The transportation sector is responsible for 23% of global greenhouse gas emissions with demand for freight doubling in the next 25 years (ITF, 2023). As other sectors are decarbonizing in absolute terms, CO2 emissions from transportation are expected to stay "flat". Due to this, the sector is on track to become the single largest emitter by 2050 (EEA, 2024; ITF, 2023).
However, digitization still remains an unrealized opportunity to decarbonize the sector. The ITF Initiative "Coalition for Reimagined Mobility" estimates that a higher level of digitization with improved freight data exchange alone can unlock a 22% reduction in emissions.
In this article, we examine the EU Regulation 2020/1056 on electronic Freight Transport Information (eFTI). At SINE, we regard this regulation as a significant opportunity to reduce transaction costs and unlock fully digital logistics processes. Based on our experience in enabling and promoting emissions transparency in the logistics sector, we have developed a set of questions to encourage dialogue and collaboration, aiming to contribute to the advancement of the eFTI ecosystem.
Background on the eFTI Regulation
The eFTI regulation aims to replace paper-based freight transport documentation with standardized electronic data across all EU transport modes. At border control, instead of presenting physical cargo documents, transport operators will provide authorities with electronic access links (such as QR codes) that allow instant, secure access to all required freight information stored on eFTI platforms. This eliminates the need for physical document handling, reduces processing time, and enables authorities to verify cargo information more efficiently. Through a series of milestones on the roadmap to its successful technical implementation, the eFTI regulation is planned to enter full force in 2027.
Linking eFTI with EU's decarbonization strategy
While current eFTI implementation initiatives like EFTI4EU and EFTI4ALL focus on the necessary platform-driven B2A communication, a new call in the Horizon Europe program (HORIZON-CL5-2026-01-D6-08) envisions the extension of eFTI platforms to include business to business (B2B) communication and integrate further use cases, derived services, and tools for both B2B and B2A communication. The call sets a particular focus on "greenhouse gases (GHG) reporting, sustainability claims and other actions leveraging efficient and green freight operations in the supply chain". This derives from the EU's strategic ambition to achieve climate neutrality by 2050. The sector’s high emissions naturally positions logistics in the focus of the EU's decarbonization efforts.
Emissions transparency in logistics – some observations and key questions
To unlock eFTI as a force for decarbonization, the most important change will be to expand its scope to cover business-to-business (B2B) scenarios as well. However, since freight is a truly global business, any further eFTI developments need to address the global connectedness of the sector. How can we facilitate access and minimize other technical and non-technical barriers, especially for non-EU-based organizations? Or how can we set up governance and other principles that will eventually enable interoperability at a global scale?
Second, the eFTI ecosystem will need to address cost and trust aspects of emissions reporting. Emission calculations should be based on a global standard – ISO 14083 – to assert the quality and comparability of reports. What are the most promising approaches to reduce the total effort for carbon emissions reporting? How can the EU or other organizations support the facilitation or establishment of interoperability standards, especially for IT systems’ integration, to reduce reporting costs even further?
Third, emissions reporting faces a fundamental tradeoff between transparency and privacy. How logistics companies design and operate their networks is highly sensitive business information. Similarly, transparency over energy usage, which can be deduced from CO2 emissions information in several cases, allows customers to reverse-engineer cost structures. Can we apply advanced technology, such as Zero-Knowledge Proofs, to address the privacy-transparency dilemma? Are there other organizational or legal measures we can take, such as standardizing contracts or establishing clearing houses, to foster data sharing and data collaboration for decarbonization purposes?
Fourth, judging from previous attempts, mandatory measures alone will not be sufficient for market success. So far, country-level regulation for mandatory CO2 emissions reporting did not gain sufficient market acceptance. Unfortunately, any attempts of mediation approaches where (central) platforms gather data, have also not reached sufficient market acceptance either. Which non-compulsory measures can be leveraged to enable market success?
Fifth, there are more than 1 million logistics companies in the EU economic area alone. To report CO2 emissions will require the development of new competences especially in SME logistics companies. How can we best support the development of such competencies? Which role can public procurement play? How can the creation of a market for software solutions be facilitated?
The iLEAP Project – SINE's joint work with SFC in the logistics sectors
For more than 1.5 years now, iLEAP is a global initiative to unlock logistics emissions transparency and decarbonization through digitization, with SINE and the Smart Freight Centre being its sponsors.
Published in May 2025, the foundational iLEAP standard was published. It is the joint work of more than 40 global organizations active in the logistics sector. The iLEAP standard enables all parties in the logistics sector to bilaterally and sovereignly transact on trusted emissions data.
Methodologically, iLEAP is rooted in ISO 14083 accounting principles to ensure emissions data meets high data quality standards such as comparability, representativeness, and completeness.
The iLEAP standard also enables digital connectivity by working with the logistics sector together with software and solution providers (a.k.a. interoperability). Today, more than 15 independent software implementations of iLEAP are being built.
At SINE, thanks to our joint work with the Smart Freight Centre, we are already addressing several of the aspects above. We could be keen to hear your thoughts. Please get in touch with us through LinkedIn or via email (reports@sine.foundation).
eFTI4EU - The first project making the EU Regulation 2020/1056 (eFTI) real. Available at: https://efti4eu.eu/
eFTI4ALL - Develop a fully integrated, streamlined electronic freight transport across EU. Available at: https://efti4all.eu/
European Commission. (2026). HORIZON-CL5-2026-01-D6-08: Accelerating freight transport and logistics digital innovation. Horizon Europe Programme, Cluster 5
European Environment Agency. (2024). Greenhouse gas emissions from transport in Europe
Eurostat. (2025). Businesses in the transportation and storage sector
International Transport Forum (ITF). (2023). “ITF Transport Outlook 2023: Summary”, OECD Publishing, Paris
International Transport Forum (ITF). (2022). “Solving the Global Supply Chain Crisis with Data Sharing”
WBCSD (2025). PACT Methodology V2: Guidance for the Accounting and Exchange of Product Life Cycle Emissions
WBCSD, SINE. (2024). PACT Technical Specifications v2.2
Smart Freight Centre. (2023). GLEC Framework for Logistics Emissions Methodologies v3.1. Global Logistics Emissions Council.
International Organization for Standardization. (2023). ISO 14083:2023 - Quantification and reporting of greenhouse gas emissions arising from transport chain operations
World Resources Institute & World Business Council for Sustainable Development. (2011). Corporate Value Chain (Scope 3) Accounting and Reporting Standard. GHG Protocol
SINE and SFC. (2025). iLEAP - Open standard for logistics emissions data exchange
European Parliament. (2025). CountEmissionsEU - Measuring emissions from transport services