Stimulate the uptake of batteries and low-carbon fuels for heavy-duty vehicles

Heavy-duty vehicles, such as commercial trucks, are a challenging part of road transport to decarbonize due to their size and long-haul needs. Fully battery-electric vehicles (including those with battery swapping capabilities), hybrids, and hydrogen are all pathways worth further exploration to decarbonize this segment.

To help this sector explore these pathways, governments can stimulate the uptake of batteries and low-carbon fuels for heavy-duty vehicles through subsidies and fiscal incentives and fuel economy regulations aimed at small fleets, and simplified funding processes. They can also vary operational charges for trucks, like road tolls, depending on a vehicle’s CO2 emissions.

Blending mandates for on-road biofuels, ethanol and biodiesel, have long been the measure of choice for economies around the world to stimulate the uptake of alternative fuels in road transport. However, these fuels are better suited for heavy-duty vehicles because passenger vehicles can be more easily electrified.