City logistics is under pressure. Zero-emission zones are rolling out, streets are busier than ever, and public space is scarce. At the same time, new technologies and business models are emerging—from e-cargo bikes and autonomous robots to digital curb management platforms and microhubs. The challenge is clear: how do we create room to experiment, without compromising safety, fairness, or public trust?
One answer is the regulatory sandbox. Borrowed from the financial sector, sandboxes provide a structured approach to testing innovations in a real-world setting, under temporary and tailored rules. Instead of enforcing the whole regulatory framework from day one, cities allow innovators to experiment within defined boundaries (time, place, scale) while closely monitoring outcomes.
Testing innovations in a real-world setting
To meet the ambitious goals of the European Green Deal and REPowerEU, the European Commission asked ETIP SNET to explore how regulatory sandboxes can speed up innovation in the energy sector.
A regulatory sandbox, as defined by CEER, is a framework that allows innovators to test new products, services, or methods under real-world conditions for a limited time. Sometimes this includes temporary exemptions from existing regulations, though this is not always necessary.
Key characteristics of sandboxes are that they focus on supporting innovation and regulatory learning, operate for a defined timeframe, and are limited in scope to a sector, region, or part of the network. They operate in near-real-world environments, often at high technology readiness levels (TRL 7–9), and may involve regulatory derogations.
Two main approaches can be distinguished. Regulators initiate policy-oriented sandboxes. To achieve specific goals, companies or stakeholders drive innovator-oriented sandboxes to bring new solutions to market. By creating space for experimentation and learning, regulatory sandboxes offer a way to balance innovation with safety and help Europe fast-track its clean energy transition.
Why sandboxes matter for city logistics
1. Lowering barriers for innovators
Start-ups, SMEs, and even established operators often struggle with regulatory uncertainty. A sandbox removes some of these hurdles, letting them pilot ideas like parcel lockers on sidewalks, shared loading zones, or AI-driven route optimization in practice.
2. Learning faster as a city
Municipalities don’t have the luxury of waiting years for perfect policy design. Sandboxes help regulators see how innovations work in practice—what impact they have on congestion, emissions, safety, and citizen acceptance—and adjust frameworks based on evidence.
3. Building trust across stakeholders
City logistics requires cooperation between governments, operators, shippers, tech providers, and residents. Sandboxes bring these actors to the same table, with shared data and agreed evaluation criteria. This strengthens legitimacy and makes scaling more realistic.
4. De-risking investments
Operators hesitate to invest in new fleets or technologies if the regulatory environment is uncertain. A sandbox signals commitment: if a city is willing to support experimentation, innovators are more confident to leap.
5. Managing risks in a controlled way
From delivery robots on sidewalks to dynamic curb pricing, every innovation carries its own set of risks. By limiting the scope of pilots and monitoring them closely, cities can identify unintended effects early, before they spread.
From pilots to permanent regulation
Sandboxes are not just about temporary freedom. They are pathways to smarter, evidence-based regulation. Results can inform new standards for e-cargo bikes, permanent rules for parcel lockers, or national frameworks for curb management. When successful, sandbox models can be scaled up across regions and even at the EU level.
What’s next?
Imagine a logistics sandbox where:
• Autonomous delivery robots are tested on selected pedestrian routes under clear safety protocols.
• Microhubs use temporary permits on municipal land to prove their value in reducing urban traffic and stimulating consolidation.
• The use of waterways for city logistics with selected loading and unloading zones for last-mile delivery.
• Dynamic curb management apps run in parallel with existing loading bays, providing data on demand and compliance and supporting intelligent access.
• Circular city logistics concepts for construction logistics and e-waste with permits for LSPs.
Each of these experiments gives us the knowledge we need to design the rules of tomorrow’s city logistics.
City logistics professionals know the urgency: we must innovate, but we cannot gamble with safety, fairness, or liveability. Regulatory sandboxes offer the middle ground—a safe space for trial, error, and shared learning. The real question is not whether cities should use sandboxes, but how fast we can set them up.
Walther Ploos van Amstel.