2020 Goal & Update

Carbon Footprint

Reduce the intensity of CO2e (equivalent carbon dioxide) emissions from our operations by 25% by 2020 relative to our 2005 baseline, measured in grams of CO2e per ALB-km.

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We have achieved a 26.3% reduction relative to our 2005 baseline and have reached our target ahead of schedule.

Continuing our carbon footprint reduction we:

  • Delivered the second cruise ship in the world to be powered by liquefied natural gas (LNG) from pier side trucks while in port (the AIDAperla).
  • Started LNG operations in Mediterranean Ports.
  • Expanded our partnership with Shell to fuel North America’s first LNG-Powered Cruise Ships.
  • Continued our partnership with Wärtsilä to drive further gains in engine efficiency.

Exhaust Gas Cleaning Technology

Continue to improve the quality of our emissions into the air by developing, deploying and operating Exhaust Gas Cleaning Systems across the fleet capable of reducing sulfur compounds and particulate matter from our ship’s engine exhaust.

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We continue to improve the quality of our emissions into the air by installing and operating Exhaust Gas Cleaning Systems across the fleet. These systems significantly reduce sulfur compounds, particulate matter, including black carbon, from our ship’s engine exhaust.

  • 62% of our fleet is equipped with Exhaust Gas Cleaning Systems.
  • We were named the winner of Lloyd’s List Americas 2017 Cleaner Safer Seas Solutions Award for Clean Air Commitment.

Cold Ironing Capacity

Increase Cold Ironing coverage of our fleet wide capacity in relation to future port capabilities.

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We continue to improve the quality of our emissions into the air by continuing to increase the cold ironing coverage of our fleet wide capacity.

  • 43% of our fleet is equipped with cold ironing capabilities.

FY2017 Energy & Emissions Performance

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LIQUEFIED NATURAL GAS (LNG)

As part of our commitment to reducing our air emissions and improving air quality in the environments we visit, we are pioneering the use of LNG, the world’s cleanest fossil fuel, in port. In 2017 we:

  • Delivered the second cruise ship in the world to be powered by LNG from pier side trucks while in port (AIDAperla).
  • Began LNG operations in Mediterranean ports following the initial successful testing. AIDAperla was supplied with LNG while docked at the ports of Barcelona (Spain), Marseille (France) and Civitavecchia (Italy).
  • Expanded our partnership with Shell to fuel North America’s first LNG-powered cruise ships for two next-generation cruise ships to be constructed for Carnival Cruise Line.
  • Continued construction on AIDAnova, the first fully LNG-powered cruise ship both in port and on the open sea, which is expected to join the fleet in late 2018.
  • Began construction on Costa Smeralda. The new Costa Cruises ship will be the brand’s first ship powered by LNG.
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OPERATIONAL EFFICIENCY

We continued our 12-year strategic agreement with Wärtsilä to maintain the highest possible levels for cruise ship diesel engine safety and reliability. The scope of the agreement includes all engine maintenance and monitoring for 78 vessels within our fleet of 103 vessels. The agreement is designed to reduce overall maintenance costs while at the same time increasing engine efficiency. As part of the agreement, engine-level efficiency and fuel consumption is measured on a regular basis, providing improved transparency into engine performance resulting in further improvements to engine operations. The data provided also allows for tailored optimization of the combustion process which will also improve the quality of our air emissions. In 2017, we completed installation of fuel measuring instrumentation and related software on 78 ships powered with Wärtsilä engines. This includes mass fuel meters, specific fuel oil computers and integration with Neptune, our data collection system. For further details refer to the Carnival and Wärtsilä Partnership highlight in this report.

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International maritime organization (IMO) and Climate Change

We remain active and interested in the worldwide strategies and frameworks being designed and developed to address climate change and air emissions. Specific to the maritime industry, the International Maritime Organization (IMO) is the specialized agency of the United Nations responsible for regulating shipping. We participate in IMO meetings and working groups through our trade association, The Cruise Lines International Association (CLIA). In 2017, IMO approved a roadmap for developing a comprehensive strategy for reducing greenhouse gas emissions (GHG) from ships in line with the COP21 (Paris Agreement). In accordance with this roadmap, an initial strategy for reducing GHG emissions from shipping is to be developed in 2018.

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GHG Monitoring, Reporting and Verification

In 2017, we prepared for the European Commission’s regulation aimed at reducing greenhouse gas (GHG) emissions from maritime shipping. The first step in this process was through the development and implementation of a Monitoring, Reporting and Verification (MRV) program, which will collect emissions data from ships over 5,000 gross tons to monitor and report their carbon emissions on all voyages to, from and between European ports. This program began on January 1, 2018 and requires any ship calling on or departing from an European Union or European Economic Area port to measure and report fuel consumption on the associated leg.

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2017 European Union Our Oceans Conference – Malta

Carnival Corporation was invited to participate in the EU Our Oceans conference in Malta in October 2017. David Dingle, the Chairman of Carnival UK, represented Carnival as part of the climate change session. He presented on our efforts to pioneer Liquefied Natural Gas in the cruise industry as part of our approach to reduce greenhouse gas emissions. The Our Oceans conference seeks public commitments to actions that will reduce marine pollution, manage aquatic resources sustainably, mitigate climate change and establish marine sanctuaries. Mr. Dingle’s and other presenters’ speeches can be viewed at: https://ec.europa.eu/avservices/video/player.cfm?ref=I144415

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DIRECT & INDIRECT EMISSIONS

We quantify, report and verify our greenhouse (GHG) emissions, including our direct (Scope 1) and indirect (Scope 2) emissions. Scope 1 emissions are direct GHG emissions that occur from sources that we own or control, such as the operation of our ships. Scope 2 emissions are electricity indirect GHG emissions from the generation of purchased electricity that we consume on our properties and ships. Our direct GHG emissions were 99.6 percent of our total emissions, and the emissions generated from our ships’ fuel consumption represented the vast majority of our GHG emissions (97.3 percent). Our indirect GHG emissions represent only 0.4 percent of our total emissions, the bulk of which are attributed to electricity purchased to power our shore-based buildings.

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THE NATURE CONSERVANCY

We continue our partnership with The Nature Conservancy (TNC) with a $2.5 million investment commitment over a five year period which started in 2014. Our commitment supports important research for marine conservation. We support TNC’s Mapping Ocean Wealth (MOW) program. This program creates maps that show the extent and distribution of benefits that habitats like coral reefs and mangroves provide, including fish production, flood mitigation, erosion control and recreation. Our partnership also helps TNC’s, coastal blue carbon research. Blue carbon is the carbon stored and sequestered in coastal ecosystems such as mangroves, seagrass meadows or salt marshes. These valuable ecosystems hold vast carbon reservoirs. They capture carbon and then store it in their sediments, which helps mitigate climate change. Refer to The Nature Conservancy highlight in this report for further details.

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Data aggregation and Analysis Platform – Neptune

In 2017, we continued the implementation of a state-of-the-art data aggregation and analysis platform called Neptune that enables real-time information transfer and sharing between our ships and shoreside teams supporting fleet operations. The proprietary system significantly improves communication from ship to shore, providing new capabilities for enhancing the safe passage of ships at sea while improving operational efficiencies and supporting overall environmental initiatives. The platform provides visual representations of ships routing, real-time navigational notifications, integrated weather data and traffic information and major equipment performance data, all of which support operational efficiencies and minimize risk.

In 2017, the system expanded its aggregation and analysis in three areas:

  • Engine performance: Engine data is monitored in real-time and shared with Wärtsilä, the engine manufacturer, to allow performance deviations to be detected and measures initiated to ensure that the engines are maintained at their optimal levels, thus reducing fuel consumption and providing significant emission reduction benefits.
  • Exhaust Gas Cleaning Systems (EGCS): Operating parameters from the EGCS are checked every 3 minutes and sent ashore to teams who monitor to ensure that the systems are operating correctly and in the appropriate areas.
  • Energy efficiency: Data is being collected across a broad range of energy consumption measurements. This allows us to analyze and benchmark key performance indicators for many different aspects of energy efficiency to direct and drive forward our program for efficiency improvements and help us reach our greenhouse gas reduction targets.
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SCOPE 3 EMISSIONS

We have reported our Scope 3 emissions in the CDP (formerly known as the Carbon Disclosure Project) since 2009. Scope 3 emissions are derived from the energy used in other upstream and downstream indirect emissions like business travel, passenger transportation to and from our ships, fuel transport, waste disposal and deliveries of supplies. See Climate Change CDP Report for more information.

Our Commitment

We believe in communicating transparently about climate change. We actively participate in the process of determining our industry’s role in addressing climate change. We have publicly disclosed our carbon footprint since 2006 and are taking specific and proactive steps to reduce this footprint. Energy is vital to our business so that guests can enjoy our facilities and our amenities on our ships while at sea and in port. Fuel is the primary source of energy consumed for the propulsion of our fleet and our on board hotel power requirements. Our shipboard fuel consumption contributes to more than 97% of our direct (Scope 1) and indirect (Scope 2) carbon emissions and is therefore the most significant contributor to our carbon footprint.

Our Strategy

In order to manage our emissions footprint, we must manage the source of our emissions. Shipboard fuel consumption is the most significant contributor to our carbon footprint. Therefore, we have implemented multiple energy-savings initiatives. See Energy-Saving Initiatives in the Appendix for further details.

We established a Corporate Energy Conservation group charged with reducing our overall energy consumption. The goal of this group is to identify both current and long-term opportunities for saving fuel.

We are actively involved in new shipbuilding research and development for new abatement technologies and new equipment to improve energy efficiency. We continue to work on practical and feasible energy reduction and conservation initiatives to help us reach our target. We are investing in a broad range of voluntary energy reduction initiatives that meet or surpass the requirements of current laws and regulations. Reducing fuel and driving energy efficiency takes multi million-dollar investments and a multi-pronged strategy.

These include abatement technologies and equipment to further reduce engine emissions such as:

  • Air Lubrication Systems using air bubbles to reduce friction between the ship’s hull and the water.
  • Exhaust Gas Cleaning Systems (EGCS) that use proprietary technology to remove sulfur oxides and particulate matter from engine exhaust.
  • Alternative Fuels – Cruise industry first use of Liquefied Natural Gas (LNG), one of the world’s cleanest burning fossil fuels.

We quantify, monitor, report and verify our GHG emissions. We developed a GHG Inventory Management Plan (GHG IMP) in 2010 in accordance with the requirements of ISO 14064-1:2006 and The Greenhouse Gas Protocol. Our GHG emissions are independently verified by a third-party.

Lloyd’s Register Quality Assurance Inc. (LRQA) certified our scope 1 and scope 2 GHG emissions inventory. For more information on our third-party verification visit our Assurance Statement.

We continue to train and certify employees responsible for refrigeration and air-conditioning plants, use recovery units certified to meet refrigerant recycling and recovery requirements and implement programs to reduce Ozone Depleting Substances (ODS) releases.

Exhaust Gas Cleaning Technology Update

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In 2013, we announced our plans to install exhaust gas cleaning systems GCS) on our ships. These systems remove sulfur compounds and particulate matter from our ships’ engine exhaust at any operating state of a ship – at sea, during maneuvering and in port. Due to the limited availability of EGCS for marine application, we decided to lead the way by developing the technology to successfully function in the restricted spaces available on cruise ships and by making the necessary investments, which includes approximately $500 million to date, leading to a significant development in shipboard environmental technology.

As of FY2017, 62% of our ships are equipped with EGCS. These EGCS are open loop systems that use sea water for removing sulfur from engine exhaust. Before the sea water is returned to the ocean it is checked to make sure it meets International Maritime Organization (IMO) discharge standards. Furthermore, a third party has evaluated seawater parameters prior to returning it to sea and confirmed that they meet major European and North America water quality standards. To further enhance our emissions profile we have also started to install a catalytic filter on the engine exhaust before the EGCS and also a filter before the sea water is returned to the sea. Our standard EGCS removes 99% of sulfur and well over 50% of the particulate matter, including elemental and organic carbon. The EGCS, catalytic filter and other systems further reduce the particulate matter, including the very fine PM 10 and 2.5 particles, and also reduce nitrogen oxides by 10%. All EGCS comply with international regulations and are certified by a classification society. In addition, all systems are equipped with continuous monitoring equipment to automatically record all required parameters.

Pioneering Liquefied Natural Gas (LNG)

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Reflecting on our commitment to sustainability, we are continuing to pioneer the use of liquefied natural gas (LNG), the world’s cleanest fossil fuel, and are expanding our LNG investment.

We began the implementation of our LNG vision by using LNG in port. In 2015, AIDAsol was the first cruise ship in the world to be supplied with power by an LNG Hybrid barge while in Hamburg, Germany. The LNG Hybrid Barge, a unique pilot project with Becker Marine Systems, was designed, constructed and commissioned in three years. Now we have expanded our LNG capabilities to supply LNG directly to two ships, each with a dual-fuel powered engine. These ships use LNG while in port drawing fuel directly from trucks alongside the ship.

By the end of 2018, we will be the first cruise company to use LNG on the open sea and in port with the introduction of AIDAnova. As of February 2018, we have nine next-generation cruise ships on order that will be the first in the industry to be powered by LNG at sea and at shore.

First ships with LNG capabilities at shore
In 2017, we took delivery of our AIDA brand ship, AIDAperla, the world’s second cruise ship that can be operated while in port with LNG. She is the sister ship of AIDAprima, the world’s first that regularly uses dual-fuel engines for an energy supply with LNG while in specific ports.

In 2017, we expanded beyond Northern Europe and started LNG operations in Funchal and Mediterranean ports following the first successful tests. AIDAperla started to be supplied with LNG while docked at the ports of Barcelona (Spain), Marseille (France) and Civitavecchia (Italy), while AIDAprima was supplied in Funchal (Maderia). We already tested the practical application of this innovative technology in Hamburg, Germany back in early 2016 with AIDAperla’s sister ship, AIDAprima. Shortly after that, operations were also possible in the ports of Southampton (UK), Le Havre (France), Zeebrugge (Belgium) and Rotterdam (Netherlands).

First fully capable LNG Cruise Ship
We began construction on AIDAnova in 2017, which is expected to join the fleet in late 2018. With the commissioning of AIDAnova, we will be able to operate a new generation of cruise ships entirely with LNG – both in port and at sea. We have a further 8 sister vessels due for delivery over the next years for Costa, P&O and CCL.

Strengthening our LNG Supply Chain
In 2017, we expanded our partnership with Shell to fuel North America’s first LNG-powered cruise ships for two next-generation cruise ships. As part of the agreement, the two ships, built with a next-generation “green cruising” ship design, will be fueled through Shell’s LNG Bunker Barge (LBB) – a project that is part of Shell’s strategic plan to develop a global LNG bunkering network. The ocean-going LBB, which is designed to support growing cruise line demand for LNG as a marine fuel, will be the first of its kind in the U.S. and will allow these ships to refuel with LNG at ports along the southern U.S. East Coast.

We are proud to be on the forefront of advancing LNG as a fuel source for the cruise industry. One of the keys to establishing LNG as a standard for powering cruise ships is building out an extensive, safe and reliable infrastructure across the globe for this clean burning fossil fuel. We are looking forward to working closely with Shell as they help to bring LNG to North America in what we hope will be the first step in building a strong foundation for the future of LNG fuel supply for cruise ships in the region.

Expanding our LNG ship orders
We have nine next-generation cruise ships on order that will be the first in the industry to be powered by LNG at sea and at shore. We began construction on Costa Smeralda in 2017. The new Costa Cruises ship will be the brand’s first ship powered by LNG and is expected to join the fleet in late 2019. Costa Smeralda will be the world’s first LNG-powered ship to be broadly marketed to consumers from multiple countries, including Italy, France, Spain, Germany and Switzerland. A second Costa LNG ships is scheduled for delivery in 2021. Our P&O Cruises UK and Carnival Cruise Line brands both have two LNG ships on order. The first for each brand is scheduled to be delivered in 2020 and the second in 2022. In addition to the first fully capable LNG cruise ship scheduled to be delivered in late 2018, our AIDA brand has two additional LNG ships on order due in 2021 and 2023.

Switching from marine diesel to LNG

0

Sulfur Dioxide Emissions

85%

Reduction in Nitrogen Oxides

95-100%

Reduction in Particulate Matter

Up to 20%

Reduction in Carbon Emissions

Energy & greenhouse gas emissions

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Ship Fuel Direct GHG Emissions

Fuel to propel the ships and run the ships generators to provide electricity.

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Shore Indirect GHG Emissions

Electricity purchased and used to power the corporate and brand headquarters buildings and the land-based hotels.

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Ship Refrigerant Direct GHG  Emissions

Refrigerants to cool appliances such as refrigerators and AC units on the ships.

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Ship Indirect GHG Emissions

Electricity purchased at the port of call for power while docked. (Cold Ironing)

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Shore Direct GHG Emissions

Fuel for company cars and building generators.