GlossaryEN1 min readUpdated: Jun 23, 2026

Emissions Trading in the Freight Industry

A carrier whose emissions exceed its allocated allowances must purchase additional certificates on the open market – that mechanism is the core of emissions trading.

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Last updated: 23 June 2026Published: 19 June 2025

Source: https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets_en

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Logistics Concept

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1 min

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Definition & Explanation

A carrier whose emissions exceed its allocated allowances must purchase additional certificates on the open market – that mechanism is the core of emissions trading. Under a cap-and-trade system, authorities fix a ceiling on total greenhouse gas output; operators that stay below their allocation can sell surplus allowances, while those that overshoot must buy. The EU Emissions Trading System (EU ETS) is the primary regulatory framework for the freight sector, progressively extended to maritime shipping and air cargo. Carriers increasingly pass certificate costs on to forwarders and shippers through surcharges, making carbon pricing a tangible factor in freight rate negotiations. The financial exposure creates a direct incentive to invest in fuel-efficient vessels, alternative fuels, and network optimisation.