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Work to develop a 'carbon tax' which would apply to private jets has begun, according to the Treasury Minister – but the revenue-gathering measure might not be ready in time for next year’s budget.
During question time in the States Assembly this week, Deputy Elaine Millar revealed that ministers had recently met with tax and environment teams to "discuss possible options” for the charge.
The commitment to investigate "the introduction of an appropriate carbon tax or charge relating to the operation of private aircraft" was included via an amendment to this year's Government Plan.
The Council of Ministers, who lodged the amendment, said that funding would need to be identified for the £300m transition to net-zero outlined in the Carbon Neutral Roadmap.
Ministers explained that this will include adopting a "polluter pays" principle when developing new taxes or charges, citing a 2021 study which found that private jets are five to 14 times more polluting than commercial planes when taking into account the number of passengers.
In response to Deputy Jonathan Renouf's request for an update on this work, Deputy Millar said: "The work has started. It is at a preliminary stage, and the Environment Minister and I had a meeting with the tax team and environment team just over a week ago to discuss possible options for carbon taxes, but there is still more work to be done."
She added: "I can't say at the moment whether this would be included in the Government Plan lodged later this year. Any new tax would have to be carefully considered and consulted on with all relevant stakeholders.
"We'd also have to be sure of all the information available, we would have to be sure how any proceeds of the tax would be applied, so I'm not quite sure that it is feasible to include the tax in the next Government Plan, and it could be the one after."
Pictured: Gama Aviation announced plans to build a 60,000 sq ft hangar at the airport in 2023.
In the amendment, ministers said that "exploratory work" would consider best way to establish a proportionate tax or charge which balances the "significant environmental impact" of private aircraft travel with the "important role private aviation plays in servicing the Island as a hub for business and leisure".
Their comments added that while the majority of the island's aviation operations relate to scheduled passenger and freight flights, Jersey's "business aviation" sector and the operation of private jets "make a disproportionate contribution to our emissions".
They also said "appropriate exclusions" would need to be established to ensure that operations like the air ambulance are not impacted, as well as members of the Jersey Aero Club and users of sustainable aviation fuel.
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