Why the UNCTAD SFT Framework

Freight transport enables economic growth, provides access to markets, connects producers and consumers, determines trade competitiveness, supports effective integration into global supply chains, and contributes to social progress and inclusive development. At the same time, however, freight transport activity also generates external costs that undermine sustainability objectives such as economic efficiency, social inclusiveness and environmental protection. Widely known as “externalities”, common freight transport-related external costs include, among others, congestion, pollution, fossil fuel depletion, infrastructure degradation, accidents, Greenhouse Gas emissions (GHG), vibration, noise and visual intrusion. The figure illustrates the share of freight transport in vehicle ownership, travel, and energy consumption, and its contribution to air emissions in 2010.

Key Freight Transport-related Data

The sustainability policy concept originates from the Brundtland Report of 1987 entitled “Our Common Future”. The Brundtland Report documented the increasing environmental degradation, poverty, and hardships in an ever more polluted world among ever decreasing resources. It recommended action to ensure that the needs of the present be met without compromising the ability of future generations to meet their own needs. This concept has been re-interpreted as encompassing three dimensions, namely economic, social and environmental. This sustainability argument can be visualized in mathematics as to maximise the “product” of all three dimensions - economy, society and environment.

In the figure below, the “sum” of scores in all four scenarios is the same, i.e. 15. However, in the unsustainable transport scenarios, one dimension is prioritised over other dimensions and thus the “multiplication” value is only 81. In the sustainable transport scenario where all dimensions are equally prioritised, the “multiplication” value is 125. Clearly, no single dimension can be optimized to such an extent that one of the other dimensions is negatively affected too much.

Addressing these externalities requires that external costs from the freight transport sector be internalised and that the sector’s ability to meet relevant sustainability objectives be improved. This entails a careful management of priorities and trade-offs to strike the right balance between the varied economic, social, and environmental sustainability objectives (also explained in the sustainability triangle link). Together, the 2030 Agenda for Sustainable Development (ASD), the Sustainable Development Goals (SDGs) that came into effect in January 2016, and the 2015 Paris Agreement on Climate Change, provide the global framework for advancing the sustainability agenda across all economic sectors including freight transport. For further information, see the link on Sustainable Freight Transport and Linkages to Relevant Global Processes on Sustainable Development.

Against this background, UNCTAD has, over recent years, intensified its work on sustainable freight transport to help developing countries, improve their understanding of the three dimensions of sustainability. UNCTAD’s interventions aim to build and strengthen the capacity of key freight transport stakeholders, including government authorities, policy makers, transport infrastructure managers, freight transport and logistic service providers, and shippers, to effectively plan, design, develop, and implement sustainable freight transport solutions.

A key contribution in this respect, is the UNCTAD Framework for Sustainable Freight Transport (UNCTAD SFT Framework) that provides guidance and practical tools to mainstream sustainability considerations into freight transport-related policies, plans, operations, and investment decisions.

The SFT Framework is part of the United Nations Development Account Project "Building Capacities of Developing Countries to Shift Towards Sustainable Freight Transport".

Freight Transport Share in Vehicle Ownership, Travel, Energy Consumption, and Air Emissions in 2010 (ICCT, 2012)

Sustainable Freight Transport and Linkages to Relevant Global Processes on Sustainable Development

The transport sector including freight transport is at the intersection of several global processes in particular the 2030 Agenda for Sustainable Development and the related Sustainable Development Goals (SDGs) as well as the 2015 Paris Agreement on Climate Change. The Freight transport sector is increasingly expected to address negative externalities arising from the sector’s activities. These include, to name but a few, air pollution, carbon emissions, congestion and road traffic accidents. Global processes of direct relevance to the freight transport sector and which underscore the need for the sector to balance its economic, social and environmental objectives are as follows:

The 2030 Agenda for Sustainable Development and the Sustainable Development Goals. The 15-year global framework came into effect in January 2016. Transport, including the freight transport was not specifically or explicitly mentioned in the SDGs. However, it was recognised as critical for the realisation of other SDGs. Eight out of the seventeen SDGs have included freight transport-related targets (Goals 2, 3, 6, 7, 9, 11, 12, 13). Table 1 illustrates the cross-cutting role of the freight transport sector as a key enabler of an effective and workable sustainable development agenda.

Table 1: The Freight Transport Sector and the Sustainable Development Goals

Goals	Target
SDG targets directly related to freight transport
3. Ensure healthy lives and promote well-being for all at all ages (Road Safety)	3.6 By 2020, halve the number of global deaths and injuries from road traffic accidents.
7. Ensure access to affordable, reliable, sustainable and modern energy for all (Energy efficiency)	7.3 By 2030, double the global rate of improvement in energy efficiency.
9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation (Sustainable infrastructure)	9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and trans-border infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
11. Make cities and human settlements inclusive, safe, resilient and sustainable (Sustainable (urban) transport for all)	11.2 By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons.
12. Ensure sustainable consumption and production patterns (Fuel subsidies)	12.c Rationalize inefficient fossil-fuel subsidies that encourage wasteful consumption by removing market distortions, in accordance with national circumstances, including by restructuring taxation and phasing out those harmful subsidies, where they exist, to reflect their environmental impacts, taking fully into account the specific needs and conditions of developing countries and minimizing the possible adverse impacts on their development in a manner that protects the poor and the affected communities.
SDG targets indirectly related to freight transport
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture (Agricultural productivity)	2.3 By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment.
3. Ensure healthy lives and promote well-being for all at all ages (Air pollution)	3.9 By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.
6. Ensure access to water and sanitation for all	6.1 By 2030, achieve universal and equitable access to safe and affordable drinking water for all. 6.3 By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally.
11. Make cities and human settlements inclusive, safe, resilient and sustainable (Sustainable cities)	11.6 By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
12. Ensure sustainable consumption and production patterns (Food loss and waste)	12.3 By 2030, halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including post-harvest losses. 12.6 Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.
13. Take urgent action to combat climate change and its impacts	13.1 Strengthen resilience and adaptive capacity to climate related hazards and natural disasters in all countries 13.2 integrate climate change measures into national policies, strategies, and planning.

The Global Decade of Action on Road Safety 2011-2020: Its overall goal is to stabilize and then reduce the level of road traffic fatalities around the world by 2020. The global Plan serves as a tool to support the development of national and local plans of action, while simultaneously providing a framework to allow coordinated activities at regional and global levels.
The New urban agenda (Habitat III): It promotes age-and gender-responsive planning and investment for sustainable, safe and accessible urban mobility for all and resource-efficient transport systems for passengers and freight, effectively linking people, places, goods, services and economic opportunities. It prioritises Urban Freight Transport Planning and logistics concepts that enable efficient access to products and services, minimising their impact on the environment and on the liveability of the city and maximising their contribution to sustained, inclusive and sustainable economic growth.
The Addis Ababa Action Agenda of the Third International Conference on Financing for Development: It considers the needs to address the special challenges and needs of landlocked developing countries in structurally transforming their economies, harnessing benefits from international trade, and developing efficient transport and transit systems.
The Paris Agreement on climate change: Adopted in December 2015 under the auspices of the United Nations Framework Convention on Climate Change (UNFCCC), it aims to strengthen the global response to the threat of climate change by mitigating the carbon emissions and keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius. Additionally, the Agreement seeks to reinforce the ability of countries to deal with climate change impacts through resilience-building and adaptation action.
The Sendai Framework for Disaster Risk Reduction 2015-2030: It prioritises the resilience of new and existing critical infrastructure, including water, transportation and telecommunications infrastructure, educational facilities, hospitals and other health facilities, to ensure that they remain safe, effective and operational during and after disasters in order to provide live-saving and essential services.
The Vienna Programme of Action for Landlocked Developing Countries for the Decade 2014-2024: It confirms that the high transport and trade transaction costs remain a major stumbling block in the pursuit of landlocked developing countries to achieve their trade potential. The Programme of Action prioritises the development of adequate transit transport infrastructure networks and the completion of missing links connecting landlocked developing countries.
The SIDS Accelerated Modalities of Action (SAMOA) Pathway: It prioritises the development of a strategy and of targeted measures to promote energy efficiency and foster sustainable energy systems in small island developing States.
The Istanbul Programme of Action for the Least Developed Countries for the Decade 2011-2020: It aims to develop and implement comprehensive national policies and plans for infrastructure development and maintenance encompassing all modes of transportation, communications and energy.

Table 2 highlights the way in which sustainable freight transport objectives interlink with the relevant international development processes.

Table 2: Sustainable Freight Transport Objectives and Linkages to Relevant Global Processes on Sustainable Development

Dimension	Objective	2030 Agenda for Sustainable Development (SDGs)	Paris Agreement	Decade of Action for Road Safety 2011-2020	Habitat III New Urban Agenda (NUA) (draft)	Financing for Development: Addis Ababa Action Agenda	Sendai Framework on Disaster Risk Reduction
Economic	Improve Trade Competitiveness
Economic	Transport Costs
Economic	Energy efficiency/Fuel use
Economic	Quality and Reliability
Economic	Infrastructure Investment/Fiscal Burden
Economic	Freight Transport Productivity
Economic	Sustainable Production and Consumption
Economic	Resilience and Operational Continuity
Economic	Connectivity and Market Access
Social	Safety
Social	Security
Social	Employment
Social	Labour Conditions
Social	Affordability
Social	Aesthetic Impacts
Social	Cultural Preservation
Social	Health
Social	Noise and Vibration
Environmental	Air Pollution
Environmental	GHG Emissions
Environmental	Water Pollution
Environmental	Resource Depletion
Environmental	Land Use and Habitat Fragmentation
Environmental	Waste
Environmental	Biodiversity and Ecosystems
Environmental	Soil Quality
Environmental	Climate Resilience