Carnival forecasts European emissions costs to reach $170 million in 2026
The cruise company says its expense under the European Union’s expanding maritime emissions market will rise from $91 million in 2025.
Carnival reported a $91 million cost from Europe’s emissions-trading requirements in 2025 and forecast that the expense will increase to approximately $170 million in 2026. The company’s projection is not a fixed assessment because the price of tradable emissions allowances can fluctuate.
The European Union extended its Emissions Trading System to large ships in 2024. Vessels of at least 5,000 gross tons must purchase allowances for greenhouse-gas emissions from voyages involving EU ports, regardless of where a ship is registered or its owner is based.
Coverage varies by itinerary. All covered emissions are counted on a sailing between Barcelona and Rome, while half are counted on a voyage between Miami and Barcelona. Covered emissions generated while a cruise ship is docked at an EU port are counted in full.
Carnival is required to surrender allowances in 2026 covering 70% of its reported emissions from 2025. The program reaches full coverage for emissions produced during 2026, with the related allowances due in 2027.
The maritime system initially covered carbon dioxide, but it now also includes methane and nitrous oxide. Port Canaveral hosts liquefied-natural-gas cruise ships operated by Carnival and Royal Caribbean.