We are expanding our investment in the use of low-carbon fuels, in particular.

Liquefied Natural Gas (LNG) We pioneered the use of LNG within the cruise industry. We currently have the only four cruise ships in the world using LNG to generate 100% of their power. We also have seven more LNG ships on order. These innovative ships generate significantly less carbon emissions than traditionally powered ships, while almost eliminating sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter (PM).

Bio-LNG or liquefied biomethane This biofuel is made by processing organic waste flows and is practically CO2 neutral and has all the advantages of LNG versus diesel, including reduced CO2 emissions, quieter engine sound, no SOx, much lower NOx, and significantly less PM emissions. We are working with Shell and other suppliers as they are making the necessary investment to scale the technology and build a reliable supply infrastructure.

Synthetic LNG or Liquefied Synthetic Methane (LSM) LSM uses hydrogen from renewable sources combined with carbon, either from direct air capture or from carbon capture, to make pure methane. Depending on the source, it can be considered a carbon-free or low-carbon alternative. While not yet commercially viable this is one of the pathways that we are exploring to ensure the long-term viability of our LNG vessels.

One of the keys to establishing LNG as a standard for powering cruise ships is building out an extensive, safe, and reliable supply chain infrastructure across the globe. As part of our strategy, we signed a framework agreement with Shell Western LNG B.V. (Shell) to be our supplier for the fuel to power our first LNG-powered cruise ships, and recently expanded our partnership to fuel North America’s first next-generation LNG-powered cruise ships. We are proud to be on the forefront of advancing LNG as a fuel source for the cruise industry.

Click to video below to learn more about the many environmental benefits of Liquefied Natural Gas.

Selling Ships

As result of the COVID-19 impact, we have accelerated the removal of 19 ships which represent approximately 13% of pre-pause capacity and only 3% of operating income in 2019.

Recycling Ships

At the end of a ship’s life cycle is the dismantle and recycle process. This is a complex process involving many components for reuse, recycling, and disposal of waste materials. Carnival Corporation & plc selected Turkey-based EGE CELIK and SIMSEKLER to recycle three retired cruise ships based on their track records of compliance with key national and international environmental agreements and regulations. Both recycling companies are certified by the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships. They are also strictly required to adhere to a complex matrix of global standards set forth by the European Union (EU), International Maritime Organization (IMO), International Labor Organization (ILO) and the Basel Convention multilateral environmental agreement. In addition, we worked with the environmental nonprofit Bellona Foundation – a lead partner in the NGO Shipbreaking Platform – and the specialized ship recycling experts Sea2Cradle to formulate an approach to dismantling and recycling the ships. The organizations also helped identify best-in-class certified maritime vessel retirement solutions worldwide that are able to reuse, reclaim, and recycle retired ships in support of Carnival Corporation & plc’s commitment to a sustainable cruise industry.

Shipboard fuel consumption contributes to more than 97% of our direct carbon emissions. Therefore, our efforts are focused on actions that can directly reduce and ultimately eliminate the emissions generated by our fuel consumption. We understand that carbon offsets may play a role in our decarbonization pathway if technological innovations are not sufficient to eliminate our emissions. To address those potential gaps in the future, we may want to invest in climate protection projects to offset or counterbalance the impact of any remaining emissions.

Throughout the years, we have invested in various systems to significantly increase our energy efficiency, which has resulted in fuel reduction as well as direct energy emission reduction. Below is a list of some of the initiatives we are currently working on:

• Shore-based ship monitoring and analysis
• Designing ships for greater efficiency
• Increasing efficiency through ship operations and maintenance
• Minimizing fuel use and engine emissions
• Minimizing engine emissions
• Implementing other energy-saving initiatives

In addition to disclosing our carbon performance within our sustainability reports, we also disclose our carbon performance through the CDP (formerly known as the Carbon Disclosure Project) annual disclosure platform. We have been disclosing our carbon emissions in the CDP since 2007. As disclosure platforms emerge and evolve, we have also selected to disclose our carbon performance through the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD). For additional details please refer to their specific sections within this report.