefore, the decarbonization process in logistics and transportation achieves a prominent dimension due to the very positive result in the balance between investment and return in the carbon market. Because any action implemented for decarbonization in this area, however simple, multiplies throughout the entire production chain, meaning that, in the overall calculation, it is possible to achieve higher values for avoided emissions and obtained carbon credits.

In addition to this multiplier effect, decarbonization in logistics and transportation stands out for the ease of metrics, which allow for the application of MRV – monitoring, reporting, and verification – essential for entering the carbon market. This ease is applicable to any source of emissions in this area, whether from operational inefficiencies, the burning of used fossil fuels, with an emphasis on the road fleet, or resulting from auxiliary logistics activities (such as warehousing, cargo handling, and transshipment). In turn, this ease of application of MRV allows for simpler diagnostics/inventory, and thus, the setting of feasible targets and less costly decarbonization strategies.

Finally, the promising path of the carbon market, starting from decarbonization in the logistics and transport agenda, can now count on digital ecosystems for inventory and management of reliable data that simultaneously meet national regulatory requirements and voluntary demands for climate transparency, such as Verden: MRV's Brazilian digital platform for certification of logistics and transport emissions ( https://verdenesg.com.br ) .