GlobalaccommodationsectorTheroadtonetzeroemissionsOctober20213GlobalaccommodationsectorTheroadtonetzeroemissionsClimatechangeisoneofthemostpressingchallengesofourtime.Asanimportantcontributortogreenhousegas(GHG)emissions,theaccommodationsectorhasavitalroletoplayintheefforttodecarbonise.Accommodationsaccountfor264MtCO₂-eqdirectandcontrollableemissions(so-calledscope1&2),reflectingroughly10%ofemissionsthroughoutthetourismsector.Theaccommodationsectorneedstocurbemissionsby17MtCO₂-eqperyear–anannualreductionrateof6to7%ofcurrentlevels–toachievenetzeroemissionsby2050.Thisistheequivalentofeliminatingallresidentialemissionsinroughly2.3millionhouseholdsperyear.Anexponentialincreaseineffortisthereforeneededtomasterthistransformationinamarketthatiscontinuouslygrowing._ExecutivesummaryFigure321Knowledge3FinancialmeansDecarbon-isation2Urgency45Globalaccommodationsector_Theroadtonetzeroemissions/_ExecutivesummaryGlobalaccommodationsector_Theroadtonetzeroemissions/_ExecutivesummaryAchallengewithadoubledividendThegoodnewsisthatthereisawiderangeofmeasuresthatsignificantlyreduceGHGemissionsandcaninprinciplebeimplementedprofitably.Theyprovideaccommoda-tionswithadoubledividend:theycutbothGHGemissionsandoperatingcosts.Thatisnottosaytheseemissionreductionsareeasytoachieve.SignificantupfrontinvestmentsarestillneededatatimewhenaccommodationsaroundtheworldareonlyslowlystartingtorecoverfromthecatastrophicimpactoftheglobalCOVID-19pandemic.Butitdoesprovideanopportunitytoheedthecallforurgentaction.Italsoprovidesanopportunityforclosercooperationbetweenallstakeholdersintheaccommodationsector–publicandprivate–tocometogethertomasterthischallenge.Thisreportpresentsatransitionpathwaywithspecificopportunitiesforaccommoda-tionstodirectlyreducetheircarbonemissions.Itisbasedonnovelandunparalleledprimaryresearch,mappingtheGHGemissionsoftheglobalaccommodationsectoraccountingfordifferenttypesofaccommodationsoperatingindifferentgeographiesandclimatezones.Itprovidesadetailed,bottom-upunderpinningofwhatthesectorhasachievedtodateand–moreimportantly–whatcanstillbeachievedwithdifferentmeasures.ThisreportfocusesonabatingdirectandcontrollableGHGemissions.Itidentifiesconcretemeasurestoabatecarbonemissionbyimplementingthebestavailabletechnologies,estimatestheassociatedinvestmentandimplementationcosts,andsurveysexistingbarrierstotakingaction.Finally,thereportshowshowawidersetofstakeholderscansupportaccommodationsintheirdecarbonisationeffortsandacceleratethegreentransition.FourelementapproachtoarriveatnetzeroemissionsThetransitionpathwaytonetzeroemissionsconsistsoffourelements:[1]improvetheefficiencyofnaturalresourceusagebyaccommodations,[2]promotemoresustainablebehaviourbyguestsandaccommodationstaff,[3]stimulatethetransitiontorenewableenergyusage,and[4]offsetanyremainingGHGemissions.•Awiderangeofcarbon-savingmeasuresisavailableforaccommodationstoreduceusageofnaturalresourcesandwastedisposal.Anaccommodationcanreduceits(original)GHGemissionsbyupto32%withthesemeasures.Mostofthemeasureshaveapositivebusinesscase.•Accommodationsarealready,tovaryingdegrees,engagedinsustainabilityinitiatives.Currentadoptionlevelsofcarbon-savingmeasuresdivergefromanywherebetween30%-70%,withevenafewoutliersstilloutsidethisbroadband.About39MtCO2-eqhavebeenabatedannuallyasaresult.•Accommodationscanstillachieveafurther15%-20%reductionoftotalcurrentemissions,whichreflectsapproximately48MtCO2-eqperyear.Thelion’sshareofresidualabatementpotentialisassociatedwiththeimplementationofjustthreeinitiatives:energy-efficientheating,ventilation,andairconditioning(HVAC)systems;energy-efficientappliancesacrosstheaccommodation;andinstallationofdoubleglazing.Despitetheskewinpotential,accommodationsshouldaimforgreateradoptionofallinitiativesinthequestfornetzeroemissions.Smallstepsarebetterthaninaction.•Evenafterimplementingallcurrentlyavailableabatementtechnologies,significantGHGemissionsremain.Theywillhavetobeaddressedthroughbehaviouralchanges,thegreenificationofenergyproduction,and,ifelectrificationisnotanoption,carbonoffsets.GreenificationofenergyproductionBehaviouralchangesCarbonoffsetting264MtCO2-eqGlobalgreenhousegasemissionsfromaccomodationsInfrastructureefficiencyimprovementAccomodations'shareoftourismsectors'emissions10%_Four-elementapproachtonetzeroemissionsBarrierstoimplementationManyaccommodationscaredeeplyaboutsustainability.However,therearesomebarrierstoimplementationofdecarbonisationmeasures.Themostimportantare:aninsufficientsenseofurgency,knowledgegapsordeficientdata,andalackoffinancialresourcesoraccesstocapital.Thisreportidentifiesthreeaccommodationmindsetswithrespecttoimplementationandimportanceofsustainability.TheSpectators,reflectingapproximately32%ofthemarket,donotactivelypursuesustainabilitygoalsandhavetodateonlyimplementedstandardindustryinitiativesortakenactionsolelyforcost-savingpurposes.Creatingurgencyforthissegment,forexamplebyhighlightingthecostofinaction,wouldbeanimportantdrivergoingforward.ThePartakers–thebulkofthemarketwithapproximately61%ofroomcoverage–wanttotakeactionaslongasitdoesnotnegativelyimpacttheattractionoftheiraccommodation.Theywillgoalongwiththetransitionaslongasitdoesnothurttheirlong-terminterests.Theycanbespecificallysupportedwithincreasedknowledgeandfinancialsupporttoincreasetheviabilityofthebusinesscase.And,lastbutnotleast,theFrontrunners,towhichapproxi-mately7%ofthemarketsupplycanbeattributed.Theyhavesustainabilityatthecoreoftheirpropositionandpro-activelytrytoachieveallkindsofimprovements.Thoughlittlelefttostillabate,theycouldbesupportedwithrelevantandcompellingknowledgeandfinancialresourceswithrespecttotheremaining,mostchallenginginitiatives.ConcertedactionneededTheroadtoadoptcarbon-savingmeasurescannotbetravelledbyaccommodationsontheirown.Evenwithalargeshareofabatementmeasuresbeingprofitableinprinciple,thecostofrealisingthefullabatementpotentialofcurrenttechnologiesisestimatedtobe€243bor€4,750perroom.Greeningtheenergyproductionfortheremainingemissionscomesatanestimatedcostof€525bfortheglobalaccommodationsector.GiventhecatastrophicimpactofCOVID-19andtheprevalenceofmanysmallandmedi-um-sizedaccommodations,itisclearthatitwilltakefinancialandnon-financialsupporttomasterthistransition.Thesesupportactionsrangefromcreatinggeneralawarenesstohelpingchanneldemandtosustainablepropertiestoprovidingeasyaccesstocapitalandfinancialsupportschemes.Governmentsareessentialincreatingtherightregulatoryframeworkandincentivesfortheaccommodationsector.However,otherstakeholdersalsohavearoletoplay.Travelisagrowingmarketandunlockingadditionaldemandbyrespondingtotravellers’prefer-encesformoresustainablechoicescanbeanimportantdriverforthetransitionasitwillmakegreeninvestmentsamortisebetterandfaster.Forexample,onlinetravelplatformscanhelpincreatingacycleofsupplyanddemandofsustainabletravelchoicesmutuallyreinforcingeachother.Itwilltakethecooperationofallstakeholderstomasterthistransition.Although2050mayseemalongwayoff,urgentactiontodecarbonisetheaccommo-dationsectorisrequired.Thisreportprovidesaroadmaptotakethefirststepsalongthewayahead._Keybarrierstoovercome48MtCO2-eqremainingabatementpotentialreflectingan18%emissionreduction€243billioninvestmentisrequiredtoimplementalldecarbonisationinitiatives-equivalentofc.€4,750perroom7%32%61%FrontrunnersSpectatorsPartakers_Sustainabilitymindsets_Indexpage8_Theroadtonetzeroemissionsintheglobalaccommodationsectorpage12_Methodologyofthestudypage15_Thepotentialofimplementingthemostefficienttechnologiespage24_Theabatementpotentialofaccommodationsinpracticepage36_Fulltransitionpathwaytoachievenetzeroambitionpage40_Supportfromstakeholderstoacceleratedecarbonisationpage47Thewayahead89Globalaccommodationsector_Theroadtonetzeroemissions/_TheroadtonetzeroemissionsintheglobalaccommodationsectorGlobalaccommodationsector_Theroadtonetzeroemissions/_Theroadtonetzeroemissionsintheglobalaccommodationsector_TheroadtonetzeroemissionsintheglobalaccommodationsectorClimatechangeisoneofthemostpressingchallengesofourtime.Limitingsurgingglobaltemperaturesto1.5to2ºCrequiresasignificantaccelerationinthemitigationofgreen-housegas(GHG)emissions.Theaccommodationsectorisnoexception.Globalaccommodationsemittheequiva-lentof264megatonsofcarbondioxide(CO₂-eq)peryear–andthesectorisexpectedtogrow(again)inthefuture.Decarbonisationby2050requirestheaccommodationsectortoincreaseitseffortsatatimewhenmanyarestillrecoveringfromtheimpactoftheCOVID-19pandemic.Allstakeholders–privateandpublicsector–needtocloselycooperatetomakethistransitionasuccess._Globalgreenhousegasemissionsfromaccommodations[Figure1]arenecessarytooffset264MtCO2-eq264MtCO2-eqScope1DirectemissionFromon-sitenaturalresourceconsumption(e.g.boiler)Scope3NotdirectlycontrollableindirectemissionsFromvaluechaininputs(e.g.food)Scope2IndirectemissionsFrompurchasedenergyconsumption(e.g.lighting)12.5billiontreesDecarbonisationisapoliticalandsocietalpriority–onethatisincreasinglyurgent.Withthe2015ParisAgreement,governmentsaroundtheworldagreedtoundertake“ambitiousefforts”toreducetheircountries’emissionsandtoincreasetheirambitionandendeavourovertime[Source1].Despitethisexertion,progresshasbeenlimitedsofar.ThemostrecentreportbytheInter-governmentalPanelonClimateChange(IPCC),pub-lishedinAugust2021,thereforestressestheurgencytotakeaction:“Stabilizingtheclimatewillrequirestrong,rapid,andsustainedreductionsingreenhousegasemis-sions,andreachingnetzeroCO₂-eqemissions”[Source2].Theaccommodationsectorisnoexceptiontotheneedtotakeurgentaction.AccommodationsareasubstantialcontributortoglobalGHGemissions.Directandcontrol-lableemissions(so-calledscope1&2)accountfor264MtCO₂-eqp.a.,representingroughly10%ofthetourismsector’stotalemissions[Source3].Thetravelandtour-ismsector,includingaccommodations,isacontinuouslyandstronglygrowingmarket[Source4].Domesticandinternationaltravelareanticipatedtobouncebackpost-COVID-19andcontinuetheirhistoricalgrowthtrajectory.Between2011and2019,accommodationshavebeengrowingatanannualrateofc.4%[Source5].Thisunder-linestheneedtotakeeffectiveaction:achievingnetzeroemissionsby2050requirestheaccomodationsectortoreduceemissionsby3%peryearcomparedtocurrentemissionlevelandby6-7%whentakingintoaccounttheexpectedsectoralgrowthof3-4%(c.17MtCO₂-eqannu-ally).Thisistheequivalentofeliminatingallresidentialemissionsfromroughly2.3millionhouseholdsperyear[Source6].Thetransitiontozeroemissionscanbeseenasafour-elementapproach,asdepictedinfigure2.Stageonecon-sistsofaccommodationsimprovingtheefficiencyoftheirnaturalresourceusage(i.e.energyandwater)andwastedisposal.Asthisreportwillshow,therearealargenumberofinitiativestoimproveenergyconservation,waterstew-ardshipandsingle-wasteprevention.Instagetwo,accom-modationscanactivelytrytonudgeguestsandperson-neltowardsmoresustainablebehaviour.Alargeshareofenergyconsumptionisunavoidablefortheoperationofanaccommodation,yetsmarterandmoreefficientusagecanalreadyresultinsignificantimprovements.Stagethreeseesaccommodationsachievecarbonneutralitybysubstitutingfossilfuelsforrenewableenergy.Thiscanbeachievedthroughlocalrenewableenergyproduction(e.g.windturbineorsolarpanels),orbysourcinggreenenergyfromthenationalgrid.Finally,andasalastresort,anyremainingGHGemissionscanandneedtobeoffset.However,asoffsettingcapacityislimited,thiscanonlybeameasureforphysicalorchemicalprocessesthatare_KeyfocusareasAccommodationmanagement'skeyfocusareas[Figure4]offersestimatesforthecostsassociatedwiththeswitchtorenewableenergy.Finally,thereportprovidesanover-viewofcurrentprogressinthetransitionoftheaccom-modationsector,itsmainadoptionbarriersandtheprovi-sionofsupportbyexternalstakeholderstoacceleratetheefforttodecarbonise.Itisevidentthatthetransitionpathwaytozeroemissionsisnotaneasyoneand,moreimportantly,itisonethathastobetakencollectively.TheCOVID-19pandemichasdisproportionatelyimpactedthetourismsector.Accord-ingtotheWorldTravelandTourismCouncil,internationaltouristarrivalsworldwidedroppedby74%comparedtopre-pandemiclevelsandthesector’scontributiontoGDPdeclinedbynearly50%,comparedtoanoveralldeclineofglobalGDPof3.7%[Source7].Itisestimatedthataround62millionjobswerelostinthetourismsec-torgloballyduetothepandemic,particularlyimpactingsmallandmedium-sizedenterprises[Source8].Accom-modationswereparticularlyhardhit.Investingindecar-bonisationthereforeposesanenormouschallenge.Whileultimatelyonlyaccommodationscanbringaboutthenecessarychanges,otherstakeholdershavearoletoplayaswellinsupportingthistransition.Although2050mayseemlikealongwayoff,immediateactiontodecarbon-isetheaccommodationsectoriscrucial.Aidedassociationswithsustainability%ofaccommodationsProtectingtheenvironmentReducingwasteReducingenergyuseReducintwateruseOfferinglocalproduce/servicesPreservingwildlifeandnaturalhabitatsSupportinglocalcommunityProtectinglocalculturesEnsuringlower/noemissionsOther75%75%73%69%65%57%55%54%54%6%10Globalaccommodationsector_Theroadtonetzeroemissions/_Introductiontodecarbonisationofaccommodations11Globalaccommodationsector_Theroadtonetzeroemissions/_Introductiontodecarbonisationofaccommodations_ExpectedemissiondevelopmentExpectedsectoremissiondevelopment[Figure3]GHGemissionsNow2050StatusQuo:Tourismgrowthdrivingemissions,withoutanyactionAmbition:Fullfocusondecarbonisationtodrivenetemissionstozero_Four-elementapproachtonetzeroemissions[Figure2]GreenificationofenergyproductionInfrastructureefficiencyimprovementBehaviouralchangesCarbonoffsettingwithoutanalternativeandessentialtotheoperationofanaccommodation.Whiletheneedfordecarbonisationisbecomingincreasinglyacute,notmanyaccommodationscurrentlyconsidersustain-abilityapriority.Theconcernisthatsustainablepracticesmightnegativelyimpactguestexperienceorbusinessprofita-bility.Thatisnottosaythataccommodationsdonotperceivesustainabledevelopmentasanimportantgoal.Theyare,howevermorefocusedonsustainabilityinabroadersenseanddonotsolelyfocusondecarbonisation,asseeninfigure4.AccommodationsinterviewedforthisstudyoftenreferredtotheUNSustainableDevelopmentGoalsandplacedemphasisonthesocial/localcommunitygoalsofthatframe-work.Thesetwofactors–abroadsenseofpromotingsustain-abilityandthefocusonguestexperienceandbusinessprof-itability–mightexplainwhy,uptonow,accommodationshavemostlyadoptedsustainabilityinitiativesthatarerelativelyeasytoimplementandfinanciallyattractive.Forthefuture,thiswillnotbeenough.Thisreportpresentsatransitionpathwayforaccommodationstogettonetzeroemissions.ItdoessobymeticulouslymappingtheGHGabatementpotentialofexistingpropertiesthroughadop-tionofthemostefficientcurrenttechnologies.Italsopro-videsacalculationoftheassociatedcostsofimplementingthesemeasures.However,notallemissionscanbeabated.Eventuallyallenergyconsumptionwillthereforehavetocomefromrenewableenergygeneration.ThisreportalsoSustainabilityGuestexperienceProfitability123121313BackgroundGlobalaccommodationsector_Theroadtonetzeroemissions/_MethodologyofthestudyGlobalaccommodationsector_Theroadtonetzeroemissions/_MethodologyofthestudyEY-ParthenonaccommodationsurveyAbatementCostCurve(ACC)Booking.comaccommodationdatabaseSurveyed:c.6,500surveyedpartners,covering23countiesInterviewed:40+conductedinterviewswithpartnersin10geographies_MethodologyofthestudyThefindingsinthisreportarebasedonawidevarietyofnewcollectedprimarydata,compiledinthesecondhalfof2021,andcurrentresearch.Incontrasttomostexistingliterature,thisstudyisbasedonabottom-upapproachwithextensivefieldworkunderscoredbyaconsiderationoftheglobalaccommodationsector–bothintermsofcountriesandaccommodationarchetypes.Thisresearchwasinitiatedbyselectingthemostrelevantactionsforaccommodationstoreduceemissions,basedonexistingstudiesanddiscussionswithvariousindustryplayers.Anelaborateinterviewprogrammewithover40accommo-dationprovidersfromallovertheworldhasbeenusedtodetectboththecurrentpositioningoftheseinitiativesandthekeydriversandbarrierswithrespecttotheiradoption.AbatementCostCurveshavebeenmodelledforseveralrelevantsegmentations(i.e.continent,climateandaccom-modationarchetype)asanin-depthunderpinningofthesector’stotalpotential.Inputsforthesecurvesalsorelyonexistingresearch[Source9;10;11].CurrentandplannedlevelsofimplementationweredeterminedbasedonathoroughaccommodationsurveyamongBooking.com’spartnersin23countries.Thispartnersurveyhasatotalresponserateofc.6,500properties,coveringalltypesofaccommodations,differentcontinentsandclimateregionsacrosstheworld.Finally,basedonBooking.com’sdatabaseofglobalaccommodations,thefindingsandresultswereextrapolatedtocometoaglobaloverviewoftheaccom-modationsector’sremainingabatementpotential.Despitetheexpansivebottom-upapproachofthisstudy,somelimitationsremain.Firstly,aselectionbiasmayhave_PrimaryresearchOverviewofnovelprimaryresearchconducted[Figure5]occurredwithinthepartnersurvey,aspartnerscommittedtosustainabilityarelikelytohavebeenmoreinclinedtoparticipate.Consequently,remainingabatementpoten-tialislikelyevenslightlyunderestimated.Secondly,alimitedresponserateincertaingeographiescoveredbythesurveyconstrainsaccuracyofunderliningdatapoints.Furthermore,inordertomodelglobalmeasures,findingsofcertaingeographieswereextrapolated.Lastly,asthisisamodelledexercise,simplificationswereappliedinmeas-uressuchasclimatesegmentationandextentofimple-mentationofsustainablepractices.•Completeroadmaptoarchivenetzeroemissionsinaccomodationsector•Extensivecoverageoftheglobalaccomodationsupplyacrossalltypesandregions•Globalnewprimarydatacollectionamongarepresentativesetofaccomodations•DetailedAbatementCostCurvesaddressingallpropertytypesandvariousclimates•Extensivebottom-upapproachwithrespecttocurrentemissionsandabatementpotential•MarketsupplycoveragebasedonmostextensiveglobalaccomodationdatabaseContributionandaddedvalueofthisstudyAccommodationswiththefunctionofprovidingashort-staylodgingfunctiontotravellersexistinallkindsofsizesandtypologies.Withinthisresearch,relevantsegmentationsareasimplificationofreality,yetshouldprovidecleardifferentiators.Accommodationsegmentationsinthisreportarebasedon[1]country/continent,[2]climatezoneand[3]archetype.Anaccommodation’sarchetypesaredeterminedbytheirsize(smallvs.large)andforlargeaccommodationsontheirservicelevel(limitedvs.full).Theabatementcostcurve(ACC)identifiesthekeyinitiativesaccommodationscanimple-menttoreducegreenhousegasemissions.Asanaccommodation’ssizeandservicelevelsignificantlyimpacttheGHGabatementpotential,threearchetypesweresketched:small,limitedandfull-serviceaccommodations.Themodelfull-serviceaccommodationhas4,500m²flooringspace,100guestroomsandincludesfacilitiessuchasapool,gardenareaandcatering.Ontheotherhand,smallandlimited-serviceaccommodationsareassumednottoofferfacilitiesotherthanguestrooms.Smallandlimited-serviceaccommo-dationsaredifferentiatedbasedonthenumberofguestrooms–4and100respectively–andthetotalflooringspaceof115m²and2,800m²respectively.Inreality,identifyingRelevantsegmentationthroughoutthereport_Accommodationarchetypes[Figure6]SmallFullserviceGuestrooms(#)Commonareasizem2ServiceslevelFacilities41151002,8001005,000LimitedserviceContinentalTemperateTropical141514BackgroundGlobalaccommodationsector_Theroadtonetzeroemissions/_MethodologyofthestudyGlobalaccommodationsector_Theroadtonetzeroemissions/__Thepotentialofimplementingofthemostefficienttechnologiesarchetypesismorecomplex.Althougheacharchetypeexhibitsdifferencesintherangeofserviceandfacilitiesoffered,theseareoftennotasbinaryascurrentlyassumedintheACC.Furthermore,in-housefoodandbeverageoptionsoftendiffersubstantiallyfromfulltosmallandlimited-serviceaccommodations;otherfacilitiessuchasgymsorswim-mingpoolscanalsobefoundatbothestablishmenttypes.Theclimatezoneinwhichanaccommodationislocatedalsoimpactsitsoverallcarbonfootprintandtheeffectivenessofcarbon-savinginitiatives.Consequently,threeclimatezoneswereidentifiedforthemodelling:continental,temperateandtropical.Thesecli-mateshavebeenillustratedinfigure7.TheACCwasmadeclimate-specific,byadjustingkeyassumptionssuchasaveragemonthlyrainfallandtemperatureforeachinitiative.Thisisasimplificationofthebroadrangeofexistingcountryandevenlocation-specificclimates._Climatezones[Figure7]_ThepotentialofimplementingthemostefficienttechnologiesAccommodationsaretypicallyconsideredtoberesource-intensivebuildings.Therangeofservicesofferedbyaccommodations,alongwithoccupationdensityofguestrooms,leadsaccommodationstouserelativelylargeamountsofenergyandwaterpersquaremeterandgeneratehighlevelsofwaste[Source12].Asaresult,energyandwaterefficiency,togetherwithwastereduction,arekeyareasofenvironmentalmanage-mentfortheaccommodationsector.ImplementingthemostefficientavailabletechnologiesandbestpracticeswouldenableanindividualaccommodationtoreduceitsGHGemissionsbyupto32%.Althoughthereductionofallthreeelements(i.e.energy,waterandwaste)isrelevant,themajorityofgreenhousegasemissionsstemfromenergyconsumption.Energyconservationmeasuresarecommonlylinkedwithimprovementstoabuilding’sstructureandon-siteequip-ment,forexamplemeasuressuchasinsulationandlightsensors.Inparallel,accommodationscanpractisewaterstewardship,byforinstanceinstallinglow-flowsystemsandintroducingtowelandlinenreuseprogrammes.Thisnotonlyresultsinlesswaterusagebutalsoinreducedenergyconsumptionfromwaterheating.Finally,theaccommodationsectorcanreducethecarbonfoot-printofitswastedisposal.Forexample,byeliminatingsingle-usepackagingandfacilitatingrecyclingThevariousmitigationmeasureshavedifferentreductionpotentialandcomewithdivergingcosts.Thisreportpre-sentsananalysisofthereductionpotentialandassoci-atedcostsfor24measuresthathavebeenidentifiedasparticularlyrelevantthroughtheprimaryresearch.Moreo-ver,theoperatingcosts(e.g.reductioninenergyconsump-tion)weremodelledovera15-yearinvestmenthorizontoestimatethenetfinancialimpact.Finally,tocomparethecost-effectivenessofdifferentmeasures,abreakdownwasmadeofthecostperkilogramofCO2-eqabatement.TheresultisanAbatementCostCurve(seefigure10formoreTheaccommodationsectorhastheabilitytorealisesignificantreductionsinGHGemissionsbyimplementingcarbon-sav-ingmeasureswhichreduceusageofnaturalresourcesandwastedisposal.Indoingso,anindividualaccommodationcouldlowerthecarbonemissionsofitsoperationsbyupto32%,withthemajorityofmeasuresbeingnetprofitableovera15-yearinvestmenthorizon.details).Thiscurveservestwopurposes:i)itprovidesaneasyoverviewoftheeconomicimplicationsofreducingcarbonemissionfordifferenttypesofaccommodationsandclimatezones,ii)ithelpsaccommodationsidentifymeasuresbyimpactand_Thepotentialofimplement-ingthemostefficienttechnologies.Thisisparticularlyimportantinthecurrentsituation,wheremanyaccommo-dationsareinafinanciallyprecarioussituationwithlittleresourcesfornewinvestments,butstillwanttobecomemoresustainable.Theanalysisletsthemchoosethosemeasuresthatarebestsuitedtotheirindividualprefer-ences.Ultimately,however,alloftheapplicablemeasuresneedtobeimplementedbyaccommodations._Emissionreductionpotential[Figure8]32%potentialemissionsavings_ContributorstoGHGemissions[Figure9]EnergyWasteWater16171617BackgroundBackgroundGlobalaccommodationsector_Theroadtonetzeroemissions/_ThepotentialofimplementingthemostefficienttechnologiesGlobalaccommodationsector_Theroadtonetzeroemissions/_Thepotentialofimplementingthemostefficienttechnologies_AbatementCostCurvereadingguide[Figure10]EachboxrepresentsoneemissionsreductionopportunityAbatementcost€perkgCO2-eqAnnualGHGemissionsreductionpotentialinagivenyearEstimatedcostsinagivenyeartoimplementinitiativeMeasuresaresortedbyincreasingcostsperkgCO2-eqGHGAbatementCostCurveTheGHGAbatementCostCurve(ACC)illustratesthepotentialabatementofemissionsbyindividualinitiativeandtheassociatedcostperkgCO2-eq.SixdifferentACCsarepre-sentedinfigure11and12,coveringthreeuniqueclimatesandbothlimitedandfull-serviceaccommodations.Suchcurvesprovideaquantitativebasisforaccommodationstoidentifywhichactionscouldbethemosteffectiveindeliveringemissionreductions.However,astheACCcurvesidentifyanaverageabatementpotentialandcosts,theywillstillrequirevalidationonacase-by-casebasis.Property-leveldecisionswillalsorequireconsiderationofotherdimensionssuchaslocaltaxes,governmentsubsidies,operationalimpactsandtechnologicaldevelopments.EachbarontheACCcurvesrepresentsacarbon-savinginitiative–seefigure13forthefulldetailedlistofinitiatives–thatanaccommodationcanimplementwithtechnologiesavailabletoday.Thewidthofeachbarillustratesaninitiative’spotentialtoreduceGHGemis-sionswithinagivenyear,comparedtobusiness-as-usual.TheGHGabatementpotentialassumesconsiderableimprovementsintheenergyefficiencyofequipmentalongwithoptimisedoperationalprocesses.Itdoesnottakeintoaccountcurrentlevelsofimple-mentationortheapplicabilityofeachinitiativetoindividualproperties.Theheightofeachbarrepresentsthenetcostofabating1kgofGHGemissions,assumingthatinvestmentsarecarriedoutnowandpotentialGHGsavingsaremodelleduntil2035.Thegraphisreadfromlefttoright,illustratingtheGHGabatementfromthelowesttothehighestcostopportunities.Theinitiativeswhichappearbelowthehorizontalaxisofferfinancialsavingsovera15-yearinvestmenthorizon,whereasinitiativesthatappearabovethehorizontalaxiscomeatanetcost.Thecostsincurredtoinstalleachinitiativedonotinclude(local)taxesorsubsidies.Moreover,opportunitycostsofpotentiallymissedrevenuesresultingfrommoresevereoperationalinterventions,areexcludedfromtheequation.Thismethodologyallowscomparisonoftheeconomicappealofeachabatementopportunityonamoreholisticlevelandbetweenregionsandcountries.Abatementcost€/kgCO2-eq10.51.00.50.0-0.5-2.0255075100125150CO2-eqabatedtonneCO2-eq/year10.51.00.50.0-0.5-2.0255075100125150CO2-eqabatedtonneCO2-eq/year10.51.00.50.0-0.5-2.0CO2-eqabatedtonneCO2-eq/year255075100125150Abatementcost€/kgCO2-eqCO2-eqabatedtonneCO2-eq/year8710-1-7255075100125150175200225250275CO2-eqabatedtonneCO2-eq/year8710-1-7255075100125150175200225250275CO2-eqabatedtonneCO2-eq/year8710-1-7255075100125150175200225250275ContinentalContinentalTemperateTemperateTropicalTropical1919BackgroundBackgroundGlobalaccommodationsector_Theroadtonetzeroemissions/_Thepotentialofimplementingthemostefficienttechnologies18Globalaccommodationsector_Theroadtonetzeroemissions/__Thepotentialofimplementingthemostefficienttechnologie18Keyunderlyingdifferencesbetweenclimateregions•Heating/coolingdays(andoutdoortemperature)•Monthlyrainfall•Showeringhabits•Sunlighthours&intensity•…LimitedserviceFullserviceKeyunderlyingdifferencesbetweenarchetypes•Applicabilityoffacilities(i.e.restaurant,garden,poolandlift)•Hotelsize(averagecommonareaperguestroom)•Usageintensity(e.g.laundryperroom,wasteperroom)•…_AbatementCostCurvebyclimate,limited-serviceaccommodationsTonneCO₂-eqemissions[Figure11]1ExcludingoutdoorinitiativesBuildingstructure&facadesFixtures&equipmentOperations_AbatementCostCurvebyclimate,full-serviceaccommodations¹TonneCO₂-eqemissions[Figure12]20212021BackgroundBackgroundGlobalaccommodationsector_Theroadtonetzeroemissions/_ThepotentialofimplementingthemostefficienttechnologiesGlobalaccommodationsector_Theroadtonetzeroemissions/_ThepotentialofimplementingthemostefficienttechnologiesInitiativeRationaleKeyleverGHGimpact(kgCO2-eq)1Invest-ment(€)2Yearlysavings(€)3ScalablemetricTurnoffminibarsbydefaultSwitchingoffminibarsbydefaultandguestscanturnthemonifneeded,loweringunnecessaryelectricityuse4k-8k-c.3kOpt-outofdailytowel&linenchangesByoptingout,laundryvolumeisreduced,loweringwateruseandelectricityconsumption3k-7k-2k-3kReducelaundrytemperatureReducinglaundrywatertemper-aturefrom90°Cto60°C,reducesenergyconsumptionforhotwater2k-4k-1k-2kRecyclewasteRecyclingallowsforreusingmaterialsandreduceswaste,consequentlyloweringemissionsrelatedtowastedisposal2k-3k--IntroducepaperlessproceduresLimitingthepaperusewillreduceGHGemissionsassociatedwithpapermanufacturingandwastetreatmentc.0.7k--LimitfoodwasteReducefoodwaste(e.g.donatingfood,removingbuffets,etc.)limitsamountofwastedisposalc.0.7k--EliminatedisposablesEliminatingsingle-usematerialsreducesGHGemissionsassociatedwithproductmanufacturingandwastetreatment0.4k-0.6kc.5k-CollectrainwaterCollectingrainwaterwhichcanbeusedforirrigationwillreduceanwateruse21-33c.7k100–400DevelopnativegardensNativegardenshavelocalplantswhichrequirenoadditionalirriga-tion,reducingwaterconsumption8-13c.5k40-100Installsmartirrigationsys-temDripirrigationeliminatesinefficien-ciesassociatedwithoverwateringandevaporation,reducingwaterconsumption6-13c.10k30–100OperationsOutdoors(i.e.garden)_Overviewofdecarbonisationinitiatives(impactperaccommodation)[Figure13]InitiativeRationaleKeyleverGHGimpact(kgO2-eq)1Invest-ment(€)2Yearlysavings(€)3Scal-ablemetricRetrofitefficientHVACsystemEfficienttechnologiesandcontroloptionscanreduceoverallenergyconsumptionofHeating,Ventila-tion,andAirConditioning(HVAC)systems35k-130k110k-170k18k-60kInstalldouble-panewindowsDoubleglazingreducesheatlossthroughwindows,whichlowersenergyconsumptionforHVAC7k-25k80k-160k3k-15kInstallsunshadingonwindowsSunshadingreduceheatgainfromsolarradiation,whichlowersenergyconsumptionforHVAC1k-25k180k-300k0.7k-10kInstall(more)insulationInsulationcreatesabarriertoheatgainandlossthroughwallsandroofs,whichlowersenergycon-sumptionforHVAC1k-7k130k-160k0.5k-5kInstallenergy-efficientappliancesInstallenergy-efficient(A-graderating)appliancesinguest,laundryroomsandkitchen,whichlowerselectricityconsumption8k-30k80k-110k5k-7kInstalllow-flowfixturesLow-flowshowerheadsandfaucetsreducewaterusageandenergyconsumptionforhotwater4k-19kc.16k3k-13kUseenergy-efficientlightingLEDlightingismoreenergyeffi-cientthanoldersolutions,reducingelectricityconsumption3k-9k7k-9k2k-4kElectrifyvehiclefleetReplaceownedorleasedvehiclesbyelectricmodels,reducingemissionsfromvehicles’fuel3k-4kc.2kc.6kInstallsmartliftsoftwareElevatorsoftwarewhichautomat-icallyswitchesoffelevatorlightsandventilationlowersenergyconsumption1k-3k20k-30k0.9k-1kInstallkeycardswitchinguestroomsKeycardcontrolledswitchesensurelightsareonlyusedwhenguestsarepresentintheirroom,reducingelectricityconsumption1k-2kc.25k0.9k-1kInstallmotionsensorsincorridorsforlightingMotionsensorsturnonlightsonlywhenmovementisdetectedincorridors,resultinginreducedenergyconsumptionforlighting0.4k-2k3k-4k0.2k-1kInstallefficientpoolpumpsVariable-speedpoolpumpscanrunatalowerspeedsetting,whichismoreenergy-efficient0.8k-1kc.1k0.5k-0.6kPlaceapoolcoverPoolcoversdecreasetheheatingneedofpoolwaterandreducewaterevaporation0.7k-1kc.11k0.5k-0.6kInstalldual-flushtoiletsAdual-flushtoiletconserveswaterbyofferingchoicebetweentwoflushvolumes,reducingthewaterconsumption0.3k-1k40k-50k1k-9kFixtures&equipmentBuildingstructure&facades1.YearlyGHGemissionsavings,basedonspecificconversionfactor2.Totalupfrontinvestmentrequiredfortheinitiative3.Yearlysavingsstemmingfromlowerenergyconsumption/wateruse/wastedisposalGardenareaEnergyWasteWaterSurfaceareaNumberofroomsNumberofwindowsNumberofelevatorsNumberofcarsNumberofpools_AbatementpotentialbreakdownTonneCO2-eq,%oftotalemissions/abatementpotential[Figure15]FullserviceLimitedservice1Netsavings:costsavingscompensateforupfrontinvestmentswithinatimespanof15years2Netcosts:costsavingsdonotcompensateforupfrontinvestmentswithinaatimespanof15yearsFigure1570%30%33%67%3009075077%17532%45028%40068%31%69%14525%1,10075%21%79%28032%68%72%22%99078%35%11023%77%215EmissionsAbatementpotentialEmissionsAbatementpotentialEmissionsAbatementpotential23%65%ofanaccommodation’semissionsavingpotentialisassociatedwithinitiativeswithapositivebusinesscaseAbatementpotentialUnabatedemissionsAbatementattributedtoinitiativesassociatedwithnetsavings1Abatementattributedtoinitiativesassociatedwithnetcosts2TropicalContinentalTemperate222323BackgroundGlobalaccommodationsector_Theroadtonetzeroemissions/_ThepotentialofimplementingofthemostefficienttechnologiesGlobalaccommodationsector_Theroadtonetzeroemissions/_Thepotentialofimplementingthemostefficienttechnologies_Businesscasefeasibilityofdecarbonisationmeasures[Figure14]ImplicationsoftheGHGAbatementCostCurvesThetotalabatementpotentialcanbeestimatedbyadd-ingupalltheindividualmeasures.Forexample,whenlookinginabsoluteterms,afull-serviceaccommodationwith100guestroomsandextensivefacilitiesinatropicalclimate–asshowninfigure15–couldrealisec.215,000kgCO₂-eqsavingsonaverageperyear.Absoluteemis-sionsscalewiththenumberofguestroomsorcommonarea,andareheavilyimpactedbytheapplicabilityofmeasurestoeacharchetype,i.e.notallaccommodationsofferthesameamenities(e.g.minibar,pool,anddiver-sityofFood&Beverages).Thisisreflectedbythewidthincurvesoffigure11comparedtofigure12,inwhichlimited-serviceaccommodationsrealiselowerabsoluteGHGabatementcomparedtoafull-serviceaccommoda-tion.Whileabsoluteabatementpotentialdiffersbetweenclimates,therelativeabatementisfairlycomparable.Ontheotherhand,limited-serviceaccommodationshaveahigherrelativepotentialcomparedtofull-serviceaccom-modations,albeitatloweroverallemissions,seefigure15.Finally,countryvariancesinpowerconversionratesstronglyimpacttheabsoluteGHGabatementpotential.Themoreacountry’senergygridreliesonrenewableenergy,thelessGHGisemittedbyconsumedenergyandassuchlessGHGcanbeabated.Forexample,afull-serviceaccommodationinFrance,whichisafrontrunnerwhenitcomestorenewableelectricitygeneration(i.e.conver-sionfactorof0.0487kgCO₂-eq/kWh),hasanabatementpotentialof32tonneCO₂-eq,whereasafull-serviceaccommodationwiththesamenumberofroomsinSouthAfricahasanabatementpotentialofc.450tonneCO2-eq(i.e.conversionfactorof0.9927kgCO₂-eq/kWh).Whenlookingatindividualabatementmeasures,theACChighlightsconsiderablefragmentationregardlessoftheconsideredarchetype–thereisnotonesilverbullet,butmultiplemeasuresneedtobecombined.Forfull-serviceaccommodations,mostoftheGHGabatementpoten-tial(c.65%)reliesonimprovementstothestructureandfaçadeofaccommodations’building.Ontheflipside,gar-denstewardshiptypicallyofferslimitedcarbonsavings(c.1%),thoughitshouldberecognisedthatthelatteroffersclearothersustainabilityimprovementsbesidesdecarbonisation.76%24%Themajorityofmeasuresrequireupfrontinvestments,whichvaryinsize.Alargeshare(c.58%)ofmeasureshasapositivebusinesscase,whichmeansthattheupfrontinvestmentsarerecoveredbylowerenergyspendinginthenext15years.Thesemeasuresrepresentc.76%oftheabatementpotential.Hence,themajorityofabatementcanbepursuedwithapositivenetreturn.2425Globalaccommodationsector_Theroadtonetzeroemissions/_TheabatementpotentialofaccommodationsinpracticeFigure160%20%40%60%80%100%Globalaverage:c.45%Energy-efficientlighting(e.g.LED)hasbecomeatrueindustrystandard,partiallybecauseoftheclearlypositivebusinesscaseThemostpotentdecarbonisingpractice,energy-efficientHVACstillhasamplepotentialleft.Asimplementationisrelativelycumbersome,appetiteislowPoolcoversareoneoftheleastimplementedinitiatives,primarilyduetolimitedawarenessoftheoptionGlobalaccommodationsector_Theroadtonetzeroemissions/_Theabatementpotentialofaccommodationsinpractice_TheabatementpotentialofaccommodationsinpracticeAccommodationscareaboutsustainabilityanddecar-bonisation:virtuallyallbusinesseshaveimplementedoneorseveralpracticestoreducetheircarbonfootprint.However,thedepthoftheseeffortsvariesgreatly,leav-ingsubstantialreductionopportunitiesforadoption.Cur-rentglobaladoptionratesofdecarbonisationinitiativesfluctuatemostlybetween30%and70%,seefigure16.Accommodationshavealreadymadeconsiderableprogressinimplementingsustainablepractices.Nevertheless,thereisstillroomforfurtherimprovement.Collectively,accommodationshavetheopportunitytoabatec.15-20%oftheircurrenttotalcarbonemissionsbyadoptingthemostefficienttechnologies.Thisrequiresagreatersenseofurgency,moretargetedinfor-mationaboutthepotentialofdifferentmeasures,andbetteraccesstofinancialcapital.Aselectnumberofpracticeshavebecomeindustrystand-ards:onlyafewaccommodationsdonotyethaveenergy-efficientlighting,offeroptingoutofdailylaundryandadoptedwasteseparation.Ontheotherhand,someprac-ticesappearpersistentlylagging,suchasinsulatingpoolcoversandenergy-efficientliftsoftware._Implementationrateofdecarbonationpractices%ofdecarbonisationpractices[Figure16]Figure19AccommodationsRoomsRemainingabatementvolumeSmallLimitedserviceFullservice262726BackgroundGlobalaccommodationsector_Theroadtonetzeroemissions/_TheabatementpotentialofaccommodationsinpracticeGlobalaccommodationsector_Theroadtonetzeroemissions/_Theabatementpotentialofaccommodationsinpractice_Implementationrateofdecarbonisationpracticesbyarchetype%ofabatementpotential[Figure17]_GHGemissionandabatementpotentialMtCO₂-eq[Figure18]ThepotentialamountofCO₂-eqthatcanbeabatedthroughsustainablepracticesamountsto87Mtglobally.Themajoritythereof,48MtCO₂-eq,remainsuntappedtodate,correspondingtoasavingof15-20%ofaccom-modations’currenttotalemissions(264MtCO₂-eq).Thispotentialisstronglyskewedtowardsfull-serviceaccom-modations,asdepictedinfigure19.Thistypeofaccom-modationrepresentsonlyasmallshareofproperties,buttheirlargeroomportfolioandextensiveservicepropo-sitionincreasetheirshareofusageofnaturalresources.Still,itisimperativethatallaccommodationsreducetheirGHGemissionstoachievetheParisclimategoals.Thelion’sshareofremainingabatementpotential(c.75%)isassociatedwiththeimplementationofjustthreeinitia-tives,seefigure20formoredetail.Thegreatestpotentialliesininstallinganenergy-efficientheatingandcoolingsystems(HVAC;c.53%ofremainingabatementpoten-tialglobally),usingenergy-efficientappliancesacrosstheaccommodation(c.12%)andininstallingdouble-glazedwindows(c.10%).However,despitetheskewinpoten-tial,itshouldbecleartoallvaluechainparticipantsthatthefocusshouldnotjustbeonthese‘bigfish’.Wideradoptionofallinitiatives–includingoneswithrelativelysmallerimpact–isstillindispensabletoachievenetzeroemissionsintheend.Theseotherinitiativesaccountforc.25%ofthetotalabatementpotential.Despitehavingrelativelysmallerimpact,typicallythesepracticesareeasiertoimplement.Forexample,turningtheminibaroffbydefault(c.2%),optingoutofdailylinenandtowelchanges(c.2%),loweringlaundrytemperature(c.1%)areallpracticeswhichcouldeasilybeimplementedtomor-rowwithouttheneedforadditionalinvestment.Relativeimpactandcurrentimplementationratesarecomparableforindividualinitiativesacrosstheworld,withonlyslightvariationsbetweendifferentarchetypesofaccommodations.Asdepictedinfigure17,itappearsthatespeciallylimited-serviceaccommodationsareslightlylaggingintermsoftheiradoptionrateacrosstherangeofinitiatives.Furthermore,nuancesexistmostlywithrespecttoapplicability/effectivenessofinitiativesacrossdifferentregionsoftheworld._Accommodationmarketandabatementpotentialbyarchetype[Figure19]264ResidualemissionsHistoricemission39216AlreadyabatedRemainingemissions48Remainingabatementvolume302-13%18%Figure17Energy-efficientlightingRecyclingLinenchangesFoodwasteNodisposablesInsulationSunshadingNativegardensLaundrytemperatureLow-flowfixturesPaperlessproceduresDual-flushtoiletsEnergy-efficientappliancesMinibarsoffDouble-panewindowsRainwaterirrigationSmartliftsoftwareEnergy-efficientHVACSmartirrigationsystemEnergy-efficientpoolpumpsMotionsensorsKeycardswitchPoolcoverElectricvehicles0%10%20%30%40%50%60%70%80%90%100%DecarbonisationinitiativeImplementationrateSmallFullserviceLimitedserviceSmallLimitedserviceFullservice28292829BackgroundBackgroundGlobalaccommodationsector_Theroadtonetzeroemissions/_TheabatementpotentialofaccommodationsinpracticeGlobalaccommodationsector_Theroadtonetzeroemissions/_TheabatementpotentialofaccommodationsinpracticeFigure200%10%20%30%40%50%60%70%80%90%100%821113550679101249545253455565157058APACLATAMLATAMEuropeLATAMEuropeGlobalGlobalAPACEuropeGlobalAPACDouble-panewindowsEnergy-efficientappliancesLaundrytemperatureElectricvehiclesEnergy-efficientlightingEnergy-efficientHVACRecyclingInsulationKeycardswitchSmartliftsoftwareMotionsensorsMinibarsoffLinenchangesLow-flowfixturesSunshadingInstalledbase(%ofroomswithmeasure)Shareofremainingabatementpotential(%ofregion)UsualsuspectsSmall-impactinitiativesthathavebeenwidelyimplementedBigfishBig-impactinitiativeswithampleremainingpotentialGravelSmall-impactinitiatives,thatappearunknown,ordifficult/unattractivetoimplement1.NorthAmericaandAfricanotexplicitlyvisualized,butincludedinglobalmeasureInitiativescanbebucketedbasedontheremainingpotentialandthecurrentinstalledbase.Thecombinationofthesemetricsprovidesahigh-levelviewontheeaseofcap-turingthepotentialandtheextenttowhichadoptionbarriersexist.Overalldynamicsofindividualinitiativesarefairlycomparabletheworldover.Meanwhile,specificsegments(intermsofcontinents,climateandaccommodationtype)eachhavetheirnuances,inparticularcontinents,asdepictedinthisgraph.Thehorizontalaxis‘shareofremainingabatementpotential’explainshowlargetheimpactofaninitiativeisrelativetootherinitiativeswithinthesamesegment(i.e.spe-cificcontinent).Basedonthismeasure,threeinitiatives(‘bigfish’)drivethemajorityofabatementpotentialacrosstheworld.Thecurrentimplementationrateontheverticalaxisisassociatedwitheaseofimplementation.Initiativesthathavealreadybeenwidelyadoptedappearattractive,indicatingthatfutureadoptioncouldoccurrelativelysmoothly(‘usualsuspects’).Lastly,afewinitiativeshavelowadoptionrates(‘gravel’),indicatingthatexternalinterventionmightbenecessarytomakethesecasesattractiveaswell.Remainingabatementpotentialbyregion_Remainingabatementpotentialofdecarbonisationmeasuresbyregion¹[Figure20]1NorthAmericaandAfricanotexplicitlyvisualisedbutincludedinglobalnumberMotionsensorsMinibarsoffLinenchangesRecyclingLow-flowfixturesSunshadingDouble-panewindowsEnergy-efficientappliancesEnergy-efficientHVACEnergy-efficientlightingElectricvehiclesInsulationKeycardswitchLaundrytemperatureSmartliftsoftwareNegativebusinesscasePositivebusinesscaseAPACEuropeNorthAmericaLATAMAfrica3031Globalaccommodationsector_Theroadtonetzeroemissions/_TheabatementpotentialofaccommodationsinpracticeGlobalaccommodationsector_Theroadtonetzeroemissions/_Theabatementpotentialofaccommodationsinpractice_FinancialperspectiveofremainingpotentialAsillustratedbytheAbatementCostCurveinthepreviouschapter,mostinitiativesareeffectivelypositivebusinesscases.Inotherwords,theinvestmentisearnedbackoverthelifetime(15years)oftheinitiative.Thisisthecaseforinitiativesrepresentingc.74%oftheabatementpotential.Meanwhile,onlyc.28%ofthecumulativerequiredinvest-mentsareassociatedwiththesepositivebusinesscases.Thisdisparityiscausedbythefactthatinitiativescarryinglargeabatementpotential(the‘bigfish’)areassociatedwithrelativelypositivebusinesscases,whereasinitia-tiveswithsmallerimpactalsorequiresubstantialinvest-ments.Thecumulativeinvestmentrequiredtoachievetheremainingcarbonemissionabatementof48MtCO₂-eqis€243b,oranaverageofc.€4,750perroom.Theseinvest-mentsdonottakeintoaccountopportunitycostsintheformofpotentiallymissedrevenuesanditalsoignores_Abatementpotentialandrequiredinvestments[Figure21]_Feasibilityofsustainableinitiatives[Figure22]erica€96b€9b€32b23Mt3Mt4Mt7Mt€39b11Mt€68b26%26%Remainingabatementpotential72%74%28%Requiredinvestment48MtCO2-eq€243bNegativebusinesscasePositivebusinesscase48MtCO2-eq€243btheavailabilityof(local)grants/subsidies.Itshouldbenotedthatcontinentaldifferencesexistintermsofaver-agerequiredinvestmentperCO₂-eqabatementpotential.EspeciallyEuropeismoreexpensive,whichisareflectionoftheirprogressiontodate–theremainingpotentialisskewedtowardsinitiativeswithlargerinvestment–andtheregion’srelativelylowenergyconversionrate,seefigure21.PartakersSpectatorsFrontrunners3233Globalaccommodationsector_Theroadtonetzeroemissions/_TheabatementpotentialofaccommodationsinpracticeGlobalaccommodationsector_Theroadtonetzeroemissions/_Theabatementpotentialofaccommodationsinpractice_Sustainabilitymindsets[Figure23]_BarriersforfurtheradoptionMostaccommodationsrecognisethegrowingneedtodotheirpartindecarbonisingtheindustry.However,despitetheirgoodintentionsandefforts,businessesrunintobarriersthatpreventthemfromgoingfurther.Basedonaccommodations’considerations,currentimplementa-tionprofiles,andperceivedbarriers,accommodationscanbeclassifiedintothree‘sustainabilitymindsets’–seefig-ure23:Spectators,PartakersandFrontrunners.Ingeneral,Spectators,reflectingc.32%ofglobalsupply,arelaggingintheirefforts.Theydonotperceivetheurgencytopri-oritisedecarbonisationintheirdecisionsandoperations.Next,Partakers,reflectingc.61%ofglobalrooms,havetakeninitialstepstowardsdecarbonisation.Theyarenowatthepointthattheydonotnecessarilyknowhowtocontinue.Furthermore,sustainabilityisstillanobjectivewhichcomessecondarytotheircorebusiness.Lastly,aminorityofc.7%ofglobalroomscanbeclassifiedasFrontrunners,proactivelypushingsustainableefforts.Itismostlylargefull-serviceaccommodationsthatcanbeSpectatingaccommodationstypicallyhavefewinitiativesinplace.Theirfocusisonrunningaprofitablebusiness,andsustainabilityissubordinatetothis.Theytendtoimplementtheindustrystandardsand,whenapplicable,somecost-savingpracticesthathappentobesustainableaswell.Thisgrouphasachievedsomereductions,butitclearlyhasthelargestabatementpotentialleft.Partakingaccommodationsputconsiderableeffortintoadoptingsustainablepractices.However,asitisnottheirmainfocus,theytendtorunoutofideasandthereforemissoutonlessobviouspractices.Assuch,theytypicallyhaveimplementedawiderrangeofinitiatives,butonlythosethatarefinanciallyattractiveandrelativelywell-known.Thereisstillsignificantreductiontobeachieved.Frontrunningaccommodationsexplicitlybuildtheirpropositiononsustainability.Itisdeeplyengrainedintheiroperationsandpartoftheguestoffering.Theyhavehighadoptionratesasaresultoftheirfocustomakeeventhemorefar-fetchedinitiativesviable.Howeverextensivetheeffortsofthisgroupare,inmostcasestheycanstillachievefurtheremissionreduction._Barrierstoimplementationbysustainabilitymindset[Figure24]3.Financialmeans“Howcanweobtainmoneyforlargeupfrontinvestments?”“Howcanweomitlargeupfrontinvestments?”2.Knowledge“Whataresustainablepracticeswecouldadopt?”“Whatispracticallyneededtoimplementthisinitiative?”“Whatareupfront/long-termimplicationsofthisinitiative?”1.Urgency“Whydoweneedtomakeaneffort(now)?”"Wehaveafewsustainabilitymeasuresinplace,howevertheseweresolelyimplementedwiththeaimtoreduceoperatingcosts.Forexample,wehaveLEDbulbsandopt-outfordailylaundryinplace."'Spectator’hotel,USA"Wehaveincludedsustainabilityasapillarinourstrategylastyear,drivenbytheincreasingsustainabilitydemandfromguests.However,progressingfromahigh-levelplantoconcreteactionshasbeenchallenging."‘Partaker’hotel,SpainidentifiedasFrontrunnersandtheyhavealargerpreva-lenceinEuropeandAfrica,seefigure26and27.Eventhisgroupstillhassomestepstotaketoachievenetzeroemissions.SpectatorsandPartakersbehavelargelyreactivelywithrespecttosustainabilityordosowithadifferentprimaryobjective(e.g.costsavings)inmind.Withtheambitionofacceleratingthetransition,accommodationseventu-allyneedtoshiftsustainabilitymindset.Inotherwords,SpectatorsbecomingPartakersandPartakersbecomingFrontrunners,therebyincreasingtheoverallfocusonsus-tainability.Theroadtoadoptionofnewpracticescontainsthreemainbarriers:senseofneedorurgency,availabilityofknowledgeandavailabilityofrequiredresources.Thethreesustainabilitymindsetsstruggleatvariousstagesoftheimplementationpath.Supportwithovercomingexistingbarriersiscrucialtoaccelerateoveralldecarboni-sationeffortsandtounlockthereductionoftheremainingabatementpotential."Mosthotelsarehappywhentheyreachaplatinumlevelforsomeecolabel.Wegofarbeyondthatpoint.Itisfuntocomeupwithnewandmoresustainableinitiatives."‘Frontrunner’hotel,theNetherlandsSpectatorsPartakersFrontrunners•Spectatorsdonotyetfeeltheurgetomakestepswithrespecttodecarbonisation,seefigure25.Acalltoactionandcreatingasenseofurgency(e.g.byshowingthelikelyincreaseinenergypricesinthefuture)willbethemostdirectlevertoincreasetheirlevelsofimplementation.•Partakersontheotherhand,alreadywanttomakealargereffort.Theyespeciallyrunintothebarriersofknowingwhattheycandoandhowtoachievethis.Moreover,eveniftheyareawareoftheopportunities,thelackofresourcesmightstillhampertheiractions.•Lastly,evenFrontrunnerscouldbenefitfromexternalhelp.Theseaccommodationsarestillincidentallylimitedbyknowledgeand/orresources.SpectatorPartakerFrontrunnerFigure278%48%44%8%56%35%5%85%10%FullserviceLimitedserviceSmall34353435BackgroundBackgroundGlobalaccommodationsector_Theroadtonetzeroemissions/_TheabatementpotentialofaccommodationsinpracticeGlobalaccommodationsector_Theroadtonetzeroemissions/_Theabatementpotentialofaccommodationsinpractice_Adoptionbarriersbysustainabilitymindset%ofrooms[Figure27]FrontrunnerPartakerSpectatorFrontrunnerSpectatorPartakerEuropeAfricaLatinAmericaNorthAmericaFigure26Asia-Pacific_RegionalspreadofsustainabilitymindsetShareofrooms[Figure26]_Adoptionbarriersbysustainabilitymindset%ofinitiatives[Figure25]ImplementedUrgencyKnowledgeFinancialmeansPartakerSpectatorFrontrunner36%49%9%6%58%16%16%10%90%4%3%2%3637Globalaccommodationsector_Theroadtonetzeroemissions/_FulltransitionpathwaytoachievenetzeroambitionGlobalaccommodationsector_Theroadtonetzeroemissions/_FulltransitionpathwaytoachievenetzeroambitionRoomshareoftheaccommodationsectorinwhichstaffistrainedtoadoptsustainablemanners55%Roomshareoftheaccommodationsectorinwhichtravellersareeducatedonsustainablebehaviour41%_FulltransitionpathwaytoachievenetzeroambitionGuestbehaviourWhileconsumersbecomeincreasinglyawareoftheneedtoavertclimatechange,theirsustainablebehaviourtendstoceaseduringtheirtravels.33%oftravellersindicatethattheyviewvacationsasaspecialtimewheretheywanttoescapeandrelax,withoutthinkingaboutsustainability[Source13].Assuch,habitslikeswitchingofflightswhenleavingaroomandrecyclingareoftenleftathome,whichresultsinpreventableemissions.Eventhoughaccommo-dationscannotdirectlycontrolguestbehaviour,theycantrytopositivelyinfluenceit.Changingguestbehaviourisaparticularlypowerfultoolasitseffectistwofold.Firstly,andmostobviously,emissionswillbereduceddirectlywhenguestslimittheirenergyconsumption.Secondly,involvingguestsinsustainablepracticesinitiatesamutuallyamplifyinginterplaybetweensustainabledemandandsupply.Afterall,whenaccommo-dationssucceedinmakingsustainabilityanintegratedpartoftravel,commercialrelevanceofsustainabilityintheaccommodationsectorwillgrow.Thisself-reinforcingmechanismwilleventuallydriveoverallsustainabilityadoptionthroughoutthetravelvaluechain.Asidentified,accommodationscanabatec.15-20%oftotalGHGemissionsbyimprovingtheefficiencyoftheirinfra-structure.Inordertoachievenetzeroemissions,threeremain-ingstepsneedtobetaken:behaviouralchanges,so-calledgreenificationofenergyproductionandcarbonoffsets.Guestscanforexamplealreadybemadeawareaheadofbookings,byemphasisingaccommodations’sustainabilityinitiativesontheirlistings.Furthermore,accommodationscanactivelyeducatetravellersonsustainablepractices_Flywheelofdecarbonisation[Figure28]SustainableaccommodationSustainableguestbehaviourDecarbonisation_BehaviouralchangesAccommodationscanfurtherreduceconsumptionofnaturalresourcesbystimu-latingbehaviouralchangesamongtheirguestsandtheirownpersonnel.Humanbehaviourisnotunderaccommodations’directcontrol,yetnudgingcanunlocksignificantGHGreductions.throughenvironmentalappeals.Thisoutreachcanbeundertakeninmanyways,forexamplebyindicatingtherelevanceoflowering/turningofftheHVACsystemandshowingtheimpactofshortershowers.Suchmessagesappealtoguests’voluntarycooperation.Morepersua-siveinfluencingmaybeachievedthroughtheadditionofattractiveincentives(e.g.freeperks,discountonfuturestays.).Nudgingandattractiveinterventionsregardingbehaviourcanhavesubstantialimpact,sincethemajorityoftravellersisindifferentorevenresistant.Forexample,intheUSAonly15%oftravellersalreadyhaveapro-activesustainablebehaviourpattern.40%areindifferent,andarelikelytoadoptmoresustainablemannersuponbeingeducated.Morenotably,agroupof45%resistssustain-ablebehaviourwhentravelling,andismostlikelyonlymovedbyincentives[Source14].StaffbehaviourNotjusttheattitudeofguests,butalsostaffbehaviouraffectstheefficientconsumptionofnaturalresources.Accommodationscan(more)activelyeducatestaffonhowtoreducegreenhousegasemissions.Involvingpersonnel–throughbrainstormsand/orsustainabilitycommittees–ineffortstodecarbonisecreatesasharedresponsibility.Furthermore,personnelcouldlimitconsump-tionofnaturalresourcesby,amongotherthings,turningofflightsandHVACinvacantrooms,usingkitchenappliancesonlywhenneeded,and–perhapsmostimportantly–help-ingandsupportinggueststobehavesustainably.Further-more,trainingstafftoabidebysustainablepracticesisvitalforthetransition.Intheend,manysustainablepracticesareaseffectiveasthepersonnelapplyingthem.Althoughchangingbehaviourofguestsandstaffseemsobvious,onlyhalfoftheaccommodationscurrentlytraintheirstaffregardingenergysavingpractices.Full-serviceaccommodationsalreadydothisalittlemore.Moreover,fewerthanhalftheaccommodationscurrentlypro-activelyinformtheirguestsonwaystobehavemoresustainably.Accommodationstypicallylacktheknowledgeonhowtoeffectivelycommunicatethis,withoutcompromisingguestcomfort.3839Globalaccommodationsector_Theroadtonetzeroemissions/_FulltransitionpathwaytoachievenetzeroambitionGlobalaccommodationsector_Theroadtonetzeroemissions/_FulltransitionpathwaytoachievenetzeroambitionCarboncreditsareregulatedtradablecertificatesorper-mitsrepresentingthenegationofonetonneofCO₂-eq.Inessence,carboncreditsaimtofacilitatethereductionofGHGemissionsbygeneratingtheopportunitytomon-etise.Creditscanbecreatedintwoways:eitherthroughpreventionoforbystoringemissions.Carbonpreventionschemestypicallyfundprojects/initiativesthatreduceGHGemissions,suchasupdatingpowerplants,improv-ingenergyefficiencyofbuildingsandtransport,etc.,whereascarbonstoragepreventsemissionsfromenteringtheatmosphere.Storagecanbedonethroughbiological,physicalandchemicalprocesses.Forexample,afforesta-tion–establishingaforestinanareawithoutprevioustreecover–createscarboncredits,sincetreesfunctionascar-bonsinksandremoveCO₂fromtheatmosphere.Accom-modationscouldpartakeinacquiringcarboncreditsandusingthese'negativeemissions'toneutralisetheirown.CarbonoffsetsappearattractiveastheyarearelativelyaccessiblewaytolimitGHGemissions.Knowledgeandinvestmentrequirementsaretypicallylowerthanfortheimplementationofcarbon-savingmeasuresandgreeni-fyingenergyproduction.Asanillustration,compensationforayear’senergyconsumptionofatypicalguestroomwouldcost€3301[Source9;17].However,thefinancial_CarbonoffsettingEvenafterfullimplementationofavailablereductionmeasures,accommodationsmightstillemitsomegreenhousegases.Accommodationshavetheoptiontooffsettheremainder.However,supplyislimited,andoffsetsshouldthereforebeadoptedmoderatelyandasalastresort.attractivenessofthismeasurewillrapidlydecrease.Supplyofcarboncreditsisbecomingincreasinglyrestrictedandwitharisingdemand,pricesarelikelytosurge.Despitetheircurrentappeal,carbonoffsetcreditsarecurrentlyhardlyusedintheaccommodationsector;only3%ofaccommodationsindicatetheyprocuresuchcredits.Theseoptionsatthemomentstillappearrelativelyunknowntomostaccommodations.Moreimportantly,despitetheirappeal,offsetsshouldstrictlybeseenas(asmall)partofthesolutionratherthanthewholesolution.Theycouldbeusedduringthetransi-tionphase,andinthelongrunonlyasalastresort.Astheworldsearchesforwaystoreduceemissions,thelimitedsupplyofoffsetscanserveonlytoalleviateacertainshareofthatdemand.1Basedon2021pricepointofaEuropeancarboncredit.LocalgreenenergyproductionAccommodationshavetheopportunitytogeneratetheirownrenewableenergylocally.Variousoptionsexist:on-sitesolarpanels,windturbinesandheatpumpscanbeinstalled,butastakeinlocalsolar/windfarmsorevenconnectingtoagridatpre-existingfarmscanalsobebought.Sofar,accommodationsappearhesitanttoadopton-siteinstallations.Paybackperiodsoftheseinstalla-tionsdependonthelocalenergyprice,thetechnologyemployed,productcharacteristics,subsidyschemesandlocalclimateconditions.Intheillustrativecaseofsolarpanels,thetypicalpaybackperiodisroughly10years.Ifallaccommodationsweretoplacesolarpanelsontheirroofsurface,theywould–theoretically–produceacol-lectivec.71TWh,abatinganadditionalc.33MtCO₂-eq,atanestimatedinvestmentofc.€141b[Source12;15].Despitethegenerallypositivebusinesscase,accommo-dationsperceivethehighupfrontinvestmentasthemainbarrier.Itisnotjustfinancialattractiveness,butalsoalackof(financial)knowledgethatholdsbackaccommoda-tionsfrombroaderadoption.Yet,incentives–likeleasingandloans–goalongwaytowardsestablishinglocalgreenenergyproduction._GreenificationofenergyproductionAlongsideoptimisingenergyconsumption,accommodationscanfurtherreduceGHGemissionsbyminimisingtheirrelianceonfossilfuels.Thisrequiresaccom-modationstotransitiontorenewableenergysources,suchaswind,solarandhydroenergy.Adoptionofgreenenergycanbedonedirectly,bylocalenergyproduction;orindirectly,throughprocurement..ProcurementAccommodationscanalsopurchaserenewableenergyfromthegrid.Thenotionthatthesector’semissionscanbeabatedbyprocuringgreenenergyfromutilityprovid-ersshouldhoweverbehandledwithcaution.Afterall,ear-markinggreenenergyproductiontoacertainsectormayseeminglydecarbonisethesectorinquestion,butdoesnotprovideadirectsolutiontoglobalemissions.Eventu-ally,increaseddemandforgreenenergydoesstimulatethemarkettogreenifyglobalenergyproduction.Toreal-iseanactualdifferenceinglobalemissions,productionofgreenenergyshouldbeexpandedandappliedatagloballevelacrossallsectors.Movingtheworldto100%renewa-bleenergyby2050wouldrequireacollective€63trillioninupfrontinvestmentsasrecentlypublishedbyStanfordUniversity[Source16].Intheory,thistranslatestoc.€525bfortheaccommodationsector,toreducetheremainingc.215MtCO2-eq(i.e.afteradoptionofallinitiativesintro-ducedinthepreviouschapter).CarbonstorageCarbonpreventionCarboncreditsPurchasinggreenenergyProducingrenewableenergy(on-site)Purchasinggreenenergy+Producingrenewableenergy(on-site)CarbonstorageCarbonpreventionCarboncredits_Carbonoffsetcredits[Figure30]_Greenenergyproductionoptions[Figure29]Roomshareofaccommodationsthatpurchasecarboncredits3%Figure321Knowledge3FinancialmeansDecarbon-isation2Urgency404141BackgroundGlobalaccommodationsector_Theroadtonetzeroemissions/_SupportfromstakeholderstoacceleratedecarbonisationGlobalaccommodationsector_Theroadtonetzeroemissions/_Supportfromstakeholderstoacceleratedecarbonisation_SupportfromstakeholderstoacceleratedecarbonisationTheaccommodationsectorhasabroadrangeofstake-holderswhocaninfluenceanaccommodation’sdecisions/operationsandinparticularassistinovercomingthebarri-erstowardsdecarbonisation.Withinanaccommodation’svaluechain,thesestakeholdersincludetravellers,onlinedistributors(OTAs),employeesandlocalcommunities.Outsidethisecosystem,itispossibletorecogniseotherstakeholders,suchas:governments,intergovernmentalorganisations(e.g.UN),NGOs,travelandtourismassocia-tions,creditorsandsustainabilityadvisors(e.g.consultancyfirms,certificationagencies,researchinstitutes).Eachofthesestakeholdershastheirownspecificsetofresources,capabilitiesandcorecompetencies,whichcanfacilitatethedecarbonisationoftheaccommodationsector.Asmentionedpreviously,accommodationscanperceivemultiplebarrierstoachievingnetzeroemissions,namely:alackofurgency,alackofknowledgeandcesstofinan-cing.Itisimportanttorealisethatbarriersmightdifferbyspecificinitiative.Tosupportaccommodationsinovercomingthesebarriers,stakeholderscan:•Createasenseofurgencybyraisingawarenessontheneedfordecarbonisationorincentivisingtheadoptionofcarbon-savingmeasuresTheroadmapforaccommodationstowardsnetzeroemis-sionsisambitious.Externalsupportisneededtoacceleratetheadoptionofdecarbonisationpractices.Allstakeholdersoftheaccommodationsector,bothpublicandprivate,canassistinovercomingbarrierswhichhaveconstraineddecarbonisationuntiltoday._Stakeholders’overviewofaccommodationsector[Figure32]OwnersOperatorsAccomodationsTravel&tourismassociationsSustainabilityadvisorsIntergovernmentalorganisationsGovernmentsTravelprovidersCreditorsChains/ownersTravellers•Closetheknowledgegapofaccommodationsbyimprovingthequalityandavailabilityofdata,andpromotinginfor-mationsharing•FacilitatetheinvestmentsneededforaccommodationstodecarbonisebyenhancingtheavailabilityandmobilisationoffinancingForasummaryofpotentialactionsbystakeholder,seefigure33._MainbarrierstoovercomeFigure31]Decisionsimpactingpropertyrealestatemightfallunderadifferentresponsibilitythanday-to-dayoperations.Ifownersandoperatorsaredifferentparties,alignmentofgoalscanvary,drivenbydifferentsourcesofincomeandrisk.Implementationofsustainableanddecarbonisationpracticesbecomesmorechallenging,withpotentiallyconflictingunderlyinggoalsandagendas.Tosuccessfullydecarbonisetheaccommodationsector,externalstakeholdersneedtoalignaccommodationownersandoperatorsunderacom-monobjective.Greatergoalalignmentwilllikelyproduceamoreconsistentandeffec-tivesetofdecisionswithregardstodecarbonisation.Bridgingthegapbetweenpropertyownersandoperators4342Globalaccommodationsector_Theroadtonetzeroemissions/_SupportfromstakeholderstoacceleratedecarbonisationGlobalaccommodationsector_Theroadtonetzeroemissions/_SupportfromstakeholderstoacceleratedecarbonisationFigure321Knowledge3FinancialmeansDecarbon-isation2Urgency1Knowledge3FinancialmeansDecarbon-isation2Urgency1Knowledge3FinancialmeansDecarbon-isation2Urgency1Knowledge3FinancialmeansDecarbon-isation2UrgencyTocreateasenseofurgency,stakeholderscan:•RaiseawarenessontheneedfordecarbonisationbyincreasingmediacoverageofclimatechangeandbysettingexplicitdecarbonisationgoalsforaccommodationsTostartwith,raisingawarenessabouttheneedfordecarbonisationcanbeachievedbyincreasingcoverageofclimatechangeanditsimpacts,oftenpursuedviathemediaandoutreachcampaigns.Ultimately,everysinglepersonorinstitutioncanassistingenerat-ingawarenessforaspecificcauseandinparticularplaceeffortstowardsthepromotionofsustainabletravel.Governmentscanforexampleplayaroleindevelopingpublicawarenesscampaigns.Inparallel,climate-focusedNGOs,tourismassociations,sustain-abilityadvisors,publicpersonalitiesandthemediaindustrycanactaspartnersforout-reachefforts,bycreatingcontentandsharingthiscontentthroughtargetedchannelstoreachaccommodations.Examplesincludeglobalclimatestrikemovementsordocumen-tariesonglobalwarming.Theneedfordecarbonisationcanbestrengthenedbysettingexplicitgoalsfortheaccommodationsector.Alsointhedirectecosystem,accommoda-tionowners/chainmanagementcancreateurgencybypromotingsustainabletravelandsettinggoalsaswellastravellers,whocommunicateeffortsthroughtheirownbehaviour.Ona(supra)nationallevel,governmentsshouldputinplaceaclearandtime-definedroadmaptoachievenetzeroemissions.Thisendeavourcanbereinforcedbytourismasso-ciations,thatcanshowsupportforgovernmentgoalsbyprovidingshort-termmilestonestoaccommodations.•Incentivisetheadoptionofcarbon-savingmeasuresbystimulatingthewillingnessofgueststotravelsustainably,improvingthetransparencyofanaccommodation’ssustainableeffortsandofferingpreferentialtreatmenttosustainableaccommodationsTheurgencytodecarbonisecanfurtherbepassedontoaccommodationsthroughcommercialincentives.First,theneedcanbebolsteredbyguests,whobecomeincreas-inglyawareofclimatechange,therebyincreasingtheirwillingnesstotravelsustainably[Source18].ThismakesitcommerciallycrucialforaccommodationstodecarboniseinLackofurgencyisstillalimitationformostaccommodationsontheirwaytoachiev-ingnetzeroemissions.InparticularforSpectators–seefigure23foranoverviewofthedifferentsustainabilitymindsets–,itisthekeybarrierastheytendtofocusonotherpriorities.Somewhatsurprisingly,evenPartakersandFrontrunnerscanstillbenefitfromsupportwithrespecttoraisingurgencyfortheinitiativestheyhavenotyetimplemented.Theyhaveovercomethisbarrier,evidencedbytheirpastefforts,butneedadditionalsupportwiththenextinitiatives.Lackofurgencyisadominantbarrierthataccommodationscanhardlybeexpectedtoovercomewithouthelp.Whenindicatingthaturgencyisalimitingfactortoadoptapractice,astaggering78%ofaccommodationsstatethat‘nothing’couldpersuadethemtoadopt,evenwhenthepracticeinquestionisrelevanttoreducingtheirbusiness’emissions.Todefythisstrongmindset,stakeholdersmayemployincreasedawareness,incentivisationandconstraints._Createsenseofurgencyforaccomodationstodecarboniseordertoremaincompetitive.Businesstravellerssometimesalreadyintroducethismetricasaselectioncriterion,therewithdisqualifyingspecificSpectatingandPartakingaccom-modations.Furthermore,decarbonisationcanbeincentivisedbyimprovingtransparencyregardingsustainableaccommodations,therebydrivingadditionalguestbookings.Untilnow,41%oftravellersindicatetheydonotknowhowtofindsustainabletraveloptions[Source13].Onlinetravelagencies(OTAs)andtourismsitescanremedythisbyintroducingsustainabilitysearchfilters.Moreover,OTAsandtourismsitescanmakeanaccommodation’ssustainabilityeffortsmoretransparentbyadoptingsustainabilitylabelsandlistingdescriptions.Figure321Knowledge3FinancialmeansDecarbon-isation2Urgency1Knowledge3FinancialmeansDecarbon-isation2Urgency1Knowledge3FinancialmeansDecarbon-isation2Urgency1Knowledge3FinancialmeansDecarbon-isation2UrgencyTobridgetheknowledgegapofaccommodations,stakeholderscan:•ImprovedataavailabilityandqualitywithregardstodecarbonisationAnecessarysteptowardsaddressingaccommodations’knowledgebarrierwillbetoincreaseinformationanddataquality.Specificareasarestillunderdevelopedandmightbedeemedrelevantforaccommodationsintheirdecision-makingprocess,especiallywhenitcomestothetechnicalcharacteristicsandcommercialviabilityofthevariouscarbon-savingoptions.Researchbyintergovernmentalorganisations,climate-focusedNGOs,governments,sustainabilityadvisors,travelandtourismassociations,andtravelproviderscanhelpproducedetailedresultsandrecommendationsforspecificcountries.•Increaseinformationaccessibilityanddistribution,bymakingitfreelyavailable(online)andthroughcampaigns,conferences/trainingsessionsandbest-practicesharingacrossthesectorTofurtherclosetheaccommodationsector’sknowledgegap,itisnecessarytomakeinformationanddatafreelyaccessibleandavailabletothoseaccommodationsseek-ingit.First,travelandtourismassociations,travelprovidersandspecificaccommodationgroups/chainscouldremedythisbycreatingacentralisedplatformwhichservestoiden-tifythemainprogrammesandfundingoptionsavailableforaccommodationstodecar-bonise.TheFrenchChamberofCommercehasdevelopedsuchatool,throughwhichitofferspersonalisedadvicebasedonanaccommodation’slocation,proposedprojectandsupportneeds[Source19].Furthermore,informationtargetedtodecarbonisationintheaccommodationsectorshouldremaininthepublicdomain.Libraries,archivesandgovernmentofficesshouldmakerelevantdocumentsaccessiblewithoutrestriction.Evenifknowledgeispresentandavailable,noteveryoneisawareofit,orcaneasilyaccessit.Continuousactivationofrelevantmaterialscanbeofsupporttoaccommodations.Partakers–and,toalesserextent,Frontrunners–oftenmentiontheirlackofknow-ledgeasabarriertodecarbonisation.Theyseetheneedandurgencyofdecar-bonisation,butlacktheknowledgetosomedegree.Partakersinparticularwouldbenefitfromknowingmoreabouttheavailabledecarbonisationoptions,under-standingthe(financial)implications,andhowtopotentiallyprioritisetheseinitia-tivesinordertotakethenextstepinthetransition._Closetheknowledgegapofaccommodations444545BackgroundGlobalaccommodationsector_Theroadtonetzeroemissions/_SupportfromstakeholderstoacceleratedecarbonisationGlobalaccommodationsector_Theroadtonetzeroemissions/_SupportfromstakeholderstoacceleratedecarbonisationToeasetheinvestmentsneededforaccommodationstodecarbonise,stakeholderscan:•ImprovethefinancialattractivenessofdecarbonisationthroughgrantsorsubsidiesImplementingdecarbonisationpracticestypicallyrequiresupfrontinvestments.Govern-mentscanplayavitalroleinunlockingprofitableinvestments,whichbankscurrentlyareunwillingtofinancegiventhelong-terminvestmentforespecially(smaller)properties.Governmentscanalleviateallorpartofthisfinancialburdenbyofferinggrantsorsub-sidiestoaccommodations.Suchincentivescanalsobeofferedintheformoftaxation,bothasabonusoramalusinitiative.•Promoteinvestmentsindecarbonisationbydevelopingcredit(e.g.loans)activitiesGovernmentsandfinancinginstitutions(e.g.banks)canalsospreadtheupfrontfinancialburdenassociatedwithdecarbonisation,enablinglongerandmore-than-market-attrac-tiverepaymentterms.Thisisachievedthroughlong-termloanstargetedtosustainabledevelopment,on-siterenewablesandgreentourismaccreditations.Suchloanscouldofferadvantageousinterestratesforsustainabledevelopment.Asanexample,TriodosBankoffersloanstargetedtosustainabledevelopment,withinterestratediscountslinkedtothelevelofenvironmentalcertificationachieved[Source19].Finally,whenanaccommodationhasanoverarchingownershipstructure,financialrequirementsforinvestmentsareoftenmorestringent.Arelaxationoftheseinvestmentrequestswhenitcomestosustainabledevelopmentcanalsoprovidefurthersupport.Thelastbarrierisaccesstoandsupportwithfinancialmeans.ThisbarrierismainlyrelevantforPartakersandFrontrunners.Theytypicallyhavethemotivationandknowledgetoimplementinitiatives,butaresometimeslimitedduetothelargeupfrontinvestments.Theseinvestmentsareparticularlyheftywhenaccommoda-tionsimprovetheirbuildingstructureandequipment.Ontopoftherelativelylargeinvestment,temporaryaccommodationclosurecanleadtomissingrevenues.Whenmeansarethelimitingfactorforaccommodationstoimplementinitiatives,accom-modationsindicatethatespeciallysubsidies(78%)couldtriggerthemvs.loans(22%)._Opportunitiestosupportbystakeholder[Figure33]_Facilitatingtheinvestmentsneededtodecarbonise1.Urgency2.Knowledge3.FinancialmeansIntergovernmentalorganisations•Launchpublicawarenesscampaigns•Definetransitionambitionsandgoals•Provide(global)platform•Contributetoresearchintosustainability•Improveinformationavaila-bilityGovernments•Launchnationalawarenesscampaigns•Definenationalroadmapfordecarbonisation•Contributetoresearchintosustainability•Improveinformationavailability•Introducesustainabilityrelatedtaxation•Offergrantsandsubsidies•OfferattractivefinancialstructuresTravel&tourismassociations•Promotesustainabletravel&tourism•Define(sub)sector-specificdecarbonisationroadmap•Contributetoresearchintosustainability•Createacentralknowledgeplatform•Enableinformationsharingacrosssector(s)Travelproviders(e.g.OTAs)•Promotesustainabletravel•Improvetransparencyofsustainabilityefforts•Createacentralknowledgeplatform•EnableinformationsharingacrossaccommodationsSustainabilityadvisors•Supportpublicawarenesscampaigns•Contributetoresearchintosustainability•PartnerwithaccommodationsandotherstakeholdersCreditors•Improvefinancialinformationavailability••OfferattractivefinancialstructuresChains/owners•Promotesustainabletravel•Setsustainabilitytargetsforaffiliatedaccommodations•Becometheindustrystandard•Createaknowledgeplatform•Enableinformationsharingacrossaccommodations•RelaxfinancialrequirementsAccommodations•Promotesustainabletravel•ShareknowledgeandbestpracticesamongpeersTravellers•Propagatesustainabletravel1Knowledge3FinancialmeansDecarbon-isation2UrgencyKnowledgeon-n2y1Knowledge3FinancialmeansDecarbon-isation2Urgency1Knowledge3FinancialmeansDecarbon-isation2UrgencyTypically,tourismassociationscanlaunchcampaignsandscheduletrainingsessions/conferencesonthemitigationstrategiesavailabletoaccommodations.Asanexample,theGermanHotelandRestaurantAssociationusessuchcampaignstoofferguidance,on-siteconsultingservicesandworkshopstotheaccommodationsector[Source19].Finally,accommodationsthemselvesalsohaveahandindrivingknowledgedistribution.Strengtheningfeedbackloopsandbestpracticesharingacrosspeersorwithintheirowner-shipstructureandtakingapro-activestanceinfacilitatingsuchknowledgesharingcouldproveusefulforotheraccommodationstogainpracticalinsights.4647Globalaccommodationsector_Theroadtonetzeroemissions/_ThewayaheadGlobalaccommodationsector_Theroadtonetzeroemissions/_CarbonoffsettingClimatechangeis–andwillremain–oneofthemostpressingchallengesofourtime.Urgencywillonlyfur-therincreaseifnoimmediateandsubstantialactionistakenbyallmarketplayers.Asarelevantcontributortoclimatechange,theaccommodationsectorhasavitalroletoplayintheefforttodecarbonise.Thetourismsec-torisexpectedtobouncebackaftertheCOVID-19cri-sistohistoric(growth)levels.Assuch,itiscrucialtotakeallpossiblemeasuresnowtopreventthegrowthofthisthrivingmarkettobetranslatedintomoreGHGemis-sions.Theaimtowardsnetzeroemissionsisinlinewithglobalambitionsandthisstudyshowcaseshowaccom-modationsthemselvescanintensifytheircurrentefforts,andhowstakeholderscansupportandacceleratethisrelevanttransition.Despitethefocusondecarbonisationinthisreport–aswellasofglobalpolicymakers–,thebroaderimportanceofsustainabilityshouldnotbeforgotten.Therearemanymoreaspects,suchaslocalemployment,overtourismandenvironmentalpreservation,whichwillbecomeincreas-inglypressingoverthecomingdecades.Accommoda-tionsalreadyindicatethatsustainabilityforthemgoesmuchfurtherthan‘just’decarbonisationandsupportthisbyawidevarietyofactions.However,inlinewithdecar-bonisation,morecanandneedstobedone.Andarela-tivelylargeshareofaccommodationsisstillinreactivemodeasfarasitsbehaviourisconcerned.Itisimportantthatsufficienttimeandeffortisalsoinvestedinthesetop-icstoreinforcetheaccommodationsectoranditsstake-holdersonthedifferentplayingfieldsofsustainability.Ontheotherhand,thistransitionwillalsobepushedbychangingconsumerbehaviour.Consumersplayanimpor-tantrolewithrespecttopushingsustainabilityanddecar-bonisationintheaccommodationsector.Awarenessanddemandforsustainabletravelisanticipatedtogrowfur-ther.Youngergenerationsinparticularwillinfluencethefuturemixoftravellers,inherentlyplacingmoreempha-sisonESGtopics.Thisenhanceddemandwillultimatelytranslateintocommercialimpact.Accommodationswillmoreoftenbe(de-)selectedonthebasisoftheircommit-menttotheseissues.Thiswillnotonlyapplytoaccom-modations,butitwillresonatethroughoutthetravelvaluechain.Consumersmaywellshifttransportmodeandevenpreferspecificdestinationstoothers.Itwillfur-therincreasetheurgencyforaccommodationsandothertravelproviderstoprioritisesustainabilityasamatterofpolicyandprinciple.Thewayahead4849Globalaccommodationsector_Theroadtonetzeroemissions/_GlossaryGlobalaccommodationsector_Theroadtonetzeroemissions/_References_References1.ParisAgreementtotheUnitedNationsFrameworkConventiononClimateChange,20152.IPCC,ClimateChange2021,ThePhysicalScienceBasis.ContributionofWorkingGroupItotheSixthAssessmentReportoftheIntergovernmentalPanelonClimateChange,20213.M.Lenzen,etal.,TheCarbonFootprintofGlobalTourism,20184.UNWTO,Transport-relatedCO2emissionsofthetourismsector,20195.IBISWorld,GlobalHotels&Resorts-MarketSize2005–2027,20216.B.Goldsteinetal.,ThecarbonfootprintofhouseholdenergyuseintheUnitedStates,20207.UNWTO,2020:WorstYearinTourismHistorywith1BillionFewerInternationalArrivals,20218.WTTC,Travel&TourismEconomicImpact,20219.E.Ricaurteetal.,CornellHotelSustainabilityBenchmarkingIndex2021:Carbon,Energy,andWater,202110.IEA,CO2EmissionsfromFuelCombustion,2016-201711.Worldbank,GettingElectricity:Priceofelectricity(UScentsperkWh)(DB16-20methodology),retrievedSeptember202112.ARUP,IHG,GleedsandSchneiderElectric,TransformingExistingHotelstoNetZeroCarbon,202113.Booking.com,SustainableTravelReport,202114.H.Palanietal.,IdentifyingEnergy-UseBehaviourandEnergy-UseProfilesofHotelGuests,202115.Worldbank,GlobalPhotovoltaicPowerPotentialByCountry,retrievedOctober202116.M.Z.Jacobsonetal.,ImpactsofGreenNewDealEnergyPlansonGridStability,Costs,Jobs,Health,andClimatein143Countries,201917.Ember,DailyCarbonPrices(EUR/tonnes),retrievedOctober202118.Booking.com,Partnersurvey,202119.OECD,TourismTrendsandPolicies,2018_GlossaryACC:AbatementCostCurveAccommodation:Aroom,groupofrooms,orbuildinginwhichguestscanstayovernightAPAC:Asia-PacificArchetype:Segmentationofaccommodations(Small,LimitedserviceandFullservice)CO₂:CarbonDioxideCO₂-eq:CarbonDioxideequivalentsESG:Environmental,Social,andGovernanceGDP:GrossDomesticProductGHG:GreenhouseGasHVAC:Heating,Ventilation,andAirConditioningkWh:KilowattHourLATAM:LatinAmericaMt:Megaton(1,000,000tonnes)NGO:Non-GovernmentalOrganisationOTA:OnlineTravelAgencyTonne:1,000kgTWh:Terawatt-hour(1,000,000,000kWh)_References_Glossary5051Globalaccommodationsector_Theroadtonetzeroemissions/_Wanttoknowmore?Globalaccommodationsector_Theroadtonetzeroemissions/_Wanttoknowmore?BramKuijpersPartnerEY-ParthenonB.V.T+31621238008Wearehappytoprovidemoreinformationaboutourexperienceineachoftheseareasandlookforwardtosupportingmanagementteamsandinvestorsinaddressingthestrategicchallengesandopportunitieswithinthetravelandtourismsector.MauritsKrügerManagerEY-ParthenonB.V.T+31629668363BenSchroeterDirectorBooking.comT+31615687912WouterVinckenAssociatePartnerEY-ParthenonB.V.T+31621238014_Wanttoknowmore?