New powers will allow Palau's government to revoke tourism operators licenses for breaching a set of laws being introduced to improve environmental protections in the country.
But the country's Tourism Bureau insists it wont rule with an iron fist, instead rewarding and promoting green tourism.
Under the tourism education bill, which is before Palau's house committee, operators will have to advertise the Palau Pledge, which requires tourists to respect the local environment.
Tourism operators will also have to provide customers with reusable alternatives to disposable plastics, and reef-toxic sunscreen will be banned.
The Tourism Bureau's director, Kevin Mesebeluu, explained to Mackenzie Smith how the policies will work.