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The Government’s latest spending plans have confirmed that solid waste charges, new road charges and a travel tax are all in the frame to fund the island’s journey to carbon neutrality.
However, its budget for next year, which also includes estimates for 2025-27, does not include a detailed long-term financing strategy for the ‘Carbon Neutral Roadmap’, despite that document, which was approved in April 2022, stating that a strategy would be brought forward this year.
Instead, the Government Plan, which was released in draft form this week, sets out the “principles” of long-term funding, without any detail of specific charges.
Above all, the plan states that Jersey’s decarbonisation will be “just” – so it will not disproportionally impact islanders on low incomes.
However, another key principle is 'polluter pays' taxes or charges, as long as they don’t widen income inequality.
The Government Plan adds: “Further policy work will take place in 2024 to establish a suitable set of polluter-pays measures that could deliver the additional funding required.
“Polluter pays measures are designed to encourage changes to behaviour, therefore any future decreases in revenues will need to be understood as part of the development of new measures.
Pictured: Climate Change Minister Hilary Jeune said "it is crucial that we put in the fundamental principles first and get the Assembly’s approval for those".
“The impact of any measures on islanders will also need to be carefully assessed and understood to ensure that the principle of a fair transition is upheld. Any new form of taxation will involve associated administrative and compliance costs, which must also be factored into the viability of introducing any tax.”
The Roadmap does list some potential charges, including a ‘holiday tax’, road-user levy and commercial solid waste charge.
The Government Plan itself is much clearer on liquid waste charging, although that will fund infrastructure improvements rather than specifically the move to net-zero. Infrastructure Minister Tom Binet has said he will develop waste charging proposals next year.
Climate Change Minister Hilary Jeune said she was not at all disappointed that only the principles – and not the details – of the Roadmap’s long-term financing strategy had made it to next year’s Government Plan.
“I am not disappointed because it is crucial that we put in the fundamental principles first and get the Assembly’s approval for those,” she said.
“Those principles – the most important being a just transition, so no one is left behind – need to be right, before we set the detail.”
Pictured: Deputy Jeune reiterated that the Government was following its own Roadmap and would not be influenced by policy changes elsewhere, such as the UK Government’s recent delay to its ban on new petrol and diesel vehicles.
She added: “That said, the fantastic Roadmap team is already working hard behind the scenes on spending profiles and assessing how the market has responded to the initiatives we have already launched, including the electric vehicle subsidy."
Deputy Jeune confirmed that her team were looking at 'polluter pays' charges but they had not been confirmed.
She said: “Speaking personally, top of my list should be a charge for private jets, followed by something on fuel for marine leisure craft. But I am but one voice and it will be for the Council of Ministers to decide.”
The Deputy reiterated that the Government was following its own Roadmap and would not be influenced by policy changes elsewhere, such as the UK Government’s recent delay to its ban on new petrol and diesel vehicles.
She highlighted the fact that Ford had expressed disappointment in UK Prime Minister Rishi Sunak’s U-turn, because the manufacturer was making a significant investment in mass-market electric cars.
“We are in no way slowing or amending our targets,” she said. “We are also very conscious that the Government needs to be a role model, so are looking across departments to ensure we lead by example.”
The ultimate aim of the Roadmap is that Jersey will capture as much carbon as it emits by 2050.
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