Economists Embrace Battery-Electric Trucks: a Reality Check for Freight Decarbonization
Key Ideas
  • French and German economists advocate for a shift to battery-electric trucks over hydrogen for freight decarbonization, citing cost-effectiveness and readiness.
  • They propose six key recommendations including internalizing external costs, focusing on battery-electric trucks, and investing in charging infrastructure.
  • The report highlights the need for public investment in the European truck manufacturing sector to ensure competitiveness and sustainability in the market.
  • Economists emphasize the importance of aligning policy with market needs, such as adjusting alternative fuels infrastructure regulations based on actual industry requirements.
In a groundbreaking development for freight decarbonization, European economists from the Conseil d’Analyse Économique (CAE) and the German Council of Economic Experts (GCEE) have rejected the hydrogen hype and endorsed battery-electric trucks as the optimal solution. The economists emphasized the pressing need to address road freight emissions, which account for a significant portion of Europe's greenhouse gas emissions. They highlighted the exponential growth in freight demand driven by consumer habits and economic expansion, underscoring the urgency for intervention. Their joint report advocated for a strategic pivot towards electrification, presenting compelling data that battery-electric trucks are not only viable but also economically competitive with diesel counterparts. The economists proposed clear recommendations to guide policy, including internalizing external costs, prioritizing battery-electric trucks, and investing in charging infrastructure. They also emphasized the importance of supporting the European truck manufacturing sector through targeted research and development initiatives to ensure competitiveness in the market. Additionally, the economists called for a pragmatic approach to EU policies, suggesting adjustments to regulations like the AFIR to align with industry needs rather than hydrogen lobbying. With a focus on empirical evidence and practical solutions, the economists' report represents a significant step towards sustainable freight transport and emissions reduction in Europe.
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