Sea Index Logo

Hidden Costs of Unsustainable Yachting

Monaco, AUGUST 21st 2025

Once seen as an add-on or a marketing buzzword, sustainability is increasingly seen as a central pillar of modern yacht ownership. Sustainable yachting is not just about protecting the ocean for future generations, it’s about protecting freedom to move, preserving a yacht’s long-term value, and the operational bottom line.

New regulations, growing environmental awareness, and shifting market dynamics are pushing the superyacht industry into a new era of responsibility. For owners, the risks of doing nothing, whether in terms of access, asset depreciation, or rising costs, are real. SEA Index exists to help yacht owners navigate these changes with clarity and confidence.

Regulatory risks and curbed freedoms

Recent outcomes from the IMO’s MEPC 83 meeting signal a global tightening of greenhouse gas (GHG) regulations. Under the upcoming FuelEU Maritime regulation, large yachts over 5,000 GT will soon need to comply with mandatory CO₂ intensity benchmarks. This is part of a broader push to include maritime transport in the EU’s decarbonisation roadmap, and vessels under this threshold may not remain exempt for long.

Beyond formal regulation of actual emissions, destination-specific restrictions are also on the rise. In the French Riviera, for example, superyachts are now banned from anchoring in the seabed in certain areas of the Alpes-Maritimes to protect the vital Posidonia oceanica seagrass. Courts have issued fines to captains for damaging these meadows, demonstrating that local enforcement is intensifying.

Similarly, in 2023 Naples announced a ban of vessels over 75 metres from anchoring near the iconic island of Procida to protect the marine environment. These precedents suggest a growing trend: the larger and less environmentally friendly your vessel, the fewer places it may be welcome.
Insurance and asset value at risk

As regulators and ports increasingly integrate sustainability into their practices, so too are insurers, banks, and brokers.
The financial sector increasingly favours low-emission, certified yachts, recognising that these vessels carry fewer environmental liabilities and are better prepared for future regulation.

For owners, this means that yachts without sustainability credentials may face higher insurance premiums, or struggle to access coverage at all. Meanwhile, certified yachts, particularly those with independently verified CO₂ ratings like the SEA Index, enjoy a clearer value proposition and may benefit from preferential terms.
This trend is also reshaping the charter market. Clients, especially younger generations, are actively seeking out more sustainable options. Chartering a high-emissions yacht with no environmental credentials can now be a reputational risk, not just a logistical one.

“There have been instances where clients have declined to charter certain vessels specifically due to the absence of visible sustainability practices, highlighting a growing sensitivity in the market toward environmental performance. We are actively enhancing the sustainability of our charter and managed yachts through a series of targeted initiatives, as a result”

Ivaylo Nenov, Technical Manager Y.CO

Hidden Costs of Unsustainable Yachting

“The underwriters of the Yachting industry are currently following the trend of the Shipping Industry by applying increase of premium on the insurance policy dedicated to vessel with high emissions. Some leading underwriters of the European Market have even cancelled the coverage of some vessels, considered to be polluters. On the other hand, some leading underwriters have started to offer some green bonus and discount on low emissions vessels.”

Nicolas Mior, Head of Jutheau Husson Yachting.

Missed efficiency savings

Sustainable yachting is not only about avoiding penalties, it also makes economical sense. Inefficient propulsion systems, inadequate thermal insulation, and ineffective onboard technologies drive up fuel consumption, and with it, operational costs. According to RINA, improved thermal efficiency in yacht design can yield significant cost reductions over time.

SEA Index has also highlighted how innovative design-stage planning can dramatically reduce both CO₂ output and running costs. Some immediate options for emissions and cost reductions are: advanced hull designs, appropriate energy efficiency balance between vessel size, propulsion and generators on board, and alternative e-fuels such as HVO.  Recent developments in alternative energy sources such as solar and  wind assisted propulsion and fuel cell technologies are also showing signs of promising results

How SEA Index helps avoid these costs

​​SEA Index offers a trusted, transparent way to measure, certify, and improve a yacht’s carbon performance. Using a science-based, third-party validated methodology, SEA Index assigns a star rating based on a yacht’s CO₂ emissions per gross tonne per hour.

SEA Index CO₂ certification empowers:

  • Owners to future-proof their investment and improve market value
  • Brokers to differentiate listings with credible sustainability credentials
  • Builders to integrate efficiency and compliance from the earliest design phase

As regulatory pressure and market expectations grow, SEA Index helps you navigate the complexity and empowers owners to act with confidence.

Visit our tools page  to learn about certifying your vessel and stay tuned for developments in going beyond CO2.

Remember – CO2 certification holders with 3 stars or above get access to a whole range of benefits and may be eligible for up to 20% policy reduction through Jutheau Husson.

To find out more, get in touch with our team at info@sea-index.com or start the CO2 certification process now.

Share this article:

Related Articles

The SEA Index international network is growing - Read our latest news!