The European Urban Mobility Framework: What Logistics Leaders Need to Know About the Future of Zero-Emission Last-Mile Delivery

With increasing demand for last-mile deliveries driven by both B2B and B2C sectors, Europe’s urban areas are facing unprecedented challenges. Emissions, congestion, and noise pollution have intensified, making urban logistics a significant environmental concern. In response, the European Urban Mobility Framework introduces new regulations designed to transition urban logistics towards zero emissions and sustainability.

This article outlines the latest EU regulatory changes, how they impact B2B logistics, and actionable steps that logistics leaders in manufacturing, wholesale, and retail can take to prepare for these changes.

Why the Change? Surge in Last-Mile Deliveries

The Rise of E-commerce and Demanding Consumers

Europe’s e-commerce market exceeded €500 billion in 2023. With consumers increasingly opting for quick, doorstep deliveries, last-mile transport—connecting distribution centres to end consumers—has become one of the most emissions-intensive segments. Last-mile deliveries alone account for up to 53% of total transport costs and contribute heavily to urban congestion and pollution.

B2B Distribution and Emissions

In B2B sectors, urban logistics demands have also escalated, especially in fields like medical supplies, automotive parts, construction materials, and manufacturing components. Suppliers frequently compete on delivery speed, resulting in more frequent trips with often under-utilised trucks, adding to the congestion and emissions. The Urban Mobility Framework aims to mitigate these impacts by encouraging optimised, sustainable delivery practices.

Key Regulatory Changes in the European Urban Mobility Framework

1. The European Green Deal

• Objective: Establish Europe as the first climate-neutral continent by 2050, with a 90% reduction in transport emissions.
• Focus: Targets urban mobility, where emissions from last-mile logistics are highest, and promotes the adoption of zero-emission vehicles (ZEVs), alternative fuels, and multimodal transport solutions.
• Impact on B2B Logistics: B2B operators delivering in urban areas will need to transition to ZEVs and integrate alternative transport methods by 2050 to comply.
• Target Date: 2050
• Effective Date: 2019
• Reference: European Commission - Green Deal

2. Fit for 55 Package

• Objective: Reduce greenhouse gas emissions by 55% by 2030 (compared to 1990 levels).
• Key Provisions: The package mandates stricter CO2 standards for trucks and introduces an expanded Emissions Trading System (ETS) covering road transport.
• Impact on B2B Logistics: Higher CO2 costs will be imposed on high-emission vehicles, incentivising logistics leaders to adopt cleaner transport solutions for urban and long-haul routes to control operational expenses.
• Target Date: 2030
• Effective Date: July 2021
• Reference: European Commission - Fit for 55

3. Sustainable and Smart Mobility Strategy

• Objective: Achieve 100 climate-neutral cities by 2030 with a focus on zero-emission vehicles and logistics hubs.
• Initiatives: Supports ZEV adoption and encourages logistics hubs for urban deliveries to consolidate shipments, reducing the number of vehicles in city centres.
• B2B Application: B2B logistics leaders should consider using consolidation hubs near urban areas to comply with emissions targets and reduce urban congestion.
• Target Date: 2030
• Effective Date: December 2020
• Reference: European Commission - Mobility Strategy

4. Corporate Sustainability Reporting Directive (CSRD)

• Requirement: Large companies must publicly report on their environmental impact, including transport and emissions data.
• For B2B Leaders: Compliance will require B2B logistics operators to document emissions from all logistics activities, including last-mile and reverse logistics. Establishing data tracking systems will be essential for accurate reporting and public transparency.
• Target Date: 2025 for expanded scope to SMEs; phased implementation starting in 2024
• Effective Date: January 2023
• Reference: European Parliament - CSRD

5. Directive on Mandatory CO2-Based Tolling for Trucks (Eurovignette Directive)

• Mechanism: Toll rates will vary based on a vehicle’s CO2 emissions, incentivising the use of low-emission and zero-emission trucks.
• Operational Impact: Diesel-heavy fleets will face higher toll costs in urban areas. Logistics leaders are encouraged to phase in Euro 6 or zero-emission vehicles to manage costs and comply with this directive.

Key Provisions:

• Emission-Based Tolls: Differentiated toll rates based on a vehicle’s emissions; cleaner trucks pay less, while higher-emission vehicles pay more.
• Timeline: CO2-based tolling will be mandatory across the EU by 2025.
• Revenue Use: Funds from tolls will support sustainable transport infrastructure, including EV charging stations and green transport development.
• Target Date: 2025
• Effective Date: 2021 (updated directive)
• Reference: European Parliament - Eurovignette Directive

6. CountEmissionsEU

• Purpose: Provides a standardised framework for calculating and reporting GHG emissions across all modes of transport.
• Impact on B2B: CountEmissionsEU mandates emissions reporting using a unified methodology, ensuring transparency and comparability across sectors.

Key Elements:

• Harmonised Calculation Methods: Consistent methodology for emissions calculation across road, rail, sea, and air freight.
• Obligatory Reporting: Requires logistics providers to report emissions from all stages of transport, including last-mile and reverse logistics.
• Scope: Applies to all freight and passenger transport services in the EU, covering domestic and international routes.
• Verification and Compliance: Third-party verification of reports is required to ensure data accuracy. Non-compliance may result in fines.
• Target Date: 2025 for full compliance
• Effective Date: 2023
• Reference: European Commission - CountEmissionsEU

Practical Steps for B2B Logistics Leaders to Prepare for Compliance

With these new regulations, compliance isn’t optional; it’s an operational imperative. Here are the steps logistics leaders can take to ensure their businesses are compliant, competitive, and sustainable.

1. Transition to a Zero-Emission Fleet

• Evaluate Fleet Needs: Assess the current fleet composition and determine which routes or segments can transition to zero-emission vehicles.
• Adopt ZEVs or Hybrids: Incorporate electric vehicles (EVs), cargo bikes, or hybrid trucks for urban routes to meet Low Emission Zone (LEZ) requirements and reduce toll expenses.
• Upgrade to Euro 6 Standards: For longer hauls or heavy-duty transport, upgrading to Euro 6 vehicles can help manage toll costs and comply with emission-based tolling.

2. Implement Emissions Tracking and Reporting Systems

• Set Up Data Collection: Establish a reliable system for tracking emissions from all logistics activities, covering last-mile and return logistics.
• Use Compliance-Ready Software: Choose emissions tracking software aligned with CountEmissionsEU standards to streamline reporting and ensure accuracy.
• Prepare for CSRD Reporting: Develop reporting protocols for public disclosure of emissions data, as required by the CSRD, to demonstrate compliance and foster transparency.

3. Utilise Urban Logistics Hubs for Consolidation

• Identify Strategic Hub Locations: Position logistics hubs near major urban centres to reduce last-mile trip lengths and improve delivery efficiency.
• Consolidate Shipments: By combining deliveries into fewer, fully loaded trips, companies can reduce both emissions and operating costs.
• Adopt Multi-Modal Solutions: Explore the use of rail or shared logistics centres where applicable to support multimodal transport initiatives encouraged under the European Green Deal.

4. Adjust Cost Structures for CO2-Based Tolling

• Account for Increased Toll Costs: Reassess pricing and budgeting to incorporate higher toll costs for diesel vehicles operating within the EU.
• Plan for Future Investments: Use revenue projections to fund fleet upgrades and establish a reserve for toll expenses.
• Seek EV Infrastructure Grants: Apply for grants or subsidies where available to support the acquisition of zero-emission vehicles or install EV infrastructure.

Conclusion: Preparing for a Sustainable Future in B2B Logistics

The European Urban Mobility Framework and its supporting regulations mark a pivotal shift towards sustainable urban logistics. For B2B logistics leaders in manufacturing, wholesale, and retail, embracing these changes now will ensure compliance, mitigate costs, and strengthen competitive positioning.

Immediate Actions:

• Begin fleet transition planning to incorporate ZEVs and Euro 6 standards.
• Establish emissions tracking systems that align with CountEmissionsEU and CSRD requirements.
• Explore urban consolidation hubs and multimodal options to streamline last-mile logistics.

By proactively aligning with these EU regulations, logistics leaders can future-proof their operations and contribute to a greener, more sustainable logistics network across Europe.

Want to learn more?

At Kinver, we are all about data-driven insights. To support our customers and audience in navigating the ever-evolving changes in the emissions space, this article is part of our content series "EU Legislation, Under the Microscope," where we break down complex regulations like ISO14083:2023 and CountEmissionsEU. Stay tuned for deeper insights, practical steps, and strategies to align your business with the future of emissions reporting.

References

1. European Commission. The European Green Deal.
2. Available at: European Commission - Green Deal
3. European Commission. Fit for 55 Package.
4. Available at: European Commission - Fit for 55
5. European Commission. Sustainable and Smart Mobility Strategy.
6. Available at: European Commission - Mobility Strategy
7. European Parliament. Corporate Sustainability Reporting Directive (CSRD).
8. Available at: European Parliament - CSRD
9. European Parliament. Eurovignette Directive (CO2-Based Tolling Directive).
10. Available at: European Parliament - Eurovignette
11. European Commission. CountEmissionsEU.
12. Available at: European Commission - CountEmissionsEU
13. European Environment Agency. Urban Transport and Emissions.
14. Available at: EEA - Urban Transport
15. European Commission. Zero-Emission Urban Freight Logistics and Last-Mile Delivery.
16. Available at: European Commission - Zero-Emission Urban Freight
17. E24. Abuse of Return Logistics Offering. Available at: E24 - Return Logistics Misuse