Global shipping enters the carbon cost era: IMO dual pricing and the redesign of the maritime industry
In April 2025, at the 83rd Marine Environment Protection Committee (MEPC83), the IMO decided to introduce a Dual Rate System for the decarbonisation of shipping.
What is the Dual Rate System?
It is a system that imposes differentiated carbon charges on ships exceeding GHG emission-intensity thresholds, depending on the level of exceedance:
- Tier 1 (mild exceedance): USD 100 per tonne
- Tier 2 (significant exceedance): up to USD 380 per tonne
Shipping is now no longer just a sector responding to regulation — it must fundamentally redesign its cost structure and carbon strategy.
Industry Impact
The realisation of carbon costs implies:
- Increased financial burden on fossil-fuel-based operations
- Accelerated investment in alternative fuels (ammonia, methanol, e-fuel)
- Urgent need for carriers to formulate fuel-transition strategies
- Surging demand for green ships at shipbuilders
Redesigning Shipbuilding and Shipping
The IMO decision is not merely the addition of a new fee — it is a turning point that redefines the business model of the entire shipping industry. Shipbuilders must standardise green propulsion systems, and carriers must immediately formulate fuel-transition plans for their existing fleets.
For the Korean shipbuilding and shipping industry, this is both a crisis and an opportunity. Strategic transition that leverages world-class shipbuilding capabilities to lead the green-ship market is required.