Hawaii Governor Josh Green, a Democrat, signed a bill that implements a “climate impact” tax on tourists in the state.
The bill, SB 1396, establishes the nation’s first “climate impact fee,” called the “Green Fee.” The fee “addresses the critical need to build resiliency against the impacts of climate change by providing a stable source of funding for environmental stewardship, hazard mitigation and sustainable tourism,” a press release explains.
Green said in a statement that the state is “at the forefront of protecting our natural resources, recognizing their fundamental role in sustaining the ecological, cultural and economic health of Hawaiʻi. As an island chain, Hawaiʻi cannot wait for the next disaster to hit before taking action. We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future.”
The initiative began after the Maui wildfires. Following the disaster, Green established the Climate Advisory Team (CAT), which suggested using the transient accommodations tax (TAT) as a source of revenue.
The bill increases the TAT rate by 0.75% beginning in 2026 and levies the TAT on cruise ships that port in Hawaii.
According to the bill, Hawaii is “experiencing a climate emergency. The effects of climate change, such as rising temperatures, prolonged droughts, and increasingly destructive and deadly weather events, are felt across the island chain. These impacts threaten not only our vibrant ecosystems but also the people of Hawaii and the State’s economic sustainability.”
“To ensure the health and safety of Hawaii’s lands, waters, and people, as well as its economic viability, successful mitigation of and adaptation to climate change are imperative,” it says.
