Norwegian Cruise Line Holdings Ltd., which operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands, has announced its long-term climate action strategy and its goal of achieving carbon neutrality by reducing carbon intensity, identifying and investing in technology, including exploring alternative fuels, and implementing a voluntary carbon offsetting program. In addition to ongoing initiatives to reduce its emissions rate, the company has committed to offsetting three million metric tons of carbon dioxide equivalent (MTCO2e) over a three-year period beginning in 2021 to bridge the gap in its decarbonization efforts until new technology becomes available. Combating climate change is a core objective of the company’s global sustainability program, Sail & Sustain. Furthermore, the company previously signed the Cruise Lines International Association’s (CLIA) landmark commitment to reduce the industry-wide carbon emissions rate by 40% by 2030 compared to 2008 levels.
“We have developed a long-term strategy to achieve carbon neutrality through three areas of action, including reducing carbon intensity, identifying and investing in technology, and implementing a carbon offsetting program. Our commitment to securing three million tons of carbon credits is a measurable step in short-term emissions reductions, allowing us to act today and helping us bridge the gap in our decarbonization efforts as we prepare for a lower-carbon future,” said Frank del Rio, President and CEO of Norwegian Cruise Line Holdings Ltd. “Our global sustainability program, Sail & Sustain, focuses on our commitment to creating a positive impact on society and the environment, and our long-term climate action strategy reinforces this commitment and aligns with the vision of the Paris Agreement to achieve a climate-neutral world.”
The company's long-term climate action strategy's three areas of focus include:
- Reducing carbon intensity. The company continually seeks opportunities to reduce its global footprint by minimizing fuel consumption and increasing energy efficiency. From 2008 to 2019, ongoing investments in systems and technologies have enabled a reduction in daily fuel consumption of approximately 17% for the entire fleet of 28 vessels. In addition, the company achieved an estimated 14% reduction in daily CO2 emissions across its entire fleet between 2015 and 2019.
- Investing in technology and exploring alternative fuels. The company has partnered with CLIA and other maritime organizations to propose the creation of a collaborative fund for marine research and development, with the ultimate goal of eliminating CO2 emissions from international shipping. If approved, funding would come from a contribution per ton of marine fuel purchased for consumption and is expected to reach $5 billion over a 10-year period. These funds will be used to finance the development of fuels and propulsion technologies with zero or near-zero greenhouse gas emissions.
- Implement a carbon offsetting program. The company has announced its commitment to purchase carbon credits to offset three million tons of CO2equivalent over a three-year period, helping to bridge the gap in decarbonization efforts until new technology becomes available. Purchases of offsets are expected to increase in the coming years to achieve carbon neutrality.
The company partners with CLIA, national and international governments, and non-governmental organizations (NGOs) to contribute to global efforts to combat climate change.
As part of its long-term climate action strategy, the company has launched a carbon offsetting program in partnership with World Kinect Energy Services, the sustainability division of World Fuel Services. The company has committed to voluntarily offsetting at least three million tons of CO2by 2023. The company plans to gradually increase its voluntary offset purchases in the coming years to achieve its goal of carbon neutrality based on Scope 1 emissions, which typically account for 95% of its footprint. This initiative allows the company to take immediate action and help bridge the gap in decarbonization efforts until new technologies become available.
Through World Kinect, the company invests in reliable, high-quality carbon offsets that have been independently verified and meet the most demanding international standards, such as the Gold Standard and the Verified Carbon Standard (VCS). These offsets come from a variety of projects, including renewable energy, forestry, energy efficiency, and waste-to-energy projects.
