High costs and poor infrastructure stall green shift in road transport, IRU warns

High costs and poor infrastructure stall green shift in road transport, IRU warns

trans.info — 2025-09-04

Land transportation

Road transport’s path to net zero is being slowed by soaring costs, patchy infrastructure and reluctant customers, according to a new global survey by the International Road Transport Union (IRU).

RU’s Green Compact survey assessed the decarbonisation status and investment plans of operators in Australia, Central Asia, Europe, Mexico and Türkiye. Reflecting the dominance of smaller players in the sector, 86% of respondents were small and medium-sized enterprises (SMEs).

Rising costs and customer resistance block transition

 The survey found that vehicle and energy costs remain the single biggest challenge. Many operators also reported reluctance from clients to absorb higher transport prices associated with low-carbon fleets. For instance, 67% of respondents in Australia and 58% in Europe said customers were unwilling to share additional costs.

Infrastructure deficits compound these financial pressures. In Türkiye, 70% of operators reported difficulties in installing depot chargers, while half of Central Asian companies cited challenges in procuring alternatively fuelled trucks. In Europe, 60% of respondents pointed to the lack of public recharging facilities as a major constraint. 

As a result, conventional diesel is set to remain dominant in the medium term. According to IRU, 90% of operators still plan to purchase new diesel vehicles in the future. 

SMEs squeezed between policy targets and market realities

 IRU Secretary General Umberto de Pretto argued that the findings expose a structural disconnect between policy ambitions and operational realities.

“If we don’t remove cost and infrastructure barriers in particular, alternatively fuelled vehicles will be almost impossible to buy and operate for many companies, putting at risk our global net-zero commitments,” he added.

IRU calls for incentives and regulatory clarity 

The survey highlights not only financial and infrastructure barriers but also the absence of what IRU describes as “enabling conditions”. These include regulatory clarity, support schemes, and the technical feasibility of integrating new fuels into logistics networks.

“This report demonstrates something that we have been saying for a long time: without the right enabling conditions, millions of road transport operators around the world will not be able to buy or run alternatively fuelled vehicles,” de Pretto said.

He called on governments to accelerate investment incentives, reduce risk, and expand infrastructure to ensure operators can make viable long-term decisions.

Efficiency measures and passenger transport also under review

 The Green Compact survey also examined wider efficiency measures such as driver training, vehicle technologies, and logistics optimisation, as well as trends in passenger transport. The full 90-page report includes regional breakdowns, assessments of current regulatory approaches, and an outline of the conditions deemed necessary for meaningful decarbonisation in the road transport sector.