by Dotan Levy, CEO and Co-Founder of Gigablue
The ocean has long-been shipping’s highway to commerce. Now it could become its pathway to decarbonization.
With mounting pressure to decarbonize, the global shipping industry is at a critical tipping point. Maritime transport, responsible for 80% of world trade, produces 3% of global greenhouse gas emissions – which matches the entire carbon footprint of the United Kingdom – with the potential to increase by up to 130% by 2050 if changes aren’t implemented now.
That’s why we’re seeing the regulatory tide rising for shipping companies, with the International Maritime Organization’s (IMO) net-zero framework set for formal adoption later this year before coming into force in 2027. Under this framework, vessels must achieve a 17% greenhouse gas intensity reduction by 2028, surging to 43% by 2035, or pay a minimum $100/ton carbon levy on emissions over these thresholds. Companies that miss the weaker targets (4% in 2028 and 30% by 2035), face an even greater penalty: $380/ton.
The financial implications are no joke, with costs for the industry projected to reach $40 billion by 2030, jeopardizing profit margins in an already highly-competitive sector ravaged by US tariffs. As shipping leaders navigate these turbulent waters, they need near-term solutions that balance regulatory compliance with operational and economic viability.
The Alternative Fuels Gap
While many eyes are on alternative fuels to meet compliance, the timeline doesn’t pan out. IMO’s carbon levy is set to arrive in 2027, but clean fuels won’t be available at scale until well-into the 2030s.
The demand is substantial, with international shipping currently consuming approximately 300 million tons of marine fuel annually, resulting in nearly 1 billion tons of CO2 emissions.
The IMO’s requirement for 5-10% zero or near-zero GHG fuels in shipping’s energy mix by 2030 translates to 15-30 million tons of alternative fuel. According to new research, biofuels will be the primary beneficiary of this system in the short-term but also face significant supply constraints. With total global biofuel production at approximately 159 billion liters, marine shipping alone would require hundreds of billions of liters to achieve compliance. Green ammonia and hydrogen production also remain in early development.
This mismatch between compliance and clean fuel readiness leaves shipping executives searching for viable interim solutions.
The Promise of mCDR: Natural Ocean Symbiosis
The obvious answer is in the ocean itself. Offsetting with marine carbon dioxide removal (mCDR) is an immediately implementable and naturally aligned solution. mCDR can meet this vast demand since it’s based on this vastness itself – removing and permanently sequestering carbon dioxide from the atmosphere in the ocean. Momentum for mCDR is growing, with many approaches being commercialized today mimicking the ocean’s own natural processes for carbon removal that’s safe for sensitive marine ecosystems.
What makes mCDR particularly attractive for shipping companies is not just its natural alignment with maritime operations but its symbiosis with environmental, economic, and cultural domains as well. Unlike other carbon removal approaches, such as direct air capture, mCDR has a strong synergy with maritime shipping operations – and shipping companies are well-poised to integrate mCDR into their existing operations.
Relevant: Seabound Launches World-First Onboard Carbon Capture System For Cement Shipping
In the near-term, shipping companies can continue utilizing existing vessels and operational practice, while offsetting their carbon footprint through direct investment in mCDR. This dual strategy – actively reducing emissions where possible, while also slashing legacy carbon from the atmosphere – is essential for achieving net-zero goals in a realistic and timely manner.
Vessels already traverse expansive ocean routes and operate within Exclusive Economic Zones (EEZs), where many deep-sea mCDR projects could be deployed. This operational symmetry creates future opportunities for shipping companies to integrate mCDR directly into their existing routes and activities, rather than treating it as a separate offset strategy.
The Economics Make Sense
For shipping executives navigating increasingly stringent regulations, the financial case for mCDR is particularly compelling: High-sulfur fuel oil (HSFO) with a carbon intensity of ~94 gCO2e/MJ is still the most economical fuel option. However, meeting the tougher 2030 target (21% reduction) through fuel switching would require blending ~34% UCOME (used cooking oil methyl ester) at approximately 3 times the cost of HSFO.
We all agree the best course of action is to stop emissions immediately – but we also recognize that’s not yet realistic. To make real progress toward net-zero, the industry must simultaneously work towards reducing future emissions, while removing legacy emissions. mCDR enables this parallel path forward.
Rather than immediately switching to significantly more expensive alternative fuels with limited availability, companies can maintain operational efficiency while investing in mCDR – scaling their mCDR investments proportionally to their emissions profile for greater flexibility. At the same time, compared to other carbon dioxide removal methods, nature-based approaches continue to outperform in scalability and affordability.
Adding marine-based carbon credits creates a more resilient carbon offset portfolio. Early adopters of mCDR strategies stand to secure more favorable positions in carbon markets as prices rise with tightening regulations. Establishing early relationships with quality mCDR project developers will certainly be helpful down the line. Not to mention other reputational advantages, including being perceived as leaders in climate innovation and sustainability, standing out amongst peers relying solely on lagging clean fuels. That said, it’s important to emphasize that mCDR is not a license to pollute. It is a scientifically sound and operationally compatible part of a comprehensive decarbonization portfolio when used appropriately.
Beyond Carbon: Building Community Connections
The benefits of mCDR extend beyond carbon accounting. Many promising mCDR projects are based in coastal regions at the frontline of climate change impacts, like ocean acidification and sea level rise. With these initiatives, shipping companies can foster meaningful partnerships with coastal communities, supporting local economies and fighting against these conditions.
Working closely in communities to localize mCDR projects brings tangible economic benefits. Producing the necessary components locally contributes directly to job creation and skills development.
Relevant: Gigablue Signs The Largest mCDR Deal To Date With SkiesFifty
Beyond manufacturing, some mCDR approaches have the potential to mitigate ocean acidification, supporting healthier marine ecosystems. This can also improve fishing industries – the backbone of many coastal communities globally.
These co-benefits represent a shift from transactional carbon offsetting to relationship-based climate action that extends beyond regulatory compliance.
A Path Forward for Forward-Thinking Industry Leaders
The path to IMO regulations and achieving maritime decarbonization more broadly requires a portfolio approach – there is no silver bullet. While alternative fuels trail behind, mCDR offers an immediate and scalable strategy that naturally aligns with existing shipping operations.
By embracing the environmental, operational, and cultural symbiosis between the shipping industry and the ocean, the maritime industry can unlock a new frontier of climate leadership.
Shipping companies that want to stand out from their competitors can take immediate action by mapping their fleet’s emissions and identifying opportunities for strategically integrating mCDR. Developing pioneering projects with mCDR developers will redefine the industry for years to come. Equally important is active engagement with policymakers to ensure marine-based solutions receive appropriate recognition in emerging carbon markets.
In doing so, companies can not only chart their course through the immediate regulatory ecosystem but position themselves as captains of the sustainable blue economy.
Read more: New ClimeFi Report Shows Steady Carbon Removal Growth In Q1 Of 2025
