Full Truck Alliance aims for a greener trucking sector

Chinese truck-hailing platform Full Truck Alliance showcased its strategy for a greener, technology-driven trucking sector with lower emissions at the ongoing COP28 UN climate change conference in Dubai, the United Arab Emirates.

Chen Zhaohui, principal scientist at Full Truck Alliance, said in an online interview with China Daily on the sidelines of the COP28 that the company is exploring novel ways of reducing diesel consumption from trucking by billions of liters each year.

The transportation sector accounts for about a quarter of global greenhouse gas emissions. While advancements within each mode of transport are helping to increase efficiency, a full transition from fossil fuels is not imminent. Other forms of emission reductions in the industry are much needed in the meantime, Chen said.

Amid such a context, Full Truck Alliance, which runs a vast logistics operation within China, extending to over 340 cities and with nearly 3.8 million drivers on its platform, aims to reduce trucking emissions through a "sophisticated system to boost driver efficiency, which in turn significantly diminishes truck emissions while also lowering costs."

Key to this strategy is the partnership between FTA and China Everbright Bank, which motivates drivers through a "carbon account" system. Initiated in June, this scheme promotes an app for better route planning and fewer empty runs along with other efficiency-enhancing services. Drivers demonstrating emissions reductions benefit from favorable loan terms and interest rates from the bank.

According to Chen, early results from the carbon account system are encouraging, 3,000 drivers adopting the system cut diesel consumption by 150,000 liters, equivalent to a 400-ton reduction in carbon dioxide in just a month. They also experienced a 10-20 percent increase in completed orders and revenue, with a concurrent drop in fuel use and costs by over 20 percent.

These figures show that system-centric technology can more quickly and affordably improve efficiency and reduce emissions compared to upgrading physical infrastructure and equipment. Through this system FTA is facilitating an eco-friendly shift in the industry by syncing driver incentives with goals of reducing fuel use, Chen said.

It is expected that, by the end of 2023, more than one million truck drivers on the company's platform will apply to open carbon accounts, Chen said.