Logistics as a sector has a key role to play in reducing greenhouse gas emissions and in reducing the dependency of our economy on non-renewable energy sources. The challenges are enormous: by 2050 the sector needs to have achieved about 50% lower fossil fuel use and CO2 emissions. If freight volumes grow according to expectations, this requires over 70% less CO2 emissions per unit of transport. This chapter explores the options for reducing CO2 emissions from freight transport and their reduction potential, and analyses whether the logistic sector would be likely to achieve the required reduction based on its intrinsic drive for cost reduction alone.