India, May 30 -- In a landmark move, Hawaii has become the first U.S. state to implement a climate impact fee, introducing a new tax on tourists to support environmental initiatives. Announced on Tuesday, the fee is designed to fund climate change resiliency efforts and preserve the islands' natural resources.

According to a press release by Governor Josh Green's office, the nation's first "Green Fee," Hawaii's Act 96, will increase the state's transient accommodations tax (TAT) by 0.75%, bringing the total to 11% on nightly lodging rates. Set to take effect on January 1, 2026, the added revenue will directly support climate resiliency and environmental protection efforts across the islands.

The fee will apply to the travellers who will...