Frameworks for decarbonisation

The Travel & Tourism sector, a vital engine of global economic growth, cultural exchange, and employment, is also a notable contributor to carbon emissions. As nations worldwide intensify their commitments to achieving net-zero targets, this dynamic and fast-growing industry finds itself at a crossroads. From energy-intensive aviation and sprawling hospitality chains to carbon-heavy local transportation networks, every aspect of the travel ecosystem demands transformative action to reduce its environmental impact. The urgency for decarbonisation has never been greater, with stakeholders recognising the need for innovative, scalable solutions that balance sustainability with economic viability.

Progress so far

In 2022, WTTC launched an initiative to estimate the full extent of the sector’s carbon footprint. This Environmental & Social Research (ESR) helped with a comparative study among 185 economies globally across time, direct, and supply chain impacts.  

It was found that in 2023, the sector accounted for 6.5% of global emissions, down from 7.8% in 2019. While part of the reduction can be attributed to the fact that tourism in 2023 was still below 2019 (pre-pandemic peak), however, most of it can be attributed to a 10.2% decrease in the sector’s GHG intensity. This demonstrates that although the sector’s growth is being decoupled, achieving net zero requires accelerated action.  

Based on sustainability reports, about 53% of the leading Travel & Tourism businesses have set a climate target. Among these, about 74% have been using carbon off-setting. Among the 53% that set climate targets, as many as 33% have used climate science through Science Based Targets initiative (SBTi) for setting reduction targets. Therefore, from 2021, the number of Travel & Tourism businesses that have a climate target has increased by 27%, from 105 to 133 in 2024. Meanwhile, the number of businesses pledging to the SBTi has more than doubled.

Updated framework

The shifting climate ambitions within the Travel & Tourism sector have given rise to a more refined set of target pathways. Instead of categorising targets by the ease of reducing emissions, the focus has shifted to categorisation based on the type of emissions reduction goals.

The revised framework outlines three key pathways: the short-term target (2020-2030) prioritises carbon neutrality through a combination of emissions reduction and removal efforts. The medium-term target (2030-2040) sets the goal of achieving net zero emissions for Scope 1 and 2. Finally, the long-term target (2040-2050) aims for Net Zero across Scope 1, 2, and 3, encompassing the entire value chain, from direct operations to indirect emissions.

The first step towards this is understanding carbon inventory. First, businesses have to assess its carbon footprint, understand the sources of its emissions, and evaluate how climate change is affecting its operations. A carbon inventory provides a comprehensive overview of all emissions (Scope 1, 2, & 3), broken down by source, allowing companies to establish an accurate emissions baseline.

Second, a materiality assessment, which is a process used to identify and evaluate the key sustainability issues, is important. The primary objective is to gain a deeper understanding of which ESG (environmental, social, and governance) topics the business should prioritise. Next, companies should be encouraged to set targets according to SBTi to effectively reduce emissions.  

After defining a climate target, the next step is to create a strategy and roadmap to achieve it. Businesses are encouraged to adopt carbon management strategies that include annual emissions measurement, identifying opportunities for emissions reduction, and offsetting unavoidable emissions. To successfully implement a Net Zero strategy, it’s crucial to have a clear understanding of the decarbonisation levers available within the business.  

The decarbonisation of the Travel & Tourism sector is not just a necessity for a sustainable future but an opportunity for innovation and growth. As the world shifts towards a greener future, the sector must evolve to meet the challenges of a warming planet head-on, ensuring that future generations can explore the world without compromising its well-being.

ACTIONABLE TIPS FOR SMEs

1) Promote sustainable travel options

• Encourage low-carbon transport: Partner with rail companies, EV rental services, or biking tour operators to promote low-emission travel alternatives. Offer discounts or incentives to customers choosing these options.
• Group and shared transportation: Organise group tours or shared transport services to minimise individual vehicle use and emissions.
• Offset travel emissions: Offer customers the option to offset the carbon footprint of their travel by investing in credible offset projects, such as reforestation or renewable energy.

2) Adopt eco-friendly operations

• Energy-efficient accommodations: For SMEs managing accommodations, invest in energy-saving measures like solar water heating, energy-efficient appliances, and LED lighting.
• Waste reduction: Implement recycling programmes, reduce single-use plastics, and offer digital rather than paper-based tickets, brochures, and itineraries.
• Sustainable supplies: Partner with local suppliers for food, materials, and souvenirs to reduce transportation-related emissions and support the local economy.

3) Leverage technology for virtual and eco-tourism

• Virtual tours: Offer virtual experiences for clients who cannot travel but want to explore destinations, reducing the need for carbon-intensive travel.
• Eco-tourism packages: Design travel packages focused on nature-based, low-impact activities like wildlife watching, hiking, or cultural exchanges. Ensure these activities prioritise environmental conservation and community benefit.
• Monitor and report carbon impact: Use digital tools to track emissions and share progress transparently with customers to build trust and encourage shared accountability.

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