Hawaii Adopts Green Fee for Climate Resilience

Hawaii has become the first U.S. state to enact a 'Green Fee,' increasing the transient accommodations tax by 0.75% on hotels, vacation rentals, and cruise ship cabins, with the new fee taking effect in January 2026. Signed by Governor Josh Green, the law is expected to generate up to $100 million annually to fund climate resilience and disaster preparedness efforts. Revenue will support projects such as shoreline protection, wildfire prevention, and ecosystem maintenance, with applications open to nonprofits and state agencies. The fee aims to shift some climate-related costs from residents to visitors and is seen as a model for other tourism-dependent regions. Industry leaders and lawmakers mostly support the initiative, but critics warn it may impact tourism and local businesses. The move follows recent disasters like the Maui wildfires and is part of Hawaii's broader environmental protection strategy.