In 2022, cruise ship companies pledged to pursue net-zero emissions by 2050. Three years later, those companies say they need more policy signals from the European Union to stimulate the investments needed both on land and at sea to make this happen.
Euractiv spoke with Budd Darr, CEO of the Cruise Line International Association (CLIA) and former executive vice president of government affairs at the MSC Group, about where the industry finds itself in 2025 and what it’s watching for EU policy.
EV: How is the health of the cruise industry in the post-COVID period? Where is the most growth coming from – returning customers or new ones?
BD: Cruise is one of the most resilient and responsible tourism sectors that continues to deliver exceptional guest experiences. The industry has moved well beyond recovery and is now experiencing managed, sustainable growth with a strong environmental focus.
In 2024, 34.6 million people worldwide took an ocean cruise, and this year we estimate 37.7 million people will choose to cruise, which speaks to both strong demand and high traveller confidence. We are seeing demand both from returning guests and new-to-cruise travellers.
Over the past two years, 31% of passengers were first-time cruisers, up from 27% in 2023. At the same time, repeat intent remains exceptionally strong:Â about 85% of past cruisers say they intend to cruise again, according to our latest research. That is one of the highest repeat-intent rates in the entire travel sector.
EV: What are the chief policy and financing obstacles in Europe for the cruise industry right now?
BD: In 2022, our cruise line members collectively pledged to pursue net-zero emissions by 2050, underscoring a strong, industry-wide commitment to environmental responsibility and sustainability. Achieving this ambition hinges on three critical paths:Â fuels, fuels, and fuels.
Right now, no single alternative fuel is available globally at scale, and that’s why fuel flexibility is so important.
Our cruise line members are investing tens of billions of euros in new ships and multi-fuel engines that can handle more than one solution.
Today, 25 cruise ships operate with next-generation multi-fuel engines, and this is expected to grow to more than 50 by 2036. These fuel-flexible engine technologies give our member cruise lines the ability to operate on LNG, methanol, or other fuels as supply chains develop – and to transition to lower- and zero-carbon fuels, such as bioLNG (methane), green methanol, or synthetic fuels such as e-LNG.
Across the maritime sector – whether under the EU Emissions Trading System, the IMO, or local rules on operational emissions – there is a clear need for safe and competitively priced fuels available at scale. Equally important are supportive funding mechanisms at both the EU and national levels to help drive the innovation required to meet decarbonisation targets. Progress depends on predictable regulation and effective financing tools.
Currently, only a small share of revenues collected under the EU ETS for maritime is reinvested in the sector.
CLIA advocates for 100% of maritime ETS proceeds to be directed back into ships, ports, shipyards, and innovation projects across the maritime value chain to accelerate decarbonisation while safeguarding Europe’s competitiveness.
The forthcoming EU Maritime Industrial Strategy can help establish this enabling framework.
EV: How well does the EU Maritime Industrial Strategy respond to those obstacles and challenges?
BD: We welcome the upcoming EU Maritime Industrial Strategy, expected in early 2026, as an opportunity to reinforce Europe’s leadership in sustainable shipbuilding and maritime innovation. The cruise sector contributes around €170 billion globally and supports 1.8 million jobs. Three-quarters of those jobs are on land – demonstrating that our impact extends far beyond ships.
Europe’s shipyards are at the heart of this success, with 97% of the 81 new cruise ships on order, worth over €60 billion, being built in European yards. In fact, cruise ships represent more than 80% of the overall value of current shipbuilding in Europe. That reflects real confidence from investors and shipbuilders alike.
From CLIA’s perspective, Europe must keep its shipyards competitive, expand research and innovation funding, and make sure sustainable maritime fuels are accessible.
The EU should also align measures such as FuelEU Maritime and the ETS with IMO rules to avoid fragmentation.
A strong, coherent EU Maritime Industrial Strategy will secure Europe’s leadership, support responsible growth, and help make sure that maritime decarbonisation creates and sustains high-quality jobs across the continent.
EV: How important is it for the cruising industry to have diverse and secure energy supplies at ports? How helpful would it be to the industry if ports could become energy hubs? And, do you expect that the Sustainable Transport Investment Plan will be able to mobilise the financing needed to make these shore power and fuel system installations happen?
BD: European ports are already essential energy gateways – hosting, storing, and transmitting fuels. They can go even further by becoming true hubs for clean maritime fuels and energy. This ambition fits well with the Clean Energy Marine Hubs project that CLIA actively supports, alongside leadership from our partners at the International Association of Ports and Harbors and the International Chamber of Shipping.
Investment in onshore power supply (OPS) is a top infrastructure priority for European ports from 2026 to 2030. By 2028, more than 70% of the global ocean-going cruise fleet will be OPS-equipped. Yet, among Europe’s three busiest cruise ports, only one currently offers active OPS. Continued investment in OPS at Europe’s ports and greater pricing transparency will encourage broader use.
OPS installations on cruise ships have tripled since 2018 and now cover 58% of the cruise fleet (65% of total capacity). The industry plans to reach roughly 90% of capacity by 2036. Combined with the forthcoming EU Ports Strategy, these initiatives can unlock private and public financing, scale European-made fuels, and turn ports into genuine decarbonisation hubs.
The Sustainable Transport Investment Plan (STIP) signals that the EU is serious about renewable and low-carbon fuels. It also acknowledges the role of fossil-based LNG as a transitional energy source – a technology the cruise industry adopted early, helping lay the groundwork for next-generation fuels.
Together with the forthcoming EU Ports Strategy, these initiatives can accelerate investment support by unlocking private and public financing, help scale European-produced fuels, and position ports as key energy hubs for maritime decarbonisation.
EV: The CLIA annual Environmental Technologies and Practices (ETP) report released last month found that there has been good progress in testing and piloting biofuels at port, investing in fuel-flexible engines, and increasing the use of lower-emissions fuels. In what areas do you think progress has been lacking and things should be moving faster?
BD: Although cruise ships account for less than 1% of the global maritime fleet, cruise lines are early adopters and innovators of new technologies – often paving the way for broader maritime use. This is evident in our members’ significant investments in advanced wastewater treatment systems, air lubrication systems, onshore power connectivity, and next-generation multi-fuel engines.
CLIA’s 2025 Environmental Technologies and Practices Report confirms these advancements.
Approximately 80% of ocean-going cruise ships are equipped with Advanced Wastewater Treatment Systems (AWTS), representing 84% of global passenger capacity.
Air lubrication systems and specialised hull coatings are increasingly used on ships to improve energy efficiency and reduce drag. Nearly two-thirds of the global cruise fleet can now connect to onshore power, cutting local emissions from ships at berth by up to 98%. The number of cruise ships with next-generation multi-fuel engines has grown from just one in 2018 to 25 today, with many more on order. And biofuel pilot projects are expanding in multiple European ports.
While progress is clear, achieving the cruise industry’s net-zero emissions ambition by 2050 requires the availability of safe, sustainable, and competitively priced fuels that do not yet exist today at scale. It also demands deeper collaboration between policymakers and industry – both in Europe and globally. The next decade is pivotal – not for promises, but for measurable progress toward a cleaner, more resilient maritime future.
(BM)
