Hotels and accommodations of various kinds emit 264 million metric tons of CO2 equivalent per year, representing 10% of the annual emissions in the tourism sector. This finding comes from the first detailed analysis of carbon emissions in the global hotel industry conducted by EY Parthenon and Booking.com—covering everything from light bulbs to swimming pools. The study highlights the potential to reduce emissions, which roughly correspond to those of 65 coal-fired power plants.

Achieving net-zero emissions by 2050 comes with a hefty price tag. Hotels and accommodations will need to invest €768 billion in adopting more efficient technologies and transitioning to renewable energy sources. This amount is equivalent to the combined annual revenues of all hotels and accommodations. The creators of the study acknowledge that this is no easy task for a sector that has been particularly impacted by the coronavirus and is slowly recovering.

To meet the 2050 goal, the hotel industry must reduce emissions by 17 metric tons of CO2 equivalent annually—approximately 6% to 7% of current levels. The adoption rates for available efficient technologies and practices currently range from 30% to 70%, indicating a significant opportunity for improvement

However, there are reasons for optimism. The study shows that there is a wide range of emission reduction measures that are profitable for accommodations within 15 years of investment. In fact, 76% of emission reductions can be achieved through the implementation of more efficient technologies and business practices that yield positive returns. According to the same sources, this provides the accommodation sector with an opportunity to take further action now and become more ambitious over time.

The measures with the greatest potential for reducing emissions include the installation of energy-efficient heating and cooling systems, with a potential global emissions reduction of 53%; the use of low-consumption appliances throughout the accommodation (-12%); and the installation of double-glazed windows (-10%). “Despite differences in potential, accommodations should aspire to adopt any initiative to achieve net-zero emissions. Taking small steps is better than doing nothing.”

The measures to be adopted offer accommodations a dual benefit: they reduce both greenhouse gas emissions (GHGs) and operational costs. However, achieving these goals is not without challenges. “Significant initial investments are needed at a time when accommodations worldwide are slowly recovering from the catastrophic impact of the pandemic.” Nevertheless, this situation also presents an opportunity to respond urgently.

Moreover, it’s a chance for closer collaboration among all stakeholders in the accommodation sector—both public and private—to come together and tackle this challenge.

The transition path toward net-zero emissions involves four key elements:

• Resource Efficiency Improvement: Accommodations must enhance their natural resource utilization efficiency
• Promoting Sustainable Behavior: Encouraging sustainable practices among guests and staff..
• Transition to Renewable Energy: Stimulating the adoption of renewable energy sources.
• Offsetting Remaining Emissions: Compensating for any remaining GHG emissions.

Accommodations are already engaged in varying degrees of sustainability initiatives, but there’s room for additional reductions—up to 15-20% of current total emissions. A wide range of low-carbon measures can help accommodations decrease resource use and waste, potentially lowering GHG emissions by up to 32%.

Even after implementing all available reduction technologies, significant GHG emissions remain. Addressing these requires behavioral changes, greening energy production, and, if electricity isn’t an option, opting for carbon offsets.

However, several obstacles hinder implementation:

• Lack of Urgency: Some perceive the urgency insufficiently.
• Knowledge Gaps: Insufficient data or knowledge.
• Financial Constraints: Limited financial resources or access to capital12.

Therefore, joint action is needed because accommodations cannot navigate this path alone. While a significant portion of reduction measures may initially be profitable, the estimated cost to achieve full potential emissions reduction with current technologies is €243 billion or €4,750 per room. The greening of energy production for the remaining emissions carries an estimated cost of €525 billion for the global accommodation sector.

Clearly, companies in the sector, many of which are small and medium-sized, require both financial and non-financial support to overcome this transition. Supportive actions include raising general awareness, directing demand toward sustainable accommodations, and providing easy access to financial support programs and capital.

Governments play a crucial role in creating the appropriate regulatory framework and incentives for the accommodation sector. However, other stakeholders must also intervene, unlocking additional demand for more sustainable options and driving the transition. For instance, online travel platforms can help create a cycle of supply and demand for sustainable travel options that reinforce each other.

What is evident is that cooperation from all parties is necessary to complete this transition. While 2050 may seem distant, urgent action is required to reduce carbon emissions in the accommodation sector.