ETS2 and Road Freight: What Transport Buyers Need to Know

The EU’s Emissions Trading System 2, known as ETS2, is expected to become operational in 2028. For logistics and transport buyers, it marks an important shift: carbon emissions from road transport fuels will become more directly connected to cost.

ETS2 expands carbon pricing to road transport, buildings and smaller industries. The system is designed to reduce emissions by putting a price on fossil fuel use and gradually lowering the number of available emissions allowances over time.

Although ETS2 obligations will mainly apply to fuel providers, transport buyers are still likely to feel the impact. If fuel suppliers face higher carbon costs, these costs may be passed on through fuel prices, freight rates or carbon-related surcharges.

For companies that depend on road freight, this makes emissions visibility more important. It will no longer be enough to know total transport spend. Logistics teams will also need to understand which lanes, carriers, fuels and transport setups create the highest emissions and cost exposure.

Before ETS2 becomes fully operational, transport buyers should focus on three questions:

Where are our emissions highest?

Collect data by lane, vehicle type, fuel type, carrier and transport activity.

Where can emissions be reduced?

Look for avoidable emissions from empty kilometres, low vehicle utilisation, inefficient routing or unnecessary transport movements.

Where are we most exposed to carbon cost?

Assess where fossil-fuel-based road freight could become more expensive and compare lower-emission alternatives where they are realistic.

ETS2 should not be treated only as a regulatory change. It is part of a broader shift where carbon emissions become a clearer factor in logistics cost, procurement and network planning.

How to calculate logistics emissions

To prepare for ETS2, transport buyers need to know where their emissions come from and how reliable their data is.

The Greenhouse Gas Protocol divides emissions into three scopes. Scope 1 covers direct emissions from sources a company owns or controls, such as company-owned trucks. Scope 2 covers indirect emissions from purchased energy, such as electricity used in warehouses or charging infrastructure. Scope 3 covers other indirect emissions across the value chain.

For many transport buyers, purchased logistics services fall into Scope 3. This is often difficult to measure because the transport buyer may not control the vehicle, fuel, route or operational data. That information often sits with carriers and logistics partners. This makes carrier collaboration essential.

Build data that supports decisions

Not all emissions data is equally useful. A high-level estimate can show the approximate size of a transport footprint, but it will not explain why emissions are high or what can be done to reduce them.

For ETS2 preparation, transport buyers need emissions data connected to real transport activity. That means looking beyond total spend and collecting information such as distance travelled, shipment weight, vehicle type, fuel type, fuel consumption, load factor, empty kilometres, carrier and lane.

The more specific the data, the easier it becomes to identify what is driving emissions. A high-emission lane could be caused by long distance, low utilisation, empty returns, inefficient routing or fossil fuel use. Each cause points to a different solution. Because much of this data sits with carriers, early collaboration is essential.

Use consistent calculation methods

As emissions data becomes more important, companies need calculations that are consistent and comparable. ISO 14083 and the GLEC Framework are useful references for calculating and reporting greenhouse gas emissions from transport chains.

Using recognised approaches makes it easier to compare emissions between carriers, routes, transport modes and reporting periods. For transport buyers, the important question is not only “What are our emissions?” but also “How were they calculated?”

Turn emissions data into action

Calculating emissions is only useful if the data supports better decisions. Once a baseline is in place, logistics teams can identify where to reduce emissions and cost exposure.

Common opportunities include reducing empty kilometres, improving vehicle utilisation, consolidating shipments, optimising routes, switching transport modes where possible, and using lower-emission fuels or electric vehicles where suitable.

As ETS2 approaches, companies that understand their emissions profile will be better prepared to assess carbon cost exposure, compare transport options and prioritise the changes with the highest impact.

The goal is not only to report transport emissions more accurately. It is to understand where emissions come from, why they occur and what can be changed before carbon costs become harder to manage.