Canaries Pioneer Tourism-Funded Green Transition
The Canary Islands are seeking investors to advance their decarbonisation, focusing on the very sector that drives their economy: tourism. A consultation by the regional government’s Ministry of Tourism and Employment with accommodation providers and airlines has concluded with significant interest from these companies in acquiring credits to offset their emissions of harmful gases. Instead of paying a fine, they would compensate for excess CO2 emissions by financing the construction of a greener archipelago.
Navigating Uncharted Legal and Financial Waters
The Autonomous Community’s Legal Services and the Ministry of Finance “are studying the legal and economic framework” for the initiative, explained the Vice-President of the Canary Islands, Manuel Domínguez. This is not the first experience of its kind in the world, as acknowledged by Domínguez, who also leads the Canary Islands People’s Party (PP). He cited “Costa Rica” as one of the models the Islands are looking to for successfully implementing the scheme. “In that case, it involves a country, which simplifies everything; in ours, we would be the first autonomous community, meaning we are exploring uncharted territory,” Domínguez continued. Nevertheless, he expressed confidence that the idea will take shape given the context of meeting the demanding targets set by the European Union (EU), Spain, and the archipelago itself.
Cross-Government Collaboration and Sectoral Backing
For the regional administration, the path seems clearer. The four ministries led by the Popular Party are involved: Ecological Transition and Energy (Mariano Hernández Zapata), Tourism and Employment (Jéssica de León), and Finance and Relations with the European Union (Matilde Asián), in addition to the vice-presidency held by Manuel Domínguez himself, which also includes competencies in industry. This provides fertile ground to explore the willingness of business in this sector should this process of securitising the Islands’ decarbonisation move forward.
Regarding the response from the accommodation sector, the Canarian Vice-President described it as highly positive. It was this willingness that allowed the idea to progress to its current stage. “We would not have considered it a real possibility if they had closed the door on us,” he explained.
From Polluter Pays to Investor in Sustainability
A European emissions trading scheme has existed since 2003, allowing countries that meet their targets to sell unused allowances to bigger polluters. It has undergone various revisions to toughen anti-pollution policies and include an ever-growing number of activities subject to scrutiny of their waste. Shipping companies were added to the catalogue just two years ago. At that time, it was estimated that this polluter-pays mechanism generated around €770 billion (£660 billion) worldwide.
In 2022, the last year recorded by the Ministry for Ecological Transition and the Demographic Challenge, the Canary Islands emitted 12,698 kilotonnes of carbon dioxide, far above the 10,080 from Aragon or 4,661 from Navarre. The tourism industry is precisely one of the most decisive factors explaining the archipelago’s position at the top of the ranking among Spain’s autonomous communities.
Having the very companies that contribute most to the emissions chapter finance actions such as reforestation or improvements to the electrical system to foster greater penetration of renewable energy into the Canarian mix represents an absolute paradigm shift. “They go from being polluting companies to becoming sustainable,” Domínguez points out. The goal remains firmly fixed on improving the contribution to a cleaner environment.
Sustainability as a Core Tourism Asset
Tourist demands regarding sustainability are growing. Hoteliers know this, and so do airlines. Indeed, the latter invest in research for the use of clean fuels, and the former adopt measures such as waste composting or creating closed-loop systems for harnessing geothermal energy to reduce their emissions. “Participating in this process gives companies the possibility of joining the club of those fighting climate change,” explains Domínguez. This is now an essential asset for marketing the tourism product.
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