The UK government’s new ‘Trade Strategy’, published June 26, sets out plans to accelerate decarbonisation and strengthen the nation’s green supply chains, with clear implications for urban transport and city logistics.
Framed as a “reset” of Britain’s approach to global commerce, the strategy pledges to align trade policy with national net-zero ambitions by facilitating access to clean energy components, electric vehicle (EV) batteries, grid infrastructure and other key technologies.
These moves could directly support the decarbonisation of last-mile and urban freight networks, and provide city authorities with greater certainty around low-carbon transport solutions.
In particular, the strategy commits to working with trading partners on agreements that promote the adoption of green technologies and develop cleaner supply chains, referencing existing partnerships with Norway, Japan and South Korea, while exploring new cooperation with countries such as Brazil, the Philippines and Mexico.
The document also highlights the UK’s ambition to harness trade policy to advance sustainability standards worldwide, ensuring a fair and rules-based system that supports environmental protections and human rights.
Significantly, the strategy includes an expansion of UK Export Finance capacity to £80bn, alongside a new Small Export Builder initiative, to help smaller businesses access insurance and finance for exporting green transport products and services.
This funding may enable more British suppliers of electric cargo bikes, EV chargers, low-emission vans and smart mobility solutions to scale internationally.
Logistics UK, responding to the Strategy, stressed the importance of embedding urban logistics within decarbonisation priorities.
Nichola Mallon, Logistics UK’s head of trade, welcomed the focus on greener supply chains, but called for “rapid and coordinated delivery” of digitised customs processes and a Single Trade Window, warning that “border bureaucracy has meant many UK businesses now choose to focus solely on the domestic market”.
More broadly, the strategy sets out plans for Digital Trade Corridors with Europe to cut paperwork and border delays, which could positively impact time-critical city deliveries.
It pledges to pilot technology-enabled trade routes where electronic documents are given legal parity with paper documents, supporting smoother cross-border flows of goods and reducing vehicle dwell times at border inspection posts.
The government has also announced the creation of a new Supply Chains Centre to monitor risks to critical infrastructure, alongside an Economic Security Advisory Service to help mitigate shocks to essential supply networks, including urban transport corridors.
These initiatives aim to ensure cities remain resilient during geopolitical and economic disruptions.
Finally, the strategy supports further reforms to the UK-EU relationship, promising reduced friction for agri-food and manufacturing exporters and smoother recognition of professional qualifications.
This could enable transport engineers, mechanics and technicians to work more easily across borders, easing skills gaps for smart city projects.
Achievements and innovations in urban logistics will be recognised and celebrated at the fourth annual CiTTi Awards on 25 November 2025 at De Vere Grand Connaught Rooms in London. Visit www.cittiawards.co.uk to learn more about this unmissable event for the UK’s transportation sector!
