NCLH aims for carbon neutrality with new long-term strategy

NCLH aims for carbon neutrality with new long-term strategy

Norwegian Cruise Line Holdings (NCLH) has announced the creation of its long-term climate action strategy and goal to reach carbon neutrality.

The three-pronged strategy includes reducing carbon intensity; identifying and investing in technology, including exploring alternative fuels; and implementing a voluntary carbon offset program.

NCLH’s ongoing investments in systems and technologies have resulted in a reduction of fuel consumption per capacity day of approximately 17 per cent from 2008 to 2019 for its entire 28-ship fleet across the Norwegian Cruise Line, Regent Seven Seas and Oceania Cruises brands.

In addition, the company achieved an estimated 14 per cent reduction in CO2 emissions per capacity day across its fleet between 2015 and 2019. As nine new and more fuel-efficient vessels are introduced to its fleet through 2027, NCLH expects this rate to further decrease.

The company has partnered with the Cruise Lines Industry Association (CLIA) and other maritime organisations to propose the establishment of a collaborative shipping research and development fund dedicated to the ultimate goal of eliminating CO2 emissions from international shipping.

If approved, funding would come from a contribution per tonne of marine fuel purchased for consumption, and is expected to amount to US$6.6 billion over a 10-year period.

These funds will be used to finance the development of zero and near-zero GHG fuels and propulsion technologies. As new alternative fuel sources become available at sufficient scale in the future, the company will evaluate how these can accelerate its long-term carbon reduction strategy.

NCLH has also committed to offsetting three million metric tonnes of carbon dioxide equivalent (MTCO2e) over a three-year period beginning in 2021 to help bridge the gap in its decarbonisation efforts until new technology becomes available.

The company expects offset purchases to ramp up in future years to reach the goal of carbon neutrality.

Combatting climate change is a material focus of NCLH’s global sustainability program, Sail & Sustain.

The company has also previously signed CLIA’s historic commitment to reduce the carbon emissions rate industrywide by 40 per cent by 2030, from a 2008 baseline.

Frank Del Rio, president and chief executive at NCLH, said: “We take climate change very seriously and have proactively developed a long-term strategy with an ambitious goal of reaching carbon neutrality through three action areas including reducing carbon intensity, identifying and investing in technology, and implementing a carbon offset program.

“Our commitment to purchase three million metric tons of carbon credits is a measurable step in near-term emissions reductions, which allows us to take action today and helps bridge the gap in our decarbonisation efforts as we prepare for a lower-carbon future.

“Our global sustainability program, Sail & Sustain, is centred around our commitment to drive 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.”

Norwegian Cruise Line’s global and local bosses, Harry Sommer and Ben Angell, will be speaking at Travel DAZE 2021 next month. Click HERE for more info.

Featured image source: Norwegian Cruise Line

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