After the Bans and Levies: What’s Missing in the Maldives’ Climate Agenda

The Maldives has taken visible steps on the environment. Single-use plastics were phased out in stages, beginning with import bans in 2021 and further restrictions on sales in 2022. These actions helped signal intent and set clear rules for retailers and importers. Yet they did not resolve the harder questions of what happens to the plastics already in circulation or how to change incentives for producers and large buyers.

Waste policy now sits at a crossroads. Government documents set out a path toward Extended Producer Responsibility for packaging, which would shift end-of-life costs to producers and importers. Drafting is ongoing under the Waste Management Act and policy papers frame EPR as essential for plastics. The direction is promising, but until regulations are finalised, targets set, fees collected, and return systems funded, outcomes will remain uneven across islands.

Tourism taxation has also moved. The Green Tax was doubled from January 2025 to 12 dollars per night for most resorts and larger establishments, with six dollars for small guesthouses on inhabited islands. The change is intended to raise green finance and flows into the Maldives Green Fund, according to the Ministry of Finance. The question is less about the rate and more about governance: ring-fencing, transparent project pipelines, and audited reporting by island and sector would convert a nightly levy into measurable environmental results.

Energy is the backbone of climate credibility. Policy now targets 33 percent renewable electricity by 2028, which aligns with the country’s net-zero-by-2030 aspiration that is contingent on international support. Delivery requires far more than pilots. Utility planning must incorporate firm capacity, storage procurement, and tariff structures that attract private capital while easing budget pressure from diesel subsidies. A clear annual build schedule for solar, storage, and grid upgrades across atolls would turn a roadmap into bankable projects.

Waste-to-energy is advancing but timelines have shifted. The Thilafushi facility for the Greater Malé region and a smaller Addu plant are presented as solutions to landfill overuse and open burning. Some official statements suggest early operation, while recent updates point to commissioning in 2026. Reconciling these claims with transparent construction milestones, grid interconnection plans, and guaranteed feedstock contracts is vital to avoid cost overruns and under-performance.

What remains largely untouched are the incentives that shape behaviour across the economy. Maldives could focus on targeted and practical measures. For instance, setting fuel efficiency standards for inter-island vessels, performance-based procurement for energy-efficient public assets, and targeted rebates for renewable systems would be more effective in shifting behaviour while supporting economic resilience.

Public procurement is another underused lever. Current guidance focuses on process and compliance, with no national sustainable procurement standard or catalogue of green criteria. Introducing life-cycle requirements for high-spend items, from public buildings to cooling systems and ferries, could shift markets faster than standalone environmental programmes. International guidance exists, but domestic rules need to be codified, enforced, and monitored to matter.

Subsidy reform would amplify every other measure. Diesel-based power and targeted support for households and businesses shape demand for energy and equipment choices. Global and Commonwealth analyses show that reform, if sequenced with targeted protections and clear communication, reduces wasteful consumption and unlocks clean investment. The Maldives’ own fiscal discussions point to gradual targeting, which should be paired with time-bound incentives for distributed solar and efficient cooling so households and SMEs have a practical alternative.

In short, the Maldives has made visible progress on plastic bans and tourist levies, and it has a renewable roadmap. To move from signals to structural change, three actions will matter most. First, complete and enforce EPR with clear targets, eco-modulated fees, and a deposit-refund system for priority packaging. Second, publish a rolling five-year renewable and storage build schedule with procurement windows, grid plans, and subsidy alignment. Third, put sustainability into the state’s own purchasing by adopting binding green procurement criteria across energy, construction, transport, and cooling. These are the policies that would turn ambition into measurable outcomes at the island level.