Urban freight is the silent engine of city life. From parcels and groceries to construction materials, logistics keeps urban economies moving. Yet this essential flow of goods also contributes heavily to congestion, noise, air pollution, and greenhouse gas emissions. With urban populations and e-commerce both rising sharply, sustainable solutions for city logistics are more urgent than ever.
A new United Nations study, under the Transport, Health and Environment Pan-European Programme (THE PEP), explores how greener freight policies not only reduce emissions but also create jobs. The analysis focuses on the entire ECE region (Europe, North America, and Central Asia). It employs input-output modeling to assess employment impacts under four scenarios: electrification of last-mile delivery, cargo bikes, infrastructure investment, and zero-emission zones. The UNECE study, unfortunately, only looks at e-commerce deliveries (which is only 5 to 10 percent of urban freight).
Scenario 1: Electrifying the last mile
Replacing diesel and petrol vans with light electric vehicles (e-LGVs) offers strong climate and health benefits. The study projects that full electrification by 2050 could generate 88,000 net jobs, mainly in vehicle manufacturing, battery production, and logistics operations. While some employment would be lost in internal combustion engine (ICE) supply chains, growth in clean tech and fleet services more than compensates.
Scenario 2: Scaling up cargo bikes
Cargo bikes are highly efficient in dense urban areas, replacing vans for parcels and small goods. Assuming cargo bikes account for one-third of last-mile logistics by 2050, this scenario could create approximately 70,000 jobs. Employment gains are concentrated in logistics (more couriers per delivery unit) and bicycle manufacturing. Challenges remain, such as integration with depots and infrastructure, but cargo bikes promise both sustainable mobility and new opportunities for local employment.
Scenario 3: Building charging and cycling infrastructure
Sustainable logistics depends on the proper infrastructure: charging hubs for EV fleets and safe cycle lanes for cargo bikes. Doubling investment in these facilities could add 116,000 jobs by 2050, mostly in construction and maintenance. These roles, often local and labour-intensive, strengthen the link between urban sustainability policies and tangible job creation in communities.
Scenario 4: Zero-emission delivery zones
Many European cities are introducing access restrictions for polluting vehicles. A widespread roll-out of zero-emission delivery zones (combining electric vans, cargo bikes, and infrastructure) emerges as the most powerful driver of employment. The study estimates 180,000 new jobs by 2050, spanning fleet management, logistics operations and infrastructure services. This integrated approach reflects the reality that greener freight solutions work best in combination.
Beyond numbers: Job quality matters
While the report highlights net job gains in all scenarios, it also stresses the importance of job quality. “Green and healthy jobs” are not just about quantity. They must contribute to well-being, equity, and fair working conditions. Policymakers are urged to pair logistics decarbonisation with skills programmes, social protection, and inclusive employment policies.
Implications for cities and businesses
For city leaders, the message is clear: supporting green freight transitions can simultaneously advance climate goals, improve public health, and boost employment. For logistics companies, investment in electrification, cycle logistics, and digital tools is no longer just a regulatory response but also a source of competitive advantage. For workers, the shift opens up pathways into new sectors, including EV maintenance and battery recycling, as well as cycle logistics and entrepreneurship.
Looking ahead
Urban freight is at a crossroads. Left unchecked, growth in e-commerce deliveries could worsen congestion and emissions. But with the right policies (zero-emission vehicles, cargo bikes, supportive infrastructure, and smart regulations), cities can turn a challenge into an opportunity. By 2050, a cleaner logistics system across the ECE region could support hundreds of thousands of jobs, making greener transport not only better for the planet and public health but also a driver of economic resilience.
Source: UNECE