Fuels
refinement to be truly useful to regulators,” Salerno believes. “The focus on carbon intensity, without also considering its relationship to overall carbon output, could generate unintended consequences. The cruise industry remains engaged with the Marine Environmental Protection Committee and its associated work groups to refine the CII formula so that its true purpose in not distorted, and will continue to work, day-in and day-out, to meet IMO’s ambitious goals.”
Funding the necessary technological changes will be crucial, particularly as the cruise industry, though sailing again, has seen average income per passenger decline compared to previous years, while vessel utilisation is also lower than usual. “The cruise industry is a profit-making business, so it won’t do what is financially harmful,” says Papathanassis. “It will try to make money under competitive, regulatory and demand restrictions. Cost, demand and regulations must be balanced. In terms of demand, generational change – especially after the pandemic – means people are more sensitive to climate issues but, although sustainability is important, our research indicates that people are reluctant to pay for it.” “Cruise lines are still burning cash,” he adds. “They had to shut down quickly and there is a cost to getting everything up and running again. Demand has fallen and cost has risen. But there is one positive effect – the pandemic has fuelled rejuvenation of the fleet. Some older ships have been decommissioned or scrapped, with new ones coming into service.”
The tools to build change
A younger fleet will comprise more technologically advanced, more energy-efficient vessels. The pandemic has expedited that transition and Papathanassis welcomes the change. “More of the ships planned for the future will use LNG, which creates fewer emissions,” he observes. “Of the ships on order out to 2027, 40% of the total capacity corresponds to LNG-powered vessels, which is a very positive sign.” The CLIA notes that with more than $23bn being invested in ships with new technologies and cleaner fuels, there will be a large environmental benefit, building on top of the industry’s early adoption of advanced technologies. This includes exhaust gas cleaning systems, the use of LNG, advanced wastewater purification systems and much more. “The introduction of carbon pricing will not alone solve the underlying core challenge, however, which is the lack of alternative marine fuels,” warns Salerno. “Further political and regulatory attention will be needed to accelerate the development of alternative fuels and make them available for bunkering in European ports.”
Though regulation alone cannot solve such problems, it does compel the relevant stakeholders
World Cruise Industry Review /
www.worldcruiseindustryreview.com
to find solutions, though it raises issues of its own. “A top-down, regulatory approach has a big impact, but there are many legal complications, not least the question of who enforces regulations on the cruise industry, which operates globally,” says Papathanassis. “Regulation is the quickest and best way to bring about change, but it is very challenging.” What could make a big difference is the evolution of awareness of sustainability among passengers. Invariably, regulatory push is more powerful when coupled with demand pull, but much will depend on how much attention passengers pay to the use of alternative fuels such as LNG and, more broadly, the sustainability credentials of individual cruise lines. “Considering the growing public awareness of environmental matters, it is important to keep in mind that cruise ships operate completely within public view at all times so that our reputation and our continued ability to provide a memorable vacation experience rests on responsible stewardship,” believes Salerno.
The amount $23bn
invested in ships with newer
technologies and cleaner fuels, leading to several eco-benefits.
CLIA
“A top-down, regulatory approach has a big impact, but there are many legal complications, not least the question of who enforces regulations on the cruise industry, which operates globally.”
Dr Alexis Papathanassis
For Papathanassis, there is another question – can customers tell if a cruise is environmentally friendly or not?
“It comes down to reputation and public perception,” he says. “IMO regulations help with this, but compliance and enforceability are the issues. Also, the IMO regulations focus just on emissions, but you have to look at sustainability from a systemic point of view or you are just moving the problem to a different place. That said, new technological options generate an organic pull towards sustainability and improved energy efficiency. The move to LNG, for example, is good for reducing emissions, but the industry’s approach cannot just look at emissions.” In other words, regulations must address the cause of the problem, not just the symptoms. As the industry continues to move towards LNG and other low-emission fuels, it will no doubt make great progress towards the IMO’s ambitious goals, but only if those changes are part of a holistic approach that includes, but is not restricted to, a cruise ship’s choice of fuel.
While the common consensus is that something as financially damaging as a global pandemic will restrict wholesale investment in eco-fuels, consumer focus – and criticism – of the negative impact of fossil fuels was growing long before Covid-19 reared its ugly head. As the planet warms and sea levels rise it will only intensify further. ●
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