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Green FreightJuly 7, 202611 min read

Shipping Emits a Billion Tonnes of CO2 a Year, and Now It Has a Price: What the New Carbon Rules Mean for Your Freight in 2026

Every container that crosses an ocean burns fuel and leaves carbon behind, and for most of shipping's history that carbon was free to release. Add it all up and international shipping emits roughly 1 billion tonnes of CO2 a year, about 3% of the global total. If shipping were a country, it would rank among the world's top ten emitters. That free ride is now ending. Europe already charges carriers for the carbon their ships emit, and in 2025 the International Maritime Organization approved the first mandatory carbon price ever agreed for an entire industry. The cost lands on carriers first, then flows to shippers as surcharges, and your customers are starting to ask for the number too. Here's what's changing, and how to see your own freight's footprint before the invoice does the talking.

1 billion t
Shipping's annual CO2, about 3% of global
$100 to $380
IMO price per tonne of CO2e (2028 to 2030)
100%
Emissions under EU ETS from 2026
85%
Shipping CO2 from ships 5,000 GT and above

Sources: IMO; EU Emissions Trading System; FuelEU Maritime; IMO Net-Zero Framework (MEPC 83, April 2025).

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The invisible cost of moving a box

Shipping is the quiet engine of the global economy, and it runs mostly on heavy fuel oil. According to the IMO, international shipping emits about 1 billion tonnes of CO2 a year, roughly 3% of global emissions. That is more than the aviation industry, and enough that if the world's merchant fleet were a single nation, it would sit among the ten largest emitters on earth. For a century, releasing that carbon cost the industry nothing. That is the assumption now being priced out of existence.

The change is not a single rule. It's a stack of them arriving close together: a regional carbon market in Europe that is already billing carriers, a fuel standard that tightens every few years, and a first-of-its-kind global carbon price agreed at the IMO. Each one turns a tonne of CO2 from a free byproduct into a cost, and costs in freight always flow downhill to the shipper.

1 billion tonnes, about 3% of global CO2

That is international shipping's annual carbon footprint, per the IMO. It rivals the output of entire industrialized countries, and until very recently none of it carried a price. The regulations arriving now are built to change that, and they are the reason emissions are moving off the sustainability slide and onto the budget.

Europe is already charging for it

The EU moved first. Since 2024 the EU Emissions Trading System (ETS) has covered shipping, which means carriers must buy allowances for the CO2 their ships emit on voyages that touch EU ports. It phases in quickly: 40% of emissions in 2024, 70% in 2025, and 100% from 2026. From 2026 the scope also widens beyond CO2 to include methane and nitrous oxide, two greenhouse gases that were previously outside the count.

Running alongside it, FuelEU Maritime took effect on January 1, 2025. It caps the greenhouse-gas intensity of the energy ships use, starting with a 2% reduction in 2025 and tightening to 80% by 2050 in five-year steps. Miss the target and a penalty follows. The practical upshot is simple: any carrier moving your cargo to or from Europe now carries a real and rising carbon cost, and they recover it through emissions surcharges added per container.

And now a global price on carbon

The bigger shift is worldwide. In April 2025, at its MEPC 83 session, the IMO approved the IMO Net-Zero Framework, the first mandatory greenhouse-gas pricing mechanism ever agreed for an entire industry. It applies to ships of 5,000 gross tonnes and above, the large vessels that carry the overwhelming majority of world trade and produce about 85% of shipping's CO2.

The framework pairs a tightening global fuel standard with a price on excess emissions. Ships that miss their fuel-intensity target buy remedial units, provisionally priced between $100 and $380 per tonne of CO2-equivalent for the 2028 to 2030 period, paid into a new IMO Net-Zero Fund. The requirements are set to take effect from 2028, with the sector aiming for net-zero by or around 2050.

$100 to $380 per tonne of CO2

Those are the provisional remedial-unit prices in the IMO framework for 2028 to 2030. Set them against a single large container ship, which can emit tens of thousands of tonnes of CO2 across a year of sailings, and the totals climb fast. This is the cost carriers will be managing, and the clearest sign yet that a ship's emissions are becoming a number with a dollar figure attached.

One caveat is worth knowing. Formal adoption of the global framework was paused in late 2025 and pushed back about a year amid political pushback, so the exact start date could still move. The direction, though, is not really in doubt. Europe's rules are already live and billing, and the global price has been approved in substance. Planning as if freight carbon will stay free is the risky bet now, not the safe one.

Why this lands on shippers, not just carriers

On paper these rules regulate ship operators. In practice the cost flows straight to cargo owners. Carriers already publish EU ETS and FuelEU surcharges per container, and those charges climb as the phase-in completes and the global price arrives. If you import or export, you are paying for carbon whether or not you have chosen to measure it.

There is a second pull, and it comes from your own customers. More buyers now ask for the carbon footprint of the goods they purchase, and freight is a large part of that number. Transport emissions sit in a company's Scope 3, the indirect emissions that are hardest to measure and, for many businesses, the biggest share of their total footprint. A retailer reporting its emissions needs the CO2 of the shipments that brought its products in, so the same question is being asked up and down the chain.

What a carbon price actually changes for your freight

This is not only a sustainability story. Putting a price on emissions quietly rewrites some everyday freight decisions:

  • Emissions surcharges become a standing line item. EU ETS and FuelEU charges already appear per container today, and a global price will broaden them well beyond Europe.
  • The cheapest routing is not always the lowest-carbon one. A faster ship or a longer detour changes both the cost and the footprint, and now both show up on the bill, so the trade-off is real.
  • Carbon reporting moves from optional to expected. Customers, investors, and regulators increasingly want the CO2 behind each shipment, not a rough estimate pulled together once a year.
  • Fuel and vessel choice start to matter to you. Cargo on a modern, efficient, or alternative-fuel ship carries a smaller carbon cost, which is becoming a genuine reason to prefer one service over another.

How to get ahead of it

You cannot rewrite maritime regulation, but you can stop being surprised by it. A few habits put you in front of the change instead of behind it:

  • Measure the footprint of every shipment. You cannot manage or report what you have not counted. Start with the CO2 of each ocean and air movement, broken down by route and mode.
  • Put carbon next to cost when you plan. Compare routings on both price and emissions so the trade-off is a decision you make deliberately, not one you discover on an invoice.
  • Track the surcharges you already pay. EU ETS and FuelEU line items are real money today. Knowing what they add per container shows you where the carbon cost actually bites.
  • Be ready for the reporting ask. Keep shipment-level emissions data, so that when a customer, auditor, or regulator asks for your freight footprint, you can answer with a figure instead of a guess.

The bottom line

For a century, the carbon a ship released was somebody else's problem, or nobody's. That era is closing. Europe is already charging for it, a global price has been agreed in principle, and every signal points the same way. The freight itself will not feel any different, but the invoice will, and so will the questions coming from your customers. The importers and exporters who handle this well are the ones who start measuring now, treat carbon as a cost alongside rate and transit time, and can put a real number on the footprint of every box they move. It starts with knowing what your shipments actually emit. Everything else builds on that.

See your shipment's carbon footprint in seconds

Estimate the CO2 of any ocean or air route, so you can measure it, report it, and plan for freight's new carbon costs.

Open the Carbon Calculator

Frequently asked questions

How much CO2 does the shipping industry produce?

International shipping emits roughly 1 billion tonnes of CO2 a year, about 3% of global emissions, according to the IMO. That is more than aviation, and enough that if the world's merchant fleet were counted as a single country it would rank among the ten largest emitters. Large ocean-going ships of 5,000 gross tonnes and above account for around 85% of that total, which is why the new carbon rules focus on them.

What is the IMO Net-Zero Framework?

The IMO Net-Zero Framework, approved at the IMO's MEPC 83 session in April 2025, is the first mandatory greenhouse-gas pricing mechanism ever agreed for an entire industry. It combines a tightening global fuel standard with a price on excess emissions: ships of 5,000 gross tonnes and above that miss their fuel-intensity targets buy remedial units, provisionally priced between $100 and $380 per tonne of CO2-equivalent for 2028 to 2030, paid into an IMO Net-Zero Fund. The requirements are set to take effect from 2028, with net-zero targeted by or around 2050. Formal adoption was paused in late 2025 and pushed back about a year, so timing could still shift, but the direction is set.

How does the EU ETS affect shipping costs?

Since 2024 the EU Emissions Trading System has required carriers to buy allowances for the CO2 their ships emit on voyages touching EU ports. It phases in fast: 40% of emissions in 2024, 70% in 2025, and 100% from 2026, when the scope also expands to include methane and nitrous oxide. Carriers recover these costs from cargo owners through EU ETS surcharges applied per container, so any shipment to or from Europe already carries a carbon cost that rises as the phase-in completes.

What is FuelEU Maritime?

FuelEU Maritime is an EU regulation that took effect on January 1, 2025 and caps the greenhouse-gas intensity of the energy ships use on voyages connected to EU ports. It starts with a 2% reduction in 2025 and tightens in five-year steps to 80% by 2050, with financial penalties for missing the limit. Like the EU ETS, its cost reaches shippers through per-container surcharges, and it pushes carriers toward cleaner fuels and more efficient vessels.

How can I measure my shipment's carbon footprint?

The practical starting point is a per-shipment carbon estimate based on the route, distance, mode, and cargo. A carbon calculator gives you the CO2 for any ocean or air movement in seconds, which is what you need both to compare routings on emissions as well as cost and to answer Scope 3 reporting requests from customers, auditors, and regulators. Measuring at the shipment level, rather than estimating once a year, is what lets you treat carbon as a real cost and get ahead of the surcharges that are already appearing on freight invoices.