What Does a Net Zero Hotel Look Like?

At COP26 in Glasgow, the global tourism industry made a crucial commitment: to halve emissions by 2030 and reach net zero by 2050. A recent survey revealed that over three-quarters of travelers are eager to travel more sustainably in the coming year, prompting the accommodation sector to take significant steps towards sustainability. In this article, we explore how hotels are evolving to meet these climate challenges.

Saving the Climate, One Light Bulb at a Time

According to the EY-Parthenon study, there are numerous carbon-saving initiatives that accommodations can adopt right now to reduce their carbon footprint. While no single initiative will bring a hotel’s emissions to zero, collectively they can result in significant reductions. If the entire sector implements these strategies, it could potentially reduce emissions by 48 million tonnes of CO2-equivalent, which is comparable to removing 10.7 million gas-powered cars from the road for a year.

Key Carbon-Saving Initiatives

Here’s a look at some of the most impactful initiatives hotels can adopt, along with their potential greenhouse gas emissions reductions:

These initiatives can vary in impact based on the hotel's size, location, and climate. For example, a full-service hotel with 100 rooms, a pool, and a garden in a tropical climate could potentially reduce its carbon footprint by 215 tonnes CO2-equivalent.

Taking Stock

If you've stayed at a hotel recently, you may have noticed some of these sustainable practices in action. For instance, energy-efficient lighting has become an industry standard, implemented in over 80% of accommodations. However, initiatives like pool covers have seen lower adoption rates, at less than 30%, potentially due to a lack of awareness.

The accommodation sector has already made progress. With the current level of adoption, the industry has eliminated 39 million tonnes CO2-equivalent in emissions. The additional 48 million tonne reduction mentioned earlier would be on top of this achievement.

OK, But How Much Does It Cost?

The COVID-19 pandemic severely impacted the tourism industry, with international arrivals still down 37% in 2022. According to Statista, the hotel and resort sector was valued at $1.06 trillion in 2022, down from a $1.52 trillion peak in 2019. Given inflation and rising energy prices, hotel owners might hesitate to invest in sustainability initiatives, which could cost approximately $4,750 per room or around $243 billion for the entire sector.

However, it's important to note that most of these initiatives can recover their initial investment within 15 years through energy savings. Additionally, 76% of the abatement potential is linked to a positive business case. With the growing importance of sustainability in travel, initiatives like Booking.com ’s Travel Sustainable badge offer hotels a compelling reason to invest.

The Journey Ahead

Hotels and accommodations currently contribute an estimated 264 million tonnes CO2-equivalent in direct and controllable emissions (scope 1 and scope 2 emissions). Even with the implementation of various measures, there will still be 216 million tonnes CO2-equivalent left to address. As global average temperatures rise above 1°C compared to pre-industrial levels, the task ahead is significant.

However, the accommodation sector is not standing still. With a clear roadmap for sustainability, hotels are committing to a future where they can significantly mitigate their carbon footprint, ensuring a greener planet for future generations.

The journey to becoming a net zero hotel is challenging but necessary. Together, we can pave the way for a more sustainable future in travel and hospitality. ?? #NetZeroHotels #SustainableTravel #ClimateAction