| Shenzhen, recognized as the inaugural city worldwide to implement zero-emission freight zones in 2018, established 10 "green logistic zones." These zones permit all-day access for electric freight vehicles under 4.5 tonnes while banning fossil fuel freight vehicles entirely. By the end of 2019, Shenzhen boasted over 70,000 battery-electric freight vehicles in operation, surpassing the number of electric buses and taxis, marking the city as home to the largest operational electric fleet. Despite covering a mere 1.1% of Shenzhen's land area, these zones, ranging in size from 0.4 to 5.4 square kilometres, wielded significant influence. The city government utilized hot-spot modelling to identify optimal locations and engaged in extensive consultations with local stakeholders for collaborative zone planning. The zones, strategically located in major business centres and densely populated residential areas affected by air pollution, are bounded by major roads to facilitate enforcement and offer alternative routes for traffic. Certain vehicle classes, notably refrigerated vehicles and heavy-duty tractors were exempted due to electrification challenges. |
 Figure: The Land Coverages of Shenzhen’s Green Logistic Zones (World Resources Institute) |
| In addition to that, the successful implementation of zero-emission freight zones in Shenzhen primarily relies on its financial incentives and vehicle leasing programs. These initiatives play a crucial role, particularly for small logistics providers, by mitigating cost challenges and transferring risks. Prior to the establishment of green logistic zones, Shenzhen implemented substantial financial incentives to ensure the competitiveness of zero-emission freight vehicles. Alongside significant subsidies for vehicle purchases, Shenzhen became the first Chinese city to offer operational subsidies for electric freight vehicles, effectively covering charging costs. Additionally, electric freight vehicles benefit from one hour of complimentary curb-side parking. Moreover, rather than purchasing electric vehicles outright, many companies in Shenzhen opt to lease them from third-party providers, reducing upfront investments and shifting risk to the lessors. Some lessors also offer additional services, such as consolidating shipments from multiple companies to form larger loads and utilizing information systems to identify emerging demands. Shenzhen's experience emphasizes starting with small zones and engaging stakeholders extensively. Financial incentives and vehicle leasing have been crucial for overcoming cost barriers. While some cities lack the resources for extensive subsidies, voluntary schemes and champion companies can kickstart electrification efforts. Lessons from Shenzhen include the importance of well-designed zones to prevent emissions leakage and the need for strong enforcement. Despite challenges, zero-emission zones can drive momentum for freight vehicle electrification through supportive policies, incentives, and effective enforcement. |