The capture, processing, delivery, and display or printing of digital images is important today and will become even more important in the future. Important additional future challenges include the remote browsing of images, image adaptation to support diverse clients, and providing security services such as confidentiality and authentication. In this context, an important functionality is secure transcoding: providing end-to-end security between the content creator and the content consumer, while enabling a potentially untrusted mid-network node or proxy to adapt the content to be best matched for delivery to the consumer - where the adaptation is performed without requiring the node or proxy to unprotect (i.e., decrypt) the content. In prior work, secure transcoding was shown to be possible through a framework referred to as Secure Scalable Streaming, which was originally designed for video streaming applications. Secure transcoding was identified as being possible within the ISO/IEC JPEG-2000 Security (JPSEC) standardization effort, and this paper describes how the JPSEC standard was designed to support rate-distortion (R-D) optimized secure transcoding.