Finally, can Emma Congreve address business investment, particularly around renewables? A pipeline that has certainty encourages people to invest, but issues from the UK chancellor’s statement might impact on that. I am interested to know whether you think it will. It will clearly have implications for certainty for the Scottish Government and for where businesses can invest, in particular to deliver renewable energy and net zero.

What is your relationship with the Just Transition Commission and how do you work with it? Can you provide evidence that you have already actioned some of the advice that the commission gave in its first report and in its latest report?

I also want to ask about the £500 million just transition fund for the north-east and Moray. Obviously, some projects have already been announced. I understand the importance of community co-operation and co-design, and of projects coming from communities. Every one of the 24 projects is worthy in and of itself, but it might be a fair criticism to say that they could be piecemeal if they are based on challenged funding.

There might be a need for a more strategic approach to such a significant element of funding. Some projects might come from private companies that could fund the projects themselves, so how are you balancing out the worthiness of each project? How are you making sure that, as opposed to supporting individual projects, there will be a strategic impact that will deliver a just transition? I understand that there is a tension there, so could you share your thinking about the funding mechanism and process?

This question might help our discussion. Graham Simpson asked about transport and I asked about energy. You are not the lead minister or cabinet secretary in those areas; you are our first ever just transition minister. It would be helpful if you could explain how you work with ministers in other policy areas and what levers you have to influence and push the agendas that we know will be critical to delivering a just transition in areas for which you might not have direct responsibility.

Minister, you referred to carbon capture and storage. The Net Zero, Energy and Transport Committee, which I also sit on, produced a report on the Acorn project on carbon capture, utilisation and storage earlier this year and made it clear that it is a key energy transition requirement, but the project has been put on pause.

During the Net Zero, Energy and Transport Committee’s evidence session on the subject, Professor Haszeldine said that the project needed to be in operation by 2030 and that

“There is a five-year lead time for building such a project, so deciding now how we are going to handle that is fundamental to Scotland being able to meet or failing to meet its 2045 net zero target.”—[Official Report, Net Zero, Energy and Transport Committee, 14 December 2021; c 14.]

Clearly, the Climate Change Committee has just brought out a very critical report, but that committee has said that that project is vital to the delivery of these very tough targets.

The Acorn project is located in the north-east of Scotland and we are here to focus on just transition, which is about the workforce and communities. Bearing that in mind, and the fact that this is a transition technology in a vital area for workforce skills, which would help with the shift from oil and gas to green hydrogen as a bridging technology, where do you think we are with that project and how critical do you think it is to delivering a just transition for Scotland?

Are there implications for this SSI in relation to the Retained EU Law (Revocation and Reform) Bill?

Good morning, and welcome to the 32nd meeting in 2022 of the Net Zero, Energy and Transport Committee. We have apologies from the convener, Edward Mountain.

Our first item is consideration of a draft Scottish statutory instrument. I welcome Màiri McAllan, Minister for Environment and Land Reform, who is attending on behalf of the Cabinet Secretary for Net Zero, Energy and Transport. I also welcome the Scottish Government officials who are joining us today: Rosemary Greenhill, who is regulatory team leader, Luigi Pedreschi, who is a solicitor, and Claire Phelan, who is a policy officer. I thank you all for attending.

The instrument was laid under the affirmative procedure, which means that the Parliament must approve it before it comes into force. Following the evidence session, the committee will be invited at the next agenda item to consider a motion to recommend approval of the instrument.? I remind everyone that the officials can speak under this item but not in the debate that follows. I invite the minister to make a short opening statement.

We move to questions. I have a few questions, then I will bring in Mark Ruskell and Liam Kerr.

Scottish Water gave evidence to the committee on its annual report. There might be costs involved in the implementation of the SSI. Will you explain those costs and how Scottish Water will manage them within its existing or proposed budget?

What are other countries in the UK and the EU doing in relation to the recast directive?

Thank you all.