Decarbonization

The decarbonization of the economy and industry is one of the central challenges of this century. It is fundamentally changing how companies produce, transport, and operate.

The focus is on solutions that are both economically viable and climate-friendly – such as alternative propulsion systems, energy-efficient warehousing and conveyor technology, optimized transport and return networks, or the use of sustainable energy sources and recyclable materials.

Team analysiert globale Klimadaten und Dekarbonisierungsstrategien vor digitalen Weltkarten und Diagrammen in nachhaltigem Büro.
© stock.adobe.com - CStock

Decarbonizing the economy

Decarbonization is essentially understood as the reduction of CO2 and the long-term avoidance of carbon dioxide emissions. It is radically reshaping production, transport, and trade processes. The overarching goal, according to the ASI framework (Avoid, Shift, Improve), is to reduce emissions by avoiding resource consumption and the associated emissions, and by using resources more efficiently or in different ways within the context of sustainable and circular value creation systems.

The challenges of climate change and resource scarcity, combined with the urgently needed transformation in logistics and mobility, require innovative, scientifically sound solutions. Corporate success is increasingly measured by the ability to implement energy-efficient and climate-neutral processes, integrate alternative energy sources, and use materials with a lower ecological footprint while keeping them in the value chain for as long as possible through circular management. The production and distribution of goods can no longer be ensured by available technologies alone: Key success factors include the availability of climate-friendly energy, sustainable materials, and resilient supply chains.

Our services

Fraunhofer IML offers forward-looking ecological and economic analyses through holistic concepts, technologies, and services for the decarbonization of production, logistics, and the circular economy.

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Support for decarbonization

We support manufacturing companies – such as manufacturers of logistics equipment and energy system components – as well as logistics service providers, organizations, associations, and municipalities in the design and implementation of decarbonization strategies.

In the areas of accounting, reporting, and strategy, we offer the following services:

  • Life-cycle assessments (LCA) with total cost of ownership (TCO) analyses
  • CSRD reporting
  • GHG emissions accounting (Product Carbon Footprint, Corporate Carbon Footprint)
  • Energy audits in accordance with EDL-G (German Act on Energy Services and Other Energy Efficiency Measures)
  • Development of sustainable business models and logistics concepts

In the area of optimization and implementation, we offer the following services:

  • Material flow and transport optimization
  • Planning of return systems (reverse logistics)
  • Development of renewable energy
  • Load and packaging optimization

These services aim not only to analyze decarbonization but also to implement it concretely in production, logistics, and the circular economy.

7 Approaches to decarbonizing logistics

    Decarbonizing logistics is becoming increasingly important, as transportation, storage, and handling account for a significant portion of global CO₂ emissions. Companies face the challenge of implementing solutions that are both economically viable and climate-friendly – for example, through alternative propulsion systems, energy-efficient warehousing and material handling technology, optimized transport and return networks, or the use of sustainable energy sources and recyclable materials. Added to this are rising requirements stemming from reporting and regulatory mandates, as well as uncertainties regarding technological maturity, infrastructure, and investment costs. This is because the transformation and expansion of energy systems in Germany also entail many logistical challenges – a reason for us to view this topic as an enabler for successful decarbonization and electrification.

The top 7 approaches for decarbonizing logistics are considered to be (ranked by estimated potential):

  1. Renewable energies in combination with electrification, hybrid, and hydrogen propulsion systems
  2. Multimodal optimization
  3. Load consolidation and optimization
  4. Use of efficient vehicles, ships, and fleets
  5. Synchromodality and synchronization of goods flows
  6. Improvement of fleet utilization
  7. Supply chain restructuring

Together with Fraunhofer IML, new concepts and business models for decarbonized logistics can be developed and implemented.


“The decarbonization of logistics is not an isolated technological challenge – it requires a systemic transformation of supply chains, business models, and transportation infrastructure. Only by combining alternative propulsion systems, digitalization, and intelligent network design can we achieve our ambitious climate goals.”
Jan-Philipp Jarmer, research associate at Fraunhofer IML in the field of decarbonization.

Two concrete levers from practice

Decarbonization starts with transparency: Only those who know their emissions can take targeted countermeasures. On this basis, structures, processes, and supply chains can be systematically optimized, and KPIs can be reported in a meaningful way.

A concrete example: packaging optimization. In many companies, the volume utilization rate of cardboard boxes is significantly below the economically and ecologically sensible level. With the European Packaging and Packaging Waste Regulation (PPWR), which will require a minimum volume utilization of 50 percent in the future, this transparency becomes a strategic success factor.

A second key focus area: the targeted take-back and reprocessing of products in the spirit of a circular economy. How can take-back networks be designed to be both economically viable and environmentally sustainable, and how can they be established in the market? We are exploring this question in the context of battery raw materials, rare earths, plastics, and textiles—for genuine resource conservation and measurable emission reductions.

Decarbonization: our references

Embodied carbon footprint of intralogistics systems

Manufacturers are increasingly being asked by their customers about the environmental impacts of the products they purchase. One example is the greenhouse gas (GHG) emissions associated with the production, assembly, and commissioning of intralogistics systems – i.e., upstream Scope 3 emissions. In a joint study, Fraunhofer IML is supporting the technology company TGW Logistics in the quantitative assessment of its product portfolio: at the level of products, product groups, and individual systems.

Embodied carbon footprint of intralogistics systems

Der Stingray Shuttle des Technologieunternehmens TGW Logistics ist ein Shuttle-System für Kartons, Behälter und Hängeware, welches als eins der Referenzprodukte in der Studie vom Fraunhofer IML betrachtet wurde.
© TGW Group

GHG assessment tool for logistics sites

The Fraunhofer IML’s “REff Tool®” helps companies measure and monitor resource consumption and greenhouse gas emissions at logistics sites. It provides an ISO 14083-compliant calculation of the carbon footprint based on specific locations and enables the generation of key performance indicators for emissions intensity.

GHG assessment tool for logistics sites

Das Logo vom REff Tool

Energy efficiency of production and logistics networks

The “E²-Design” research project aims to integrate energy efficiency as a key performance indicator into the strategic and tactical planning of production and logistics networks. To this end, methods, models, and a cloud-based toolbox have been developed that enable companies to systematically identify and leverage energy-saving potential. This lays the foundation for more efficient networks as well as significant CO₂ reductions across the entire value chain.

Energy efficiency of production and logistics networks

Das Logo zum Forschungsprojekt E2-Design

Environmental sustainability of packaging systems

The “SustainPack” project offers an expert tool for assessing the environmental sustainability of packaging systems. It analyzes the entire life cycle of packaging, determines relevant metrics such as the carbon footprint, and enables the identification of specific opportunities for optimization. The goal is to support companies in the development and implementation of sustainable packaging strategies.

Environmental sustainability of packaging systems

Das Logo vom Forschungsprojekt Sustain Pack

PPWR implementation with CASTN

The “CASTN” (Carton Set Optimization) project is developing a software solution for optimizing shipping cartons that helps companies minimize the air volume in cartons and reduce packaging material. With an eye toward the European Packaging and Packaging Waste Regulation (PPWR), which mandates a minimum volume utilization of 50% starting in 2030, CASTN provides transparency regarding volume utilization and offers data-driven optimization options. This helps companies meet legal requirements, increase resource efficiency, and reduce costs at the same time.

PPWR implementation with CASTN

CASTN-Logo mit dem Kürzel IML rechts daneben für das CASTN-IML-Modell

We are driving the decarbonization of the economy and industry!

Our support doesn’t end with concept development – we guide companies from analysis through implementation to the successful execution of the jointly developed decarbonization strategy.

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FAQ about decarbonization

  • Decarbonization refers to the reduction of greenhouse gas emissions, particularly carbon dioxide (CO₂), in the economy and society. The goal is to avoid resource consumption and, for example, replace fossil fuels with climate-friendly alternatives, thereby limiting climate change. This encompasses measures across all sectors, from energy and industry to mobility and buildings.

  • Industrial decarbonization refers to the transition of industrial processes to low-emission technologies. This includes material savings, material substitution, the use of renewable energies and innovative production processes, as well as the capture and storage of CO2. The goal is to sustainably reduce CO₂ emissions in industry while remaining economically competitive.

  • Net-zero means that all remaining greenhouse gas emissions are offset by appropriate measures such as CO₂ storage or compensation. The goal is to ensure that no additional greenhouse gases are released into the atmosphere. This achieves a balance between emitted and sequestered emissions.

  • The 5 pillars of decarbonization are fundamental strategies for sustainably reducing greenhouse gas emissions, particularly in industry and logistics. These include:

    1. Use of renewable energy to reduce fossil fuels
    2. Energy efficiency through optimized processes and technologies
    3. Electrification, for example through e-mobility and electric production processes
    4. Decarbonization of supply chains for key materials, for example via hydrogen or carbon recycling
    5. Circular economy to maximize material recycling.

    These approaches are combined to reduce emissions across all sectors. They form the foundation for a sustainable transformation of the economy and society.

  • CO₂ is considered a greenhouse gas because its molecules in the atmosphere absorb long-wave infrared radiation (heat) emitted by the Earth’s surface. It is produced primarily during the combustion of fossil fuels and contributes significantly to the greenhouse effect. Reducing CO₂ emissions is therefore central to climate protection.