‍What’s happening? A federal appeals court has blocked Hawaii from implementing its climate change tourist tax on cruise ship passengers, halting a law that was due to take effect in early 2026. The levy would impose an 11% tax on prorated cruise fares, with counties authorised to add a further 3%, raising the total to 14%. The Cruise Lines International Association (CLIA) argued the tax violates the US Constitution and would significantly raise cruise costs. Officials projected nearly $100m in annual revenue from the proposed tax. While a district court upheld the measure, the 9th US Circuit Court of Appeals granted an injunction pending appeal. The ruling does not affect hotel or rental surcharges. (The Independent)

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Why does this matter? Cruise are becoming increasingly popular, with an estimated 37.7 million people opting for this type of holiday last year, up from 34.6 million in 2024, according to CLIA. Cruise ships are also getting bigger, having doubled in size over the past 25 years, with some capable of carrying up to 7,600 passengers. Currently, some 370 cruise ships are in operation and a further 74 are on order.

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Dirty problem – Cruise ships running on traditional marine fuels are a major source of pollution, including planet warming CO2 and methane. They also release sulphur oxides (SOx), nitrogen oxides (NOx) and PM2.5, which can harm the environment and damage human health, even when docked. However, with 2050 net-zero targets agreed by the global shipping industry – yet to be formally adopted by the International Maritime Organization – and increasing public demand, cruise lines are investing alternative fuels.

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Alternative options – Liquefied natural gas (LNG) has emerged as the preferred option due to its availability. While this emits approximately 25% less CO2 than traditional shipping fuels, it is almost entirely composed of methane. Campaigners are concerned that methane slips will be more damaging to the climate as the greenhouse gas is 80 times more potent than CO2. Cruise lines are taking steps to mitigate the issue. While some cruise ships are being designed to run on green methanol, which can cut CO2 emissions by up to 95%, there are challenges regarding scarcity and cost. Green ammonia, which produces no CO2, is another contender but obstacles around safety and infrastructure mean it may not become relevant until the mid-2030s.

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Beyond fuel – Cruise ships can pollute the marine environment via sewage, even when treated. Noise can also be disruptive or even fatal to marine species. Meanwhile, smaller ports are having to increase the frequency of and depth of dredging to accommodate the bigger cruise ships visiting, which wrecks habitats and adds sediment to the water column. Furthermore, sediment gets swept up when ships enter port, which contains contaminants, microbes and pathogens that add further pressure on marine life, with coral particularly susceptible.

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First-of-a-kind – Hawaii would be the first US state to introduce a cruise tax specifically targeting climate change if the law is finally enforced. Proceeds are intended for projects such as restoring eroding shorelines, storm resilience and wildfire prevention. Interestingly, Norwegian Cruise Lines has already begun charging passengers the fee, claiming refunds will be given if industry wins its case.

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Elsewhere – France has also proposed a similar rule that would charge €15 ($17) per passenger for each port they call at after numbers steeply rose in recent years. The expected €75m annual income, already factored into the country’s draft 2026 budget, has been earmarked for protecting vulnerable coastal areas. Meanwhile, Norway will allow individual municipalities to impose a 3% levy for overnight stays, including cruise tourists, starting this summer. It also plans to prohibit all non-zero emission ships from entering its World Heritage fjords by 2032. The regulation has already come into force for tourist ships and ferries weighing less than 10,000 gt. Many other places have also established restrictions on cruise ships to help combat over-tourism, such as Venice, Barcelona and Greece.

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A final thought – With January being one of the most popular times of the year to book a holiday, it could be worth considering a sustainable tourism approach that both supports communities and protects the climate and environment.