Defining decarbonisation in logistics: terminology explained

Decarbonisation is a priority for nearly everyone; from end-customers to policy makers. Since the signing of the Paris Agreement in 2015, accurate language around climate change mitigation efforts and emissions goals has become more and more important. As the Paris Agreement is a legally binding international treaty on climate change, making sure that companies and cultures understand the (at times very confusing) terminology of decarbonisation is important.

Here we break down some of the relevant terms of logistics with a decarbonisation glossary:

Biodiesel: Diesel fuel produced from organic fats and oils occurring in plants or animals. Some biodiesel can be utilised as a drop-in fuel, meaning that it is compatible with existing diesel engines and some needs to be blended into conventional diesel. Biodiesel is used as pilot fuel to ignite methanol and methane in dual-fuel engines.

Biogas: Primarily comprised of biomethane (CH4) and carbon dioxide (CO2), biogas is a mixture of gases produced from raw material wastes (such as sewage sludge, municipal waste, food waste, and manure). After removing carbon dioxide the biomethane can be compressed or liquified and used to power engines.

Bio-LNG: Liquified biomethane is the liquified form of biomethane. Methane becomes liquid at minus 163 degrees Celcius. To effectively transport methane in tanks it must be liquified, the gas is more easily transportable in tanks.

Biomethane: Biomethane is a methane produced from biogas that has had the carbon dioxide removed. Biomethane can be injected into the existing gas grid and used as fuel for heat, electricity, or automobiles.

Biomethanol: Alcohol produced from biomass such as wood waste, biomethanol is a biofuel that can be used in dedicated dual-fuel engines in combination with pilot fuel (biodiesel or conventional diesel). 

E-methanol: E-methanol is chemically the same as biomethanol, but it is produced using waste carbon dioxide, e.g. from upgrading biogas to biomethane, and hydrogen produced from electrolysis of water using renewable electricity like wind or solar power.  

Methane: A primary component of natural gas and biogas, methane is a greenhouse gas that can be converted into liquid form and used as a fuel. It has significantly higher global warming potential than carbon dioxide. 

Methanol: A type of alcohol that can be used as fuel for automobiles, ships, fuel cells, and stoves.

Net Zero: According to the Science Based Targets initiative, net zero is the reduction of scope 1, 2, and 3 emissions to zero, or a residual level that is consistent with reaching net zero GHG emissions at the global or industry level in eligible pathways to keep global warming within 1.5 degrees.

Renewable electricity: Electricity produced from renewable sources like solar, wind, hydro or biomass. Nuclear electricity is not considered renewable. 

Scope 1: Scope 1 emissions are defined by the GHG Protocol as direct greenhouse gas emissions, coming from sources that are owned or controlled by an organisation or company.

Scope 2: Scope 2 emissions are defined by the GHG Protocol as indirect GHG emissions from purchased energy to aid in the manufacturing and operations of a company's workflow.

Scope 3: Scope 3 emissions are classified by the GHG Protocol as indirect GHG emissions generated from a third party within a company's supply chain, such as fuel burned by a logistics provider. 

Well-to-tank (WTT) emissions: Also known as upstream emissions, well to tank emissions are the greenhouse gas emissions that are released into the atmosphere from the production, processing, and delivery of a fuel or energy source.

Well-to-wake (WTW) emissions: Sometimes referred to as well-to-wheel, this term goes one step further than well-to-tank to describe the GHG emissions that take place from the extraction of fuel to the end of its use cycle.

This article has been updated in November 2024. Due to the evolving nature of the decarbonisation landscape, it will continuously be reviewed and updated.