In recent years, The Middle East has been gearing towards establishing itself as a superyacht destination that would welcome owners worldwide to extend their peregrinations to the region, a prospect that is particularly appealing during the winter time but offered all year round. Developments ranging from the United Arab Emirates’ world-class Harbour and Mina Rashed marinas to Saudi Arabia’s upcoming superyacht hubs in construction (Sindalah, Amaala, Sheynarah Islands), affirm the region’s intentions of becoming an international yachting hub, and this even goes beyond marinas, with the modification of rules to accommodate foreign-flagged yachts. In the UAE, policy changes saw six-month renewable cruising permits and six-month crew visas for any nationality, along with soothed tax implications for the transportation of yachts, a very telling far cry from what once a regime designed to only benefit local residents and now open to all visitors. Long story short, the region is ready to be reimagined as a global hub with a wider appeal, and it has already started to see the return on its investment. In 2022, 68% of superyachts that are over 30 meters have passed by the Arabian Gulf, an uptick of 6% compared to 2021, the SuperYacht Times Gulf Market Report showed.
However, the reality is that while the seas of the region welcome these vessels, the environmental concerns and efforts to preserve marine wellbeing do not seem to be up to speed with the developments made, on both a legislative and personal level. Behind the opulence we see from yachts, there is a prodigious amount of fuel being emitted and contributing to marine pollution, a prevalent issue that we continue to face mainly due to the burning of fossil fuels, and it is time for the superyacht industry to take the initiative. More specifically, Nitrogen oxides (NOx) and greenhouse gases (GHG), particularly carbon dioxide (CO2), emitted from our superyachts are hurting the environment, by polluting the sea and contributing to climate change, to put it lightly. Even if the superyacht space can look minuscule in size compared to other sub-sectors such as shipping, the 6000 superyachts that are over 30m on the fleet, per the MB92 group, have perilous effects on the sea, and with the majority having fossil fuel oils as a source of power, it is a frightening thought to consider that a single superyacht can emit 7200 tonnes of CO2 annually. The rise of these vessels should be met with commensurate measures that we currently do not have, and the lack of environmental regulatory compliance portends that there will be serious damage to our seas by the harmful substances being emitted and will only worsen if the situation does not change quickly.
Now, being informed about any regulatory compliance measures relating to superyachts can leave one feeling flummoxed at the start. More often than not, it is confusing to discern between what laws are applicable to the superyacht industry and which are solely enforced for the shipping sector, usually deciphered through the vessel type and size. It was only a matter of time before I came to the realization that there are not many laws pertaining to superyachts, pleasure crafts, recreational vessels, or any permutation used when referring to a boat that has an overall length of over 24 meters. More than that, from the laws that are implemented for superyachts, many exclude the seas of the Arab Region, mainly the Red Sea and Arabian Gulf, as of 2023. Yet in the shipping sector, there is an environmental initiative taken with a dexterity that far surpasses any effort by the superyacht sector. There are targets set by the International Maritime Organisation (IMO), who published their Green House Gas strategy for 2024, to reduce carbon intensity, in coordination with the Paris Agreement, eyeing a 20-30% reduction by 2030 compared to 2008 levels, but what about superyachts? It is confusing to see that the superyacht sector is still watching this plight to decarbonization mostly from the outside, even though we emit harmful substances to the oceans, and choosing to go green is a personal option. Perhaps the reason for the shipping industry being is treated like the chosen child stems from a multitude of reasons, bearing it’s size, there are regulations in place, duress and pushback from society, and carbon taxes by the European Emissions Trading System that accelerate the call to action on reducing emissions.
In this article, I examine the environmental yachting landscape of the region as it continues to grow, and the issues surrounding the area from environmental regulatory compliance measures and data transparency, to the role of the client in shaping the future of sustainable practices. I also look at the value of refitting a yacht and distill an exhortation to start employing energy efficiency tools in the superyacht space.
Chapter 1: Issues
Environmental Regulation
In terms of regulation on a worldwide scope, The IMO changed the landscape for yachts over 500gt in 2021, with the enforcement of its Tier III emission standards. These promulgated regulations aim to ameliorate sea pollution conditions by regulating the emissions of NOx from vessels on the sea, stating that NOx emissions are to be 70% below Tier II regulations’ maximum levels at the least. What is, advisably, being used to reduce the NOx emissions is the installation of a Selective Catalytic Reduction (SCR) unit, engines that reduce harmful NOx emissions through an after-treatment process that converts pollutants into natural elements. As it stands, the regulations are applicable to select areas. Boats in The Baltic and North Seas, as well as North America and the US Caribbean, are known as NOx Emission Control Areas (ECAs). Any boat that might pass through must comply, which essentially means all vessels on said waters must adopt these regulations and the SCR engine is typically powered when the vessel is in an ECA. However until this point, Middle Eastern waters are not classified as ECAs, the omission of the Arabian Sea and Red Sea means that there is no obligation for owners to implement green practices that are mandatory to NOx Emission Control Areas, which is a detrimental and a time-sensitive issue. The more time passes without any regulations put in place, the more damage is done to the environment, especially considering that the Middle East is now the avenue for 12.6% of the world’s superyachts. Not only that but according to the Superyacht Times, individuals from the Middle East are, on average, owners of the largest yachts that are 62 meters in length, which also dispels any claim of SCR units not being feasible due to their large size, a challenge faced yachts under 500gt. In the table below, we can see that Saudi Arabia and the United Arab Emirates occupy two of the top three positions for ownership by length and volume, this postulates that, granted these vessels are operated in the region, fossil fuel emissions being released from these large vessels will be highly damaging on the climate and perhaps even more than motor yachts below 500gt, and further shows the need for stringent regulations for the Arabian and Red seas by the IMO and local legislators.
The exclusion of the Red Sea and Arabian Gulf from NOx regulations is not to be taken lightly. NOx is the result of some combination derived from nitric oxide (NO) and nitrogen dioxide (NO2). When these highly reactive gases, created after fuel is burned at high temperatures, are emitted to frightening consequences. From the acid rain caused by sulphuric and nitric acids to the health damage toxic vapors and declined water quality, the need for the IMO to extend these ECAs to our seas is an urgent plea. A 2021 study examining NOx emissions around the Arabian Peninsula and in the Mediterranean Sea by Friedrich et al found that there is a sizeable correlation between NOx and vessel emissions, and concluded that the dominant source of NOx is mainly derived from ships. Of course, while this statement covers all facets of the maritime sector, more falling on shipping, this does not mean that superyachts should be turned a blind eye when it is also a significant contributor to these NOx emissions
Data Transparency
Looking at the maritime industry as a whole, superyachts only represnet a fraction of the industry, and in contrast with other sectors, there is no measuring system to collect and report on carbon emissions from superyacht use. This opaqueness makes it a herculean task to know if the industry has truly improved its carbon footprint and seen a reduction in CO2 emissions. It is long overdue that the superyacht starts to collect information on vessel emissions. Why do we need this data? It would be crucial in order to know if the industry is truly making a change in reducing CO2 emissions. Yachts have various types of Greenhouse gas emissions, yet the most prevalent, and of concern, is CO2. C02 is the largest GHG emitted and also one that can be seen by the naked eye, but to have an idea of how much CO2 is being released into the environment by yachts is the first step to proper change.
Currently, the sole benchmark at the hands of stakeholders in this industry is from the IMO’s GHG studies and findings. The industry is already behind, not committing to the initial IMO GHG strategy, superyacht2030 writes, now being updated to targets that are bolder. Further delays from the superyacht industry are only contributing to further delays to the industry-wide decarbonization strategy. In addition, what would be gained from measuring fuel emissions, maybe that regulators would start to take this subsector more seriously, and give more consideration to better regulatory measures, but to unveil these figures would also be to uncover the true damage done.
So it is concerning that there seems to be a paucity for taking initiative on data collection in the superyacht space, despite this information being kept undisclosed, it is available by shipyards and management companies. There can be a myriad of reasons as to why this data is not released, even though it is readily available by captains, one of which being confidentiality, redolent of the opprobrium generated last year in the aviation industry when a report released revealing the CO2 emissions by public figures’ private jets proved to be a reputational disaster. However, this is not conducive to the objective of releasing data but takes away from the true focus of legitimate environmental concerns to scrutinizing public figures, who would be owners of the super yachts in question, which is not what we are not here to do. Therefore, simply anonymizing this data is the most viable solution. Making these metrics available would allow greater focus on having our own measure of CO2 emissions which will lead to more informed and knowledgeable decisions.
The lack of these metrics also arguably contributes to the prevalent issue of greenwashing, where companies may take superficial, PR actions to make their efforts appear more appealing to people concerned about the environment. What about when the media or other environmental organizations start to approximate data meanwhile there are no benchmarks to dispute their claims? All in all, sustainable practices in an effort to produce meaningful changes are pointless if data doesn’t start to be collected.
How does this affect the Arab Region?
Anyone keeping an eye on the superyacht space is aware that it is being upended by the rise of The Middle East as a superyacht destination. The investment of facilities and developments in Dubai with the Dubai Harbour Marina and Mina Rashed Marina, to the upcoming Islands in Saudi Arabia such as Sandalah and Sherbayh. This region is one to watch. According to the SuperYacht Times, in the Gulf Area alone, the first six months of 2022, recorded 96 yachts. This sizable increase postulates that more CO2 will be emitted into the sea, and being kept in the dark due to the lack of proper metrics to assess is not only dangerous but will be responsible for long-term damage. This is almost the same number as over the full year of 2021. This influx of vessels on the Arabian Sea leads to more greenhouse gases polluting the sea and the number is only going to increase as the region continues to position itself as the next place to welcome super yachts.
Chapter II: What is being done?
Shipyard’s role in environmental change
There are many strategies that can be deployed to reduce the environmental strain coming out of yachting, clients and shipyards working together may breed significant positive impact, for example, with choosing to refit a yacht. A yacht refit involves renovating, upgrading or fixing a yacht’s interior, exterior, mechanical, and technological systems to enhance its performance, aesthetics, and functionality and often involves changes ranging from minor cosmetic updates to major system overhauls. This is an attractive, environmentally conscious option as it can potentially and tremendously reduce carbon footprint. Refitting a yacht is not a one-size-fits-all all application, as there are a multiplicity of options ranging from simply changing LED lights, to installing batteries for a silent mode when anchoring, as outlined in the table below by Superyachts2030.com. For vessels berthed in the region, there will be no need to undergo a refit overseas, as a new superyacht refit and repair facility is set to open in the UAE by 2026, as well as a freshly announced 10,000 square meter repair center in Saudi Arabia’s NEOM, in partnership with the MB92 Group The benefits of refitting go beyond environmental practices as well, giving the yacht an improved resale value. With driving forces ranging from society’s expectations to carbon tax and regulatory compliance rules, a yacht’s resale value will be impacted..
Adjacent to refitting, there can also be environmental benefits from ship recycling, a practice historically being the opposite of sustainable. At the opposite end of the cycle, dismantling a yacht is a process that would come at the expense of maritime wellbeing, irresponsibly damaging to the environment. Until legislative changes arrive, there is still action to be taken, shipyards and builders can be seminal to the future of sustainable yachting, from constructional processes to establishing a circular superyacht industry by extending the vessel’s life. An out-of-service vessel does not mean it is the end of the yacht’s life, with sustainable practices that can ensure a better future, Saudi Arabia is already at the forefront of this initiative, with a maritime recycling site launched this year by Wreckdock Vessel Recycling. While over in the UAE, national ship recycling regulations were introduced, for yachts over 500 gt. The regulatory space is intricate and all parties affiliated such as shipyards and shipowners should make themselves cognisant of non-compliance consequences in both a legal and reputational sense. This is why decarbonization on a legislative level should be put in effect. The data also evidences this, NGO Shipbreaking Platform found that the UAE was ranked as the fifth worst country dumper in 2022. Proving that existing ship recycling regulations are easily worked around, and a need for more stringent rules should be addressed.
Changing the societal perception of “environmentally friendly”
It is not only shipyards, and legislators who can be agents of change when it comes to shaping an environmentally responsible future, but superyacht owners as well. After all, is it not the client’s needs that always come first? This is where it can get complex, as the superyacht owner, a UHNW individual, has certain expectations of their yacht, with the first requirement being the aspect of luxury and although unspoken, the historical belief is that the notion of “environmentally friendly” has not always fallen under the umbrella of what constitutes “luxury”. As a result, this also places the belief that sustainability must come at the price of sacrificing luxury, which would be, in theory, antithetical to the concept of commissioning a superyacht. However, after the innovations seen in the past decade, it is safe to say that these concerns are unfounded thanks to not only innovation in the space but there are recent observations that postulate a generational shift of UHNW clients who are giving more consideration to helping the environment, does the Arab client share the same school of thought?
The Middle Eastern Owner
What has led to the development of these state-of-the-art marinas in the region, may partly be attributed to owners from all over The Middle East buying yachts of their own, and wanting to enjoy their purchases in their own home state. The data also supports this assertion, where it shows that a sizable number (66%) of superyachts in excess of 30m in the region are owned by local residents. Additionally, when it comes to Middle Eastern individuals, the idea of luxury is one that’s sacred, which is what i found out as I wrote my thesis for my International Business Master program I’m, examining the modern consumer perceptions, understandings, and expectations of luxury in The Middle East. I concluded that the concept of owning and signaling “ luxury” has historically been highly valued in the region. Yet a further observation unearthed from this study is the rise of a new generation of consumers who have an altered attitude to luxury goods for deeper meanings relating to self-reflection and functionality, and outwardly concerns. This coincides with the “New Generation Client” (NGC). NGCs, as superyacht lawyer Quentin Bargate writes, are more attuned to the existing environmental issues around them, and are more likely to purchase yachts that utilize green technologies. Moreover, part of making clients aware of the state of yachting in the coming years is to also externalize what climate change will portend to the role of the owner, which would include financial consequences. With the plea to add more regulations, yachts dependent on fossil fuels can find themselves becoming “stranded assets”, assets that would see financial loss and even may fall under “high risk” due to the effects of new environmental legislations. Although unideal, this may be the only way to see a greener superyacht industry.
Looking at the Evolution of Sustainable Yachting
Emphasis is on opulence when it comes to building a superyacht, with world-class interior and exterior design that is procured at all costs and all measures even if it is at the expense of the environment. Fortunately, times have changed, as has the superyacht industry, turning towards a deliberate effort to become environmentally conscious by implementing clean technologies in yachts and working towards a more sustainable life on the sea. Several new builds over the years have truly defined sustainable luxury in yachting with alternative propulsion systems that include hydrogen, electric, and.. fuel cells?
Some of the first developments of the 21st century were witnessed almost two decades ago in 2005, with German shipbuilder Lürssen powering its ICE vessel with Azipods technology. On the electric-powered front, the 83m SAVANNAH, built by Feadship, in 2015 made waves with its cleaner propulsion system, “Breathe”, making it the first electric and emission-free superyacht. Finally, there came innovation that truly disrupted the industry, with the introduction of Oceano’s Black Pearl that does not bear the weight on any fuel consumption albeit its strength and ability to sail impressive lengths, due to its hybrid propulsion system, do not require the yacht to carry a diesel generator.
As for pioneering in hydrogen-powered vessels, another option for alternative propulsion. Sinot yachts paved the way with the creation of Aqua, fully powered by liquid hydrogen that is maintained by its two vacuumed tanks coming in at 28-tonne vacuum each, with diesel generators acting as backup. With hydrogen fuel, the only byproduct seen is water, as opposed to engines running on gas. Although it does come with a set of setbacks, starting with hesitations regarding safety, and being weaker than diesel and electric motors when it comes to efficiency and output.
Inside the vessel, however, lessening environmental impact does not have to be at the expense of having sacrificed unsustainable materials. Yachts are now seeking recycled textiles that are maintaining the luxury factor while saving the planet, through the use of cotton, hemp, and ocean plastics which have been completely converted into curtains and carpets. Yersin, an emblem of sustainable luxury, has a stunning interior made from 95% recycled materials with resin decks that supplanted wood for environmentally friendly materials that makes this 76.6m yacht dispel any chatter of sustainable practices reducing the “luxury” quality of superyachting. Finally, a true game changer comes from Lurssen’s Cosmos, with a projected 2024 delivery date, the 114.2m Cosmos is expected to be the first superyacht to integrate fuel cell technology. While other propulsion systems boast energy efficiency capabilities, the diesel engines installed in these vessels remain the source of energy conversion that provides the battery with energy, and here is where fuel cell technology impresses. The “cell” is comprised of two bipolar plates that are married to one membrane electrode assembly. This process builds cells which are piled up to produce “a fuel cell stack”. This fuel cell system marries a methanol supply system, ventilation, and electrical infrastructure to generate electrical power, along with “warm air” produced as the byproduct of this electrochemical reaction. A more in-depth explanation of the fuel cell system can be understood on superyacht2030, however, fuel cells are arguably the most verifiable energy-efficient propulsion system available as they do not include the diesel system that is relied upon by other “sustainable” systems.
These developments certainly do not exclude the Arab Region, which also boasts some of the finest innovation from around the globe, which is what Eimrates-based shipyard Gulf Craft proudly trumpets with their Nomad 101, featuring improved fuel efficiency and construction practices that are centered on the use of recycled materials. Perhaps for Middle Eastern clients or any individual planning to visit the Arabian Seas, purchasing locally-made yachts would be an incentive to go green.
Therefore, the construction of the modern yacht boasts environmental benefits without a single hindrance in functionality, speed, or optics, hence changing the conventional narrative of what has surrounded luxury, which seamlessly reassures the client of what the future has in store. Coupling this with the emergence of the NGC, which adopted a new school of thought, it seems that the road to a green future is brighter than before. after all, the role of the client in shaping the future of yachting should not be underestimated. Being a superyacht owner is dictating a lot of the terms, which in turn plays a big role if the client opts for more sustainable practices and alternative propulsion systems and it all starts with changing societal attitudes towards sustainability.
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Chapter III: What can be done?
Taking initiative can happen at every stage of a yacht’s lifespan and can go beyond opting for alternative propulsion systems. It can start from the construction practices of the yacht, all the way to the end of it’s lifecycle.
Energy Efficiency Tools
Energy efficiency tools are used to monitor a ship’s emissions. In the shipping industry, these tools are required fully embraced and also required. The IMO’s Energy Efficiency Existing Ship Index (EEDI), a mandatory measure for ships, has been in place for ten years. Other tools were also introduced this past year, one of which being the Sea Index by the Superyacht Eco Association, which compares the yacht’s energy efficiency on the basis of technical parameters. The third phase of the Sea Index launched only this past July, now even includes yachts under 400 gt and above 25 meters in length. Finally, a carbon intensity indicator (CII) was launched in January of 2023, a tool giving each yacht a “score” (ranging from A to E) that would decide the reduction factor that would improve a yacht’s carbon emission. The methodology of determining a vessel’s emissions is figured out through a calculation that takes the yacht’s CO2 emissions and divides it by its transport work (measured in tonne-mile). Wouldn’t the application of these tools be useful for pleasure vessels, as they would lead to more environmentally responsible decisions?, especially with the new developments being built in Saudi Arabia, which can have a headstart on ensuring greener marine life. One of the new developments, Amaala, is already planning on implementing measures such as welcoming only 500,000 visitors per year to “ minimize any impacts on the surrounding environment.” and is also powered by 100% renewable energy, yet superyacht emission regulations are nowhere to be found. Therefore, having these energy efficiency tools providing the important numbers of how much, or how little, CO2 is being emitted may also galvanize responsible people to take action and implement the appropriate regulations.
Taking a page from international shipping, Adopting these measures for the superyacht industry will be seminal, and would be the first step to true change in reducing emissions. As captain Malcolm Jacotine puts forth, “a carbon impact statement” is frankly the only way to impugn any superfluous statement from both sides of the coin, stakeholders inside the sector who are brandishing assertions of superyachts being clean (for optics), as well as outside entities (media, environmental agents, NGOs) who come up with their own estimations.
Final Words
So yes, perhaps the issues outlined are not only for the parties in the region but for every marina, every shipbuilder, and every regulatory body in any superyacht accommodating place. What makes this call to action more urgent for The Middle East is because of the new infrastructures being built, the number of vessels entering and are to enter as well as their size. The bigger the yacht, the more GHGs are emitted and the impending doom of climate change should be enough reason to act quickly for posterity, if nothing else.
Marine well-being is an issue that concerns and affects more than just the sea, clean oceans impact the whole planet, and each of our lives will have cataclysmic consequences if ignored, water is responsible for more than half the oxygen we use to breathe. The superyacht industry must do its part in preserving the environment and fighting marine pollution, and this includes The Middle East. The preponderance of yachts entering the region should be met with commensurate measures to ensure sustainable practices are put in place. This will only be attainable if all stakeholders from legislators, shipyards, and clients work in unison, this way nothing is too insurmountable to overcome. Soon enough, it will be a misnomer to call superyachts highfalutin environment polluters.
Of course, the plight for a true authentic green future is still a long way to go. There are many questions to answer. Even with alternative propulsion systems used, what about the diesel used when the yacht is stationary, which is more than 75% of the time, or how decreasing the hotel load can contribute to reduced emissions, the utilization of Hydrotreated Vegetable Oil (HVO) for legacy boats looking to turn to green practices, there is also a lot to be said on ensuring marinas are preserved from grey waters or black waters (from toilets), perhaps by implementing accreditation schemes.
There is some semblance of hope, with a regional presence of the IMO in The Middle East set to land by the start of 2024 in Egypt, for example. Hopefully, this can encourage more environmental regulation and setting decarbonization targets. Over at the UAE, a new maritime decarbonization center was announced in partnership with Det Norske Veritas (DNV). Although it is only aimed at the shipping sector, the possibilities can always be extended to superyachts as well.
So there is it, my attempt and imploration for stricter environmental rules, more awareness, and a plea to act consciously. There is no single solution available, but I believe we can use the various alternative propulsion systems available, utilize the convenience of refitting that can skip the pollution from production and increase a yacht’s charter value as well as push for more data transparency to start accelerating change in an industry that I believe has so much good (economic, philanthropic, academic) to offer once we can finally address the environmental needs.