Europe’s ETS revision is an opportunity to strengthen maritime competitiveness

For Europe’s maritime sector—and beyond—the European Commission’s proposal to revise the EU Emissions Trading System (ETS) goes in the right direction and reflects much of what Cruise Lines International Association (CLIA) has consistently called for: a framework in which carbon pricing supports, rather than holds back, the maritime transition, strengthens Europe’s industrial competitiveness and preserves connectivity, including for outermost regions. The starting point is an encouraging one. Nikos Mertzanidis, executive director, Europe, Cruise Lines International Association (CLIA) The proposal matters because it is about far more than carbon pricing. Not that the sector shies away from that: cruise lines already comply with the ETS, in addition to port dues, passenger charges, tonnage-based taxes and value-added tax (VAT). Unlike traditional taxation, the ETS is designed to drive decarbonization. Its revision matters because, by reinvesting a greater share of maritime ETS revenues in infrastructure—ports, shore-side electricity, alternative fuels, bunkering and other facilities—Europe can help the maritime industry maintain its global leadership while accelerating the energy transition. That leadership is not a matter of prestige. It is a matter of European prosperity, jobs, skills, competitiveness and industrial capacity across the continent. The cruise industry alone generates an annual economic impact of €64.1 billion in Europe and supports 445,000 jobs. It is also one of Europe’s industrial success stories, combining world-leading shipbuilding, advanced engineering and maritime innovation with high-value tourism. Behind those figures lies a shipbuilding story that few industries can match: 98 percent of the global cruise orderbook is built in European shipyards, from Fincantieri in Italy to Chantiers de l’Atlantique in France and the Meyer yards in Germany and Finland. There is €62.2 billion committed to ships on order through 2037. This investment sustains a vast ecosystem of engineering firms, technology providers and thousands of suppliers, keeping in Europe the skills and industrial capacity that other regions of the world are actively trying to attract. By reinvesting a greater share of maritime ETS revenues in infrastructure—ports, shore-side electricity, alternative fuels, bunkering and other facilities—Europe can help the maritime industry maintain its global leadership while accelerating the energy transition. That is why it is important to be clear about cruise’s role in Europe. Cruise is a key part of the maritime industry: we build ships, move people between ports and across seas, and help drive innovation and investment through one of the most advanced supply chains in Europe. Cruise should therefore be understood first and foremost as part of Europe’s maritime industrial ecosystem, combining maritime transport, advanced manufacturing and tourism in a way few sectors do. It is governed by an extensive regulatory framework alongside the rest of international shipping while supporting one of Europe’s most innovative maritime value chains. Via Shutterstock Cruise represents just a small fraction of the global fleet—less than one percent of commercial vessels—but it is consistently at the forefront of maritime’s transformation in ways that benefit the broader maritime sector. Decarbonization is our north star, and our experience shows that it advances fastest when it travels hand in hand with innovation. Done well, decarbonization is not only an environmental objective but also a driver of industrial modernization and European competitiveness. This is why cruise matters to Europe’s maritime future: the industry is helping to turn decarbonization ambition into industrial progress—investing more than €44 billion since 2022 in new ships designed to meet or exceed Europe’s environmental regulations to improve performance and advance the maritime transition. The cruise indus