During the pause our ships have continued to operate following our environmental procedures and ensuring compliance with all environmental regulations and requirements around the world.
Peaked GHG emissions (for Scope 1 & 2).
Surpassed our 2015 carbon rate reduction goal by delivering a 23.4% reduction.
Achieved 2020 carbon intensity goal ahead of schedule.
Reduce the intensity of CO2e (carbon dioxide equivalent) emissions from our operations by 40% relative to our 2008 baseline, measured in grams of CO2e per ALB-km and per ALBD.
Aspire to achieve net carbon-neutral ship operations exceeding IMO’s goal of 50% absolute emissions reduction.
We are reaffirming our commitment to decarbonization by supporting the transition to alternative fuels and technologies, such as biofuels, large scale batteries, and fuel cells. Our 2030 goal is aligned with the International Maritime Organization’s commitment to reduce carbon emission intensity 40% by 2030 and we aspire to achieve net carbon-neutral ship operations by 2050. We recognize that achieving our aspiration will require energy sources and technologies that do not yet exist for our industry. Regardless, our efforts to date have resulted in peaking our absolute carbon emissions a decade ago, and we are working hard to find ways to further reduce our absolute emissions.
Our entire management team, including our Board of Directors, is committed to this ongoing effort. We peaked our total greenhouse gas emissions (i.e., scope 1 & 2) in 2011. Our continued commitment to decarbonization involves multi-million dollar investments and a multi-faceted strategy. Key components of this strategy include:
Adopting international frameworks and working with industry regulatory bodies to address upcoming regulatory requirements and conditions.
Maximizing efficiencies across the existing fleet.
Retiring less efficient ships.
Using alternative low-carbon fuels such as LNG and Bio-LNG.
Investing in carbon-efficient technologies such as battery and fuel cell.
Supporting and accelerating industry-specific R&D projects.
Partnering with other companies, NGOs, and relevant stakeholders.
In the coming years, we are likely to see an array of emerging technological innovations that do not yet exist for our industry. As we navigate this journey, we are committed to evaluate options, work with various stakeholders, and adjust our path as needed.
2020 was an unprecedented year with significant impacts on our business from the effects of COVID-19. In response to the global pandemic, we paused our guest cruise operations in mid-March 2020. The company focus was directed to protect the health and safety of guests and shipboard team members, optimize the pause in guest operations.
By March 2021, we began to move our ships’ focus back towards guest operations and are working on a gradual return to service over time. Since the pause, we have accelerated the removal of ships in 2020 which were previously expected to be sold over the ensuing years. As a result of the pause in guest cruise operations the number of nautical miles traveled by our ships was significantly reduced. This also significantly reduced our total GHG emissions for 2020.
We recognize that this will require energy sources and technologies that do not yet exist for our industry.
We quantify, report, and verify our greenhouse gas (GHG) emissions, including our direct (Scope 1) and indirect (Scope 2) emissions. Our direct GHG emissions represent 99.6 percent of our total emissions and the emissions generated from our ships’ fuel consumption represented the vast majority of our GHG footprint (97.3 percent). Our indirect GHG emissions represent only 0.4 percent of our total emissions, the majority of which are attributed to electricity purchased to power our shorebased buildings and ships while in port. 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. We are in the process of determining how best to calculate these emissions for our operation.
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.
1st cruise ship in the world powered with LNG.
1st Costa ship with LNG.
1st P&O Cruises UK ship with LNG.
1st Carnival Cruise Line ship with LNG.
2nd AIDA ship with LNG.
2nd Costa ship with LNG.
2nd Carnival Cruise Line ship with LNG.
P&O Cruises UK
2nd P&O Cruises UK ship with LNG.
3rd AIDA ship with LNG.
1st Princess Cruises ship with LNG.
2nd Princess Cruises ship with LNG.
Cruise ships equipped with shore power capabilities can plug in to specific port connection facilities, allowing the ship to receive electricity from the electrical grid in the port instead of using the ship’s engines and fuel to generate power. Electricity generated by renewable sources such as hydro, solar, wind, and geothermal have a minimal climate change and air emission impact compared with non-renewable sources such as fossil fuels. Of the over 700 ports worldwide that we visit, there are approximately 21 ports that have the infrastructure capable to provide shore power connections to our fleet.
Based on our itineraries and capabilities of ships frequenting those ports, we connected in: Hamburg, Germany; Seattle, Washington; Vancouver, Halifax and Montreal, Canada; Juneau, Alaska; San Diego, San Francisco and Los Angeles, California; Brooklyn, New York; Kristiansand, Norway and Shanghai, China. Of these ports half of them have confirmed they are providing electricity from renewable sources such as hydro, wind, solar among others. 40% of the Carnival Corporation & plc fleet is equipped with the ability to utilize cold ironing/shore power technology, with another 20% planned to be fitted by 2030.
In 2019, we announced a joint project between Carnival Corporation & plc, the Meyer Werft shipyard, Freudenberg Sealing Technologies and other partners funded by the German Federal Ministry of Transport and Digital Infrastructure. The “Pa-X-ell2” project objective is to find practical solutions for climate-neutral mobility across all of shipping. The fuel cells will be powered by hydrogen derived from methanol.
In 2019, we signed an agreement with Corvus Energy, to begin production and installation of a firstof-its-kind lithium-ion battery storage system on board a cruise ship. The technology is currently set to become the world’s largest battery storage system ever installed on a passenger ship.
NAUTILUS short for Nautical Integrated Hybrid Energy System is a research project funded under the EU Horizon 2020 program. Though Carnival Corporation & plc’s AIDA Cruises is the only cruise company participating in this program.
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.
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.
Started focusing on energy efficiency programs throughout the fleet.
Announced our first carbon rate reduction goal of 20% by 2015.
Peaked emissions for scope 1 & 2.
Achieved our 2015 goal of reaching 20% carbon rate reduction ahead of time and announced our 2020 carbon reduction goal of 25%.
Surpassed our 2015 carbon rate reduction goal by delivering a 23.4% reduction.
AIDAprima launched with LNG capabilities while in port.
Achieved and surpassed our 2020 carbon rate reduction goal by delivering a 26.3% reduction.
Delivered a 27.6% reduction towards our 2020 carbon rate reduction goal. CLIA announced industry 2030 carbon rate reduction goal of 40%.
Committed to a new carbon rate reduction goal of 40% by 2030 & achieved a 24.8% reduction towards 2020 carbon rate reduction goal.
Due to the global pandemic, we paused guest operations in March.
CLIA and IMO commitment - reducing emissions by 40%.
Aspire to achieve net-zero carbon emissions, exceeding IMO's goal of 50% absolute emission reduction.
IMO’s ultimate goal is to achieve zero-emission shipping.
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:
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.