A Transportation Shift for the Climate?
The Biden administration released The U.S. National Blueprint for Transportation Decarbonization and it is sure to raise some eyebrows for those in the truck transportation industry. The plan to cut greenhouse gas (GHG) emissions calls for a strategic shift to achieve net zero emissions by 2050.
The plan has a three pronged approach to get there.
- Increase convenience
- Essentially, build near population centers to reduce commuting time. The plan mentions schools, entertainment, essential services and being able to get to these via walking or biking.
- Improve efficiency
- Efficient, accessible, affordable and reliable rail and public transportation options as well as better efficiency of all vehicles.
- Transition to clean options
- Utilize zero emission vehicles and fuels. This prong of the approach is expected to be responsible for much of the GHG reduction.
A notable line in the plans calls road freight trucks and vans “difficult to decarbonize” and states “using more efficient modes and vehicles is essential to reduce overall transportation emissions and energy use”. The plan also calls for industry to prioritize rail and water shipping when possible due to their lesser emissions effect. It proposes local and last-mile deliveries could be accomplished in compact areas by utilizing cargo bikes, delivery robots, and small EVs.
I think most individuals recognize how critical trucks and buses are to freight and passenger transportation and we simply don’t currently have the rail lines or waterways to eliminate using large road vehicles. The truck transportation industry is making great strides to produce lower emission vehicles and assuming that trend continues a large transition to maritime or rail delivery may not be necessary or fruitful for a reduction in GHG. The year 2050 is a long way off!
Source: The U.S. National Blueprint for Transportation Decarbonization – A Joint Strategy to Transform Transportation
Nathan is a CPA and has more than ten years of experience providing tax planning, consulting and compliance services to a number of privately held businesses and individuals in a variety of industries, with a special focus on the transportation and logistics industry. He actively communicates with clients and seeks ways to align their individual and business goals with available tax strategies to allow them to make well-informed decisions.
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