Despite carrying 36 million passengers a year, cruise ships are currently exempt from fuel duties and most consumer taxes. This exemption, coupled with the industry’s trend towards larger ships, has raised serious concerns about their environmental impact. The Icon of the Seas, unveiled at the start of 2024, is a prime example of this trend. Five times larger than the Titanic, it is the world’s biggest cruise ship, showcasing the rapid growth in size of these vessels. If this trajectory continues, cruise ships could reach eight times the size of the Titanic by 2050, dwarfing the 10-deck, 269-meter-long ship from 1912, as reported by Transport & Environment (T&E) in their report, ‘Cruisezillas: How much bigger can cruise ships get?’.
The report highlights the urgent need for faster and more stringent climate requirements for cruise ships, along with full and transparent disclosure of their emissions. T&E argues that cruise ships, often spending considerable time in ports, pose immediate health risks to both humans and nature. They emphasize the industry’s luxury status and extensive greenwashing practices, urging cruise companies to take the lead in decarbonization efforts and deliver on their green claims.
The Titanic, with a capacity of 2,500 passengers and a gross tonnage (GT) of 46,300, pales in comparison to the Icon of the Seas, which boasts a 7,600 capacity and 248,700 GT across 20 decks. It features seven pools, a waterpark, and over 40 bars and restaurants spread across eight ‘neighbourhoods’. By 2050, if the growth trend continues, T&E predicts that the largest ships could carry 10,500 passengers with a GT of 345,000.
The number of cruise ships at sea has also increased significantly in recent decades, multiplying 20 times from 22 ships in 1970 to 521 today. This growth, coupled with larger vessels, has led to a dramatic increase in emissions. Despite the pandemic, CO2 output from cruises in Europe grew by 17 per cent between 2019 and 2022, while globally, emissions rocketed by 500 per cent.
Grassroots campaigns across Europe and beyond are advocating for measures to curb the growth of the cruise industry. Several port cities have implemented restrictions, with Venice, Italy, barring large cruise ships from its historic center in 2021. Palma de Mallorca and Barcelona in Spain have also capped the number of cruise ships allowed in daily. Amsterdam, too, has announced plans to remove cruise ships from its city center by 2035. However, these restrictions may not be enough.
Inesa Ulichina, sustainable shipping officer at T&E, emphasizes the out-of-control growth of the cruise business, the fastest-growing tourism sector. She argues that cruise operators, operating in a luxury business, must take responsibility for their climate impact. To avoid facing increased scrutiny and potential restrictions, they must clean up their act.
T&E proposes a €50 tax on cruise tickets, which could generate €1.6 billion globally and €410 million in Europe alone, to fund decarbonization efforts. These funds could be used to invest in alternative fuels, such as e-fuels, which have the potential to power 4 per cent of EU shipping by 2030. The EU has already introduced regulations requiring large ships (over 5,000 GT) entering the bloc to participate in the Emissions Trading System (ETS). This forces companies to buy allowances to emit CO2, with fines imposed for exceeding their allotted allowances. The ETS, with its capped emissions across industries, will also apply to methane and nitrous oxide emissions from 2026, with the caps gradually reduced over time. Penalties for using fossil fuels will also increase progressively under the FuelEU Maritime scheme starting in 2025.
T&E estimates that by 2030, a seven-day cruise sailing on fossil fuels would face nearly €144,000 more in fuel and penalty costs compared to those blending small amounts of e-methanol, made from renewable hydrogen, into their fuel mix. As regulations tighten, this cost difference could rise to almost €400,000 by 2030 and €1.3 million by 2050 for every week sailed. This economic pressure could incentivize cruise companies to adopt cleaner fuels and reduce their environmental impact.
