Biofuels and Electric Hub Proposal Brings Together Experts, Researchers, Business Leaders, Decision-Makers and Government. Launch Ceremony Took Place During UN Event in New York.
The UN Global Compact Brazil Network and Scania have joined forces to create the Biofuels and Electric Hub. The proposal is to foster a discussion center focused on the decarbonization of road transport, bringing together experts, researchers, business leaders, decision-makers and government to promote an environment that favors the generation of projects and initiatives that accelerate the sector’s transition to a low-carbon economy. The initiative was presented during the Sustainable Development Goals (SDGs) in Brazil, held this week at the Delegates Dining Room (DDR), inside the UN headquarters in New York.
Coordinated by the Climate Action Platform and the Sustainable Agriculture Action Platform, both from the Brazilian network of the Global Compact, the Hub is a continuation of the Transportes Net Zero project (2022), with Scania being the leading company.
“The Biofuels and Electric Hub aims to offer participating companies a training journey, through clinics, seeking understanding about biofuels and electrification for the decarbonization of the road transport sector, which can be extended to the value chain. The journey to be built by the Hub will also provide networking among its members through regular meetings to implement projects, share best practices and monitor planned deliverables, as well as events to publicize the results obtained,” defines Carlo Pereira, CEO of the UN Global Compact Brazil Network.
“We know that transport is an essential part of our society and economy, but it is also a source of carbon emissions. Here is Scania, driving the shift towards a sustainable transport system, a decision that was made a decade ago and is more valid today than ever,” comments Christopher Podgorski, President and CEO of Scania in Latin America.
Group Brings Together Dozens of Companies from Various Segments
The group is currently made up of around 70 companies that operate in various areas – such as infrastructure, logistics, assemblers, energy segment, technology, financiers, among others. The composition of the group favors an environment with the potential to boost collective actions aimed at decarbonizing the road transport sector. In 2024, meetings were held with the Hub companies, where a methodology of collective actions developed by the World Bank is being implemented.
Currently, the mapping of challenges and opportunities for the decarbonization of the transport sector is underway. “This work will result in the identification of dozens of challenges, such as mapping public policies that help companies in the decarbonization process. It is also necessary to demystify some points, supposed difficulties surrounding the adoption of low-carbon energy sources, for example. Brazil has the capacity to produce biofuels and food sustainably without competition between the two activities or destruction of the environment. This proves that it is possible to combine productivity and sustainability,” explains Carlo.
“What we need to succeed in this race against time is to define the favorable conditions, such as infrastructure, network capacity, regulations and the business environment in a way that green decisions are not only the right ones, but also the profitable ones. It’s time to intensify the solutions. And here Brazil has the opportunity to make a great contribution by making biofuels scalable and embracing electricity for having one of the cleanest grids in the world,” emphasizes Christopher.
Opportunities for Decarbonization
Unlike Europe and other countries like China and the United States, where freight transport by road represents between 38% and 47% of transported cargo, in Brazil this percentage is above 60% (according to data from the National Transport Confederation – CNT). In 2018, Scania conducted the Pathways Study in four countries – Germany, China, the United States and Sweden, with the aim of understanding how fossil fuel-free commercial transport can become a reality by 2050. Thus, in 2021, there was the idea of applying the study methodology in Brazil, due to the country’s unique characteristics.
In this sense, the UN Global Compact Brazil Network in partnership with Scania and Bain, in addition to companies such as Ipiranga, BRF and Unidas, joined forces to create a Transport Working Group, the first phase of this project – carried out from January 2021 to February 2022. The WG was made up of 18 institutions and aimed to understand the need for transformation of the commercial road transport sector, considering vehicles, fuels and infrastructure, and to identify areas that will require investment, innovation, changes in public policies and risk reduction to enable the movement of cargo, goods and passengers with carbon neutrality by the year 2050.
The project results were systematized and published under the title “Commercial Transport Net Zero 2050: Paths to decarbonization of road transport in Brazil”, in Portuguese and English. The technological routes evaluated include Renewable Diesel (HVO), Biomethane, Battery electric vehicle (BEV) and Fuel cell electric vehicles (FCEV) and take into account 4 scenarios: Inertial, Innovation Boom, Changes in Public Policies and Great Leap. All of them consider a mix of the main fuel technologies and highlight the role of the two main drivers for the advancement in the production and use of these energy sources: regulation with public policies that encourage green initiatives and technological development that brings more efficient solutions.
Mobilization Between Public and Private Sectors is What Would Lead to Net Zero in 2050
The results showed that the only scenario that leads to Net Zero in 2050 is the Great Leap, where the public and private sectors work together to promote alternative fuels, accelerating technological development and investments in low-carbon energy, together with the need to use different energy technologies.
Furthermore, the study highlights that there are other important factors for Brazil to achieve Net Zero in this sector. These are: infrastructure to meet the needs of new solutions and consumer behavior to drive this movement.
About the UN Global Compact Brazil Network
As a special initiative of the UN Secretary-General, the United Nations Global Compact is a call for companies around the world to align their operations and strategies with ten universal principles in the areas of human rights, labor, environment and anti-corruption. Launched in 2000, the Global Compact guides and supports the global business community in advancing UN goals and values through responsible corporate practices. It has more than 20,000 participants distributed across 62 networks covering 77 countries, being the largest corporate sustainability initiative in the world. There are also 5 Hubs in different regions of the world and 14 regional managers responsible for the implementation process in more than 20 countries. For more information, follow @globalcompact on social media and visit our website at www.unglobalcompact.org
The UN Global Compact Brazil Network was created in 2003 and is today the second largest local network in the world, with more than 2,000 participants. The more than 50 projects conducted in the country mainly cover the following themes: Water, Food and Agriculture, Energy and Climate, Human Rights and Labor, Anti-Corruption, Engagement and Communication. For more information, follow @pactoglobalonubr on social media and visit our website at www.pactoglobal.org.br
About Scania – Scania is a world leader in providing transport solutions. Together with our partners and customers, we are driving the shift towards a sustainable transport system. In 2023, we delivered 91,652 trucks, 5,075 buses, as well as 13,871 industrial, marine and power generation engines to our customers. Net sales totaled more than SEK 204 billion, of which approximately 20% were related to services. Founded in 1891, Scania operates today in more than 100 countries and employs around 58,000 people. In Brazil, the manufacturer has been present since 1957. Research and development are carried out globally at our main headquarters in Södertälje, Sweden. Production takes place in Europe and Latin America, with regional product centers in Africa, Asia and Eurasia. Scania is part of the TRATON Group.
UN Global Compact Brazil Network Press Office:
InPress Porter Novelli | Regina Trombelli – regina.trombelli@inpresspni.com.br
Scania Press Office:
Bowler | Rachel Cardoso – rachel.cardoso@bowler.com.br