Freight in a Low-Carbon Economy: Managing the Risks
Freight transportation is central to the global economy and remains highly dependent on fossil fuels, creating exposure to price shocks, supply disruption and decarbonisation pressures. While renewable electricity is expanding rapidly, road, rail, maritime and air transport each face distinct and sometimes challenging paths toward lower-carbon power.
Battery-electric vehicles are gaining ground in road freight, though higher repair costs and limited repair capacity remain material challenges. Maritime shipping has no clear single fuel solution, as alternatives such as LNG, ammonia, hydrogen, batteries, wind and nuclear involve trade-offs in cost, safety, infrastructure and scalability.
The report concludes that insurers can help transportation businesses manage their transition to the fuels of the future through risk consulting and innovative insurance solutions.
