Former Environment Minister calls for end to fuel duty freeze

Tuesday 12 November 2024

Fuel duty freezes would be reversed as a way of reaffirming the island's commitment to tackling the climate emergency, if a former Minister’s Budget amendment wins support.

Deputy Jonathan Renouf, who served as Environment Minister from July 2022 until January of this year, said he was concerned about the lack of progress towards carbon neutrality in recent years.

Having set up the Climate Emergency Fund in 2020, plans were agreed to increase fuel duty by an additional two pence above the rate of inflation every year, with the proceeds going to the fund.

But duty has subsequently been frozen at nine pence per litre, with the Government estimating that this move has resulted in a "loss" to the fund of £2.44 million across 2023 and 2024.

Pictured: Deputy Jonathan Renouf served as Environment Minister from July 2022 until January of this year.

In the report accompanying his amendment, Deputy Renouf explained: "If we are to shift the dial on road transport, we need a twin track approach – disincentivise fossil fuel use and incentivise zero/low carbon options.

"Increasing fuel duty achieves both and is also important to signal a clear direction of travel.

"In the run-up to the prospective ban on the registration of petrol/diesel vehicles in Jersey in five years’ time, we need to shift incentives decisively in favour of EVs and other low carbon transport options."

Gradually increasing the price of carbon-based fuels was an important part of this strategy, he added, sending a clear message about the long-term benefits and offering the chance for Jersey to become a leader in decarbonisation.

Deputy Renouf added: "Put another way, if we are not prepared to disincentivise the use of fossil fuel, then we might as well give up on our carbon reduction targets now."

The report also notes that an initial temporary freeze introduced in the UK in 2011 was still in place, showing that the longer such a measure remained in place the harder it was to reverse.

Deputy Renouf concluded: "It is important that we take this opportunity to signal that as an Assembly we have not given up on our net zero commitment and that we hand on to our successors a decent platform on which to build their net zero policies."

The amendment, which will be considered as part of the Budget debate later this month, would commit Ministers to annual 2p increases from 2026 onwards.