The urgent need to address global warming and reduce greenhouse gas emissions has positioned carbon capture technologies as crucial climate change mitigation tools. Safe and efficient CO₂ transportation, especially transboundary shipping, is critical in this context, raising numerous legal and regulatory concerns. This paper examines the existing international legal framework, highlights the limitations of the London Protocol and the HNS Convention, and emphasises the importance of international cooperation and consensus-building in addressing legal barriers to CO₂ transport by sea. The paper also explores the potential integration of a market-based mechanism, the ETS, into the liability framework to incentivise safe CO₂ transport and support CCS industry growth. Additionally, it stresses the significance of developing robust insurance products and fostering collaboration among industry stakeholders, regulators, and policymakers. Finally, the paper provides insights into contractual considerations for allocating CO₂ emissions risk, drawing on the leading example of the Norwegian Longship Project, the world’s first full-scale CCS deployment that incorporates ship transport of CO₂ within its CCS chain. This paper contributes to the continuing dialogue on mitigating risks in CO₂ transport by sea through a comprehensive examination and targeted suggestions. It advocates for the responsible development and deployment of CCS technologies in the global fight against climate change.