When the postal sector meets in Dubai for the 28th Universal Postal Congress this September, they will discuss the role of climate action in unlocking external funding, reducing costs, and building operational resilience.
According to the World Economic Forum, climate-related disasters have caused more than $3.6 trillion in direct economic losses worldwide since 2000. The postal sector is no exception. Climate change is now a material risk for all postal operators, disrupting fuel supplies, damaging facilities, and delaying deliveries. There are also energy and compliance costs to consider – fluctuations in fuel price, and new decarbonization regulations, can also reduce margins.At the same time, incorporating climate perspectives into postal strategies can effectively manage these risks, while also strengthening broader sectoral goals to secure investment, generate revenue, and access technology. An energy resilient and emissions-conscious postal network can be a valuable pillar for communities, a means for governments to implement their agendas on energy, digitalization and transport, and an attractive partner for e-commerce sellers.
Opportunities abound
The benefits of investing in clean and resilient solutions are numerous.
For starters, meeting the sustainability expectations of business partners, customers and governments can position postal operators as a preferred delivery provider. The UPU’s analysis of 209 e-commerce companies found that 67% have sustainability obligations in their supplier codes of conduct.
Energy security matters just as much. Electrification in particular is key to postal modernization, but it also needs to be resilient. Rooftop solar and battery storage can keep counter and sorting machines running during blackouts, protecting retail revenues and customer trust.
Switching fleets to electric vehicles, installing solar photovoltaic systems and upgrading postal facilities can generate major savings on energy and maintenance costs.
Climate-related business models can also attract new customers and generate additional revenue. The post can sell the excess electricity it generates, provide early warning services to the public, and support the circular economy for re-use or recycling of high-value items.
While the opportunities are plenty, many postal operators face a lack of funding or know-how to implement low emissions and climate resilient projects to their benefit. Furthermore, would-be partners are often unaware of the postal network’s potential to support their sustainability objectives.
The UPU Climate Facility as a solution
The upcoming Universal Postal Congress will review a plan to launch a dedicated UPU Climate Facility that will help support designated operators to implement climate solutions.
It will become a single doorway into three kinds of support. First, access to funding: turn a practical idea into a bankable climate proposal that can secure external funding. Second, a climate knowledge & innovation hub: case studies, simple metrics, e-learning, and standards expressed in postal language. Third, secretariat services and supportive policy to convene the right ministries, platforms and partners, and to advocate so postal projects are explicitly eligible for national and international climate resources.
The principle of establishing a UPU Climate Facility was approved at the 2023 Extraordinary Congress, and the UPU’s secretariat has been working to establish the necessary legal and regulatory framework, and funding mechanisms. The current proposal is to have the Facility act as a voluntary multi-donor platform that connects member country projects with development agencies, energy and transport ministries, climate funds, development banks, international organizations, private sector investors and philanthropic actors.
The Dubai Congress provides an opportunity for the UPU’s member countries to renew their commitment to sustainable development, and to support postal operators with their low emission and energy resilience goals in the next cycle.
Learn more about the upcoming Universal Postal Congress taking place in Dubai, United Arab Emirates, this 8-19 September.
Read about how postal operators in France and Malaysia are already benefiting from low emissions and energy resilience focused projects.