 Hello and welcome to Fast Forwarding the Race to Zero Emission Tracking. My name is Monica Araya and I am the Transport Lead at Climate Champions. We know we have a fantastic challenge ahead of us when it comes to freight because the demand for road freight is going to triple between now and 2050 and in that period we know we have to decarbonize that sector entirely. So we have a fantastic session today and here is a visual summary of the variety of views we are going to share. We're going to hear from different parts of the value of the value chain. We're going to hear from companies that are already doing their job and we're going to hear about what is needed in order to go bigger and faster. So we will start with a perspective from companies such as Unilever, Scania and DHL and then we're going to hear from financiers and infrastructure and then we close up with remarks from CalSTAR and from WEF. In order to get started we are going to now switch to a scene seater that is going to come from the grade group ICCT and before we do that let me make sure that I emphasize something. I mentioned race to zero so we don't have time to waste for the race to zero emissions challenge but we don't have time to waste in this session. It's short and therefore we won't have time for Q&A. Therefore I invite you to join the conversation. You can see it in the screen, you can join through Slido, send some remarks there, you can scan the QR code and toward the end there is an important question we want to ask you and we would really want to hear from you. So let's just give a few seconds so that you scan it and when we are ready to go we are going to start with ICCT and this great Vision 2050 paper that I encourage you to go and read is fantastic. Rachel welcome tell us who you are and let's get started. Hi, thank you so much for the introduction and for having me. I'm Rachel Muncri from the deputy director at the ICCT and I'd really like to just help set the stage for today's conversation by first introducing you to some results for a new report that ICCT recently put out that really looks at what level of reductions are needed from the entire global transport sector in order to meet climate goals. So for this exercise we looked at what's the 2050 greenhouse gas target should be for the transportation sector in order to for the transport sector to sort of do its share towards the goal of limiting global warming to 1.5 degrees C this century and the answer is by 2050 we need approximately 78% reduction from the levels that we're at today. So if you look at this figure the yellow bar is on the left or what Monica mentioned you know we project that we're still growing over the next 30 years in light duty heavy duty aviation marine etc and then the bars on the right really show where we project the needed reductions can come from. So the bars on the right really represent what we ICCT sort of think is feasible under an ambitious policy framework over the next 30 years really given everything that we know about the current and projected technology developments as well as what the potential for policy is able to to drive. I really want to note that when we developed our conclusions for what's possible we really had to keep in mind this balance between improving efficiency of conventional vehicles because we know that a lot more conventional vehicles are going to be sold under pretty much any scenario but then we also had to look at ramping up the market penetration of zero emission vehicles because we also know that that's really what's needed to reach sort of the endpoint of a decarbonized transport sector. So for heavy duty over the next 30 years it comes out to almost a fairly equal combination of both efficiency and zero emission technologies to reach this target of course this session is really focused on accelerating the zero emission piece and you know heavy duty electrification especially for the long haul sector is definitely in the earlier stages compared to the passenger cars but we really see especially over the last few years the pace of development really has the potential to progress quite quickly. Although there are certainly some barriers that we have to overcome we've spent a lot of time like looking and trying to understand more in depth these barriers. One barrier is availability but we do see availability of zero emission trucks increasing quite rapidly although the long haul segment is still lacking in that area. The next is cost parity I mean cost parity is going to be necessary and we do see with the right drivers in place cost parity even for the long haul sector could come in the 2025 to 2030 time frame and then the third one is of course infrastructure so infrastructure costs we've found for zero emission trucking it's significant but we can't we have found that it's not something that's going to fundamentally impede the viability of zero emission trucks so that looks good and then we look at what's needed to overcome these barriers and we see that there's three key pieces really needed to drive the transition in the heavy duty sector. One is policy so we really need technically sound policies new vehicle regulations to drive the efficiency and the increased electrification in the fleet. The second is well designed incentives really fiscal incentives and played an integral role in spurring on electric vehicle sales in the light duty sector and we believe that's also really needed in heavy duty and then the third is investments targeted investments so really feel like especially for infrastructure the transition to electric vehicles will really require strategic investment and convenient and reliable charging infrastructure network so I've just talked a little bit about targets barriers and measures to accelerate the transition on the heavy duty side and I hope that can set the stage for the conversation to come in this session thank you. Perfect thank you Rachel it's very good to hear there is a pathway and I'm also very happy to introduce our next speaker she is going to inspire us she does a lot of work already in this space this is the minister of environment of the Netherlands I am actually in Amsterdam so I'm very welcome I'm very happy to welcome her she's also the chair of the transportation decarbonization alliance as we know TDA welcome minister Stintje van Feldhofen the floor is yours thank you so much and I must say I fully respect the fact that you have been able to pronounce my first name because my parents didn't really visit me to have an international career with this kind of an impronounceable name so compliments to you and thank you for the opportunity to offer some opening remarks first of all of course I hope everybody is healthy I had a test myself a couple of days ago unfortunately it was a negative test and I think the first time I was ever happy to have a negative test outcome but I think it's only underlines for all of us on a daily basis how we are in the middle of the health crisis all watching the race for a good vaccine for COVID-19 and hoping for a good result today we are here for another race the race to zero mission trucking and one meaningful race that is two only four percent of on-road fleet are trucks that they cause over 60 percent of freight transport COT emissions and if you look at the projections they could double by 2050 due to continued growth in freight demand so zero mission commercial vehicles are really key to curbing increasing freight emissions and it has so many more benefits think about improving urban air quality and thus the health of so many people in the Netherlands one in five children that suffer from asthma has this disease because of air pollution so this only underlines the role that we can play in the life of so many children if we improve quality we improve their life and for this zero mission trucking really is a very important factor it is my ambition to keep the importance of freight high on the political agenda given the great potential for and the benefits of doing this and a lot is happening I'm really happy to see that the topic is gaining so much traction we've had a fruitful series of events and workshops we're happy to see this increasing collaboration with the world economic forum road freight zero going forward as well yet more is needed because we're still not on track all current projections suggest that not enough zero emission freight vehicle will be on the road by 2030 or 2050 and if you think about the average age of retirement of a freight vehicle being 10 to 15 years we really need to speed up because if we want all vehicles on the road to be zero emission by 2050 we really need to finish by 2030 40 so that's that we've got a very tight schedule my ambition would be that countries cities and companies work together to ensure that zero emission freight vehicle represents at least 30 percent of sales by 2030 I think we need to set ourselves a very clear target 30 percent of sales by 2030 and 100 percent by 2050 at the latest for Europe and other frondering regions these targets I think should be higher it will provide a clear market signal I think that is what the importance of these targets is is the clear signals for all parties involved because we are too often involved with the chicken and egg problem where everybody is waiting for somebody else we need to provide as politicians and I think that's what Rachel just said we need sound policies clear policies the clear market signals to all parties producers buyers cities planners utilities this is a key to break this parent deadlock and and which leads to a loop too low pace in the transition if we move together we can all move faster and further we're all holding a piece of the puzzle above all the transition to zero emission trucks is not just about replacing the vehicle because it really needs a systemic change if we get the vehicles on the road we need to charge them so we need information understanding of how many we'll be driving and where and how to optimize the charging infrastructure that will be crucial for city planners and utilities to timely build the right infrastructure and for governments to coordinate these efforts so all players need to do their bit in speeding up this systemic change and I think there are five crucial elements that I briefly like to highlight first governments they can create the necessary frameworks and policies and incentives like California for example has done the sales requirements for trucks that California has announced they are major best practice and I'm looking forward to hear more later from my colleagues and I hope that you will inspire all of us to follow suit and that it will inspire the rest of us too to follow suit fleet owners and retailers we need demand signals by both fleet owners operators and retailers signals including ambitious purchase commitments for vans and trucks and green strategies retailers really have the power to influence fleet owners and others to move forward to on zero emission trucks don't wait for silver bullets because there is now start with actual solutions start with what you can do today manufacturers this is your future the future is going to be zero emission so share new models and set hefty production targets get these trucks on the road with far more emission and speed and currently on display this is where your growth should be coming from and then of course zoning and charging infrastructure getting a charging infrastructure in places pivotal but from a policy perspective if you let me know that you've got great emissions it's more interesting for me as a politician to say that I will start investing in the zoning and charging infrastructure so we need each other as a front runner in charging infrastructure I can tell you about this afraid it's a different ball game but we can still win this together cities setting zero emission zones is a powerful lever for this transition we are installing about 40 to 50 zero emission inner city zones in the Netherlands and we can only do that because we do it jointly and I would love to see a large coalition of cities present their ambition on this at the cop 26 which include freight not just passenger transport with freight there's so much that we can do and actually in the Netherlands we are moving further and faster on freight than we are on passenger vehicles and then of course getting the economics right investments and new business models these are necessary to make the zero options financially competitive and feasible giving the upfront investment costs we can and should jointly make this happen in less than three weeks during the on route to cop 26 we will build on the outcomes of the conversations here today and by the time the climate negotiations take place next november we need to have the peace puzzle solved it's not the future it is the presence and for us to drive now and make the best of this race to zero emission trucking in the end we are all winners if we conclude thank you very much thank you so much and it's it's very important that we keep repeating what you just said don't wait for the silver bullet winning together and new business models this is very much where we are going to to talk about in this session and i understand that you will stay for for a few minutes so hopefully you will get to to to hear some of the the speakers that are coming next because we're gonna hear from a global forwarder we're going to hear from a retailer and we're also going to hear from an OEM so let's get started with the next speaker ashish yoshi from unilever ashish please tell us who you are what you do and let's start thinking about what part of the puzzle you're trying to solve in this in the context of this winning together that the minister mentioned the floor is yours thank you sure thanks monika thank you to to allowing me to share what we are trying to do in unilever and it was great to hear from from madame minister as well as rachel earlier and i think i'm gonna i'm gonna try i'm gonna talk a lot about what they've already spoken so there is already a lot of commonality that i could find which is great just to start sustainability at is that heart of a business the purpose of unilever is to make sustainable living commonplace so it's not just a good to do activity for us it is indeed our business strategy so that is something which is very important because everything starts from there we always believed in sustainability from the time the company was established but in 2010 our then CEO mr paul polman actually announced an ambitious unilever sustainable living plan where we had said that we would half our environmental footprint while doubling our business in next 10 years which is 2020 and i'm happy to note that we have we are achieving on on that promise um in logistics it also meant that we reduce our emissions till the end of 2019 by 41 percent and we are on track to do another two or three percent reduction this year so that's been going on we reset our best base now into in uh in in june earlier this year our CEO mr paul mr allen jope has already made a commitment uh that we would achieve net zero emissions as an organization by 2039 we've broken that target into a decade so by 2030 we are committing ourselves to reduce our emissions by 50 percent which includes logistics as well so that's the piece that that i am currently focused on in in making sure that this decade top to 2030 we reduce by 50 percent the last seven eight years journey has taught us a lot of things we have done some things right a lot of our emission reduction has come out of operational efficiency improvement projects whether it's about reducing kilometers traveled or improving utilization of our vehicles and also switching to cleaner alternatives and that's the space which we want to continue to work on however just a quick numbers uh our current carbon footprint our emissions footprint 80 percent of that comes from road and the and eight percent comes from ocean so between these two modes that's the biggest area for us to focus on as i said operational efficiency remains important so reducing kilometers traveled getting more efficient in reducing the empty kilometers as well is important for us and will remain always important intermodal solutions is an important play for us as well because close to 20 percent of our emissions are on lanes which are more than thousand kilometers so how do we switch away from the road into rail or other modes which are cleaner is an important element uh then as my minister also spoke about that while we need solutions for heavy duty long haul transportation zero emission vehicles and it is not immediately available commercially but we are not waiting for for a silver bullet so we are saying that yes we we are very much interested and we are very committed to move to zero emission technologies especially on heavy duty long haul transportation but more importantly in the medium term we are still we are also focusing on alternate fuels biofuels in particular so that we we don't wait for a commercial viability and we start to make an impact now a cold chain will remain important for us we have a beautiful lovely ice cream business i hope all of you have enjoyed a magnum or a benningerish but it also emits close to 16 percent of total emissions come from ice cream so we have a specific focus on ice cream cold chain so liquid nitrogen technologies and all those solutions we are looking at last mile solution city logistics is another important aspect london already where i'm sitting right now is there is an ultra low emission zone city of hamburg has banned diesel trucks in many other cities so that's a area for us to partner with our customers and and work on that last point from me because i have very short time it's important that i realize that we cannot do all all of this alone we will have to take the entire ecosystem with us and this is something which we are trying to do while creating a project called diesel free france where we are looking to get off diesel completely next two years time and we have already started to partner with not just the 3 pl and transport providers but the entire ecosystem starting with with oems fuel suppliers other shippers and customers and we believe this is the way forward we all have to come together and we have to really put our best efforts in achieving these targets so yeah that's pretty much from my side looking forward to the rest of the conversation thank you monika thank you and it builds really well on what rachel told us so because we need to improve from a perspective of operations but it's not enough we have to go all the way to zero so net zero by 2030 already sets the tone for others in your sector and we will make sure we benchmark others so congratulations for setting that ambitious target let's now hear from a global forwarder a global forwarding company that's that's very interesting so let's welcome Catherine Bross from DHL tell us what you do and let's build on what we have been discussing so far yeah thank you so much thank you so much for having me I today represent the Deutsche Post DHL group but indeed my home is the DHL global forwarding division overall DP DHL's carbon footprint is very much driven by our air freight business but we have a large of a fleet of own and subcontracted trucks so today I'll be focusing very much on our heavy duty tracking business so in essence we do a lot of things and you can cluster our activities into two categories which we call burn less and burn clean so by burning less I'm referring to activities which help us to improve our own and subcontracted fuel efficiency and this starts with driver trainings and ends with the phasing out of less efficient vehicles trucks etc but also means to be very mindful when you select your subcontractors to look into routing optimization better network planning but what is really important is also to work very closely with with the shippers the customers because by consolidating shipping by shipments better by filling the truck more of course we can still avoid a lot of CO2 emissions or just also look into intermodal solutions so I believe that there's still a lot we can do to further reduce CO2 emissions but at the same time it's very clear that efficiency gains are slowing down and it's very it's high time that we really moved to what we call the second S curve which is all about true decarbonization so in order to to foster our burn clean activities we're also running several activities and we have tested together with OEMs electric vehicles and electric trucks hydrogen trucks and it's great to see that these low carbon technologies are working they are working well what is not so great is that they are hardly available it's still just tests and pilots we need to scale them up and we need to make them available on a larger scale and then of course especially also when you look at sustainable fuels whenever they are available we love to use them so we invest a lot into biofuels bio LNG but again availability is limited so this is a problem and this is I guess what we need to address today how to accelerate the transition to a low carbon future of transport or how to really shorten the steep part of the second S curve and of course we've heard quite a few levers as well and personally I believe we will need a portfolio of levers starting from availability of low-cost capital so that smaller companies can also afford to buy better and newer equipment but also policies which favor low carbon solutions would be nice like toll exemption carbon taxes but as mentioned before I come from the forwarding division so we do not own any trucks any aircrafts or vessels so for us to foster the transition to a low carbon future is difficult and what we are longing for is really a mechanism which allows us to fund these new technologies but because we don't have the assets we need to fund them with subcontractors with other players outside the industry but at the same time of course we need to be able to claim the CO2 savings or reduction which we have been able to fund so we believe there is a huge potential if we could set up something like a booking claim solution something to push in setting and offsetting projects within the transport sector because we believe that this is so important we actually wrote a white paper together with the smart freight center about this topic I believe Sophie Punten mentioned that earlier today it's called carbon insets for the logistics sector and will be published tomorrow so I know my time is up so if you're interested please have a look at the white paper thank you so much thank you Catherine it's impressive everybody's on time so let's let's keep the let's keep the time carefully managed so that we get to hear more insights and you keep you kept mentioning two words availability and funding we'll get to the funding question later on but let's now focus on that availability point that you make which is extremely important and therefore let's connect that to the next panelist we have Andrea Zafollier from Scania Scania has been an early supporter of the race to zero so it's a pleasure to have you and would you like to share your vision but also respond to that question that Catherine was mentioning about availability of models and in a perspective from the supply chain from the supply side would be very welcome the floor is yours thank you Monica well let's be honest we occupy a sector that is hard to abate and we have some serious lock-in problems in the fossil system so two years ago we did a analysis a deep analysis on the pathways that will take us towards a decarbonized heavy commercial transport system and the key conclusion was that it's not only possible for us to be trans-fossiled free in the time frame stipulated by the Paris Agreement but it also makes a lot of sense financially on societal perspective CO2 emissions can be reduced by over 20 percent only by what we call non-vehicle levers and it's been discussed in in in this panel already improving routing better load management driver efficiency and so on and then on top of that of course there are several pathways when it comes to drivetrain and fuels biofuels we have here and now we can scale that up and we can get a good effect right now early 20s and then come battery electric which according to our analysis is by far the most cost-effective and then other technologies such as fuel cell hydrogen and electric roads may also have very interesting use cases to consider and might be critical in some geographies and some application now the challenge of course that has been alluded to by previous speakers is that it takes long time to get this wide adoption of these technologies and we don't have time the existing stock of vehicles turns over very slowly for our industry it means nothing less than an unprecedented pace that we need to to go on now I think I heard someone say that no technology shift has ever gone as fast as the technology that is needed to be seen in the transport sector for us to reach Paris Agreement if we want to be fossil free by 2050 we need to take significant steps already now by 2025 and it doesn't only mean technology it's also new infrastructure it's behaviors it's new unexpected alliances and partnerships so at Scania with our purpose to drive the shift towards sustainable transport system we keep ourselves accountable by setting science-based carbon reduction target and we set them well to wheel that means that we're setting targets that we're not only can take responsible for ourselves but our clients how they power their transports and this influence everything we do now I know I have one minute I want to just take one case that is very important for us to work together the key enabler for transport system that is fossil free is that we have a well-balanced electric grid infrastructure and this is not a chicken or egg problem our customers often small and medium-sized companies will not invest in this technology we cannot put this cost and risk on them if there is no way for them to power their vehicles they have to take responsibility for their business and we need to set up an infrastructure so we can power trucks on the road and on depots and other customers without this nothing will happen so that's where we need to work together for first and foremost now I'll stop there and save save the rest for the conclusion great thank you so much very clear messaging here and that is a perfect segue into the next speaker because we have Christina church from lombard odia investment managers and the question of finance almost goes without saying we need finance but we have heard already several times today that we also have to think about sms and and their particular circumstances so christine i would be great if if if you share some remarks about the bigger question of finance what you're seeing what is needed and if you have time please share some thoughts with us about sms thank you chlores is yours yes thank you monica and the pleasure to be here christina church from lombard odia and i'm in charge of investment strategy for sustainability and i think everything that all the previous speakers have said is really resonated with us in terms of the need to mobilize faster and and how we can do that from a finance point of view i think uh as as the minister said earlier regulation is absolutely key because investment does follow regulation um we'd love to think that the investment will come first and it sometimes does in the private sector but to get that investment really for the public companies if there is very clear regulation stating timelines and and that that regulation is focused on life cycle emissions as andreas pointed out as well you're not just looking at tailpipe but looking across across the entire life cycle and that the regulation is in the right places you know to date we've seen a lot in the personal vehicle space and we need to see a lot a lot more move and that will help to mobilize finance if we are starting to see moves like california made the other point is again coming back to the point that andreas made on uh company targets it is very important from the point of view as as an investor to understand where companies are positioned in in this race to net zero uh we're not wanting to look at where companies are today we want to look at where they are for the future and if they have science-based targets that is very helpful uh for the investment community to to understand that they are therefore positioning themselves on that transition pathway and for us we are finding that we are still needing to do quite a lot of education with our clients when we're looking to raise uh more money to understand what sustainability is and that sustainability is about a transition and we're not just wanting to invest today in low carbon solutions providers but those are very helpful too but we do need to make sure that investment moves towards the hard to abate sectors that we see uh that the best in class companies in those hard to abate sectors the ones that are moving fastest the ones that are anticipating regulation before it comes that is looking at penetration rates that are aligned with net zero that that is where investment can come from and of course we do need to see a partnership uh between governments and and private money for for investment and I think it's that point that leads into it to the point on the SMEs moniker we don't want to leave anybody behind this needs to be a just transition um however from an investor's point of view and for us as asset managers it is our fiduciary duty to to generate returns for our clients it's very helpful that today technology has come down technology costs have reduced so far that we are now seeing opportunities for investment across many different areas of the low carbon space and we're seeing opportunities where electric vehicles can be profitable certainly for at the trucking end of the spectrum on total cost of ownership it's getting a lot more opportunities to for for different technologies whether it's hydrogen fuel cell or electric but certainly we want to make sure that there is enough funding going across the spectrum and that when there isn't any greenwashing in there that big companies are enabling um uh the bigger companies are disclosing more but not disclosing in the right place and of course infrastructure is key I think that's been brought up on by most of the speakers we do need to see investment into that infrastructure to try to help with this chicken egg scenario of is there demand there isn't demand because there isn't infrastructure so I think that's a key point for us to see investment into private assets um in infrastructure thank you Christina and while we uh give some time to talk from ng impact let me ask you a very quick question because we heard this morning in a different panel from Volvo cars that they they had this green bond it was oversubscribed and they are going to use it in order to finance their their shift to electric vehicles is there anything you would like to share with us about that in I'll give you a minute because this is something that we've been getting questions about yes thank you for bringing that up Monaco because absolutely we're seeing an explosion in green financing in in the credit markets and it's fantastic to see uh sectors and in particularly sort of traditionally harder to abate sectors take tapping into uh green financing whether it be via green bonds or via sustainability linked bonds which are um with targets assessed but yes it's great we've seen a number in the automotive sector uh coming to market focused particularly on electrification of vehicles we'd love to see more coming in the even the heavy trucking sector as well great so yes so happy that they have been good news today and since infrastructure has been mentioned several times let's now turn to Engie Impact and Doug McMachan he is going to share some uh ideas for how to go bigger and faster and as we know in in terms of long-term tracking uh long-haul tracking uh we still have uh many many questions about what are the optimal technologies assuming that it's going to be a combination of battery electric and fuel cells and others um what would you like to to share with us Doug floor is yours thank you thank you Monaco and um uh pleasantly part of the the dialogue today um uh I think as Rachel mentioned you know decarbonisation of these heavier vehicle classes is still in very early stages um Engie here in the Americas is is working on a couple of flagship projects so we're working with Anheuser-Busch to electrify 21 class 8 trucks at the moment and I know it's a different vehicle class but we're also working with Santiago Chili to help them decarbonise um uh 6000 bus fleet um and I think there's a lot of lessons that can be kind of learned from those from a utility and infrastructure perspective as we um uh that may be relevant to you know the race to zero emission trucking um the the Brattle Group here in the U.S. recently estimated that there's going to need to be an investment of around about 75 to 125 billion across the U.S. electric power sector between now and 2030 to serve the 20 million EVs that we're expecting to have on the road and that's going to include about 30 to 50 billion um for for adding one to two million public uh fast charges and customer side infrastructure so this really presents like a significant challenges and opportunities for the utility industry and infrastructure companies that are looking to help in the acceleration of vehicle electrification so I'm just going to briefly touch on three that I think can play an integral role uh in terms of um class 8 trucks so firstly and I think this this is also a critical one that's been well talked about is the siting of that charging infrastructure so again a different um uh vehicle class but electrifying 100 buses creates the equivalent electrical footprint of the Empire State Building okay just to put that in perspective so that means for an entity like the MTA in New York who have a fleet of 6 000 buses you're creating the electrical footprint of Midtown Manhattan in outer boroughs of um of New York and that's going to place a tremendous amount of stress on the electrical grid in those areas now think about what that means that the Port of Los Angeles have committed to decarbonize 10 000 dredged trucks by 2035 and it starts to give you a sense of the of the challenge ahead the good thing is that I think there's lots of really innovative more or less commercialized siting tools that can aid with the optimal siting of charging infrastructure but there are still various challenges and siting that need to be addressed and the first of those is getting hold of timely accurate local electric grid utility capacity data from which to model against vehicle traffic and charging patterns and the like so you can start to work out where to optimally locate the second is actually the availability of land to build this charging infrastructure which can be particularly challenging in urban areas and then the third is um is much more around kind of effective coordination uh across developers who are looking to build that charging infrastructure on behalf of customers to ensure that infrastructure is being shared optimally and to ensure that we're not over underserving customers in a particular in a particular geography so that siting piece is obviously very critical I think the second big opportunity to accelerate and that's kind of in the utility wheelhouse is the introduction of heavier vehicle class specific innovative utility make ready programs so making money available for developers and utilities to offset the the cost of that charging infrastructure in the US we've seen some really strong commitments from certain geographies including New York and California regarding the rate basing of public fast charging infrastructure yeah most of the focus today has been on like duty vehicles so I'd expect the next stage would be to have specific mechanisms for for heavier duty vehicles and ideally these sorts of programs need to be supported by the forms of grants incentives to ensure those least are able to afford decarbonisation are able to participate and draw value the final piece and again I think Rachel and Andreas have touched on this in in previous commentary I think this is probably the most critical but complicated piece that needs to be addressed and this is where the fact that utilities infrastructure companies and other key stakeholders in my mind need to move beyond focusing on setting success around simply putting steel and concrete in the ground and work with truck owners and businesses to drive down the total cost of ownership particularly if we're going to get to cost parity between 2020 and 2025 one simple way is the utilities to put in place rate structures that temporary assist early adopters of electric trucks to help them avoid demand charges so Southern California Edison a West Coast utility in the US have introduced an EV rate EV 9 that provides a man charger leaf for trucks until 2024 so that's great but more must be done particularly if we're going to ensure that those who can least afford to transition are able to benefit so you know we're trying to advocate that these small businesses many who have challenges of credit to spend $300,000 on an electric truck versus $50,000 on a Gen 3 or Gen 4 diesel truck we're asking to pay more insurance and then we're asking them to change the way they operate and maintain the vehicles in an ecosystem they have no experience operating in so not only must the entire industry come together to lower that initial total cost of transition for these truck owners we must also help them optimize operation and maintenance and take advantage of grid service revenues to offset upfront costs and share in that financial and operational risk of ownership. Thank you so much I think you already laid out the the beginning of a coalition here you know this TCO bring down the TCO coalition because it's a it's a very very common challenge that we we hear about no matter the region so I would like to propose to the organizers that we do a second round in in a few months with this group so we get to to more concrete steps and we will hear from from Wef and Angie in particular as we wrap up some concrete things she's working on. Let's go back to the point that we are in a race to zero there is actually a campaign that you can support by endorsing a science-based target just as Scania laid out and next year by about you know by the around 12 months from now we are going to have a big moment a big climate moment that COP26 moment is going to happen in Glasgow and what we're going to do in the next minutes is that we'll we'll give you time for some brief remarks where you would ideally mention what your company could commit to by COP26 and or you're asked as a company from that process so let's do that and because we didn't have time for Q&A we also would like you as an audience to send us your your your ask through Slido as I mentioned before you can scan the QR and the concrete question is what key outcome what is the the signal that you would like to get from that we need to get from COP26 when it comes to the acceleration of zero emission tracking let's do that and while you're right on Slido let's let's just go back to our panelists and may we start with you Rachel. Sure and I know we're running close sometimes I'll be quick I mean one thing I I think he's going to be doing anyway and I think it would be a good venue for COP26 is you know we presented sort of the targets today and where we need to go and this is something we're going to be tracking very closely over the next year so I would really love to be able to come back and like let everyone know you know where we're on target where we're where we're not and really what still needs to be done I think it's very important to constantly be tracking progress something that of course we'd like to see as ICT we work very closely with governments COP26 is such an important and good venue for governments to be sending that extremely strong and well-messaged and sort of inline signal to the market of you know where they're going to be going and the policies and measures that they're going to be putting in place so that's really something that we're going to be looking for. Thank you Rachel. Ashish what would you like to add? Yeah thanks very engaging discussion I was making some notes I think I really loved it yeah in addition to what I already shared we are committed we've made an external commitment to achieve net zero emissions as you need to be able by 2039 so that stays and then we are committed to it we'll continue to work on it especially specifically from logistics and zero emissions tracking I see some of the things that that are particular to us we don't own any trucks so we do work with our transport partners and the TCO discussion is real so we cannot close our eyes and say that we want clean clean trucks but it will it should be at zero cost and we understand technologies like hydrogen fuel cell and battery electric heavy duty would come at some on cost but how do we reduce that impact what kind of financing options can be available along with all the regulations incentives for sure to minimize this TCO impact because ultimately our consumers are very supportive of our actions but we also have to balance it with the right cost so that is one of the biggest areas of focus for for us and happy to see what we can do as an ecosystem to support that great so we heard benchmarks we heard finance options let's move to Catherine and then to Andreas yeah of course being an international logistics company we like to have a level playing field so regulation is good but it should be on international level of course and then just also to speak on behalf of our shippers I believe the private sector is very willing to help to fund decarbonization within the transport sector and in particular within tracking but we need to simplify things right now it's so complicated and yeah just to throw a few buzzwords at you I think we need a mass balance concept we need book and claim mechanisms so that those companies which are willing to help funding a low carbon future also get the credits for it and are able to really claim the CO2 savings great Andreas yeah well our pledge to COP26 is really simple when it makes sense for our customers to invest in serial emission trucks we will be ready across segments and across markets already today customers can order plug-in hybrids and fully electric trucks for urban applications and we have the broadest range of products can be powered by alternatives to diesel but we will be ready on fully electric trucks when it makes sense for our customers and it's actually a two-part pledge because the second part is that great vehicles of course are crucial but we need green electricity to power them so our second part of the pledge is that we will work with partners to make sure that our customers can power their vehicles with green energy and of course the most important outcome from COP26 is a clear consensus with all countries around the table this time to accelerate further to reach the Paris Accord and then national governments can create that use that ambition to create a predictable playing field so we as businesses can go about and do what we're good at and provide the solutions thanks thank you and thank you for your pledge you're very welcome to join the the champions team and tell us more about about how you you're planning to do this sure and then let's see now we have Christina yes so for us what we hope to be able to show portfolio temperature alignment across all our portfolios so that our clients can see what temperature our portfolios are against and be able to track the improvement on achievement of the Paris Accord we are also very hopeful that we will see a much tougher targets being set by by the countries at COP26 and we do want to see regulation that can push people to enforce companies to disclose more about what they're doing not just in a financial nature but a climate climate related and in particular across all scopes of emissions including scope three great and thank you for for bringing not only the regulation but also the disclosure that's something we we need to normalize and Angie I think we were able to capture some of the slight answers from the audience and when we prepare some summary from this session we will be very happy to to share some of your your feedback from the audience perspective so with that I would like to thank all our panelists we are going to now move into the next segment of this session thank you very much for joining us and I hope to see you soon in a part two from from this conversation Angie the floor is yours now well thank you Monica and thank you all panelists we are going to be now watching a short clip from Jarry Blumenfeld Secretary of the Environment Protection California State he will be we asked him to make some short comments just to really make sure we can motivate the policymakers that leading states and countries around the world can really drive this this transition that we need from their perspective so after watching the short clip from Jarry we will be closing the session with just some short remarks from Cristiano and myself as a further call to action to public and private sector who want to get more deeply involved with us on on the race to zero so here we go for the the remarks from Jarry back in the 60s California suffers from some of the worst air pollution in the world and we've done a number of things we we've innovated and we've incentivized a path towards a zero mission future and that's particularly important now as we face our greatest threat which is greenhouse gas emissions over 50 percent of California's greenhouse gas emissions when you look at our profile comes from the transportation sector that's everything from trucks to light duty to medium duty vehicles and when it comes to pollution both pm which is fine particulate matter and ozone trucks play an oversized role as well even though of the 30 million vehicles we have on the road only two million are trucks they produce 70 percent of the nitrous oxide emissions and 80 percent of our harmful and carcinogenic diesel particulate matter in the united states as a whole trucks are about four percent of the vehicles on the road and they produce about 25 percent of the greenhouse gas emissions and in fact when you look at where we're going as a nation the majority and fastest growing source of greenhouse gas emissions is this transportation sector we all enjoy goods they come from around the world in the case of California 41 percent of all the containerized goods those big containers that come in ships with stuff that we love it comes into the ports of la long beach oakland and other california ports and it goes to every single county in the united states and the problem is that those corridors of transportation um where all that pollution is happening generally are low income and and communities of color so there's environmentally justice burden communities are suffering so that we can have goods go around the country and i think those communities have said enough is enough we as as a government have to say enough is enough and and join arms with them and say what's the solution how do we grow the economy promote environmental stewardship and help community health the answer is to transition as quickly as possible to a zero emissions future first is greenhouse gas emissions so the air resources board affectionately known as carb california air resources board they recently promulgated a regulation requiring truck manufacturers the folks that make those trucks to start selling into california zero emission vehicles big heavy-duty trucks by 2024 in addition we came out with rules for diesel trucks today that really tighten rancid down the emissions that are coming from those vehicles governor gavin Newsom he recently came out with an executive order that said on the passenger vehicle side all new passenger vehicles sold in california after 2035 has to be zero emission he also pushed fleet operators and owners of big trucks to say by 2045 you need to have in your fleets 100 zero emission vehicles so you may have seen folks like walmart said we want a zero emission future by 2040 the reason that we care about this the reason that we're leading the nation is also because we have some of the worst asthma rates in the country in places like fresno and bakersfield and la because of air pollution and so if we're going to both solve our short-term air pollution goals stimulate the economy so just to give you a sense we now have 34 electric vehicle manufacturers in the state of california the number one export from california is electric vehicles we have more than 276 000 people working in this sector which is five times how many we have in the oil and gas sector in california one of the ways that we think we can work together is through our collaboration with other states how can we get best practices to really accelerate the progress towards the zero emission future and of course we want to work with all of you and we really are excited about this opportunity to clean up the air and save the planet yes so as we've heard from uh from secretary bloomingfield california is doing quite a lot to advance zero emission trucks so building on that 15 states in the united states have agreed to working together towards having 30 of sales of new medium and heavy duty vehicles being zero emissions by 2030 and 100 by 2050 so there's quite a lot of momentum in california and in the us for zero emission trucks and then from now on it'll only get better so the next step is really to align leading nations around ambitious targets for zero emission commercial vehicles ahead of cop26 we heard this loud and clear from the dutch minister of bellhaven and many others today so calstart and our drive to zero program were committed to working towards this global alignment where a campaign of the clean engine ministerial we're ready to support of nine nations including the Netherlands so we already have a forum for this intergovernmental discussions which will help countries to really implement the policies and incentives that are going to be necessary to meet these targets so in addition to supporting government industry stakeholders are also a key audience for for drive to zeros which is why i'm really happy to participate in the discussion today and also more importantly that's why like calstart and and drive to zero are very excited to partner closely with the world economic forum so angie thanks for the invitation to be here and over to you thank you so much christiano and really thank you all for your excellent speakers speaking points today your leadership in decarbonizing transport is incredible and really needed to make sure that everybody knows this is possible we just need to work together it's a real privilege to be working with all of you and we look forward to more opportunities to dig into the discussion points raised um as the opportunity will keep on coming on the race to zero and up to cop26 and beyond so my name's angie frode tiba and i'm the project lead for clean trucking at the world economic forum i close this session today building on a call to action as you've heard from our first movers across the trucking value chain and the inspiring political figures represented here today march is being done signaling readiness for radical industry transition and pockets of enabling policy environments are also stimulating these efforts around the world for trucking decarbonization we see this as a great jigsaw puzzle challenge to help bring these great solutions we've heard about together test at scale and make sure the business case policy and finance pieces fit together in the best way to really scale up and accelerate the transition this decade as part of mission possible platform we at the world economic forum have launched road freight zero you've heard about a bit earlier a coalition of leading companies and organizations working toward decarbonizing long haul road freight and infrastructure to meet net zero and just transition 2050 goals over the next two years we're working in a very concrete way on de-risking vehicle finance and infrastructure developments providing private sector input to policy discussions and co-creating new finance mechanisms with institutions such as lombardo the air and others who are involved in the world economic forums transition finance working group we also see that creating synergies between leading initiatives is key to building momentum accelerating action and raising the bar that's why we're also collaborating with several organizations such as our great co-organizers of this event today as well as cal starts the transport decarbonization alliance the icct the smart freight center itf and more building on each other's strengths and networks the key message is action is happening now but we can and must do more to accelerate together smartly as nigel topping said yesterday the ripple is becoming a surge and this couldn't be more true than in the trucking valley chain where we have market readiness growing political will and collective action mechanisms already established to capture the huge gains to be made for society in meeting clean air environmental justice and climate goals so we hope that you're now not only inspired but geared up to set similarly ambitious goals to those who we've heard today and act on implementing them collectively with your valley chain partners through these established platforms that we've also shared with you today so please do get in touch and join us in this race to zero thank you all for listening and thanks again to all our speakers have a good day