The UK Government has announced £200 million in funding for the logistics industry as part of a drive to decarbonise freight vehicles and create new jobs.

More than £2 million is also set to be given to small and medium-sized businesses in a separate competition to boost innovation and green tech in freight.

The new funding will help grocery companies such as Sainsbury’s and Marks and Spencer lower their transport emissions, while protecting them from rising delivery costs associated with changing petrol and diesel prices, said the Government.

It added that the funding could also help prevent price hikes across supermarkets, allowing people to save money on food and groceries to help with the cost of living. 

Reducing environmental impact

According to the Government, heavy goods vehicles (HGVs) contribute 20% to all transport emissions across the UK. The £200 million in funding will be invested across four “green” projects to roll out up to 370 zero emission HGVs and help set road freight on the path towards net zero, driving innovation and creating new jobs. 

Delivered in partnership with Innovate UK, the investment from the zero emission HGV and infrastructure demonstrator programme will also deliver around 57 refuelling and electric charging sites, providing the crucial infrastructure to help the haulage sector decarbonise.

Roads Minister Richard Holden said: “Freight and logistics are the beating heart of our economy and it is only right that we celebrate the sector so that it gets the recognition and support it deserves.

“From boosting zero emission tech across freight to attracting the future generation of talent to the industry, we are working hard to drive innovation, create jobs and grow the economy by building a brighter, more innovative future for one of our most crucial industries.” 

Richard Smith, managing director of the Road Haulage Association (RHA), said: “We strongly welcome today’s announcement from the Government on the zero emission HGV and infrastructure demonstrator programme.

“The £200 million commitment Ministers are putting into this demonstrator significantly helps to de-risk the transition to Net Zero. The real-world demonstrators will answer many of the practical questions operators have and, in turn, give our members the confidence to invest in the zero emission lorries needed to drive down carbon emissions from our sector.”