The vote saw politicians agree that new petrol and diesel vehicles should be banned from 2030, and that, over the next four years, islanders should be encouraged to buy electric cars, change gas and oil heating systems, use alternative sources of fuel, and walk, cycle and catch the bus more.
A Climate Emergency Fund was set up in 2020. It was established with £5m and receives income from an above-RPI increase in fuel duty.
However, a newly published report by the Government’s economic advisers – known as the Fiscal Policy Panel (FPP) – reminds Ministers that it is estimated that achieving net-zero could cost up to £360m and identifies the net zero ambition as a key long-term fiscal consideration.
Pictured: Deputy Jonathan Renouf is the new Environment Minister and will have a key role to play in steering the net zero plan.
It emphasises that the Climate Emergency Fund “will not be sufficient to transition to net zero which will require the careful use of both taxes and expenditure to create the right economic incentives.”
“The Government should consider the strategy for financing these challenges,” it adds.
The FPP report describes climate change as an overall “risk to the economy”, but acknowledges that there are “significant opportunities” associated with decarbonisation.
The Carbon Neutral Roadmap, which States Members approved in April, suggests that the Government proposes new income sources to top up the Climate Emergency Fund in 2022, such as road users charges, commercial solid waste charges, car parking charges and travel duty.
In 2023, it says a longer term net zero financing strategy should be brought forward.