At a time of year when the leaves are changing colors and the air is getting chillier, the International Maritime Organization held a crucial meeting, the 82nd convening of the Marine Environment Protection Committee (MEPC 82), to decide the fate of international shipping's 2050 net-zero goal. This meeting was significant as it set the stage for the industry's transition to a more sustainable future. Let's take a closer look at both what was discussed and what was left out of the discussion.

Greenwashing campaign in front of the IMO building

Energy transition across many conventional industries is required in order to achieve the Paris Agreement targets, but the debate is particularly fierce and intense when it comes to transportation, a sector that has been almost entirely dependent on fossil fuels[KK1] [YH2] . As industrialization drives an increase in global trade, countries relying on international shipping for essentials have increased, leading to problems such as food security. Therefore, the green transition of international shipping, which accounts for about 3% of global greenhouse gas (GHG) emissions, has become a crucial challenge for the world. The sector’s GHG emission may seem trivial at first glance. However, if the shipping industry were treated as a country, it would rank sixth in the world for its emissions.

Europe is home to the headquarters of the World Trade Organization (WTO), UNESCO, and many other international organizations. It is also the home-base for the International Maritime Organization (IMO), which is located in London. The IMO, as a specialized international organization under the United Nations, plays a crucial role in shaping the future of the shipping industry. It is responsible for safety and security at sea and the prevention of marine pollution from ships, and it is at the forefront of the push for a net-zero emissions goal.

💡IMO: The International Marine Organization is the UN specialized agency responsible for the safety and security of shipping and the prevention of marine and atmospheric pollution by ships, supporting the UN SDGs.

💡MEPC: The Marine Environment Protection Committee, which consists of all Member States, is empowered to consider any matter within the scope of the Organization concerned with preventing and regulating marine pollution by ships.

While the discussion used to focus on the destruction of marine ecosystems from oil leaks and air pollution from black carbon, such as NOx and SOx, GHG emissions from vessels are now high on the agenda.

A view of the IMO headquarters in London, UK

Responding to the urgency of the climate crisis, the IMO announced that international shipping aims to achieve net zero emissions by 2050 during MEPC 80 last March. This upgrade from the previous target—reducing emissions by 50% compared to 2008 levels by 2050, established in 2018—to a 100% reduction demonstrates the firm determination of countries to address the climate crisis proactively. It was a historic meeting and a definitive step forward towards a net-zero future.

From September 30 to October 4, the MEPC 82 was held, where discussions focused on developing mid-term measures as environmental regulations to accelerate the transition of marine fuels. Detailed provisions and regulations of the technical measure adopted at MEPC 80, including the GHG Fuel Standard (GFS), and economic measures, were thoroughly examined.

These mid-term measures refer to mechanisms that regulate countries and shipping companies to achieve the net-zero GHG emissions target. They consist of two components:

💡 Technical Measures: The GHG Fuel Standard gradually regulates ship fuel's greenhouse gas intensity.

💡 Economic Measures: A GHG Pricing Mechanism applied to greenhouse gas-emitting substances.

GFS incorporates Life Cycle Assessment (LCA), which means it regulates GHG emissions throughout the entire process—from fuel production to transportation and combustion—instead of calculating only the carbon emitted during a ship’s operation.

Photo of MEPC 82 at IMO

MEPC 82 was crucial because, at the upcoming MEPC 83 planned in April 2025, the amendment for introducing mid-term measures must be approved, and the final mid-term measures need to be adopted that fall. Since these measures are scheduled to be implemented in all seas from January 1, 2027, the regulations must be finalized by at least next fall. Excluding the planned inter-sessional working groups, MEPC 82 was the last official committee where negotiations between member states were possible.

The most heated issue at MEPC 82 was the imposition of a carbon levy on GHG emissions from the shipping industry. This levy refers to charges for using fossil fuels to promote the transition to alternative fuels, in addition to the purchase of emission allowances required for compliance with the GFS under the mid-term measures. Since costs already arise for GHG emissions from ships under the GFS, member countries have sharply opposing views on this matter.

Discussions at MEPC 82 also revolved around the establishment of funds to manage and distribute the levies collected through the implementation of mid-term measures, as well as the criteria for beneficiaries of these funds. With the introduction of the GHG Pricing Mechanism, significant amounts of money are expected to be collected annually starting in 2027.

How this money will be managed—by whom, based on what criteria, directed at which beneficiaries, and distributed in what manner— are critical considerations that will have a profound impact on the industry.

Reducing GHG emissions from international shipping will involve many trials, errors, and costs. For a just and equitable transition in the shipping industry that excludes no one, member countries and organizations must remember that all these processes ultimately aim to preserve a planet where everyone can live safely. The IMO plans to continue discussions on reducing GHG emissions from ships through two inter-sessional working group meetings (ISWG-GHG) before the MEPC 83 in April next year. The eyes of industry stakeholders and climate groups will be directed to observe the outcomes of the upcoming IMO meetings, as they advance efforts to secure carbon neutrality in international shipping by 2050.

Amid the IMO's declaration to achieve Net Zero by 2050, are you curious about the direction of South Korea's decarbonization pathway in international shipping?

Check out the latest report from SFOC.