Transition to net-zero emissions by 2050
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WQ.378/2025
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES
BY DEPUTY M.B. ANDREWS OF ST HELIER NORTH
QUESTION SUBMITTED ON MONDAY 13th OCTOBER 2025
ANSWER TO BE TABLED ON MONDAY 20th OCTOBER 2025
Question
"In relation to the Carbon Neutral Roadmap (CNR) target for the Island to reach net-zero emissions by 2050, will the Minister advise how this will be funded in light of the current pressures on public finances and whether any recent assessment has been undertaken of the affordability of the transition?"
Answer
The 13th Common Strategic Policy priority of this Council of Ministers, as approved by the States Assembly, is to Meet the Island's commitments to address the climate emergency through the Carbon Neutral Roadmap'.
The Climate Emergency fund was established in 2019 with an initial transfer of £5m from the consolidated fund, with agreed ongoing income from a portion of fuel duty and vehicle emissions duty.
The policies in Phase 1 of the Carbon Neutral Roadmap 2022-2025 are being delivered from the balance in the Climate Emergency Fund (including transfers to the fund in 2026). It is agreed that 2026 will be a continuation year, with delivery continuing within the existing funding envelope of the Climate Emergency Fund.
Budget 2026 proposes an increase in vehicle emissions duty, with additional income from that going into the Climate Emergency Fund.
The Carbon Neutral Roadmap, as well as previous Government Plans and Budget 2026, recognise that the current income streams going into the Climate Emergency Fund will be insufficient to implement all the policies required to meet our 2050 net zero ambitions at this time. If policy levers such as regulation are used in isolation, then it may be possible to meet the 2050 target within the current funding envelope, but we would be putting the cost onto Islanders which would be contrary to the agreed Just Transition principle.
As set out in the Budget 2026:
Carbon Neutral Roadmap Net Zero Financing Strategy
It is accepted that current income streams will be insufficient to fund all the necessary policies to achieve our net zero targets and it is expected that further income streams will need to be added to the fund. Based on previous estimates of a £300 million requirement, this would equate to approximately £11 million a year over the next 25 years. Some of this will be delivered by the existing revenue ring- fenced to the Climate Emergency Fund each year.
The net zero financing strategy (NZFS) will set out how the Government expects to raise the money it needs to successfully achieve Jersey's net zero transition. The first phase will address the projected expenditure profile for the second CNR delivery period from 2027-2030.
It is intended that new polluter pays measures, such as the previously proposed fuel duty replacement policy, will be progressed to generate additional revenue for the Climate Emergency Fund.
The next delivery period 2027-2030 will consider how to best use the continued income going into the Climate Emergency Fund to make the most progress possible, in line with the principle of a Just Transition, whilst exploring other funding opportunities.