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Reducing Air Pollution in China through Greener Freight!

!   Presented at Transforming Transportation 2014!
!   Robert Earley!
!   Transport Program Manager, Clean Air Asia!

Transforming Transportation 2014!
Reducing Air Pollution
in China through
Greener Freight
Robert Earley
Transport Program Manager
Clean Air Asia
Rob.earley@cleanairasia.org
17 January 2014
Transforming Transportation
Washington D.C.
Diesel exhausts cause cancer

Particulate matter is killing millions
900+ µg/m3 PM2.5

3	
  
Image source: The Atlantic. HTTP://www.theatlantic.com/infocus/2013/01/chinas-toxic-sky/100449
Diesel exhausts cause cancer

Particulate matter is killing millions
900+ µg/m3 PM2.5

30+ µg/m3
PM2.5

“Outdoor air pollution ranked 4th in mortality and health burden in
East Asia (China and North Korea) where it contributed to 1.2 million
deaths in 2010” --Health Effects Institute, Based on Global Burden of Disease Report
4	
  
Image source: The Atlantic. HTTP://www.theatlantic.com/infocus/2013/01/chinas-toxic-sky/100449
Poor air quality:
7 of 10 cities in developing Asia
PM10 annual average
concentrations µg/m3
>150
100-150

89	
  

50-70

36	
  

30-50

<20

Ci&es	
  developed	
  Asia	
  

58	
  

70-100

20-30

Ci&es	
  developing	
  Asia	
  

26	
  

31	
  
5	
   9	
  
6	
  

19	
  

WHO
Interim
Target 1
70 µg/m3

20	
  

WHO Air
Quality
Guideline
10	
  
20 µg/m3
Compiled by Clean Air Asia from multiple sources
The importance of transport
●  Vehicles	
  contribute	
  22-­‐34%	
  of	
  PM2.5	
  in	
  Chinese	
  megaci&es	
  and	
  30%	
  of	
  
NOx	
  in	
  China,	
  but:	
  
•  Actual	
  impacts	
  much	
  higher	
  when	
  considering	
  secondary	
  polluFon	
  
•  Roadside	
  exposure	
  much	
  higher	
  in	
  dense	
  urban	
  areas	
  
Biomass	
   Beijing	
  PM	
  2.5	
  Sources	
  
burning	
  
4%	
  
Industrial	
  
VOCs	
  
16%	
  

Trans-­‐
boundary	
  
Pollu&on	
  
25%	
  
Road	
  dust	
  
16%	
  

Shanghai	
  PM2.5	
  sources	
  

Industrial	
  
Processes	
  
15%	
  
Construc&on	
  
and	
  road	
  
dust	
  
10%	
  

Power	
  
produc&on	
  
Vehicles	
  
and	
  
22%	
  
industrial	
  
boilers	
  
Source: Chinese Academy of Sciences, Michael Walsh 21%	
  

Coal	
  
Combus&on	
  
(power	
  plant	
  
and	
  other)	
  
17%	
  

Other	
  
9%	
  

Trans-­‐
boundary	
  
20%	
  

Vehicles	
  
25%	
  
…especially diesel trucks!
Diesel trucks are just 5%
of China’s vehicle fleet
China	
  Vehicle	
  PopulaFon	
  by	
  Vehicle	
  Type	
  
Medium	
  duty	
  
freight	
  
Large	
   3%	
  

passenger	
  
1%	
  

Heavy	
  duty	
  
freight	
  
5%	
  

Micro	
  
passenger	
  
4%	
  

Micro	
  freight	
  
0%	
  

Mid-­‐size	
  
passenger	
  
2%	
  

Light	
  duty	
  
freight	
  
11%	
  

But they emit 61% of all
vehicular particulate matter
(79% with buses)

Source	
  of	
  PM	
  Emission	
  by	
  Vehicle	
  Type	
  
Light	
  duty	
  
freight	
  
9%	
  
Medium	
  duty	
  
freight	
  
8%	
  

Large	
  
passenger	
  
18%	
  
Small	
  
passenger	
  
74%	
  

Micro	
  freight	
  
0%	
  

Mid-­‐size	
  
passenger	
  
1%	
  

Small	
  
passenger	
  
3%	
  

Heavy	
  duty	
  
freight	
  
61%	
  

Source: MEP, A.C Kerney,
2011

Diesel exhausts cause cancer World Health Organization International
Agency for Research on Cancer (WHO-IARC)
and climate change
June 2012
Logistics Cost as Percentage of GDP
Logistics cost relative to GDP highest in developing Asia:
greater risks of fuel security and prices

24.0%

7.2%

8.3%

EU

US

9.0%

Japan

Source: GFAN Study Macro economical indicators, 2013

12.5%

Korea,

14.2%

India

17.8%

China

Indonesia
8	
  
What is Green Freight?
•  Truck	
  and	
  fuel	
  standards	
  and	
  
technologies	
  
•  Data	
  improvements	
  for	
  logis&cs	
  
efficiency	
  
•  Na&onal	
  government	
  policies,	
  incen&ves	
  
and	
  recogni&on	
  programs	
  
•  Finance	
  accessibility	
  for	
  truck	
  and	
  fleet	
  
upgrades	
  
•  Intense	
  private	
  sector	
  par&cipa&on	
  by	
  
carriers	
  as	
  well	
  as	
  shippers	
  
Green Freight Programs Across Asia
Proof of concept and confidence
building
●  Small	
   pilot	
   trucks	
   project	
   in	
   Guangzhou
	
  
2008-­‐2009	
  
•  R e q u e s t e d	
   b y	
   l o c a l	
   g o v e r n m e n t	
   f o r
	
  
environmental	
  concerns	
  
•  Tire	
  and	
  aerodynamics	
  technologies	
  tested	
  on	
  14
	
  
trucks	
  in	
  three	
  truck	
  fleets	
  	
  
Truck	
  Type	
  

Long	
  Haul	
  

Short	
  Haul	
  

Short	
  Haul	
  

Low	
  Resistance	
  Tires,	
  
Tire	
  Pressure	
  
Low	
  Resistance	
  Tires,	
   Low	
  Resistance	
  Tires,	
  
Technologies	
   Monitoring	
  System	
  ,	
  
Tire	
  Pressure	
  
Tire	
  Pressure	
  
Tested	
  
Aluminium	
  Rims,	
  Gap	
  
Monitoring	
  System	
  
Monitoring	
  System	
  
Fairing,	
  Nosecone,	
  
Trailer	
  Skirts	
  
Actual	
  Saving	
  
(%)	
  

6.70%	
  

1.80%	
  

18.50%	
  

Payback	
  Year	
  

2.74	
  

3.97	
  

0.65	
  

11	
  
Guangdong Green Freight
Demonstration Project
$14	
  million	
  –	
  1200	
  trucks	
  
	
  

• Long-­‐term	
  goal:	
  Reduce	
  the	
  road	
  freight	
  emission	
  in	
  

Guangdong	
  by	
  10%	
  
	
  
• Avoid	
  38,650	
  tons	
  using	
  green	
  freight	
  truck	
  technology	
  
• Avoid	
  55,270	
  tons	
  through	
  “drop	
  and	
  hook	
  logisFcs”	
  
project	
  
• Avoid	
  72,069	
  tons	
  through	
  logisFcs	
  brokerage	
  
• The	
  total	
  fuel	
  savings	
  amount	
  to	
  approx	
  64	
  million	
  

liters	
  of	
  Diesel	
  

12	
  
Green Freight in China

Guangdong Province
Ministry of Transport
Ministry of Environment
Draft Green Freight China Standards
2013	
  China	
  Green	
  Freight	
  IniFaFve	
  
● 	
   Drab	
  Standards	
  Released	
  
CGFI	
  Green	
  Freight	
  Vehicle	
  Standard	
  

• 
• 
• 
• 

Fuel	
  economy	
  requirements	
  
Emission	
  standard	
  requirements	
  
Loading	
  mass	
  uFlity	
  factor	
  standard	
  
Energy	
  saving	
  technology	
  
installa&on	
  and	
  use	
  (based	
  on	
  MoT	
  
catalogue	
  of	
  clean	
  technologies	
  for	
  
trucks)	
  

CGFI	
  Green	
  Freight	
  Enterprise	
  Standard	
  	
  
Size	
  and	
  reliability	
  of	
  fleet	
  
Dispatch	
  efficiency	
  
RaFo	
  of	
  drop-­‐and-­‐hook	
  business	
  
Progress	
  towards	
  ‘modern’	
  logisFcs	
  
Fleet-­‐wide	
  fuel	
  consumpFon	
  
Use	
  of	
  navigaFon	
  equipment,	
  recommended	
  
truck	
  models	
  and	
  recommended	
  technologies	
  
•  Etc.	
  
• 
• 
• 
• 
• 
• 

http://cleanairinitiative.org/portal/node/11905
Founding Members:

Newest Members:
By awarding contracts to “Green Freight Labeled”
carriers, a manufacturer receives Green Freight
labels for its products

Consumers, investors,
insurance companies,
etc. can make informed
product decisions

More effort, more leaves:

AFT F
DR

ewor
ram

k
GPS, GIS and Mobile Data for Freight	
• 

Fleets and governments
are starting to use
sophisticated tracking
and control systems for
trucks

• 

Over 20,000 trucks are
monitored in the Yangtze
River Delta Region
Coming: Port and logistics data platforms
Marine
Shippers

Airlines

Railroads

Trucks

C
a
r
r
i
e
r
s

Financial organizations

Inspection

Other Int’l
Platforms

Platform

Ports
Warehouses

Regional Info.
Platforms

Shippers

Yards etc.
Freight
Forwarders

Supply Chain Players	


Manufacturers

How can complex monitoring systems optimize multimodal logistics,
Customs clearance and at the same time reduce emissions?
Linking Green Freight Cities
Conclusions
●  Freight	
  is	
  a	
  huge	
  issue	
  for	
  air	
  pollu&on	
  and	
  
climate	
  change	
  in	
  Asia	
  
•  It	
  is	
  also	
  a	
  significant	
  economic	
  issue	
  

●  Asian	
  governments	
  are	
  eager	
  to	
  make	
  green	
  
freight	
  work	
  –	
  but	
  need	
  support	
  
●  Green	
  Freight	
  needs	
  to	
  work	
  for	
  the	
  private	
  
sector	
  –	
  policy	
  is	
  not	
  enough	
  
For	
  more	
  informaFon:	
  www.cleanairasia.org	
  
For	
  more	
  informa&on:	
  www.cleanairasia.org	
  

	
  

	
  

	
  

	
  
	
  
Clean	
  Air	
  Asia	
  China	
  Office	
  
Clean	
  Air	
  Asia	
  India	
  Office	
  
	
  
	
  
china@cleanairasia.org	
  
india@cleanairasia.org	
  
901A	
  Reignwood	
  Building,	
  	
  
1st	
  Floor,	
  Building	
  No.	
  4	
  
No.	
  8	
  YongAnDongLi	
  	
  
Thyagraj	
  Nagar	
  Market,	
  	
  Lodhi	
  Colony	
  	
  
Jianguomenwai	
  Avenue	
  Beijing	
  	
  
New	
  Delhi	
  110003	
  	
  
China	
  
India	
  

	
  
Clean	
  Air	
  Asia	
  Center	
  
	
  
center@cleanairasia.org	
  
Unit	
  3505	
  Robinsons	
  Equitable	
  Tower	
  
ADB	
  Avenue,	
  Pasig	
  City	
  
Metro	
  Manila	
  1605	
  
Philippines	
  

.

.

	
  
Clean	
  Air	
  Asia	
  Country	
  Networks	
  

.

.

.

.

.

China	
   	
  India	
   	
  Indonesia	
   	
  Nepal	
   	
  Pakistan	
   	
  Philippines	
   	
  Sri	
  Lanka	
   	
  Vietnam	
  
Clean	
  Air	
  Asia	
  	
  
Center	
  Members	
  
	
  
•  Shell	
  
•  Asia	
  Clean	
  Fuels	
  
Associa&on	
  
•  Corning	
  

245	
  Clean	
  Air	
  Asia	
  	
  
Partnership	
  Members	
  

Donors	
  in	
  2012	
  to	
  2013	
  

Asian	
   Development	
   Bank	
   l	
   Ci&es	
   Development	
   Ini&a&ve	
   for	
   Asia	
   l	
   ClimateWorks	
   Founda&on	
  
•  Ci&es	
  
l	
   DHL/IKEA/UPS	
   l	
   Energy	
   Founda&on	
   l	
   Fredskorpset	
   Norway	
   l	
   Fu	
   Tak	
   Iam	
   Founda&on	
   l	
  
•  Environment	
  ministries	
  and	
  government	
   German	
   Interna&onal	
   Coopera&on	
   (GIZ)	
   l	
   	
   Ins&tute	
   for	
   Global	
   Environmental	
   Strategies	
  
(IGES)	
  l	
  Ins&tute	
  for	
  Transport	
  Policy	
  Studies	
  l	
  Ins&tute	
  for	
  Transporta&on	
  and	
  Development	
  
agencies	
  
•  Development	
  agencies	
  and	
  founda&ons	
   Policy	
   l	
   Interna&onal	
   Union	
   for	
   Conserva&on	
   of	
   Nature	
   l	
   L'Agence	
   Française	
   de	
  
Développement	
   (AFD)	
   l	
   MAHA	
   l	
   Pilipinas	
   Shell	
   l	
   Rockefeller	
   Brothers	
   Fund	
   l	
   Shak&	
  
•  Non-­‐government	
  organiza&ons	
  
Founda&on	
  l	
   	
  Shell	
  Founda&on	
  l	
  United	
  Na&ons	
  Environment	
  Program	
  Partnership	
  for	
  Clean	
  
•  Academic	
  and	
  research	
  ins&tu&ons	
  
•  Private	
  sector	
  companies	
  and	
  associa&ons	
   Fuels	
  and	
  Vehicles	
  (UNEP	
  PCFV)	
  l	
  USAID	
  CEnergy	
  l	
  Veolia	
  l	
  World	
  Bank	
  

21	
  

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Reducing the impact of transportation on air pollution in China through freight and logistics - Robert Earley - Clean Air Asia

  • 1. Reducing Air Pollution in China through Greener Freight! !   Presented at Transforming Transportation 2014! !   Robert Earley! !   Transport Program Manager, Clean Air Asia! Transforming Transportation 2014!
  • 2. Reducing Air Pollution in China through Greener Freight Robert Earley Transport Program Manager Clean Air Asia Rob.earley@cleanairasia.org 17 January 2014 Transforming Transportation Washington D.C.
  • 3. Diesel exhausts cause cancer Particulate matter is killing millions 900+ µg/m3 PM2.5 3   Image source: The Atlantic. HTTP://www.theatlantic.com/infocus/2013/01/chinas-toxic-sky/100449
  • 4. Diesel exhausts cause cancer Particulate matter is killing millions 900+ µg/m3 PM2.5 30+ µg/m3 PM2.5 “Outdoor air pollution ranked 4th in mortality and health burden in East Asia (China and North Korea) where it contributed to 1.2 million deaths in 2010” --Health Effects Institute, Based on Global Burden of Disease Report 4   Image source: The Atlantic. HTTP://www.theatlantic.com/infocus/2013/01/chinas-toxic-sky/100449
  • 5. Poor air quality: 7 of 10 cities in developing Asia PM10 annual average concentrations µg/m3 >150 100-150 89   50-70 36   30-50 <20 Ci&es  developed  Asia   58   70-100 20-30 Ci&es  developing  Asia   26   31   5   9   6   19   WHO Interim Target 1 70 µg/m3 20   WHO Air Quality Guideline 10   20 µg/m3 Compiled by Clean Air Asia from multiple sources
  • 6. The importance of transport ●  Vehicles  contribute  22-­‐34%  of  PM2.5  in  Chinese  megaci&es  and  30%  of   NOx  in  China,  but:   •  Actual  impacts  much  higher  when  considering  secondary  polluFon   •  Roadside  exposure  much  higher  in  dense  urban  areas   Biomass   Beijing  PM  2.5  Sources   burning   4%   Industrial   VOCs   16%   Trans-­‐ boundary   Pollu&on   25%   Road  dust   16%   Shanghai  PM2.5  sources   Industrial   Processes   15%   Construc&on   and  road   dust   10%   Power   produc&on   Vehicles   and   22%   industrial   boilers   Source: Chinese Academy of Sciences, Michael Walsh 21%   Coal   Combus&on   (power  plant   and  other)   17%   Other   9%   Trans-­‐ boundary   20%   Vehicles   25%  
  • 7. …especially diesel trucks! Diesel trucks are just 5% of China’s vehicle fleet China  Vehicle  PopulaFon  by  Vehicle  Type   Medium  duty   freight   Large   3%   passenger   1%   Heavy  duty   freight   5%   Micro   passenger   4%   Micro  freight   0%   Mid-­‐size   passenger   2%   Light  duty   freight   11%   But they emit 61% of all vehicular particulate matter (79% with buses) Source  of  PM  Emission  by  Vehicle  Type   Light  duty   freight   9%   Medium  duty   freight   8%   Large   passenger   18%   Small   passenger   74%   Micro  freight   0%   Mid-­‐size   passenger   1%   Small   passenger   3%   Heavy  duty   freight   61%   Source: MEP, A.C Kerney, 2011 Diesel exhausts cause cancer World Health Organization International Agency for Research on Cancer (WHO-IARC) and climate change June 2012
  • 8. Logistics Cost as Percentage of GDP Logistics cost relative to GDP highest in developing Asia: greater risks of fuel security and prices 24.0% 7.2% 8.3% EU US 9.0% Japan Source: GFAN Study Macro economical indicators, 2013 12.5% Korea, 14.2% India 17.8% China Indonesia 8  
  • 9. What is Green Freight? •  Truck  and  fuel  standards  and   technologies   •  Data  improvements  for  logis&cs   efficiency   •  Na&onal  government  policies,  incen&ves   and  recogni&on  programs   •  Finance  accessibility  for  truck  and  fleet   upgrades   •  Intense  private  sector  par&cipa&on  by   carriers  as  well  as  shippers  
  • 10. Green Freight Programs Across Asia
  • 11. Proof of concept and confidence building ●  Small   pilot   trucks   project   in   Guangzhou   2008-­‐2009   •  R e q u e s t e d   b y   l o c a l   g o v e r n m e n t   f o r   environmental  concerns   •  Tire  and  aerodynamics  technologies  tested  on  14   trucks  in  three  truck  fleets     Truck  Type   Long  Haul   Short  Haul   Short  Haul   Low  Resistance  Tires,   Tire  Pressure   Low  Resistance  Tires,   Low  Resistance  Tires,   Technologies   Monitoring  System  ,   Tire  Pressure   Tire  Pressure   Tested   Aluminium  Rims,  Gap   Monitoring  System   Monitoring  System   Fairing,  Nosecone,   Trailer  Skirts   Actual  Saving   (%)   6.70%   1.80%   18.50%   Payback  Year   2.74   3.97   0.65   11  
  • 12. Guangdong Green Freight Demonstration Project $14  million  –  1200  trucks     • Long-­‐term  goal:  Reduce  the  road  freight  emission  in   Guangdong  by  10%     • Avoid  38,650  tons  using  green  freight  truck  technology   • Avoid  55,270  tons  through  “drop  and  hook  logisFcs”   project   • Avoid  72,069  tons  through  logisFcs  brokerage   • The  total  fuel  savings  amount  to  approx  64  million   liters  of  Diesel   12  
  • 13. Green Freight in China Guangdong Province Ministry of Transport Ministry of Environment
  • 14. Draft Green Freight China Standards 2013  China  Green  Freight  IniFaFve   ●    Drab  Standards  Released   CGFI  Green  Freight  Vehicle  Standard   •  •  •  •  Fuel  economy  requirements   Emission  standard  requirements   Loading  mass  uFlity  factor  standard   Energy  saving  technology   installa&on  and  use  (based  on  MoT   catalogue  of  clean  technologies  for   trucks)   CGFI  Green  Freight  Enterprise  Standard     Size  and  reliability  of  fleet   Dispatch  efficiency   RaFo  of  drop-­‐and-­‐hook  business   Progress  towards  ‘modern’  logisFcs   Fleet-­‐wide  fuel  consumpFon   Use  of  navigaFon  equipment,  recommended   truck  models  and  recommended  technologies   •  Etc.   •  •  •  •  •  •  http://cleanairinitiative.org/portal/node/11905
  • 16. By awarding contracts to “Green Freight Labeled” carriers, a manufacturer receives Green Freight labels for its products Consumers, investors, insurance companies, etc. can make informed product decisions More effort, more leaves: AFT F DR ewor ram k
  • 17. GPS, GIS and Mobile Data for Freight •  Fleets and governments are starting to use sophisticated tracking and control systems for trucks •  Over 20,000 trucks are monitored in the Yangtze River Delta Region
  • 18. Coming: Port and logistics data platforms Marine Shippers Airlines Railroads Trucks C a r r i e r s Financial organizations Inspection Other Int’l Platforms Platform Ports Warehouses Regional Info. Platforms Shippers Yards etc. Freight Forwarders Supply Chain Players  Manufacturers How can complex monitoring systems optimize multimodal logistics, Customs clearance and at the same time reduce emissions?
  • 20. Conclusions ●  Freight  is  a  huge  issue  for  air  pollu&on  and   climate  change  in  Asia   •  It  is  also  a  significant  economic  issue   ●  Asian  governments  are  eager  to  make  green   freight  work  –  but  need  support   ●  Green  Freight  needs  to  work  for  the  private   sector  –  policy  is  not  enough  
  • 21. For  more  informaFon:  www.cleanairasia.org   For  more  informa&on:  www.cleanairasia.org             Clean  Air  Asia  China  Office   Clean  Air  Asia  India  Office       china@cleanairasia.org   india@cleanairasia.org   901A  Reignwood  Building,     1st  Floor,  Building  No.  4   No.  8  YongAnDongLi     Thyagraj  Nagar  Market,    Lodhi  Colony     Jianguomenwai  Avenue  Beijing     New  Delhi  110003     China   India     Clean  Air  Asia  Center     center@cleanairasia.org   Unit  3505  Robinsons  Equitable  Tower   ADB  Avenue,  Pasig  City   Metro  Manila  1605   Philippines   . .   Clean  Air  Asia  Country  Networks   . . . . . China    India    Indonesia    Nepal    Pakistan    Philippines    Sri  Lanka    Vietnam   Clean  Air  Asia     Center  Members     •  Shell   •  Asia  Clean  Fuels   Associa&on   •  Corning   245  Clean  Air  Asia     Partnership  Members   Donors  in  2012  to  2013   Asian   Development   Bank   l   Ci&es   Development   Ini&a&ve   for   Asia   l   ClimateWorks   Founda&on   •  Ci&es   l   DHL/IKEA/UPS   l   Energy   Founda&on   l   Fredskorpset   Norway   l   Fu   Tak   Iam   Founda&on   l   •  Environment  ministries  and  government   German   Interna&onal   Coopera&on   (GIZ)   l     Ins&tute   for   Global   Environmental   Strategies   (IGES)  l  Ins&tute  for  Transport  Policy  Studies  l  Ins&tute  for  Transporta&on  and  Development   agencies   •  Development  agencies  and  founda&ons   Policy   l   Interna&onal   Union   for   Conserva&on   of   Nature   l   L'Agence   Française   de   Développement   (AFD)   l   MAHA   l   Pilipinas   Shell   l   Rockefeller   Brothers   Fund   l   Shak&   •  Non-­‐government  organiza&ons   Founda&on  l    Shell  Founda&on  l  United  Na&ons  Environment  Program  Partnership  for  Clean   •  Academic  and  research  ins&tu&ons   •  Private  sector  companies  and  associa&ons   Fuels  and  Vehicles  (UNEP  PCFV)  l  USAID  CEnergy  l  Veolia  l  World  Bank   21