Global CO2 Transport Industry to Reach USD 211 Billion
Industrial emitters must prepare for new international transport costs as cross-border carbon trade scales by 2060.
Updated on Oct. 15, 2026 in Oil and Gas
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The global carbon dioxide transport sector is projected to reach a USD 211 billion valuation by 2060. This growth will be driven by the need to transport three gigatonnes of CO2 annually to geological storage sites, with 200 million tonnes per annum crossing international borders.
Why it matters
A growing mismatch between domestic carbon emission volumes and available local storage space is forcing industries to pursue cross-border trade. This shift creates new demand for infrastructure development, shipping, and pipeline repurposing to manage decarbonization costs.
The global CO2 transport industry is projected to reach a USD 211 billion value by 2060, fueled by an annual demand of 164 Mtpa from Japan, South Korea, Singapore, and Taiwan. Asia Pacific is expected to command 60% of total investment in the sector.
The players
Wood Mackenzie
An international energy and natural resources research and consultancy firm.
Japan
A major industrial nation and key source of cross-border CO2 transport demand.
The details
Operators can reduce capital expenditures by over 60% by repurposing existing gas pipelines for CO2 transport, which can also halve total transport costs. Shipping remains a critical component, where fuel and electricity costs account for over 50% of levelized expenses. Utilizing low-pressure vessels could further cut these shipping costs by up to 34% over long distances.
Timeline
2050: Japan targets storage capacity of 120 to 240 Mtpa of CO2.
2060: Global CO2 transport industry reaches USD 211 billion valuation.
Market Landscape
This development follows the trajectory set by the Paris Agreement net-zero emission targets, necessitating massive investments in carbon management infrastructure. It marks a departure from localized storage models toward a globalized market for CO2 logistics.
Businesses in high-emission sectors should evaluate the long-term feasibility of cross-border carbon storage as costs for Japanese importers are projected to rise by USD 40/tCO2. Operations should monitor the availability of repurposed pipeline assets to mitigate capital outlay risks.
The takeaway
The emerging cross-border CO2 market highlights the necessity of securing long-term storage capacity to avoid future logistical premiums. Operators should track the regulatory progress in Australia and Southeast Asia, which currently offer 187 Mtpa of storage capacity for international emitters.
Further reading
Learn more about evolving energy infrastructure in our Oil and Gas section.
Source note: This article includes information reported by Hellenic Shipping News.
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