Carbon offsetting is a small line item in a superyacht’s annual operating budget. To see just how small, it helps to start with what it costs to run one. Will Christie, Founder & CEO of Christie Yachts, has recently published an article on SuperyachtNews.com about what it really costs to run a superyacht. It comes as no surprise that the running costs of a superyacht cannot be generalised by vessel size alone. The cruising schedule, crew structure and age of the vessel all have a significant bearing.
What Does It Cost To Run A Superyacht?
There is no simple answer, but one thing is clear: crew salaries and associated costs make up the largest single part of the operating budget. This is especially true now that crew rotation has become almost standard on yachts with busy schedules.
Will Christie’s article shows that, for dual-season yachts, a 60 m motor yacht (M/Y) has an annual operating budget of approximately €4 to €5 million, while a 90 m M/Y has a budget of €7.5 to €8.5 million. For a 100 m M/Y, the figure rises to between €9 and €10 million. These numbers should not be taken too literally, as costs can vary considerably from one 60 m vessel to another, but they give a useful indication of the scale of expenditure involved.
Running a superyacht is expensive. Chartering can contribute towards the annual expenditure, but it rarely covers the full operating costs. As the article points out, anyone buying a yacht needs to understand the running costs. If you are new to yachting, seek proper advice from the beginning, so that the financial commitment does not come as a surprise and your expectations stay in line with the reality of running a yacht.
How Much Does Superyacht Carbon Offsetting Cost?
At Yacht Carbon Offset, we believe that offsetting your yacht’s fuel emissions should be treated as a line item in the annual operating budget, just like crew payroll, fuel allowances and AV/IT expenses.
To put this into perspective, here are some examples based on the offsetting costs of vessels of different sizes.
- For a 50 m vessel operating a single season, the annual cost of offsetting is in the range of €5,000. With an estimated operating budget of €2 million, this represents just 0.25% of the annual budget.
- For a 60 m dual-season vessel, the offsetting cost rises to around €16,000. Taking the midpoint of the estimated €4 to €5 million operating budget range, this represents around 0.36% of the annual budget.
- For a 90 m dual-season vessel, the offsetting cost could increase to around €55,000. Against the midpoint of the estimated €7.5 to €8.5 million operating budget range, this represents around 0.70% of the annual budget.
These figures illustrate that a carbon offsetting programme represents a relatively small fraction of a yacht’s overall annual expenditure, yet its impact is significant.
A Small Cost, A Positive Climate Contribution
In the grand scheme of things, carbon offsetting can be a relatively small annual cost when set against the overall expense of running a superyacht. Yet it can make a meaningful contribution to climate action.
By supporting carefully selected carbon projects, yacht owners can help developing countries reduce their reliance on fossil fuels and accelerate the transition to cleaner sources of energy. These projects can also play an important role in protecting natural ecosystems and supporting sustainable development in local communities.
Carbon offsetting remains voluntary for superyachts that are not subject to specific regulatory obligations. We believe, however, that the superyacht community should be encouraged to adopt more environmentally responsible practices and to consider the climate impact of its operations as part of the annual budgeting process.
The EU Emissions Trading System (ETS) imposes emissions allowance requirements on certain qualifying commercial vessels, including large yachts of 5,000 gross tonnage (GT) or above that operate for commercial purposes. This is a separate mechanism from voluntary carbon offsetting. For yacht owners and managers, the opportunity to offset emissions voluntarily remains a way to take additional responsibility for the environmental impact of their operations.
Make Carbon Offsetting Part Of The Conversation
Environmental responsibility should be considered alongside the other costs of yacht ownership. By including carbon offsetting in the annual operating budget from the outset, owners, captains and yacht managers can make an informed decision about the cost and impact, rather than treating it as an afterthought.
When preparing your next annual superyacht operating budget, we encourage you to consider carbon offsetting alongside fuel, crew, maintenance and other operational expenses. After all, if it is only a fraction of the cost of running the vessel, why not make it part of the plan?
If you would like to know your carbon offsetting budget for next year, please get in touch with us or use our online calculator for an estimate.