MSC Cruise Division Continues to Drive Energy Transition: Achieves IMO Carbon Intensity Target Five Years Ahead of Schedule

MSC Cruise Division Energy Transition: Achieving Targets Five Years Ahead and Full Value Chain Carbon Management

Project Background and Strategic Significance

Against the backdrop of increasing decarbonization pressure on the global shipping industry, the MSC Group's cruise division (including MSC Cruises and Explora Journeys) released its seventh annual sustainability report in 2025. The report shows that the division has achieved the International Maritime Organization (IMO) 2030 carbon intensity reduction target five years ahead of schedule and has committed to achieving net-zero greenhouse gas emissions from its marine operations by 2050. This progress not only sets an example for the cruise industry but also reflects the synergistic effect of shipping infrastructure investment and technological innovation.

Key Technologies and Infrastructure Investments

#### 1. LNG-Powered Ships and Equipment Upgrades

In 2025, MSC's third LNG-powered cruise ship, MSC World America, entered service, equipped with dual-fuel engine technology. The company announced that all future new builds will adopt this configuration. LNG, as a transitional fuel, can reduce CO₂ emissions by approximately 20% and eliminate sulfur oxide and particulate matter emissions, laying the foundation for future applications of hydrogen-based or ammonia fuels.

#### 2. Global Shore Power Deployment

According to the report, in 2025 MSC's cruise fleet achieved 217 shore power connections, significantly reducing emissions while ships are in port. The company simultaneously constructed new cruise terminals at two key ports, Barcelona and Miami, with environmental considerations integrated from the design stage, including shore power facilities, wastewater treatment, and energy efficiency optimization. These port infrastructure investments not only serve cruise operations but also provide more sustainable transportation interfaces for the host cities.

#### 3. Renewable Fuel Application

In 2025, MSC used over 9,800 tons of renewable fuel, corresponding to a reduction of 48,714 tons of CO₂ equivalent emissions. The renewable fuel mainly comes from biomass and waste, with lifecycle carbon emissions over 70% lower than conventional marine fuels. The company is collaborating with fuel suppliers to expand its supply chain capacity.

#### 4. Full Value Chain Carbon Accounting

The report covers, for the first time, the entire value chain's GHG emissions, including ship construction, dry dock operations, employee travel, food and beverage procurement, logistics, and waste treatment. This step fulfills the requirements of the EU Corporate Sustainability Reporting Directive (CSRD) ahead of schedule, providing a replicable methodology for the industry.

Industry Impact and Supply Chain ResponseMSC's energy transition plan has multiple impacts on the engineering industry: - Shipbuilding: The increasing adoption of LNG dual-fuel engines is driving shipyards to adjust production configurations, with rising orders for related system integration and fuel tank manufacturing. - Port Infrastructure: Growing demand for shore power facilities is spurring dock electrification and grid capacity expansion projects. It is estimated that global cruise ports need to equip over 60% of berths with shore power by 2030, requiring investments potentially reaching billions of dollars. - Renewable Energy Supply Chain: The production and logistics systems for sustainable fuels are taking shape, expected to create new engineering and operational jobs. - Digital Management: Carbon emission accounting across the entire value chain requires highly automated data collection and management systems, providing application scenarios for BIM, IoT, and digital twin technologies.

Challenges and Risks

• Despite significant progress, full decarbonization of the cruise industry still faces challenges:
• Technical Risk: LNG is only a transitional solution; true zero-carbon alternative fuels (such as green hydrogen, ammonia) are currently costly and lack infrastructure.
• Investment Uncertainty: Shore power and renewable fuel production facilities require large upfront investments with long payback periods.
• Regulatory Inconsistency: Regional certification and standards for zero-carbon fuels are not yet unified, potentially increasing compliance costs.
• Public Scrutiny: As consumers pay more attention to sustainable tourism, any delays in progress could affect brand reputation.

Future Outlook

MSC plans to move toward its 2050 net-zero goal by further upgrading fleet energy efficiency, expanding the use of renewable fuels, increasing shore power coverage, and exploring carbon capture technologies. Its marine conservation facility in the Bahamas' Ocean Cay Marine Reserve has been completed, designated as a "Hope Spot" by Mission Blue, supporting biodiversity research and sustainable tourism practices.

From a broader perspective, MSC's progress reflects the profound transformation underway in the global shipping industry: infrastructure investment is shifting from pure capacity expansion to green technology integration, and full life-cycle carbon emission management is becoming the new industry standard.

---

*This article is based on the 2025 Sustainability Report released by MSC Group's Cruise Division; all data comes from that official report.*