Expert Commentary on COP29: New Transport Emissions Rules to Impact Australian Businesses

Anthony Beavis, Managing Director of Körber Supply Chain Software APAC, has provided the following expert commentary on these developments:

On the ITF Report: “The ITF’s findings at the 29th Conference of the Parties confirm what we’ve been seeing in the market – a critical need for standardised emissions reporting and management tools. Companies must now transform how they track and optimise their transport operations, embracing data-led decisions across all aspects of the supply chain.

“Transportation Management Systems (TMS) will grow in importance as more organisations are forced to optimise transportation and reduce their carbon footprint. Sophistication in TMS development will impact all transportation modes—truckload, LTL, parcel, air, ocean, rail and intermodal—across all geographies. More shippers, 3PLs, freight forwarders and brokers have to optimise multimodal logistics to reduce carbon footprint and meet environmental goals.”

On the Historic UN Transport Alliance: “The unprecedented alignment of UN transport bodies signals an era of coordinated climate action across transport modes. This unity will accelerate the push for standardised emissions reporting and reduction strategies across global supply chains.

“Achieving net zero requires collaboration from industry and regulators, so it is encouraging to see the level of commitment to a unified transport approach at COP29.”

How can Australian companies proactively react: “The logistics and transport developments from COP29 confirm that technology will play an increasingly crucial role in supply chain sustainability. Companies will need partners to help them meet operational efficiency and environmental goals as the world transitions to net zero.

“For companies to accurately report their carbon emissions, they first need to establish a robust data collection infrastructure that can capture emissions data across their entire network – from suppliers and manufacturing to warehousing and last-mile delivery. Beyond the technical infrastructure, organisations need standardised calculation methodologies and reporting frameworks that can consolidate this complex web of emissions data into clear, actionable insights. This is especially important for Scope 3 emissions which often account for the majority of a company’s carbon footprint but are the most challenging to track.”

Please also see some additional information about the two key developments impacting transport and supply chains:

1. NEW ITF REPORT RELEASE AT COP29

About the International Transport Forum (ITF)

• The ITF is an intergovernmental organisation with 64 member countries
• Acts as a think tank for transport policy and organises the Annual Summit of transport ministers
• Operates as the only global body that covers all transport modes

Released 19/11 at COP29: ITF’s “GHG Emissions Accounting and Reporting for Transport” report

Key findings:

1. Critical timeline warning

1. • Transport emissions are not decreasing fast enough to meet 2050 targets
   • Growing transport demand is outpacing current decarbonisation efforts
   • The freight sector showing more progress than passenger transport in emissions standardisation

2. Regulatory transformation

2. • Shift from voluntary to mandatory reporting frameworks globally
   • Introduction of CountEmissions EU regulation based on ISO 14083:2023
   • California’s $1 bn revenue threshold for mandatory emissions reporting
   • EU’s CSRD implementation affecting global supply chains

3. Industry challenges

3. • Companies face increasing pressure for emissions transparency
   • Need for standardised calculation methods across transport modes
   • Growing investor focus on environmental performance
   • Rising compliance costs for international operations

2. HISTORIC TRANSPORT ALLIANCE ANNOUNCED AT COP29 on 20/11

Unprecedented UN Coalition:

• First-ever unified approach from three UN transport bodies: the International Civil Aviation Organisation (ICAO), International Maritime Organisation (IMO) and UNECE
• Joint commitment to tackle transport emissions across all sectors
• Shared vision for transition to low/zero-carbon fuel technologies
• Focus on transforming transport infrastructure

Key statistics driving the alliance

• Inland transport: 72% of transport-related CO2 emissions
• Road transport: 69% of sector emissions
• Aviation: 2.4% of total anthropogenic CO2 emissions
• Maritime: 2-3% of global emissions

UNECE Executive Secretary Tatiana Molcean’s Statement:

“UNECE’s Inland Transport Committee has adopted its Decarbonisation Strategy, setting an ambitious path towards net-zero emissions by 2050. This path will require transformative policy shifts, groundbreaking technological innovations, and the seamless integration of sustainable practices at all levels of governance.”