Experts warn green subsidies favour wealthy… and accuse Gov of fossil fuel hypocrisy

Experts reviewing Jersey’s plan to become carbon-neutral by 2050 have warned that key targets are already “unachievable” – and criticised ministers for continuing to install fossil-fuel heating systems in public buildings while urging Islanders to decarbonise their own homes.

The independent Climate Council – a five-strong panel chaired by the leader of BP’s Alternative Energy business – also found that subsidies intended to drive the transition have so far disproportionately benefited wealthier Islanders.

In a 110-page review published this morning, the Council said Jersey should “stay the course” on its net-zero ambitions, but concluded that the Island’s flagship climate plan is already falling behind schedule and risks failing without sharper policy choices and a fairer approach to the costs of decarbonisation.

Overall…

The initial phase of the plan to decarbonise Jersey’s economy – known as the ‘Carbon Neutral Roadmap’ – ended last year, prompting the council to publish its first report.

Its key findings were that:

• Jersey’s ambition and intent in developing the roadmap is “laudable” and aligns with good international practice
• Despite “modest levels” of overall policy investment in support of delivering the roadmap – about £220 per resident since 2022, or roughly £55 per resident per year – there has been progress against many of its elements, in particular some of the “enabling activities” and the deployment of grants to support the adoption of lower carbon technologies
• The shift from fossil fuel to low-carbon energy is under way, but the impact on overall emissions has been “minor”. This is partly because the Island already imports most of its electricity from France, which is already decarbonised, so the “low-hanging fruit” has already been plucked.
• On the current trajectory, the 2030 targets laid out in the roadmap and associated policies are “unachievable”, but the net-zero goal remains valid.
• The principal challenges facing Jersey are how to manage the capital cost of transitioning energy systems and the residual value of fossil-fuel systems in a socially just manner, rather than technical or long-term economic concerns.

Is this a “just” transition?

The council has several concerns about the delivery of the roadmap so far, which has included providing subsidies for people to buy an electric car and/or install electric heating.

Central to the roadmap’s ambitions is that to move to net-zero is “just” – meaning that those on lower incomes can afford to decarbonise their lives.

However, the council identifies some “just transition failures”, concluding that subsidies have been skewed towards the wealthy, polluter-pays principles have been “weakened or abandoned” and some high-emission activities, such as aviation, remain untaxed.

It has also found that electrification has been prioritised over demand reduction, behavioural change, and transitional solutions, and Jersey is lagging behind international best practice in certain areas, including waste, transport and finance policy.

Pushing on with “polluter-pays”

The Council makes several recommendations, including that the government should apply the “polluter-pays” principle and make “clear and firm commitments to the phase-out of internal combustion engine vehicles and boilers, prioritise a waste strategy to replace the Energy Recovery Facility dependence and develop robust strategies for managed transition or exit of some fossil-fuel systems.”

It adds: “The council is clear that Jersey has the potential to be both a leader and a beneficiary of the global emissions transition. We urge Jersey to stay the course and hope that our report is of use and supports the further delivery of a transition that is fair, effective and positive.”

“Weakened” credibility

Among the barriers to progress cited was the quality of leadership by ministers around climate issues.

“Political leadership and delivery emerged as a further concern,” the report said, noting that many stakeholders the Council had spoken to as part of their review “questioned whether climate action remains a consistent priority for Government, pointing to mixed messages, delayed decisions and a perceived gap between stated ambition and implementation”.

One example provided was the government failing to lead by example when it came to fossil-fuel heating systems.

While it the Carbon Neutral Roadmap agreed in 2022 had “envisaged a progressive phase-out of new fossil-fuel heating systems”, the Council found that the “fossil boiler phase-out has been repeatedly delayed” – and, in the meantime, the government had continued installing fossil-fuel heating systems in public buildings.

This, the experts said, had “weakened” the “credibility of the phase-out policy”, and sent a “contradictory signal to households and businesses”.

“Every year of delay increases costs”

Presenting the report, the Council commented: “As a Council, we are clear – although Jersey has real strengths, strong foundations, proven capability and a community already showing willingness to change, the Island is not currently on track to meet its 2030 climate targets, and the window for effective corrective action is narrowing. 

“Every year of delay increases costs, deepens risks and limits the choices available to future governments. With consistent leadership and a fair, co-ordinated approach, the Island can unlock cleaner energy, lower long‑term costs and new economic opportunities that many larger jurisdictions still struggle to access.  

“The transition is not a burden; it is one of Jersey’s greatest opportunities to build a more resilient, competitive and confident future. Success is still firmly within reach, but only if action continues, and accelerates, now.”

Environment Minister Steve Luce is due to make a statement on the Climate Council’s report in the States Assembly this afternoon.

Ahead of that, Deputy Hilary Jeune – who chairs the Environment, Housing and Infrastructure Scrutiny Panel – said: “I commend the Council for their thorough and detailed work which has resulted in actionable recommendations that I hope the next Government will take note of and take forward. The expertise and experience of the Panel should give us all confidence in their conclusions, which while highlighting the challenges to Jersey’s 2050 ambitions, also offer long-term solutions.  

“As the Council has reiterated, we have to put an end to policy uncertainty and delayed action and commit to our goal, which with stable funding and transparency, is achievable. While global influences have been cited by government as a reason to row back on certain commitments, we cannot allow our ambitions to be derailed. Through flexibility and practical actions, we can protect future generations of Islanders from the impact of climate change.”

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