Electric car and heating subsidies on road to carbon neutrality

Friday 17 December 2021

Subsidies to buy electric vehicles, cheaper green fuels, incentives to move away from fossil-fuel-burning heating, and banning the importation of petrol and diesel cars and vans from 2030 are among firm measures proposed in a new Carbon Neutral Roadmap, released today.

In 2019, the States Assembly pledged to make the island carbon neutral by 2030.

In parallel, the Assembly is going to be asked to back the island achieving net zero carbon emissions by 2050, which puts Jersey on a par with the many nations that signed up to the Paris Climate Change Agreement in 2015.

The Government argues that carbon neutrality is still possible by 2030 but it would involve buying carbon offsets. It recommends deciding to commit to that at a later date, when the carbon trading market is more mature and better understood.

Today’s document is the first that begins to turn aspiration into concrete reality, proposing policies that potentially impact all islanders. 

It is a consultation - so islanders can comment on the proposals until next month – however, the States will be asked to vote on it in April.

In addition to subsidies and other measures, which will be funded by £23m ringfenced in the next Government Plan, which should be approved today, the Roadmap also sets out policies which future governments and Assemblies can decide on.

Pictured: The Roadmap proposes that islanders would receive a £500 credit if they scrapped a petrol or diesel car to spend on ‘green living’ such as buying a bike.

In total, the measures will have a direct cost to Government of £250m. That doesn’t include the costs that islanders will have to make, such as buying an electric car or changing a boiler.

Although the Roadmap won’t bring in new revenue-raising measures, it does propose some that could be introduced in the future, including a new road-user charge, increased parking charges, a commercial solid-waste charge and a tourist tax.

Looking over the next four years, the firm proposals include:

• £3,500 subsidy on electric cars costing under £30,000 (sliding scale based on cost of car);
• subsidised charging and parking, and no registration duty, for electric cars;
• £500 ‘green living credit’ when scrapping a petrol or diesel vehicle, which can be spent on public transport, bikes etc;
• 32p per litre subsidy for second-generation renewable diesel;
• ending the importation, sale and registration of internal combustion vehicles from 2030;
• 50% subsidy of cost (up to £5,000) to replace oil or gas burner with approved alternative. Up to £10,000 support with no requirement for matched funding for low-income families;
• ending new oil, gas and coal boiler installations from 2026, but allowing for existing boilers to be retained and repaired;
• Increased energy efficiency standards for new and renovated buildings;
• Energy Performance Certificates for buildings so purchasers and tenants can assess efficiency before buying or renting.

The Roadmap also sets out policies for construction, agriculture and other sectors. With finance, it says Government will work with the industry to develop more ‘sustainable’ products and services.

In order to help meet its carbon-reducing target, the Roadmap builds on the Government’s ‘Preferred Strategy’, which it published last month.

It proposes Jersey becoming a ‘centre of excellence’ for ‘blue-carbon sequestration’, which is using marine plants such as seagrass to remove carbon dioxide from the atmosphere.

Pictured: The Roadmap proposes Energy Performance Certificates so that homebuyers and renters will know the efficiencies of properties.

The Roadmap establishes an ambition to double the size of seagrass beds in Jersey’s territorial waters. 

At the moment, this form of absorption is not included in international carbon-removal standards but the Roadmap says Jersey should lobby for change.

The Roadmap also reiterates the Preferred Strategy’s call for a new Minister for Energy and Climate Change to be created by the next Government. 

Building on the ‘people-powered approach’ of the Citizens’ Assembly which helped to define the Roadmap, the document also calls for a ‘Carbon Neutral Alliance’ of organisations and businesses, and a ‘mechanism’ to regularly asks for islanders’ views on progress.

Environment Minister John Young, said: “Since the States’ declaration of a climate emergency, we’ve involved Islanders in the development of policy proposals to help us eliminate our carbon emissions to net-zero by 2050, to meet the Paris targets.

“It is essential that we maintain public commitment, so we are publishing the draft policy proposals, for implementation in 2022-25, and inviting final feedback before we lodge the Carbon Neutral Roadmap for States debate early next year.

“The policies offer a series of incentives to encourage islanders to make low carbon choices in the way we travel and heat our homes and businesses. There are additional proposals to phase out technologies that are based on fossil fuels, over the coming years.

“I encourage islanders to look at the detailed proposals being put forward, and to provide us with considered feedback during this consultation period. By necessity, the Roadmap and supporting documents are comprehensive and technical, so we are also publishing a summary version.”

The consultation, which runs until 31 January, includes focus groups, the opportunity to submit formal written submissions, and a survey on gov.je/CarbonRoadmap. 

LISTEN...

Express spoke to Steve Skelton, the Government's Group Director, Strategy and Innovation, about the new Carbon Neutral Roadmap...

The road to carbon neutrality

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