Julie Hanson, director of Europe for the Global Cold Chain Alliance looks at what action businesses and governments need to take for cold chain operations to both support and thrive in a decarbonised European energy system – and why this matters for future global food supply chain resilience.

Successful cold chain businesses are excellent energy managers. How a business sources and uses the energy is one of the most important determinants of their long-term success and sustainability in a tough marketplace. In this context, it is easy to see the opportunities for synergy between the Europe-wide ambition to transform the energy system and the long-term success of the cold chain.

However, we must not ignore the significant challenges along the way, nor the vital role that European, national and local governments will play in setting policy to achieve decarbonisation goals, whilst maintaining a stable, affordable energy marketplace.

Governments, regulators and businesses must work together pragmatically to achieve their ambition. GCCA welcomes the renewed industrial and sustainability policy announced in the European Clean Industrial Deal. Alongside thousands of other business organisations, we are proud to have supported the pre-election Antwerp Declaration. As a part of the call for a European Industrial Deal, we asked for policy that better married ambitious business growth with the environmental objectives of the previous Green Deal.

Certainly, in its intention the European Commission seems to have listened. They have committed to supporting investments in large-scale renewable energy generation, but shown greater pragmatism around the pathway to decarbonisation. It is vital that the fossil fuel phase-out does not risk the security or affordability of energy in the short- and medium-term. 

Our priority will always be to ensure the cold chain is recognised as critical infrastructure, and retains access to affordable energy supplies, especially in times of shortage. However, in the more complex areas of investing in improvements in the energy grid, cold chain operators are most keen to see the radical changes in the integration of supply lines across local and national borders and reformation of the energy marketplace. We are pleased to see these challenges recognised in the Action Plan for Affordable Energy included in the Deal announcement, but the proof will be in the achievements over the next five years.

A large number of major cold infrastructure investments have been prevented, held up or made more expensive because of the lack of capacity on the local grid.

Inability or inertia of the local grid to provide a connection prevents a business from investing in on-site renewable energy generation. 

Additionally, local permitting or zoning rules that prevent the land use or restrict technologies like wind turbines could transform the emission performance of the facility. It is time to sweep away the barriers to investment in green energy generation.

Despite these frustrations, the pace of change gives us cause for optimism. Across Europe, we have seen game-changing investments in new facilities, upgrades and a wave of technology innovation that will dramatically improve the efficiency and emissions performance of our industry.

For example, the opportunities for smart grid integration — maximising the role of cold stores to balance grid demand in a local area, or at scale — are extensive.

Excess energy can and should be supplied at low (or even) no cost to cold storage operators at times of surplus. In return, at times of high demand, well-planned grids could draw down the energy in those same facilities. That is what the future of decarbonised grid looks like — if we have the will, and the right incentives in place.

Whilst there are massive continent-wide goals to achieve, for cold chain business the immediate opportunity remains where it has always been: in making the right choices and driving the right behaviours to use energy efficiently.

Europe’s cold chain has shown continuous year-on-year energy efficiency improvements. By focusing on building fabric, reconsidering use of space, improving refrigeration systems, introducing automation, capturing and analysing real time data, and consistent equipment maintenance, operators across Europe have contributed to this positive trend.

Simply put: doors must be kept closed, equipment must be correctly calibrated, and monitoring systems must be in place and utilised. 

Significant savings can be achieved from an operation and team that is well-trained and consistent in their management practices compared to those that are not.

What has proved challenging is finding ways to drive efficiency in energy use between links in the cold chain. The cold chain is a system built on trust, operating with a “safety-first” mentality. Therefore, the inclination to overcompensate and hold products colder than they need to be, can be a natural behaviour across the system.

We are pleased to participate in collaborative efforts looking to improve data-sharing between links in the cold chain. One example is in the common practices in the frozen food supply chain. The Move

to -15ºC Initiative, launched in Dubai during COP28 2023, is the kind of initiative that can help to achieve outcomes in the end-to-end supply chain. 

The premise of the coalition is greater visibility and trust on the temperature journey of a product through the supply chain. Actors at various stages can increase the storage temperature of the product and thereby reduce the amount of energy required.

Dialogue is vital if we are to take another step in finding ways to reduce our overall energy consumption.

If keeping products safe through the supply chain is the purpose of cold chain, then managing energy well is the key to profitably and sustainably. Our energy system is vital to the future success of our economy. Cold chain businesses will thrive in a transformed European energy system, and GCCA will continue to support smart policy frameworks that achieve this transformation.

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