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Gov hits brakes on renewable fuel subsidy plan

Gov hits brakes on renewable fuel subsidy plan

Wednesday 05 October 2022

Gov hits brakes on renewable fuel subsidy plan

Wednesday 05 October 2022


The Government is hitting the brakes on a plan to subsidise a renewable fuel due to global market volatility.

Known as the ‘Carbon Neutral Roadmap’, the Government’s agreed plan to achieve net zero emissions contained a pledge to bring forward a proposal in its budget “to subsidise the rate of fuel duty charged on second generation renewable diesel by 32 ppl until 2026.”

Reform's Deputy Rob Ward this week asked the Environment Minister for an update on that work.

Deputy Jonathan Renouf responded: "Officers have been working closely with colleagues in Treasury and Customs & Excise to model different scenarios of uptake and costs based on a number of varying parameters. 

"It should be noted that the proposed subsidy in the Carbon Neutral Roadmap is a fixed pence per litre and so the total cost to the Climate Emergency Fund will not be impacted by changes to the price of [renewable fuel].

"However, the level of uptake of subsidised [renewable fuel] will be impacted by its price relative to conventional diesel.

"Since the market for both fuels remains so volatile it is incredibly difficult to anticipate the effect of any such subsidy.

"To that end I have taken the decision to pause implementation of policy TR3 of the Carbon Neutral Roadmap until there is greater certainty in the market and we can be sure that the subsidy will lead to a significant uptake of [renewable fuel]."

Jonathan Renouf.jpg

Pictured: Environment Minister Deputy Jonathan Renouf.

He added: "I strongly believe that renewable fuels have an important role to play in the transition away from fossil fuels, however we need to carefully judge our intervention in the market to ensure that the subsidy achieves the desired effect."

Released yesterday, the new Government Plan for 2023 to 2026 pledged a freeze in fuel duty.

It also contained a plan to increase Vehicle Emissions Duty, "most notably on higher CO2 emitting vehicles", from 1 January 2023.

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Pictured: VED will rise to encourage the use of greener vehicles.

The Government Plan document explained: " Continuing to encourage the purchase of electric cars and lower emission vehicles, Ministers are proposing to significantly increase VED rates from 2023. This excludes commercial vehicles and tractors.

"VED charges will increase for nearly all vehicles, with the greatest increases applying to the most polluting vehicles. From 1 January 2023, the highest two bands will be increased by 75% and 85% respectively, with lower bands increasing by 32%.

"The Government will continue to keep VED rates under review for future years to encourage the importation of more efficient petrol and diesel vehicles, as well as electric vehicles."

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Posted by Simon Langlois on
Great to see clear thinking and common sense prevailing in these difficult times.

That said, I would like to see even higher VED charges on polluting vehicles. There are so many less environmentally damaging options available now, even hybrids which work so well in Jersey.
Posted by Scott Mills on
is that because it's not yet viable. Trying to run with all this green stuff. when you haven't even learnt to crawl, always ends up in tears.
Posted by Denise Shrives on
Too much rubble to process then the answer is simple - STOP demolishing buildings and renovate and add one or up. I am Jersey born to a Jersey Man" jobbing" builder, he would do all except plumbing and electrics and employed these specialist folk. This was long before the Buildings Industry erupted and all the small firms disappeared. Dad's little firm would renovate if it was possible, even cleaning up old whole blocks if possible. No JCB bulldozes in his Firm !. As Winson Churchill said to our late Queen when she took over the throne, "the farther backward to can look, the farther forward you can see" let us see a plan where huge profits are not the norm.
Posted by Jon Jon on
Well Simon not everyone has the spare cash to change to hybrid or battery cars ,simple as that, so I'm afraid you will just have to get used to these polluting cars as you put it on the roads for many years to come!
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