The Scottish government has set its budget for the coming year, including a promise of £150 million to anchor the offshore wind supply chain in the nation.
One of the four key facets of the government’s priorities is to tackle the climate emergency, said the Scottish cabinet secretary for finance and local government Shona Robison.
Overall, the Scottish government estimates it is committing £4.9 billion in capital and resources for activities “that will have a positive impact on delivery of our climate change goals” in its 2025-2026 budget.
It has made a five-year commitment to invest up to £500 million in the offshore wind sector, of which the next year’s £150 million is a part. The government further states that its investments will leverage £1.5 billion in private sector investment.
The ‘energy industries budget’ of £44.1 million will go towards hydrogen, carbon capture, utilisation and storage and negative emissions technologies; energy-intensive manufacturing industries to bring down energy costs and emissions; and a strategic approach to supporting the energy transition, as well as support for Wave Energy Scotland.
Funding of £.5 million, with £1.6 million of that from the government’s Climate Change Capital Fund, will go to the Carbon Neutral Islands Project, an initiative demonstrating the low carbon potential of islands.
Heat and energy efficiency
As in the budget written up by the UK government, ensuring the housing stock of the nation is core to the Scottish budget, allocating funding of £767.7 million for the Affordable Housing Supply Programme to deliver energy efficient, affordable housing across the country.
Further support of £349.1 million (which includes financial transactions) in energy efficiency and decarbonisation will promote energy efficiency and clean heating.
Supporting a just transition to net zero
Given Scotland’s geography, its communities have long benefitted from industry in the North Sea, and a major element of achieving clean power targets will be supporting workers to re- or upskill away from the oil and gas sector as it closes down to make way for renewable energy generation.
Earlier this week, wind energy developer and supplier ScottishPower urged workers at risk of redundancy at Ineos’s Grangemouth oil refinery and construction firm ISG to contact ScottishPower to secure a new role at the firm. ScottishPower notes that there is a clear skills crossover for many Ineos and ISG workers, adding that the firm can help workers find new positions in its energy networks business.
Following the announcement that the Grangemouth oil refinery would be decommissioned from Q2 2025, putting the vast majority of its 475-strong workforce at risk of redundancy, the Scottish and UK governments have pledged to work together to secure the industrial future of the site and surrounding area.
The Scottish government’s budget includes £72.9 million to target areas including: the Just Transition Fund to support new and ongoing projects in the North East and Moray; enabling local communities to take action on climate change in their own areas; public and community engagement on the opportunities and challenges of net zero; and supporting climate change leadership in the public sector, especially local government.
This will all combine with UK-wide initiatives that aim to support Scotland and the rest of the UK through the transition, including the decision to headquarter the Great British Energy company in Aberdeen.
