What is the EU ETS? A practical guide for importers and exporters

What importers and exporters need to know now

From January 2026, the EU Emissions Trading System (EU ETS) has moved into full implementation for shipping. If you’re moving cargo in or out of Europe, this is no longer a background cost. It’s now a visible and growing part of your freight rates.

Here’s what’s changed and what it means for your business.

What is the EU ETS?

The EU ETS (Emissions Trading System) is the European Union’s carbon pricing system. It puts a cost on greenhouse gas emissions.

Here’s the simple version:

• Companies in certain sectors must pay for the carbon they emit
• They do this by buying emission allowances
• The more they pollute, the more they pay

Think of it as a cap and trade model. There’s a limit on total emissions, and companies trade allowances within that limit. it links all your imports, exports, and transit operations to a single, official identifier.

The key change: full carbon costs now apply

The phased rollout is complete.

• 2024: 40% of emissions covered
• 2025: 70%
• 2026: 100% now covered

Shipping lines must now pay for all emissions linked to EU voyages, and those costs are being passed through the supply chain.

In practical terms, ETS is now a core component of ocean freight pricing, not a minor surcharge.

So whether you’re importing containers into Rotterdam or exporting from Antwerp, you’ll likely see these charges reflected in your freight rates.

What you’ll see in your freight costs

Higher ETS surcharges

With full compliance in place, carbon-related charges have increased noticeably compared to 2025.

These charges:

• Vary by trade lane and vessel efficiency
• Change in line with carbon allowance prices
• Are applied differently by each carrier

So two similar routes can now show very different total costs.

More cost volatility

Unlike fixed surcharges, ETS is linked to a live carbon market.

That means:

• Costs can rise or fall month to month
• Budgeting needs a bit more flexibility
• Long-term pricing requires closer attention

A broader emissions scope

From 2026, the system also expands beyond CO₂.

Shipping companies must now account for:

• Methane (CH₄)
• Nitrous oxide (N₂O)

This increases the overall emissions calculation, which in turn increases the cost of compliance.

How this affects your shipments

The structure remains the same, but the impact is now stronger:

• 100% of emissions → for movements within the EU
• 50% of emissions → for imports into or exports out of the EU

Now that full pricing applies, these rules have a direct and visible effect on your landed costs.

What we recommend to our clients

At this stage, it’s less about reacting and more about planning properly.

Review your freight quotes in detail

Look at how ETS is applied. Not all carriers calculate or present it the same way.

Compare total cost, not just base rates

A lower base rate doesn’t always mean a lower final cost once ETS is included.

Keep routing flexible

Where possible, small changes in routing or consolidation can help manage exposure.

Talk to us

We support our clients by:

Identifying practical ways to reduce impact

Explaining ETS charges in plain terms

Comparing carrier options across total cost

In Summary

January 2026 marked the point where EU ETS becomes fully embedded in European logistics.

For importers and exporters, that means:

• Higher and more variable freight costs
• Greater importance on carrier and route selection
• A stronger link between sustainability and pricing

Handled properly, it’s manageable. Ignored, it can quietly eat into margins..

If you’d like a breakdown of how EU ETS is affecting your specific shipments, we can walk you through it and highlight where savings or stability can be found.