ICCT published an interesting blog about Zero-emission zones: The Netherlands’ path to cleaner urban freight. The blog presents lessons for other countries. But are these lessons true? What is really going on in the Netherlands? Are zero-emissions zones a no-regret measure for cities worldwide?
As of January 1, 2025, sixteen Dutch municipalities have implemented zero-emission zones (ZE zones) in their inner cities, following ten years of careful preparation with the transport sector. Some cities opted for small, carefully delineated zones; others chose more ambitious, larger areas. The idea behind ZE-zones is straightforward: within these zones, only vehicles that produce no exhaust emissions are allowed. The goals: cleaner air, lower CO₂ emissions, and more livable cities.
The fourth bi-monthly report from the Ministry of Infrastructure and Water Management shows that the introduction of zero-emission zones (ZE-zones) in Dutch cities is generally proceeding smoothly. ANPR data reveals that more than 95% of van and truck passages comply with the current access requirements. Municipalities and industry organizations report a high level of compliance and see no significant problems.
But are ZE-zones really a no-regret measure? Are they something municipalities should always do, because they inevitably benefit everyone? The answer is more complex than the simple logic suggests.
Most kilometers driven in road transport (and thus most emissions) are not related to city logistics, but to long-distance transport with heavy trucks. These are vehicles for which the business case for electric trucks is actually more favorable, as they drive 100,000 kilometers per year or more (in contrast, city logistics trucks typically cover only 20,000 to 40,000 kilometers annually). That’s where sustainability yields greater returns.
The Upsides: Direction, Innovation, and Momentum
The first and most crucial benefit of ZE-zones is that they provide direction to companies. They set a clear target for companies, OEMs, and governments alike. With a firm deadline in place, vehicle manufacturers have accelerated the development and production of electric light and heavy commercial vehicles. The results are tangible: by early 2025, 80 to 90 percent of all newly registered vans in the Netherlands are electric. Incidentally, new sales are 65% lower than in normal years due to the Dutch BPM measure in 2025. Electric light commercial vehicles suddenly became cheaper than diesel.
Financial incentives also support this transition. Programs such as vrachtwagenheffing and subsidies like AanZET and SPriLa have reduced the upfront costs of electric trucks and charging infrastructure, making electrification a viable option for more companies, not only within ZE-zones.
ZE-zones also fit into the broader transition toward sustainable, livable, and healthier cities. They encourage logistics innovation, such as the use of microhubs, LEFV’s, and shared distribution platforms. Larger companies, in particular, use ZE-zones as an opportunity to showcase their sustainability credentials to clients, governments, and consumers.
In short, ZE-zones have already changed the conversation about city logistics and decarbonising road transport. They provide momentum, mobilize resources, and accelerate innovation.
The Downsides: Limited Impact and Practical Hurdles
Despite these upsides, ZE-zones are not a magic solution. Their actual impact on air quality, for example, is likely to be marginal. Most of the health-related gains from cleaner air in cities have already been achieved through the introduction of low-emission zones and the steady tightening of European emission standards for diesel engines.
The climate benefits are also uncertain. Electric vehicles reduce local emissions, but their actual CO₂ impact depends on broader factors: the share of renewable electricity in the grid, the energy intensity of battery production, and the availability of charging infrastructure. As long as these conditions are not fully met, ZE-zones cannot be presented as a guaranteed climate win. At the same time, new vans and trucks will soon be electric because of EU regulations and CO2 standards. Aren’t ZE-zone too little, too late? Carbonization of road transport has passed its tipping point.
In their daily work, municipalities face a broad spectrum of challenges. Some exemptions and enforcement rules (still) differ from city to city, creating uncertainty for logistics providers operating in multiple municipalities. Issues also arise regarding driving licenses for heavier electric vans (which weigh 4,250 kilograms), refrigerated trucks, enforcing regulations for foreign drivers, and access restrictions for heavier electric vans.
Perhaps the most pressing problem is grid congestion. Many companies struggle to secure the additional electrical capacity required to charge fleets at scale. An exemption on the grounds of grid congestion has been available for some time through the Dutch RDW. At present, however, this exemption only applies in the municipality where the request is submitted. It has been decided that the exemption will become valid nationwide, but municipalities must first update their exemption policies. The new rules are expected to take effect on January 1, 2026. Without timely investment in energy infrastructure, ZE-zones risk creating bottlenecks rather than solutions.
An Uneven Playing Field
The burden of ZE-zones is not distributed evenly. For large companies with access to capital, expertise, and strong customer relationships, the transition to electric fleets is manageable and sometimes even an opportunity. For smaller businesses, however, the costs and complexity can be overwhelming.
Small companies that miss the shift risk pricing themselves out of the market. Competitors who invest in electric vehicles, clean energy, and customer partnerships can offer prices up to 30% lower, without incurring energy taxes. Forget about “TCO parity” between diesel and electric: the real battleground is energy costs. And that’s where smaller entrepreneurs struggle. They face steep bills for charging infrastructure and electric trucks, which involve heavy upfront investments plus recurring annual operating costs. In the new logistics economy, standing still isn’t just costly; the focus should be on “energy parity”
An uneven playing field may disrupt the transport market. Bigger (transportation) companies may consolidate their positions, while smaller companies (such as local transportation companies, small retail and wholesale businesses, service companies, and market vendors) struggle to survive. ZE-zones could unintentionally widen the gap between those who can afford to electrify and those who cannot.
This raises a fundamental question of fairness: how do we balance the financial capacity of smaller firms with the need to ensure a level playing field for all companies? Or should we focus on larger companies with a ‘no-regret’ approach? It is the devilish dilemma at the heart of ZE-zone policy.
Lessons from the Amsterdam taxi sector
The Amsterdam experience with electric taxis offers valuable lessons for municipalities designing ZE-zones. Success depended on a combination of:
- Well-designed subsidies that reduced cost barriers.
- Privileges such as access to boarding points created clear advantages for early adopters.
- The strategic installation of charging infrastructure in the right places.
- Close cooperation between city authorities and the transport sector.
- Careful timing of measures to avoid unnecessary disruption.
The lesson is clear: simply locking off the city for diesel vans and trucks is not a no-regret move. ZE-zones only succeed when they are embedded in a broader strategy of collaboration, incentives, and supportive infrastructure.
Beyond Zero Emissions: Toward Zero Impact
It is also important to keep perspective. ZE-zones are a tool, not an end in themselves. They reduce tailpipe emissions, but they do not address other pressing challenges of city logistics, such as congestion, traffic safety, and efficient use of space in dense urban areas.
If we truly want to make city logistics more sustainable, we need to transition from zero-emission to zero-impact. That means reducing the overall volume of logistics traffic in residential neighborhoods and inner cities, not just making that traffic cleaner. Cleaner vehicles alone will not deliver the Sustainable Development Goals (SDGs). City logistics must also become safer, more efficient, and more considerate of the urban environment.
No Regret, But No Silver Bullet
So, are ZE-zones a no-regret measure? The answer is nuanced. Yes, they provide direction and accelerate innovation. They mobilize industry and governments toward a shared goal. But no, they do not automatically solve our climate, health, or mobility problems.
Without additional measures (such as a robust charging network, harmonized municipal policies, and more innovative logistics planning), ZE-zones risk remaining little more than symbolic interventions. Municipalities must therefore design ZE-zone policies with care, paying attention to vulnerable groups, supporting smaller businesses, and learning from best practices. The real prize lies not in simply banning diesel vehicles, but in rethinking how logistics flows are organized, reduced, and integrated into the city’s fabric.
Will we really be buying 30% electric trucks by 2030? Maybe. But let’s be clear: going electric isn’t just swapping diesel for batteries. It’s a strategic overhaul of the entire fleet and logistics system. From a procurement lens, this isn’t a “modified rebuy” — it’s a brand-new task full of uncertainty and steep learning curves.
Winning companies will make smart calls on vehicles, charging, energy contracts, financing, planning, maintenance, and supporting their drivers. That’s a tall order. Shippers and suppliers will have to re-learn how to work together, often through trial and error. We need to connect entrepreneurs, vehicle builders, energy providers, ICT players, financiers, governments, and researchers. Only by teaming up can we turn the electric truck transition from “maybe” into reality.
All in all, the zero-emission zones may well result in a ‘soft landing’ for businesses… Only when ZE-zones are part of a broader strategy for zero-impact city logistics and decarbonizing road transport can we truly call them a measure that nobody will regret.
Decarbonising road transport:
Key policy priorities for the government
Accelerating electrification and infrastructure
Large companies are moving ahead, but SMEs risk falling behind due to high investment and operating costs. Grid congestion and lengthy connection procedures threaten to slow down frontrunners. Timely reservation of grid capacity and regional charging hubs are crucial.
Supporting SMEs and preventing fragmentation
Small carriers (with low mileage) face significant risks: they cannot recoup the high costs per kilometer. Regional cooperation, bundling via logistics service providers, or outsourcing can help prevent them from dropping out.
Stimulating strategic fleet and network planning
Electrification is not a “one-to-one replacement” of diesel. Companies must reassess their fleet composition, distribution networks, charging infrastructure, and partners. Shippers (in construction, retail, and healthcare) play a decisive role, as their requirements are already driving supply chains toward zero emissions.
Creating a level playing field
Support the use of truck road tax rebate schemes for sustainability investments. Ensure that public tenders and concessions consistently apply zero-emission criteria.
Organizing governance and knowledge sharing
Regional authorities can connect the fragmented sector through living labs, joint agreements, and coordinated charging plans. They also have a role in supporting SMEs with financing, planning, and access to subsidy schemes.
Walther Ploos van Amstel
Lector City Logistics, Amsterdam University of Applied Sciences