This thesis examines how, and if, an increased demand for reduction of CO2 emissions triggers green innovation strategies in shipping companies. I assume that there are four factors influencing the shipping companies’ strategic decision making with regards to green innovation; international regulations, technology development, the market and the organization’s mentality.The thesis analyses to which extent international regulations trigger green innovation strategies among the two shipping companies. As well as, to which extent companies’ strategies is influenced by internalfactors like the organization’s mentality towards innovation and use of green technology, as well as external factors like the markets they are operating in, the customer’s demand and the green technologydevelopment.Based on the empirical findings of my study, I have concluded that introduction of international regulations for CO2 emissions definitively play a great role in in the shipping companies’ greeninnovation strategy. By means of regulations; clear goals and targets for emission limits are set, creating incentives and encouraging development of green technology and use of this.With regards to the internal- and external factors and their influence on companies’ green innovation strategy; I’ve found that green innovation strategies among shipping companies can be explained by both internal- and external factors. But, it cannot be explained by the influence of one factor alone – it’s the interaction between the markets they are operating in, the demand of their customers, the available green technology and their organization’s mentality who enables us to explain why each of the companies have chosen to do what they do.