Sustainable Road Freight Transport in Sabah: Legal and Operational Barriers to Green Logistics

Malaysia’s commitment to achieving carbon neutrality by 2050 necessitates transformative changes in its transportation sector, particularly in road freight, which contributes nearly 40% of transport-related CO₂ emissions. This study examines the legal and operational barriers hindering the adoption of sustainable road freight transport in Sabah, where geographical isolation and infrastructural deficits exacerbate reliance on diesel-powered trucks. Despite federal policies like the National Transport Policy (NTP) 2019-2030 and the Low Carbon Mobility Blueprint (LCMB) 2021-2030, Sabah lags in green logistics adoption due to regulatory misalignment, high costs of electric and biodiesel vehicles, and inadequate charging infrastructure. Employing Ecological Modernization Theory (EMT) (Mol & Spaargaren, 2000) as a framework, this research investigates how policy-industry collaboration can overcome these barriers. Through qualitative content analysis of transport policies and semi-structured interviews with 20 stakeholders—including logistics operators, policymakers, and environmental NGOs—the study identifies three critical challenges: (1) policy fragmentation between federal mandates and Sabah’s state-level regulations, such as the Commercial Vehicle Licensing Board (CVLB) Act, which lacks incentives for low-emission fleets; (2) economic constraints, with 75% of participants citing high upfront costs of electric trucks (30–50% more expensive than diesel); and (3) infrastructure gaps, including fewer than five heavy-duty charging stations in Sabah and sparse biodiesel refueling hubs. The findings underscore the need for decentralized solutions, such as state-level EV subsidies, public-private partnerships for charging infrastructure, and revised CVLB fee structures to incentivize clean technologies. The study contributes to EMT by demonstrating its applicability in developing logistics markets and proposes actionable reforms to align Sabah’s freight sector with Malaysia’s carbon neutrality goals. Recommendations include adopting models from Thailand’s EV 3.5 Package and California’s Clean Truck Program to accelerate Sabah’s transition. This research provides a replicable framework for similar regions grappling with diesel dependency and fragmented governance in sustainable freight transitions.