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The sector of last mile delivery (LMD) is soaring with the impressive growth of e-commerce in the last years, even more today with the current coronavirus pandemic. This growth is accompanied by a set of important challenges for retail companies: high costs (53% of overall shipping costs is due to LMD), huge pressure to fulfil customer demands for rapid same-day delivery and increased mobility restrictions in urban areas.

At the same time, LMD is becoming a growing environmental concern in urban areas, being responsible for a 18% of road traffic and 40% of air pollution and noise emissions in main cities. Hence, tackling LMD problems has become an urgent need for all players involved. 

Tackling the urban transport problem is key in the urgent EU´s fight against climate change, especially after the EU commitments of the Green Deal and the 2030 Climate Target Plan, where the Commission has proposed to cut greenhouse emissions by at least 55% by 2030. 

As a result of the EU sustainable policy, it is being regulated that by 2023 there will be Low Emission Zones that must be active in 149 municipalities of 50k inhabitants and those municipalities of 20k inhabitants whose air quality indexes exceed the established limits. 

Transport represents a 25% of Europe’s greenhouse gas emissions and is one of the main causes of air pollution in cities. To achieve climate neutrality as agreed by EU members in the Green Deal, a 90% reduction in transport emissions is needed by 2050. The challenge is to mitigate LMD problems, in terms of congestion and air quality, while ensuring sufficient, economically viable and efficient supplies to make cities economically attractive.