#4 Green is the New Black: The Uncharted Impact of CO2 Regulations

About Serge Schamschula Serge serves as the head of the ecosystem at the transport management platform Transporeon. In this role, he is responsible for fostering partnerships, building networks, facilitating coordination and collaboration with research & academia. In addition to his position at Transporeon, he also holds the vice-chair position at ALICE, the Alliance for Logistics Innovations through collaboration. Furthermore, he serves as board director for the European Freight Logistics Leaders Forum. Prior to this role, he spent nearly two decades in various positions at the freight forwarding company Transped Europe. He studied Business Administration, Marketing, and Sales at Johann Kepler University in Linz, Austria. About Transporeon Transporeon is a technology company that provides cloud-based logistics and transportation management solutions. Their platform connects 1.400 shippers and 158.000 carriers, enabling them to manage and optimize their supply chain operations efficiently. Transporeon offers solutions such as freight tendering, tracking, and visibility, as well as tools for carrier selection, performance, and CO2 monitoring. The company's solutions aim to improve transparency, collaboration, and efficiency in the logistics industry, ultimately helping businesses streamline their transportation processes and reduce costs. www.transporeon.com Key Takeaways Regulations regarding mandatory CO2 emissions reduction are unclear for many actors in the supply chain and beyond. Although these regulations will have a significant impact on the business model and supply chain. Three major regulations will affect businesses in Europe and worldwide: The CSRD (Corporate Sustainability Reporting Directive) will compel more companies to report on their CO2 emissions and create plans for future reduction. The CBAM (Carbon Border Adjustment Mechanism) will establish a level playing field for CO2 pricing on goods entering the EU, encouraging cleaner industrial production in non-EU countries. The EU ETS2 (European Emission Trading System 2) is a cap-and-trade program designed to limit and reduce CO2 emissions from various industries including transport. Future emissions will come with a cost. In the coming years, the CSRD will have the most significant impact on larger corporations as they must report CO2 emissions, which includes emissions from transporting goods, impacting the entire sector. The EU ETS2 will substantially impact logistics when the initial cap of € 45,00/ton will cease and reach a level above €300 per ton of CO2 emissions, which is expected by 2030. The entire transport sector will be integrated into the ETS2 by 2027. The difference would currently be 6-7 cents per km and will not lead to significant changes in the transport sector. Massive changes are expected once the cap is released. Scope 3 emissions represent around 80% of an average company's emissions and are currently challenging to measure due to insufficient data quality. If data quality is poor and key performance indicators (KPIs) are based on numerous assumptions, the resulting output may differ significantly based on bad data, unsuitable for CO2 management. To get out of the data issue sharing primary data would be required. The solutions are there on technical level, but the actors are reluctant to do so. There is strong support from shippers to transport more volumes via rail, especially intermodal transport. However, rail operations must be seamlessly integrated into the entire supply chain solution landscape, where the data ends at a terminal today. Achieving ambitious green targets, especially concerning modal shift, is very unlikely if the current pace is maintained. Much more significant measures were needed to do so. [email protected] www.railup.club