Full Truck Alliance presents its vision for low emissions shipping at COP 28
Full Truck Alliance (FTA)
Dubai, Nov. 30, 2023 (GLOBE NEWSWIRE) — As COP 28 seeks to get commitments from countries and industries to drastically reduce emissions across all sectors, Full Truck Alliance (FTA) showcased its strategy for a greener, technology-driven trucking sector with lower emissions.
Dr. Chen Zhaohui, FTA’s Principal Scientist, spoke during a panel on Nov. 30 about international private sector collaboration to meet emission reduction targets, explaining FTA’s pledge to lead in reducing trucking emissions in China. The strategy includes novel ways of reducing diesel consumption from trucking by billions of liters each year.
The transportation sector accounts for about a quarter of global greenhouse gas emissions. In the twenty first century world of complex global supply chains, ecommerce, and expectations for increasingly fast deliveries, the pressure on shipping companies at all stages of delivery is intensifying. The combination of planes, trucks, trains, and ocean vessels that drive global shipping are all nearly completely reliant on fossil fuels. While advancements within each mode of transport are helping to increase efficiency, a full transition from fossil fuels is not imminent. Other forms of emissions reductions in the industry are much needed in the meantime.
FTA (NYSE: YMM) runs a vast logistics operation within China, extending to over 340 cities and employing nearly 3.8 million drivers, exceeding the delivery volumes of many entire nations. Aligned with China’s goal of reaching carbon neutrality by 2060, FTA is dedicated to setting benchmarks in the sector for reducing emissions.
At COP 28, Dr. Chen presented FTA’s methods for reducing trucking emissions through a “sophisticated system to boost driver efficiency, which in turn significantly diminishes truck emissions while lowering costs.”
Key to this strategy is the partnership between FTA and China Everbright Bank, which motivates drivers through a “carbon account” system. Initiated in June, this scheme promotes an app for better route planning and fewer empty runs along with other efficiency -enhancing services. Drivers demonstrating emissions reductions benefit from favorable loan terms and interest rates from the bank.
Early results from the carbon account system are encouraging: 3,000 drivers adopting the system cut diesel consumption by 150,000 liters, equivalent to a 400-ton reduction in CO2 in just a month. They also experienced a 10-20% increase in completed orders and revenue, with a concurrent drop in fuel use and costs by over 20%.
These figures show that system-centric technology can more quickly and affordably improve efficiency and reduce emissions compared to upgrading physical infrastructure and equipment. Through this system FTA is facilitating an eco-friendly shift in the industry by syncing driver incentives with goals of reducing fuel use.
As Dr. Chen noted in his speech, “we are proud to represent the efforts of private companies to address climate change. The urgent progress needed to drastically cut emissions will not come from government commitments and regulations alone. Businesses and consumers must take initiative as well, and FTA is ready to do just that in the trucking sector.”
About the Full Trucking Alliance (FTA)
Full Truck Alliance Co. Ltd. (NYSE: YMM) is a leading digital freight platform connecting shippers with truckers to facilitate shipments. FTA provides a range of freight matching services, including freight listing, freight brokerage and online transaction services. FTA also provides a range of value-added services that connect shippers and truckers with financial institutions, highway authorities, gas station operators, and other affiliated networks. With a mission to make logistics smarter and more efficient, FTA is shaping the future of shipping with improvements across the value chain while also greatly reducing the carbon footprint of shipping. For more information, please visit ir.fulltruckalliance.com.
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CONTACT: Full Truck Alliance Co. Ltd. yuxuan.zhuo@ecoinst.ca
