By Ke Fang, The World Bank. Transforming Transportation 2011. Washington, D.C. January 27, 2011.

2. World Bank: Low Carbon Freight Transport & Logistics Initiatives in China and Brazil China Green Freight Initiatives Ke Fang, Shomik Raj Mehndiratta, Holly Krambeck The World Bank Transforming Transportation Roundtable Washington DC, January 27 2010

4. Road freight volume grew rapidly along with the fast growth of China’s manufactory-dominated economy. Total Freight Ton-Kilometers Transported by Road in Guangdong Province (1985 – 2008)

6. Poor fuel economy of trucks

7. A large portion of “empty miles”

8. Energy efficiency technologies and practices are not well utilized, despite potential fuel savings and economic benefits4

10. Lack of information and confidence on the performance, cost and availability of fuel efficiency technologiesNational and local governments are reluctant to take “heavy-handed” measures, worried about their impact on economic growth 5

11. Objectives of Green Freight Initiative Aiming to address the market failure by providing better information and better confidence in the performance of proved energy efficiency technologies and practices, increasing awareness and demand for energy efficiency technologies, and facilitating the increase of the technology supply in Chinese market. 6

12. Areas & Steps for Policy Intervention 7 4. Modal Shift 3. Improved Logistics 2. Behavior & Maintenance 1. Technologies

13. A Partnership Framework 8

14. The Project Development Process Snowball-effect: 9 Preparation of a demonstration project, incl. suveys of the industry and financing market Developing a conceptual framework for collaboration Dissemination Communication Training a tiny-sized pilot testing

15. Pilot Testing Carried out in Guangzhou, 2008-2009 Technology testing on 14 trucks in three truck fleets Tire systems Aerodynamics 10

17. 5,000 kg455/50R 22.5 RULE: For every 70 kPa under inflationis 1% penalty in fuel economy

18. Pilot Testing: Tire equipment (b) Aluminum wheels: reduces weight of wheel 12

19. Pilot Testing: Tire equipment (c) Automatic tire pressure monitoring system: keeps tire pressure more constant 13

20. Pilot Testing: Aerodynamics (a) Skirts: reduce wind underneath the trailer 14 HDPE plastic will last life of trailer

21. Pilot Testing: Aerodynamics (b) Nosecone: reduces turbulence 15

22. Pilot Testing: Aerodynamics (c) Gap fairing: reduces the tractor-trailer gap 16 Distance between back of cab and front of trailer Trailer Gap Will make difference in % of savings

24. Freight Logistics (CS Robinson, Safeway, Port of Tacoma)

25. Emissions Policy (California Resource Board )

26. Green Freight Technology & Financing (CSS)

28. Guangdong Demonstration Proj (1) Technology Demonstration Energy Efficiency truck technologies demonstration 1500-1800 trucks Pilot testing of logistics operation technologies: Pilot Advanced Brokerage Information System Pilot “Drop-and-Hook” freight operations 19

29. Guangdong Demonstration Proj (2) Innovative Finance Green Freight technology rebate based on the prevailing down payment rate for a truck loan performance-based payments based on the prevailing interest rate of a truck loan better access for SMEs to commercial finance creating quality pipeline projects for commercial banks sharing information between banks and SMEs 20

30. Guangdong Demonstration Proj (3) Large-scale Capacity Building Policy research Training for installation and operation of technologies Training for government officials and enterprise managers Marketing and branding Awareness raising and information dissemination “Green Freight Trade Fairs” and “Green Freight Submits” 21

31. Challenges Ahead Get the project implemented properly… “Green Freight Trade Fairs”: mobilizing stakeholders, particularly trucking companies and technology vendors Selecting participating companies Installing and operating technologies Monitoring and evaluation Making incentive payments Keep the “Snowball” rolling and keep it “Cool”… Nation-wide dissemination and consultation Policy dialogue with national agencies More demonstration and replication Development of green finance market 22

32. World Bank: Low Carbon Freight Transport & Logistics Initiatives in China and Brazil Brazil Green Freight Initiatives Georges Darido The World Bank Transforming Transportation Roundtable Washington DC, January 27 2010

33. Brazil Green Freight Initiatives Majority of all freight in Brazil carried by trucks Growth is expected to continue in net ton-kilometers: 886 billion in 2005 to 1,607 billion in 2023 (PNLT 2007) Mainstreaming “Green Trucks” Project, Phase I: Study and market surveys to understand the sector Seeking partners to conduct pilot tests of: Innovative, energy-efficiency technologies Improved behavior and maintenance practices Improved logistics Technical assistance to design/evaluate tests and conduct policy dialog Technical site visits for officials Workshop(s) to collect and disseminate findings 24

34. Approach according to market segment Profile of trucks fleet in Brazil (>1.3 million) by engine/emissions technology and type of ownership: 25 6-20 yrs >20 yrs

36. Project is a work-in-progress….lessons learned everyday! Questions and comments most welcome. Email: kfang@worldbank.org gdarido@worldbank.org Thank You! 27