I am really glad that you could join us today

on the road to zero emissions.

Right now, I am driving one of our 100% electrical trucks,

and it's fantastic.

This truck is so powerful and great to drive.

We have all the equipment and all the features here.

But there is one big difference.

We are transporting goods with zero emissions.

But before I go into the studio with my colleagues,

I have one very important mission.

I will deliver this truck to the logistics company DFDS.

They are like us, determined to cut the CO2 emissions

and move to electrical trucks already today.

So how can we speed up the shift and really take the leap?

What does it take from all of us to really go electric?

Well, that is exactly what we will talk about today, so stay tuned.

And now I am entering the Port of Gothenburg,

and here in front of me I can see a very happy customer.

-Hello, Niklas. -Hello, Roger.

-Great to see you. -The same.

Today is a big day.

It is a great honour and privilege for me to deliver, in person,

the Volvo FM Electric to you at DFDS.

Thank you, Roger. It's been really an honour.

We've been waiting for this moment for quite a while,

and this is such an important milestone for DFDS.

This is the first step for us, but there will be many more trucks to come,

and we will embark on our journey of electrical mobility.

So, Niklas, big congratulations and good luck with the new Volvo FM Electric.

Thank you, Roger.

Josefine, I am a little bit late, so stay tuned.

I'm coming soon into the studio.

We're looking forward to having you here, Roger.

Welcome to this broadcast from Gothenburg in Sweden.

We will dedicate this hour to the electrification of road transport,

covering all the crucial aspects

of the journey towards sustainable mobility.

My name is Josefine Volqvartz.

When not here, I'm a presenter and TV producer

covering solutions to a greener and more sustainable world.

Our ambition over this next hour

is to inspire you to take the leap towards a fossil-free future.

We all know that we need to reduce our CO2 footprint, and it's urgent,

Companies, organisations and countries have all set ambitious targets,

and now it's time for action.

As Roger put it, we can't wait.

It's time for a big transformation in our industry.

We will talk about how to electrify truck transport

and that the journey should start here and now.

In fact, much of the technology needed is already available.

Here with me is Jessica Sandström,

who is Head of Product Management of Volvo Trucks globally.

Welcome, Jessica. I hear you are a Volvo veteran.

Absolutely, and I've actually been working with electromobility for 15 years,

so this is a subject that I am truly passionate about.

And we are really approaching a historical shift.

This has not been seen since we shifted out the horses and the carriages

to trucks and buses.

So just look at these images from New York City.

Suddenly it can change swiftly,

and I think that is where we are heading

with the transport industry as well.

So a lot is happening right now.

How is Volvo Trucks approaching this drive towards fossil-free transport?

So we are already leading today,

and we will continue to lead by making huge investments in this area.

We are committed to the Paris Agreement,

and we take firm actions to really decarbonise the transport industry.

7% of the global CO2 emissions come from the sector we operate in,

freight on road.

But this means that when we take action,

we will have a significant impact on the overall CO2 emissions.

So what you do really makes a difference.

How are you approaching this transition, and how quick do you think it will be?

So we have set targets that already by 2030,

50% of our global sales should be electric,

and by 2040 at the latest, all new Volvo Trucks should be fossil-free.

So it's going to be quite a quick shift.

So a lot happening there. I also hear about battery recycling.

Is that something you are doing?

Absolutely. That's part of this shift.

We need to make sure that we are not only looking at the truck

but also how we can take care of the batteries

over the life cycle of the batteries.

First it will be in the truck,

and then it will have a second life outside the truck.

It could be as energy storage, for instance.

We are really looking into this circular economy way of thinking,

making sure that we utilise the battery in the best way in all its lives

and then we recycle it in the end.

So, there are several ways to lower CO2 from heavy transport.

Why are you so focused on the electric trucks?

Absolutely, there are different ways,

but we are convinced that most of the trucks will be electric,

because that is simply the most energy-efficient way

of transporting goods.

That said, we are a global company,

and we need to make sure that we can find solutions for all our customers,

and this means that there are segments

that will require other types of technologies.

So it could be really long distance, it could be very heavy trucks,

or trucks that simply do not have access to electric infrastructure.

For these types of operations,

we are, for instance, looking into fuel cell electric trucks.

What is motivating you to push so hard into this area

which is relatively uncharted?

I mean, first of all, it's simply the right thing to do.

We can play an important role

and really change the world into a more sustainable place.

On top of this, we are completely convinced

that this is good for our business.

Being early out, learning about how this technology works

but also how you optimise the system, we will get a competitive advantage.

And if I could add one more thing. It's about our employees,

a lot of our employees really value the fact

that we are not only having fancy slides but we also take firm actions.

It builds pride, and this is important to keep the talented people we have

but also to attract new bright minds,

because that is really what will help us to make this shift happen.

So it's basically a win for Volvo, it's a win for the environment,

it's a win for your employees, three wins.

Based on the capabilities of your electric trucks,

up to 50% of the on-road goods transport in Europe

could actually be electric already today,

but we are far from that figure.

What do you think is needed to accelerate the development?

If we start with the 50%,

it comes from a study that was done

looking at all the goods that travel in Europe,

how far do they really travel,

and it turned out that 50% of the goods actually travelled 300 kilometres or less,

and with the available technology,

it's possible to electrify those flows already now.

So I think it's about understanding the technology,

really making sure that we show that it's possible,

but also companies making the decision.

You need to decide that now is the time to act and really push into this area.

So what is it, do you think, that stops truck buyers from doing it right away?

There are lots of concerns when it comes to the electric range, charging,

but also economy, I would say.

So, what can you offer, what can Volvo offer,

for these people to change their minds?

So we will deep dive today, in this broadcast, into these different topics,

but if I could just mention a few things just to kick it off.

When it comes to the range,

with the electric trucks that will come next year,

we will have the possibility to do 300 kilometres with heavy loads,

so I think that takes away part of the range problems.

When it comes to charging, it's about starting in an easy way,

utilising your home base.

When the truck stands still overnight, then you utilise low power

and it's quite easy to install those types of chargers.

But what about the financial side?

I mean, it will be more expensive in the beginning to go electric.

That's a fact.

But I think it's important that we, first of all,

start to value fossil-free transports.

There must be a financial value put into that.

But on top of this, there is really a value in being early out.

The things I said were good for us at Volvo,

we are convinced that they work for our customers as well.

If you start early, if you build the competence

around how to utilise this new technology,

you will have business advantages

and be able to capture early new possibilities

that you might not have otherwise.

So it will really be an advantage to be a first mover at this stage.

Yes, absolutely. I think we notice that every day.

Thank you, Jessica. We'll talk more later.

Now we are going to look at the most crucial electromobility aspects,

starting with the commercial perspective

that Jessica mentioned as one of the main challenges.

To do this, we'll visit one of Sweden's most successful commercial enterprises.

We'll talk to the Swedish furniture giant IKEA,

and here we'll meet Volvo Trucks' experts

Ebba Bergbom Wallin and Johan Larsson.

Hello, everyone and welcome to IKEA.

This is definitely the time to be an early adopter,

to learn and to get a head start

in this transformation journey that is here to stay.

Yes, the key is to learn how electric transport assignments

influence operations when it comes to productivity and route planning

with charging requirements in mind.

There are of course new possibilities,

such as excellent working environments for drivers,

and extending delivery times to nights or early mornings,

and sharpening the brand image.

And there are items to consider, such as the price of diesel versus electricity,

battery costs going down,

diesel-free zones, diesel bans, and financial incentives.

Sustainability demands are also becoming demands from the transport buyers.

So the best way forward

is a transparent cooperation between three different parties,

us as the transport solution providers,

the transport companies, and the transport buyers.

So that's why we are here at IKEA today,

to meet with Angela Hultberg, their Head of Sustainable Mobility.

Angela has also taken the role as road transports lead at the upcoming COP26.

Hello, Angela. Thank you for having us here today.

Hi. Welcome to my living room.

Thanks. What's your view on cooperation?

Well, it's absolutely crucial, isn't it?

There is simply no way we can reach our targets without collaboration.

I think every player in this industry is just one player,

and we'll need cooperation between different companies,

different parts of the industry,

if we want to have any chance of transitioning

to sustainable transportation in the future.

We think that transport buyers should support

by putting a higher value on fossil-free transport.

-Do you agree? -I absolutely agree 100%.

I think it's in our best interest to do so,

and I think the role of transport buyers in the industry is also changing.

So if we want to meet our targets,

at IKEA the target would be 100% electric home deliveries by 2025,

which is only four and a half years away,

so we can feel the sense of urgency and the pressure,

and if we want to do that, of course, we have to be part of making that happen.

It's not enough to just say I want to buy sustainable transport services.

So, absolutely,

but we also have to send a signal to policymakers

to say that this is what we want also as the industry.

We want this to happen, and we will do our part,

but we need the policy to support that as well.