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The Road to Green: AI and Sustainable Fuels Tackle Transportation Emissions

April 30, 2025
Organizations explore dual strategies for a lower-carbon future in logistics and transportation.

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As one of the largest contributors to anthropogenic U.S. greenhouse gas (GHG) emissions, the transportation sector is continually seeking new ways to reduce its carbon footprint. According to the EPA, transportation accounted for the largest portion (28%) of total U.S. GHG emissions in 2022. Cars, trucks, commercial aircraft and railroads, among other sources, all contribute to transportation end-use sector emissions.

Most transportation GHGs are carbon dioxide (CO2) emissions resulting from the combustion of petroleum-based products, like gasoline and diesel fuel, in internal combustion engines, the EPA reports. The largest sources of transportation-related GHG emissions include passenger cars, medium- and heavy-duty trucks, and light-duty trucks, including sport utility vehicles, pickup trucks and minivans. These sources account for over half of the emissions from the transportation sector.

The remaining transportation GHGs come from other modes of transportation, including commercial aircraft, ships, boats and trains, as well as pipelines and lubricants. Indirect emissions from electricity comprise less than 1% of direct emissions.

Emissions on the Rise

A new report from InTek Logistics paints a picture of a trucking industry that’s losing ground in its effort to reduce GHG emissions. In 2023, total CO2 emissions from freight trucking across all 50 states reached 392 million metric tons. This figure is forecasted to rise to 420 million metric tons by 2025 (a 7% increase). 

The company says Texas, California and Illinois rank among the highest-emission states for both freight origins and destinations. “As major freight hubs, they contribute significantly to trucking emissions,” it explains, “but they also present key opportunities to reduce impact by shifting more freight to rail and intermodal transport.”

Individual companies are taking steps to reduce their CO2 emissions. For example, DHL Group is working with Neste, a provider of renewable diesel and sustainable aviation fuel, to reduce its logistics emissions. The companies are jointly evaluating how Neste’s renewable solutions can support DHL in its decarbonization targets in air and road transportation.

“DHL Group aims to achieve net-zero GHG emission logistics by 2050,” Neste said in a
press release. “Interim targets by 2030 include electrifying two-thirds of last-mile delivery vehicles and increasing the share of more sustainable fuels across all transportation modes to more than 30%, which also includes the use of sustainable aviation fuel (SAF).”


DHL and Neste are developing a commercial model that would gradually lead to the offtake of around 300,000 tons of neat or “unblended” SAF per year by 2030 and enable the sale and purchase of additional volumes of SAF. DHL and Neste are also exploring the use of renewable diesel fuel to support the former in achieving its decarbonization targets in road transportation.

AI as a Net Zero Enabler

Artificial intelligence (AI) is one tool that may help transportation companies meet their GHG reduction goals. ARC Advisory Group’s Jim Frazer writes about the possibilities in Logistics Viewpoints, and discusses the link between AI and sustainable freight logistics. 
 

“AI is playing an increasingly pragmatic role in optimizing supply chain operations,” Frazer points out. “As regulatory requirements expand and customers demand greener practices, AI helps logistics firms align sustainability goals with operational outcomes.”

Frazer says AI is “uniquely positioned” to address issues like empty return trips and unoptimized delivery routes by “ingesting data from across the network and delivering actionable insights for planners and fleet operators.” For example, last year global shipping firm CMA CGM partnered with Google Cloud to deploy AI across its global logistics network. The project focuses on optimizing vessel routes, container handling and inland logistics to improve efficiency and reduce carbon emissions.  

In another example of the AI-supply chain sustainability connection, Mythos AI developed an autonomous vessel for conducting port depth surveys. “By providing more accurate and timely bathymetric data, the system enables shipping companies to optimize vessel loading without compromising safety,” Frazer writes. “This results in fewer trips, reduced fuel usage, and measurable emissions savings. The case exemplifies how targeted automation and AI can support decarbonization efforts in maritime logistics.”

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