Skip to main content
Back to Blog
Sustainability

Three Myths Freight Companies Still Believe About CO2

By Yash Dhote · · 8 min read · Updated

TL;DR

Transport is 16% of global GHG (IPCC AR6). Freight alone is around 2.9 Gt CO2 per year — roughly India's national footprint. Three assumptions show up in nearly every freight conversation, and all three break under audit pressure.

The IPCC's Sixth Assessment Report puts transport at about 16% of global greenhouse gas emissions. ITF estimates around 2.9 gigatonnes of CO2 a year from freight specifically — close to the total annual emissions of India.

I have had a version of this conversation with three different forwarder ops teams in the past month. The pattern is identical every time: EU ETS auditors, CSRD reviewers, and Scope 3 customers ask for emissions numbers; the team produces a number; the auditor pushes back; the team learns three assumptions they were carrying without noticing. The corrections below are the ones that save reporting time later. For the full mode-by-mode breakdown and what regulators expect specifically, see Freight's 8% of Global Emissions and the regulatory compliance guide. For how I actually compute the per-shipment number, see GLEC v3.2 in practice.

Myth: All CO2 Is the Same

When a customer told me last quarter that they "emitted 500 tonnes of CO2 last year," my first question was the one I now ask every time: are those tank-to-wheel (TTW) or well-to-wheel (WTW) numbers? The difference matters more than most teams realise. I learned the hard way that the same shipment looks 15-25% smaller under TTW than under WTW, and the auditor I was about to walk through the file was going to spot the gap inside of five minutes if I did not name the boundary up front.

TTW vs WTW -- Why It Matters

  • TTW:
    Measures only the emissions from burning fuel in the vehicle. This is what comes out of the exhaust pipe or smokestack. It's simpler to calculate but undercounts the real impact.
  • WTW:
    Includes everything: extracting the fuel, refining it, transporting it, and then burning it. WTW figures are typically 15-25% higher than TTW for diesel. The GLEC Framework v3.2 requires WTW reporting.

If you're reporting TTW numbers to a customer who expects WTW, you're understating your footprint. If you're comparing your emissions against a competitor's and one of you is using TTW while the other uses WTW, the comparison is meaningless. The GLEC Framework v3.2 standardizes on WTW precisely to avoid this confusion.

There's also the question of CO2 versus CO2e (CO2 equivalent). Freight operations produce other greenhouse gases -- methane from LNG-powered vessels, nitrous oxide from combustion -- and CO2e rolls them all into one number based on their global warming potential. When someone quotes you a figure, check which metric they're using.

Myth: Sea Freight Is Clean

This one comes up constantly. A container ship emits roughly 3-8 grams of CO2 per tonne-kilometre. A truck emits 60-150 g CO2/tkm. So shipping is 10-20x more efficient, right? Case closed?

Not quite. The per-tkm number masks the sheer volume. The IMO's Fourth GHG Study (2020) found that international shipping accounts for approximately 2.89% of global GHG emissions. That's a bigger share than most countries. And that figure doesn't capture everything.

What the Per-Tkm Number Hides

  • Total volume: Ships move so much cargo over such long distances that even a low per-unit emission rate adds up to hundreds of millions of tonnes of CO2 annually.
  • Non-CO2 effects: Ships burning heavy fuel oil release sulfur oxides (SOx), nitrogen oxides (NOx), and black carbon. Black carbon deposited on Arctic ice accelerates melting. The IMO 2020 sulfur cap addressed some of this, but not all.
  • Port operations: Ships running auxiliary engines while at berth, truck drayage to and from ports, container handling equipment -- the emissions don't stop when the ship docks.

Sea freight is more carbon-efficient than road or air per unit of cargo, and that's worth knowing. But calling it "clean" glosses over real impacts that regulators are already targeting. The EU ETS expanded to cover maritime shipping starting in 2024, and the IMO's CII (Carbon Intensity Indicator) ratings now penalize the least efficient vessels.

Myth: You Can Offset Your Way Out

I get asked about offsets in nearly every customer call once we get past the calculation step. The short version of my opinion: offsets have a role, but they are not a substitute for actual emission reductions. The Science Based Targets initiative (SBTi) makes this explicit — under the SBTi Net-Zero Standard, companies must achieve at least a 90% absolute reduction in emissions, with offsets covering only the remaining 5-10% of residual emissions. We score shipments against that 90% cut, not against the offset budget.

Why Offsets Alone Don't Work

  • Additionality problems: Many offset projects would have happened regardless of the credit sale. If the forest was never going to be cut down, "protecting" it doesn't reduce net emissions.
  • Permanence risk: A reforestation project can burn down. Carbon stored in trees isn't locked away the way it was underground as fossil fuel.
  • Double counting: The host country might claim the same emission reduction under its own Paris Agreement targets.
  • Regulatory direction: CSRD and the EU Taxonomy don't let you subtract offsets from your reported emissions. You report gross, period.

This doesn't mean offsets are worthless. High-quality credits -- particularly carbon removal projects verified under standards like Verra or Gold Standard -- can address the genuinely hard-to-abate slice of your footprint. But the sequence matters: reduce first, offset the remainder.

The one gap I am still honest about

Aviation radiative forcing. The numbers in this post and in the calculator are CO2 and CO2-equivalent on a 100-year GWP basis. They do not include the non-CO2 high-altitude effects from contrails, NOx-induced ozone, or water vapour. IPCC AR6 puts the effective radiative-forcing multiplier between 1.7x and 3x for cruise-altitude jet operations, but the methodology is still unsettled enough that neither GLEC v3.2 nor ISO 14083:2023 mandates the uplift. We report CO2e-only and footnote the gap on every air-cargo disclosure. When the standard moves, we will too.

Numbers worth committing to memory

  • ~425 ppm: Atmospheric CO2 in 2024 vs roughly 280 ppm pre-industrial (NOAA Mauna Loa)
  • ~16%: Transport's share of global GHG (IPCC AR6 WGIII, 2022)
  • ~2.9 Gt/year: Freight's annual CO2 (ITF Transport Outlook 2023)
  • ~2.89%: International shipping's share of global GHG (IMO Fourth GHG Study, 2020)
  • 5–10%: Maximum residual emissions offsettable under SBTi Net-Zero Standard

Want the Scope 1/2/3 breakdown for freight forwarders? Read the mode-by-mode breakdown. Want the regulation timeline (EU ETS, CSRD, IMO CII)? Read the regulatory compliance guide. Want the calculation methodology? Read GLEC v3.2 in practice.

Replace the assumptions with a baseline

Once you stop confusing TTW with WTW, you need a baseline that produces both. The calculator returns WTW + TTW per shipment using GLEC v3.2 factors — see the methodology for selection logic.