Moving around 90% of the world’s trade, shipping is integral to the global economy. Sea vessels transport raw materials, finished products, and essential supplies across seas and between continents.
But this efficiency comes at a cost. Burning fuel continuously for weeks, not hours, shipping emissions are considerable and, compared to other sectors, hard to abate. This article seeks to address these issues by asking, “What are the emissions from shipping?” when considering key maritime regulations like FuelEU Maritime and the Emissions Trading System.
At CFP Energy, we help businesses in the maritime sector reduce their carbon footprint by providing access to EU and UK Emissions Trading System (ETS) carbon allowances. To find out how you can purchase the amount needed to cover your emissions, contact one of our team today.
What are the emissions from shipping?
Shipping CO2 emissions are produced by the fuels that are combusted in the engines of vessels.
This combustion releases pollutants into the atmosphere that fall into two main categories - greenhouse gases, such as carbon dioxide and methane, and air pollutants, including nitrogen oxides and particulate matter.
Greenhouse Gases
Trapping heat in the atmosphere, carbon dioxide (CO₂) is the biggest driver of global warming. The maritime sector's CO₂ emissions have a peculiar geographic distribution.
Most occur in international waters where no country claims jurisdiction. This creates an accountability gap where vessels carrying German goods to Brazil - or vice versa - technically fall outside of both nations' carbon inventory.
This regulatory blind spot explains why global shipping emissions have grown unchecked while other sectors face tighter controls, and why strict regulations, like the Emissions Trading System (ETS), have emerged.
Air Pollutants
Sulphur oxides (SOx) form when sulphur in fuel burns. Nitrogen oxides (NOx) appear at high combustion temperatures. While air pollutants don’t cause long-term warming like greenhouse gases, they can lead to temporary warming and cause health problems.
Global Shipping Emissions Share
International shipping contributes roughly 3% of global greenhouse gas emissions.
Although this percentage might not sound like much, in real terms, it’s equivalent to the eGHG of the annual emissions of some major economies, such as Japan or Germany.
This means, without effective carbon management, the situation could get even worse, with the potential for emissions to increase from 50% to 250% by 2050, according to the International Maritime Organization (IMO).
This highlights the need for immediate, growth-oriented decarbonisation.
What are the environmental impacts of shipping?
The ecological consequences of maritime emissions are multidimensional, showing up in both the global climate and in local environments.
Ships release greenhouse gases (GHGs). These gases cause heat to be trapped in the atmosphere, contributing to global warming and rising sea levels.
Extreme weather also becomes more frequent as global warming increases. It’s already possible in places like Southeast Asia, for instance, to see more prevalence of hurricanes and cyclones due to this effect.
Solving the Emissions Problem
The shipping industry needs radical change. New vessel designs can reduce fuel consumption. and better propulsion systems can help reduce inefficiencies, navigation, but to tackle emissions directly requires cleaner fuels.
Advanced biofuels, such as biofuels like FAME and HVO, offer immediate alternatives.
Ships need better energy efficiency, and these fuels provide them, allowing shipping operators to cut their carbon emissions by up to 90%, while avoiding financial penalties that would occur by failing to comply with regulations like the EU ETS and FuelEU.
CFP Energy's Role in Global Shipping Emissions Management
Global shipping carries environmental responsibility, mandated by both the EU ETS and UK ETS. Free allocations are being phased out in 2026, so maritime businesses should assess their emissions now to purchase the allowances needed to cover their emissions.
CFP Energy helps shipping operators transition to low-carbon biofuels and reduce their current emissions levels. To see how we can help you navigate compliance frameworks like the EU ETS and the upcoming UK ETS, please get in touch with one of our carbon specialists today.
