Efficiency is good business.

Forget any lofty notions of environmental altruism for the moment. Burning less fuel, emitting less CO2 that just makes sense financially speaking.

Except, that in shipping, inefficiency can often bring opportunity. Arbitrage and trading optionality is often a bigger, more profitable pull away from strict notions of carbon reduction.

Emissions regulation is about compliance not profit. And that has generally speaking been the attitude in shipping while we have been talking conceptually.

But carbon pricing is no longer a distant regulatory threat — it’s already impacting shipping and trading, even if the majority of shipping is either not ready or in the case of 60% of you missed the first regulatory hurdle of submitting verified emissions reports.

The European Union is leading the charge, with the EU Emission Trading System and FuelEU Maritime adding an estimated $6.1bn to industry costs in 2025 alone.

The IMO’s Greenhouse Gas Fuel Intensity (GFI) measure is set to join the mix from 2028, driving up costs even further.

Shipowners and charterers could be staring down a combined carbon bill approaching $50bn by 2030 in a business-as-usual scenario.

These surging costs will ripple through supply chains, driving up freight rates, influencing fuel choices, and potentially reshaping global trade patterns.

Carbon pricing has moved from a regulatory abstraction to an immediate financial reality and that’s what we are talking about in this edition of the Lloyd’s List podcast.

We have two speakers who offer an instructive view on what is, and isn’t, happening right now.

Sigmund Kyvik is the CEO of Siglar Carbon – a data-led business that offers emissions insights that cut carbon and costs.

Robert Hvide Macleod is a former chief executive of tanker giant Frontline, but he’s also an active investor in Siglar and is someone who has spotted the financial opportunity in managing carbon efficiency.