Grid access is becoming another major bottleneck. Even where operators are ready to invest, deployment is often slowed by limited capacity, long connection times, power delivery certainty and unpredictable electricity costs. The three A’s of the grid — accessibility, affordability and assurance — will be decisive for the business case of electrification.
At the same time, charging and refueling infrastructure must scale much faster. Around 70 percent of heavy-duty vehicle charging is expected to happen at depots, logistics centers and operational bases, yet policy support remains heavily focused on publicly accessible charging. Public charging is essential, but it will not be enough on its own. Public, semi-private and private infrastructure must function as an integrated system.
Investment conditions must also improve, especially for small and medium-sized enterprises, which represent the majority of the sector and face the greatest difficulty absorbing high upfront costs for vehicles and infrastructure. Investments could be de-risked if policymakers supported investments through grants, guarantees and blended finance. CO2-differentiated taxation and favorable tolling schemes across the EU can significantly improve the total cost of ownership of zero-emission vehicles.
The transition has a powerful built-in financing mechanism. If revenues generated by road transport, including ETS2 (a new emissions trading system) and road charging revenues, are reinvested in the sector’s decarbonization, they could unlock the scale of investment needed to accelerate change. But who will ensure that these funds are channeled back into the sector that generates them?
Policy must also reflect operational diversity. Commercial road transport is not a single use case. Long-haul freight, regional logistics, urban delivery, scheduled bus services and long-distance coach operations all face different technical and economic constraints. A one-size-fits-all approach will not work. While electrification will play a central role, it cannot be the only solution. Sustainable renewable and low-carbon fuels, including renewable and synthetic fuels, will be essential for long-distance operations and vehicle segments where alternatives remain limited.
Commercial road transport should therefore no longer be viewed primarily as a sector to regulate or decarbonize in isolation. It should be recognized for what it already is: a strategic enabler of resilience, competitiveness and economic security.
A coherent EU policy framework, including technology-neutral CO2 standards for both light- and heavy-duty vehicles, must recognize road transport as a long-term market for clean fuels. This would not only accelerate decarbonization in road transport but also support aviation and maritime sectors, which are expected to rely heavily on these fuels to achieve their own climate objectives.
