The IMO’s 83rd Marine Environment Protection Committee (MEPC 83) meeting has set the stage for major changes in how the shipping industry tackles carbon emissions. At the heart of the meeting was the approval of the IMO 2028 framework, which introduces new rules combining a greenhouse gas fuel standard with financial penalties for ships that exceed set emission limits. From 2028, ships must cut their carbon intensity by 4% to meet the base target or by 17% to meet a stricter direct compliance target. Ships that fall short will face charges starting at $100 per tonne of CO₂ emissions, while better-performing ships can earn surplus units they can sell. Although many hoped for a simple carbon levy, the IMO chose a more complex system that some worry could still favor fossil LNG in the short term instead of pushing the industry towards cleaner fuels.
Still, the agreement gives the industry clearer rules and could boost investment in greener fuels like biofuels, e-methanol, and synthetic LNG. Onboard carbon capture systems are also gaining attention as another way to meet targets. However, the cost of compliance will rise sharply, with estimates suggesting that operating costs could increase by $75 per tonne of fuel in 2028, climbing even higher by 2035. While some countries and groups are disappointed that the deal is not ambitious enough to fully meet climate goals, MEPC 83 has moved the industry firmly toward a lower-carbon future. With final approval expected in October 2025, companies now need to start preparing by planning for cleaner fuels, new technologies, and higher costs ahead.
