The White House supports the global push for renewable fuels in trucks and buses

The Biden administration has approved an international plan that aims to reduce climate emissions from trucks and buses by mandating the sale of vehicles powered by renewable fuels, according to an announcement by the COP27 diplomatic retreat in Sharm el-Sheikh, Egypt.

Specifically, the non-binding agreement supports a path to 100% new zero-emission medium- and heavy-duty vehicle (MHDV) sales by 2040, with a target floor of 30% new zero-emission MHDV sales by 2030. The plan to achieve zero-emission transportation is being shared by California’s CALSTART program Drive to Zero and the Netherlands and is officially known as the Global Memorandum of Understanding (Global MOU) on Zero-Emission Medium- and Heavy-Duty Vehicles.

In addition to the US, the deal was also backed by 16 nations, as well as a collection of local governments, manufacturers and suppliers. The latter group includes the US state of California, Québec (Canada), Telangana (India), Berlin’s partners for business and technology, Scania, Dannar, Lion, Heineken and DHL.

A group of US congressmen led by Sen. Martin Heinrich (D-NM) hailed the move, saying in a letter to President Biden that the transition to zero-emission transportation will improve air quality and increase national security by “reducing our dependency.” of foreign oil is reduced and protect consumers from disruptive swings in fuel costs.”

Support also came from the logistics company DHL, the German parcel delivery and logistics service provider. “As a global leader in logistics and delivery services, DHL Express has long recognized the important role our industry plays in decarbonizing the transportation sector. The Global Memorandum of Understanding and the growing list of signatory countries and supporting organizations registering at COP27 is a significant and welcome development. We look forward to working with these governments and peers to deliver zero-emission vehicles and the infrastructure needed to make them a reality,” said Greg Hewitt, CEO of DHL Express, USA, in a press release.

The news closely follows a proposed rule unveiled by the White House on Nov. 10 to require major federal contractors — those receiving more than $50 million in annual contracts — to publicly disclose their greenhouse gas emissions and climate-related financial risks and determine the science. based on emission reduction targets.

While these largest contractors would be required to disclose Scope 1, Scope 2, and relevant categories of Scope 3 emissions, smaller contractors with annual contracts of $7.5 million or more would only be required to disclose Scope 1 and Scope data -2 emissions and companies providing them exchange services valued less than $7.5 million would be completely exempt.

According to the US Environmental Protection Agency (EPA), Scope 1 emissions are defined as those caused directly by a company, such as its own facilities and vehicles. Scope 2 emissions come from indirect purchases, including electricity used for heating and cooling, and Scope 3 emissions are attributed to even less direct products such as financial investments, business travel, and outsourced transportation and distribution services.

If the proposed rule is implemented, such moves could have a significant impact on emissions as they could bring more clarity to the new and evolving area. According to Simon Geale, executive vice president of procurement at Proxima, a procurement and supply chain consultancy, many companies are currently struggling to make climate-driven changes because they lack industry standards, common regulations and accurate data.

“There will be some challenges in adoption, but no one said decarbonization would be easy,” Geale said in an email. “As it stands, this looks like the first in a series of tightened regulations that will initially focus on larger companies, which in all likelihood are already familiar with the challenge ahead, but as those companies come down with science-based targets.” and reducing emissions, there are harder, more complex things to do that require partnerships, technology and new approaches from their teams. On the other side of the fence, the [booking] Contracts must also improve literacy in this area to promote and evaluate plans of their current and potential suppliers.”

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