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19-21 Broad Street | St Helier Jersey | JE2 3RR
Deputy Hilary Jeune
Chair, Environment, Housing and Infrastructure Scrutiny Panel
BY EMAIL
13 March 2024
Dear Deputy Jeune ,
RE: EHI Panel Comments – Proposed Government Plan 2024-2027
I find myself in the unique position of responding to my own comments and recommendations, made when I was Chair of the Panel, in its comments paper (P.72/2023) of 6 December 2023 on the Government Plan 2024-2027. Outlined below are my intentions in regard to the recommendations
RECOMMENDATION 1: The Minister for the Environment should work with the Minister for Treasury and Resources to continue to ensure that priority is given to delivering a long- term financing strategy for the Climate Emergency Fund in time for the lodging of the next Proposed Government Plan 2025-2028 in September 2024. Furthermore, a progress update should be provided to update the States Assembly on progress made on both the delivery of the Carbon Neutral Roadmap and the financing strategy before the end of July 2024.
I partially accept this recommendation recognising that the new Council of Ministers are currently still developing the Statement of Common Strategic Policies.
The principles of the long-term financing strategy were included in the 2024 Government Plan and agreed by the Assembly. We are now considering aligning development of the 2026 - 2029 Delivery Plan for the Carbon Neutral Roadmap with the first phase of the long-term financing strategy (now renamed ‘net zero financing strategy’) for joint presentation in GP26. If confirmed by the new Government, this approach would allow funding mechanisms to be tailored to the combination of incentives, legislation and investment to be progressed in the key period leading to our 2030 emissions reduction target.
In agreeing the establishment of the Climate Council, it was also agreed that progress in delivering the Carbon Neutral Roadmap would be independently analysed every 4 years, giving officers the chance to focus on delivery.
I am considering publishing a high-level progress report on the Carbon Neutral Roadmap delivery along the lines of the report completed in mid-2023.
RECOMMENDATION 2: The Minister for the Environment should, in future Government Plans (or the Annex), provide a more detailed breakdown of proposed expenditure on initiatives to be funded by the Climate Emergency Fund for the following year. In a similar
vein, detailed actual expenditure for previous years should also be published each year with a statement provided on how specific expenditure is achieving the most Value for Money.
I decline this Recommendation. The expenditure from the Climate Emergency Fund (CEF) was agreed by the States Assembly in the Carbon Neutral Roadmap and is confirmed in the subsequent Government Plan. The Carbon Neutral Roadmap shows allocated CEF budget against each policy for 2022-2025 and detailed expenditure comes forward as the agreed projects and policies are developed in line with the principles of each Carbon Neutral Roadmap policy. Policies across the CNR continue to be worked up as per the implementation schedule.
In order to feature in the Government plan, content needs to be agreed in Q2 for inclusion in the following year’s plan. Policy development continues at pace, but we will not be in a position to know the detailed breakdown of spend for each individual policy by June for 2025 as this will be dependent on research and development work (such as pilots) being completed this year.
The Carbon Neutral Programme governance boards and I are responsible for ensuring any new projects or policies meet the established terms of reference for Climate Emergency Fund spend and align with the agreed Carbon Neutral Roadmap policies. Any such projects will need to demonstrate this through a supporting business case. In agreeing the Carbon Neutral Roadmap and the governance process within it, the expenditure routes have been agreed and a requirement to provide further details within the Government Plan will add unnecessary complexity to the Government Plan process.
I will consider including a high-level report of CEF expenditure within the progress report referenced above.
RECOMMENDATION 3: The Minister for the Environment should work with the Minister for Treasury and Resources to prioritise a longer-term funding solution for the Water Strategy for inclusion in the next Proposed Government Plan 2025-2028.
I accept this Recommendation and will follow up by investigating alternative funding mechanisms.
I hope this information is helpful to the new Panel. I am grateful for your engagement in relation to the Government Plan and look forward to keeping you updated as the various workstreams progress.
Yours sincerely
Deputy Steve Luce
Minister for the Environment