We can't help but feel a mix of hope and frustration when considering the yachting industry's sustainability journey. While progress has been made, and conversations have gotten louder, the uncomfortable truth remains that significant challenges exist. Here, we discuss the lay of the land, the progress being made, and why we should combine our thinking across the sectors of the superyacht world to accelerate the change.
Measuring up sustainability is difficult
To understand the magnitude of our sustainability challenge, we must grapple with the reality: We can’t effectively address what we don’t measure. So, this has to be fundamental and, where we can, a precise commercial metric. Not just emotional and purely ethical. Due to its diverse and unregulated nature, the superyacht industry has long struggled to quantify itself. While the wider maritime sector may have data in place, superyachts are out on a limb.
According to Superyacht Times data, the fleet has undeniably grown yearly, reaching up to 6,000 yachts. And, unlike other maritime areas, superyachts do not have an end-of-life limitation. Therefore, the fleet will continue this upward trajectory. Undeniably, emissions are a problem. But, with the lack of data, there is still a considerable gap in measuring them. The International Maritime Organisation (IMO) has various indexes in place for commercial shipping. The Energy Efficiency Existing Ship Index (EEXI), the Energy Efficiency Design Index (EEDI), and the Carbon Intensity Indicator (CII). However, these do not yet specifically target superyachts. Governments, Commercial directors, activists, or investors can’t argue with hard figures. Therefore, commercialising the goals and issues makes sustainability a business ‘hygiene factor’ and not an agenda point that remains subjective. This should place the subject at the heart of a business’s set of considerations. Both in terms of commercial opportunities and risk mitigation.
Steps in the right direction
The industry itself has begun to step up. In recent years, voluntary efforts, such as the internal SEA index (Superyacht Eco Association by Yacht Club de Monaco), have made strides to measure the industry’s impact. In collaboration with RINA, the SEA index has a CO2 operational efficiency assessment methodology, evaluating the direct emissions of yachts over 25 metres and 400 GT taken from builder and AIS data incorporating a typical operational profile. This methodology has been based on the IMO Energy Efficiency Design Index, adapted to superyachts in collaboration with Lloyd’s Register.
Focussing on other environmental factors, the Water Revolution Foundation has taken another internal approach with its YETI (Yacht Environmental Transparency Index). This joint industry project between various shipyards, and research institutes compares the fleet based on multiple environmental factors. Lloyds has compared both the SEA and YETI as being similar to the EEXI. Supported by Lloyds, Blue ESG is another initiative that has developed the Superyacht Carbon Intensity Indicator (SCII) for assessing operational emissions against total annual usage for yachts over 400 GT, comparable to the IMO’s CII.
While these internal indicators represent steps in the right direction, they lack cohesive data for the entire fleet. And they have not yet been standardised… Leaving the industry still debating the basic parameters of measuring environmental impact.
Conscious charters and a bigger impact
While much focus remains on what the industry can do to minimise impact, the flip side sees the charter industry beginning to make moves to a bigger, more positive impact. Alongside carbon offsetting – a separate talking point for another post – programmes available for charter clients, there has also been progress in giving back to communities and environments where charter yachts operate.
Partnerships with marine research initiatives have emerged, transforming some yachts into floating scientific centres that contribute positively to ocean conservation efforts. The International SeaKeepers Society partners with owners and crew to increase scientific data collection. Another example is the ‘Yachts for Science’ programme, launched in 2019; this initiative facilitates collaboration that connects researchers and yacht owners to carry out vital marine studies.
The health of the oceans is critical to the entire planet, and as yet, we don’t fully understand how they function. Less than 5% of the ocean has been surveyed, so driving further maritime research with vessels already out on the water is an impressive start to making change. While these initiatives are positive, the root cause of the industry’s lacking sustainability credentials remains. So, how about addressing the beginning of a yacht’s lifecycle?
Embracing better building
The construction of newly built yachts and the refit of the current fleet is an area ripe for sustainable innovation. As discussed in our previous article, some shipyards have made strides in using better materials and implementing more efficient technology into the building processes.
Such innovations are still exceptions rather than the rule. To make meaningful progress, the industry must accelerate the adoption of sustainable practices in both new builds and refits. This shift requires not only technological advancements but also a change in mindset to bring sustainable practices to the forefront.
The hidden potential in the day-to-day
While discussions about sustainability in yachting often focus on construction and propulsion, the day-to-day operations are frequently overlooked. However, each aspect of yacht operations, from waste management to energy consumption, carries environmental costs.
Progressive owners and crew members are increasingly embracing better practices, though adoption rates vary widely across the sector. Some of these practices include utilising more energy-efficient appliances, implementing advanced waste management systems, adopting eco-friendly cleaning products, minimising plastic onboard and optimising routes for efficiency.
Management companies play a crucial role in driving these operations. The IMO implements MARPOL requirements, ensuring yachts meet or exceed these standards, including oil pollution, sewage discharge, garbage management and air pollution regulations. Education and comprehensive policies are, therefore, becoming increasingly important. Forward-thinking companies are developing sustainability training programmes for crew, and organisations like the Water Revolution Foundation have developed detailed crew guidelines that provide actionable steps for more sustainable yacht operations.
While progress is being made in the operational areas, challenges remain. Not all companies and owners prioritise environmental concerns, and it can be difficult to make changes onboard. However, as awareness grows, we hope the industry moves towards more responsible daily operations, recognising that even small changes, when they can be quantified, will add up to significant progress.
Slowly driving change
The shift towards cleaner, more efficient propulsion systems represents one of the most significant challenges for the yachting industry. Compared to the automotive sector, where the International Energy Agency estimates 17 million electric and hybrid vehicles will be sold in 2024, the yacht industry lags considerably, and adoption is frustratingly slow. The BOAT International Global Order Book (2024) shows that out of 1169 projects, 41 are hybrid, 34 are diesel/electric, and 10 are electric vessels. These figures are disappointing, especially considering the current conversations around driving toward alternative propulsion. This disparity between the car and yacht sectors points toward several unique factors unique to superyachts: the huge power requirements, need for a long-range, the lack of infrastructure, the absence of economies of scale and regulations, and missing builder and consumer incentives to stimulate towards the right change.
This lack of economies of scale and higher investment costs associated with greener technologies can often deter yacht owners and builders from making the leap, therefore highlighting again the need for stronger regulations and incentives to push for change. One shipyard working to reduce these costs is Sanlorenzo. As discussed at the Cannes Yachting Festival this year, the shipyard is continuing to focus on further developing fuel cell technology and introducing hybrid propulsion systems. They have also signed a second agreement with Siemens Energy to further develop the Reformer Fuel Cell system technology, reducing size, weight, and costs.
Without the ongoing push of builders and demand from clients, traditional propulsion will continue to reign and, therefore, slow the rate of development for more sustainable technologies. And what about the consequences of the existing fleet? These ‘legacy yachts’ —already on the water—also struggle with the time and investment needed to retrofit propulsion systems and generally cleaner and more efficient systems. However, doing so will future-proof the yacht for years to come, but how many current yacht owners will take these projects on?
What lies ahead?
While the Maritime and Coastguard Agency (MCA) pledged to make shipping zero-emission by 2050, superyachts fall outside regulatory frameworks. The IMO Tier III emissions (2021) standards to reduce nitrogen oxide apply to yachts over 24 meters, but superyachts remain exempt from other IMO emission regulations.
Upcoming notable changes include a superyacht carbon tax; at the end of this year, the IMO will conclude how carbon pricing policies will impact the maritime industry. Once agreed, this will come into force in 2027. The EU Emissions Trading Scheme (ETS) has been applied to the shipping sector since January 2024. However, this will only affect small segments of superyachts, those over 5000 GT and commercial. The Monitoring, Reporting, and Verification system supports the ETS, and by March 2025, emission reports must be submitted – 40% will be subject to the ETS and 100% in 2027. Another policy is Fuel EU Maritime, again only affecting yachts over 5000 GT, which will set targets for reducing the yearly average greenhouse gas intensity of energy used from 2025.
Time for change
Progress is evident, but the pace is questionable, and it is time for change. While we may not see immediate effects, the urgency is real – just ask Tuvalu’s officials facing rising sea levels. We must quantify our ‘wins’ to avoid climate fatigue and defeatism. No single entity can tackle this alone. We must comprehensively understand our collective efforts across the leisure yachting industry and commercial shipping sector, including the growing cruise ship segment. Only with this detailed insight can we develop effective, integrated strategies to address the whole problem – not just its parts. The lack of clarity in data hampers our progress and continues to leave us vulnerable to criticism. A recent surge in environmental protests targeting luxury yachts is a stark reminder that public scrutiny is intensifying and that our industry is being moved further into a negative spotlight.
Industry data often lumps leisure yachting with commercial vessels, but we need to differentiate while acknowledging interconnections. Superficial political gestures aren’t enough: we need internal pressure to drive real change. Science confirms the issues, so we must establish quantifiable benchmarks to measure progress and demonstrate commercial benefits. The hard data is crucial for convincing stakeholders across the board. We can’t wait for government action; our industry must take the lead. Is there currently a dedicated working group with both industry insiders and external experts to develop robust models against realistic goals?
This isn’t about conquering an insurmountable challenge—rather than looking at Everest in front of us and giving up at base camp for only a few to make it to the summit—but about community-driven solutions where everyone contributes. There’s no single fix: it’s an ongoing process requiring collaboration, innovation, and questioning the status quo. While we’ve made some progress, commercialising our environmental goals is key to accelerating change because, no, we are not there yet.
We at SEA Yacht Group encourage your input, suggestions and ideas on the progress of sustainability within the yachting industry. Please leave us a comment or reach out to us via social media.
Author: Malcolm Moss | CEO & Founder of SEA Yacht Group
