GlossaryEN1 min readUpdated: Jun 25, 2026

Maritime Cargo Emission Trading Schemes

An emission trading scheme (ETS) sets a binding cap on total greenhouse gas emissions across a sector and requires operators to surrender tradable allowances equal to their verified emissions.

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Last updated: 25 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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Definition & Explanation

An emission trading scheme (ETS) sets a binding cap on total greenhouse gas emissions across a sector and requires operators to surrender tradable allowances equal to their verified emissions. Since 2024, ocean-going vessels have been progressively brought into the EU Emissions Trading System: shipping companies must surrender EU allowances for a growing share of their CO₂ emissions on voyages covered by the scheme. Operators can reduce their compliance cost by investing in cleaner fuels, optimising speed and routing, or buying surplus allowances from more efficient competitors. Unlike a flat carbon tax, which fixes the price of emissions, an ETS fixes the total volume – guaranteeing a sector-wide ceiling while leaving the choice of abatement measures to the market.