Transports Climate Impact

Transport operations always contribute to the total climate impact of a product, as transportation occurs at several stages when viewed from a product's whole lifecycle perspective. The climate impact that arises depends on various factors such as vehicle type, fuel type, optimization of transport routes, and more.

To facilitate the work of reducing the climate impact from transportation operations, two practical calculation tools have been developed for both procurers and suppliers. These will be made available on this page shortly..

Guidance for Calculating Climate Emissions from Transport Operations

In public procurement, there is a significant need for support to calculate the climate impact of various transport services that constitute a part of the total climate emissions. A calculation tool has been developed to assist both procurers and suppliers.

The purpose of the calculation tool is to provide a sufficiently reliable basis to include in the evaluation process. The calculations are based on data that suppliers themselves input into the bid. It is assessed that overly detailed instructions at this stage would impose unrealistic demands on suppliers’ bids. Therefore, the calculation tool should primarily be used so that suppliers provide input data to calculate their climate emissions from transportation work under actual conditions, and at a later stage during contract execution.

The calculation tool needs to be tested in a number of case studies to gain practical experience with the method and its parameters. Over time, the tool should show that differences in suppliers’ climate emissions reflect the actual differences in emissions during the contract period. At a later stage, the tool can be further developed, and the forms can be supplemented so that the tool can be used for other procurement requirements. The goal is for the tool to be used both as a qualification requirement, for contract award in public procurement, and in the establishment of contract terms.

The Calculation Tool

General information

Procurers and suppliers have different commitments to ensure that information about climate-impacting emissions is collected and assessed in a clear and systematic manner. The tool consists of two Excel-based forms - one for suppliers and one for procurers.

In the first form, suppliers enter details about the assignment, vehicle, fuel consumption, emission factors, and transport operations. The second form, designed in the same way, is intended for procurers to transfer information from suppliers. In a separate tab, the climate calculations are performed based on the data reported by suppliers. The results are presented both as total climate emissions and emissions per quantity and kilometer.

Considerations for Suppliers

• Suppliers should ensure they can continually provide current information on fuel consumption for various vehicles, driving distances, load quantities, working hours, etc.
• In the form, suppliers should specify the type of fuel, the amount of each fuel type, and the total distance (vehicle kilometers) for the assignment. Sometimes there may be other aspects of the transport assignment that create a need for additional background information. Examples of such information may include the type of goods (which can be expressed in different units) and the total driving distance per year.
• Special attention is needed if the assignment is part of other transportation operations for suppliers where the same vehicles are used. The transports may need to be specified as a quantified part of the total transport distance for the vehicles. Note that such information may need to be treated confidentially by the procurer since consolidation is often part of a supplier’s business model.
• In the calculation tool, a supplier can specify their own value for the emission factor for climate emissions. This should only be done if they believe they are using a climate-friendly fuel better than the stated general value. In such cases, suppliers should justify and describe why; otherwise, it is interpreted as the supplier accepting the general value. An example of a climate-friendly fuel is the use of "Bra Miljöval" electricity for electric operation. Procurers should make their own assessment of such information.

Considerations for Procurers

• Procurers should clarify in the procurement documents that they reserve the right to verify all the information suppliers provide in the form. Unreasonable data in the form can lead to the bid being rejected.
• The data from the supplier's form is transferred to the procurer's own form. A fixed value for the energy content of each fuel is entered in the procurer's part of the tool but is not visible in the supplier’s form. A fixed value for climate emissions per energy unit of fuel is also entered in the tool (source: Swedish Energy Agency (Energimyndigheten)
• Procurers use the tool for their own calculations of climate emissions. If procurers require suppliers to report climate calculations annually as part of the assignment, there are opportunities to demand a certain regular reductions in total climate emissions. This can then, for example, be related to the possibility of achieving the goals set in the Paris Agreement - see background information above.
• Procurers may choose to reward suppliers who provide accurate data in climate calculation reports. Similarly, some form of penalty or similar can be imposed if the climate calculations contain inaccuracies or are not carried out correctly. Such measures provide incentives for suppliers to carry out the assignment in a serious manner, with the goal of reducing total fuel consumption through increased load factors and consolidation in transportation operations.

Adjustments for Different Goods

Goods must be packaged and adapted for the modes of transport used during the execution of the contract. Suppliers determine the specific adaptations that need to be considered depending on the type of goods and transport mode. Adaptations agreed upon with procurers need to be described in detail so that all suppliers are given the same conditions.

Calculations of Climate Impact

Climate emissions are often expressed in terms of carbon dioxide equivalents per specific unit (g CO2-e/…). The term “equivalent” means that other greenhouse gases than carbon dioxide are included in the calculations, in relation to the specific impact of carbon dioxide. In this way, the impact of all greenhouse gases can be summed up to a common total value. The tool’s calculations of climate emissions are based on fuel consumption during transportation work and focus on fossil carbon dioxide. From a lifecycle perspective, several aspects should be considered, such as extraction and refining of oil, manufacturing and maintenance of vehicles, and other transport-related work in the supply chain. Other greenhouse gases may also need to be included in the calculations.

The units to which the climate calculations can be related to are primarily:

• Quantity (tons, volume, number, other)
• Ton-kilometers
• Vehicle-kilometers

Which of these units is most appropriate mainly depends on the type and scope of the transportation operation, considering factors such as:

• The amount of transported goods
• The nature and requirements of these goods during transport
• Start and destination points
• Roads and transport modes intended for the goods

Note that goods may also refer to people, for example, in the procurement of transport services for persons and other person-related transport services.