August 2009 Number 147 52047 Responsible Tourism Series INNOVATIVE APPROACHES FOR TOURISM'S ENERGY CHALLENGE By Eneida Fernandes and Zayra Romo A National Strategy of Carbon Neutrality According to the Davos Declaration on Climate The government of Costa Rica has set a national goal of Change and Tourism the industry "must rapidly carbon neutrality by 2021 through its newly launched respond to climate change, within the evolving "National Strategy for Climate Change," which aims at UN framework and progressively reduce its setting the international "C-neutral" trademark on all Greenhouse Gas (GHG) contribution if it is to grow of its goods and services. Tourism comes under special in a sustainable manner." In Latin America and the scrutiny for its role in CO2 emissions from international Caribbean (LAC), fossil fuel accounts for about 75 and national transportation, from the hospitality trade, and from its contribution to solid waste. At the April percent of energy needs, creating a key challenge 2008 event, the President of Tourism and Conservation for sustainable tourism. Consultants, Ana Báez spoke of the government's responsibility for setting guidelines and policies and of To explore further the issues of energy use and the importance of private sector compliance. The Costa tourism, the World Bank's LAC Region hosted Rican strategy proposes fiscal policies to encourage the development and use of technologies which a special session as part of a two day event on reduce carbon emissions and enhance natural carbon Sustainable Tourism in April 2008. When energy sequestration and storage in both new and existing consumption and carbon emissions grow due forests. to the expansion of the tourism industry, so too do the economic benefits in terms of jobs and incomes for the countries of Latin America. To maintain a vibrant and growing tourist industry while reducing the carbon footprint, the session emphasized the need for the Region to address Emissions Emissions Emissions Emissions of CO2 of CO2, CH4 of CO2 two key issues: "the mitigation of GHG emissions, of CO2 derived from transport and accommodations activities, and the application of existing and new technologies to improve energy efficiency." (United Nations World Tourism Organization (UNWTO), 2007) The session therefore highlighted INTERNATIONAL NATIONAL LOCAL LOCAL new initiatives in GHG mitigation and innovative TRIPS TRANSPORT ACCOMODATION AND FACILITIES SOLID WASTE uses of renewable energy in LAC's Tourism Sector. This En Breve describes recent efforts by national governments, the private sector, and international Costa Rica, known as a pioneer of "eco-tourism" in the organizations to address the challenges of climate region, has put in place a key instrument to mitigate change and carbon emissions in the tourism sector. carbon emission through its National Forestry Financing Fund (FONAFIFO). FONAFIFO finances small and medium 1 enterprises which conserve and replenish the country's Nature Air combines high fuel efficiency with investments forests and which receive payments for environmental in carbon offset mechanisms to reduce its GHG emissions services. FONAFIFO recently instituted a "Clean Travel" and bring its carbon footprint down to zero. (See inset on program which awards businesses meeting C-neutral Emissions Trading.) Impressively, Nature Air's policies have criteria with an "Environmental Service Certification." not cut into its profits or affected its growth. Mr. Khajavi From 1995-2006, FONAFIFO certified more than 500,000 explained the importance of managing a C-neutral airline hectares of forests and forest plantations, representing through improvement in fuel efficiency, use of alternative nearly 10 percent of Costa Rica's total land area and directly fuels, and better planned flight schedules to minimize benefiting more than 11,000 people. waste. (See inset on Nature Air Company Profile.) Private Sector Moves Toward Carbon Neutrality Recent studies have indicated that transport, particularly air traffic, is responsible for the majority of the energy consumption and associated carbon emissions from tourism-related activities. The United Nations Development Programme (UNDP) estimates that globally, annual tourism-related energy consumption is about 14,000 petajoules (PJ), of which the share of transport is 94 percent, accommodations 3.5 percent, and the remainder is consumed by other transport-related activities. According to UNTWO, the airline industry alone accounts for 4-9 percent of total GHG emissions worldwide due to human activity. Nonetheless, technological improvement has lagged in the sense that aircraft operated today are no more fuel efficient than those operated half a century ago. Recently, however, a number of airlines have TURISM & CONSERVATION CONSULTANTS ­ COSTA RICA started implementing "carbon emission offset programs" recognizing that GHG emissions are everyone's concern. Under these programs, the airlines calculate the amount of Emissions Trading CO2 emissions generated from their activities and purchase an equivalent amount of "carbon credits" from qualifying "A market-based approach to achieving environmental offset projects in both developed and developing objectives includes the sale or trade of excess emission countries. reductions (those below required targets) in one economic sector or nation, to offset emissions at another source Costa Rica's climate policies have motivated a number of inside or outside the country." (UNEP) tourist enterprises to participate in reforestation projects as part of their GHG emissions offsets. As Costa Rica strives Referring to Nature Air's investments in offset programs, towards full carbon neutrality for its tourist industry (both Khajavi highlighted the inherent challenge of balancing domestic and inbound), the hope is that businesses which profitability and corporate social responsibility, adopt more sustainable policies will benefit from better and also pointed out some technical difficulties. No brand recognition and increased market shares. But as certification programs are currently geared specifically Alexi Huntley Khajavi suggests, "going green" also requires to transportation, and selecting appropriate offset other incentives. projects presents a challenge. The ideal project protects biodiversity and habitats, benefits local communities, As President of the world's first carbon neutral airline, and boasts visibility, credibility, and transparency as well. Nature Air, based in San José, Costa Rica, Huntley Khajavi Through FONAFIFO, Nature Air has made investments has good grounds for judgement. "Information," he says, "is in certified protected areas which compensate for 100 important, but not suficient to induce behavioral change percent of its emissions. Because it flies only domestically, in relation to travel." Huntley calculates that Nature Air's emissions are absorbed by 39 hectares of offset projects, all of which are covered by its compensation investments. In contrast, emission compensation for a single international route would require protection of 6,650 hectares. All of Nature Air's routes together emit 4,650 Tons of CO2 per. A single international route emits 160,600 Tons of CO2 per year. Besides absorbing GHG emissions associated with the travel industry, carbon offset programs for sustainable forestry also conserve biodiversity, replenish watersheds and balance soils, all of which protect and conserve eco- tourism destinations. 2 Company Profile: Nature Air flies 74 daily flights to 17 adventure Source: Nature Air and nature destinations in Central America. Nature Air has the advantage in compensating Mitigation and Carbon Offset Practices: for CO2 emmisions · Nature Air has implemented a year long analysis of carbon emissions for each route and aircraft. Despite the admirable fact that Nature Air has reached · Nature Air is committed to reducing and carbon neutrality for its air travel, the overall impact of its compensating its airline and the offsetting airline initiative is still very limited due to its relatively small size emissions by supporting technical quality in and impact as a national airline. Still, Nature Air takes its role their fleet, using high impact carbon offsets, and in tourism very seriously and views its voluntary practices investing in renewable energy and energy efficiency towards carbon neutrality not only as trend-setting, but projects that reduce carbon dioxide emissions. also as necessary in a world under environmental threat. Finally, in a business sense, Nature Air sees itself as ahead Impact: of the curve, since carbon neutrality could eventually · Nature Air has offset 4,650 tons of carbon dioxide, be a requirement for every business in the travel sector. the equivalent of roughly 470,000 gallons of fuel Apropos, Nature Air represents the travel industry in used for 2,004 operations. United Nations Environment Programme (UNEP) task force · Nature Air is the first airline to offset all of its to devise regulations for aviation. emissions; the offset is calculated based on the total amount of fuel consumption in each flight. Sustainable Energy Services for Eco-tourism Development It is not easy to find experts in small-scale hydroelectric systems, wind turbines, and photovoltaic panels for the Philippe Benoit and Todd Johnson of the World Bank's growing eco-tourism industry. However, on the Caribbean Latin America and Caribbean Energy Cluster, maintain that Coast of Nicaragua, the company BlueEnergy is dedicated uncontrolled tourism growth could aggravate problems of to bringing sustainable energy to the rural poor and to energy supply. But they see new trends toward sustainable isolated communities by developing and maintaining energy in niche tourism. Eco tourism destinations located hybrid systems which generate energy from combinations in remote areas, without convenient access to modern of hydro, wind and solar sources. The communities in which energy, frequently turn to renewable energy sources to Blue Energy operates depend on fishing and adventure generate their own off-grid electricity. Small-scale tourism tourism, which require refrigeration, basic services such operations in isolated areas recognize the premium as lighting, and communication links to the rest of the on renewable energy systems and frequently employ country. In response, BlueEnergy has begun to develop alternative energy systems, not exceeding 25 kilowatt a broad range of energy solutions in partnership with a hours per guest, which allow them to advertise under number of small eco-lodges. The goal is tourism with a "green branding" as well. minimum carbon footprint. 3 Located in Monkey Point, Nicaragua since 2006, a regional fund to offset GHG impacts, much as FONAFIFO BlueEnergy sees tourism as the community's economic does in Costa Rica. The CCCCC has approached both the hope for the future. Although Monkey Point boasts an World Bank and the Inter-American Development Bank enchanting beach setting, the community lacks basic (IADB) to help in management of the proposed GHG offset energy and other services. In 2007, BlueEnergy installed a fund, which would be financed by a tax imposed on tourism 24 hour radio system, powered by a hybrid energy plant transport companies: cruise ships in the first instance and custom-designed for Monkey Point. This allowed regular airlines in a subsequent stage. communications between surrounding communities and the national tourism market. Monkey Point has a fresh water source and BlueEnergy has designed a purification In Conclusion and distribution system powered by renewable energy. BlueEnergy's current challenge is to develop an ice-making The examples cited here focus on non-traditional tourism machine powered by renewable energy to provide the and on alternative energy production to offset carbon community with its first source of refrigeration. emissions in an admittedly niche market. However, as the World Bank's Todd Johnson has pointed out, the energy A main lesson of BlueEnergy's experiences in Nicaragua is consumers which offer the greatest opportunities for that alternative energy projects must be adapted to local efficiency gains are the conventional, grid-connected realities. On the Caribbean Coast, this means training hotels which typically operate with few energy supply communities to maintain and operate the hybrid energy concerns or end-use restrictions. Consumption levels in plant and other renewable energy solutions. BlueEnergy hotels are typically directly linked to level of luxury. A one- stresses that managing new technologies also requires star Accor hotel consumes 157 kWh per m2 per year; a two- capacity building in such skills as accounting and star hotel shows an increase of 46 percent, and four-star marketing. hotels rise to 380 kWh per m2 per year ­ or an increase of 142 percent over a one-star facility. The older and more modest facilities leave a far lower carbon footprint. International Measures to Reduce the Carbon Footprints of Tourism It is a lot to think about for tourists planning vacations, and more important for countries interested in developing Carbon offsets by private tourism operators remain new tourism destinations. optional, but many expect that a global carbon tax will eventually be enacted for air transport. Additional airport charges to cover fuel and emission costs are being contemplated as well as including carbon taxes in ticket prices. At the same time, rising fuel costs are pressuring travel companies to better optimize fuel consumption and to investigate alternatives to carbon-based fuels. About the Authors Fuel costs and growing climate change concerns pose Eneida Fernandes is a Consultant working in the direct challenges for the tourism industry, which has Sustainable Development Department of the Latin become very significant for LAC countries. Nowhere does America and the Caribbean Region. this double threat loom larger than in the Caribbean, which depends on tourism for over half of its income. The Zayra Romo is a Junior Professional Associate working Caribbean Community Climate Change Centre (CCCCC) in the Sustainable Development Department of the Latin which represents the Caribbean countries members of America and the Caribbean Region. "CARICOM," has been studying the possibility of developing About En Breve... "En breve" is a regular series of notes highlighting recent lessons emerging from the operational and analytical program of the World Bank's Latin America and the Caribbean Region. In this special edition on Responsible Tourism, we present the lessons learned by the different sectors in their various tourism-related projects regarding socially responsible and environmentally sustainable tourism. Forthcoming notes in this series will include:(I) An overview on tourism; (II) Crime, violence, at-risk youth and tourism; (III) tourism and indigenous peoples; (IV) local economic development and 4 tourism, (V) Macro-Economic Impacts of Tourism ­ ­ A Case Study from Panama, and (VI) Tourism's Energy Challenge.