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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 12 May 2025
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Displaying 3061 contributions

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Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Gillian Martin

Yes, so that money has not been taken from the just transition fund, which is a separate fund that is focused on the north-east and Moray.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Gillian Martin

Here is my answer: yes.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Gillian Martin

We are at a critical moment for various parts of the energy sector when it comes to the supply chain. Supply chain order books show that the energy supply chain is still mostly servicing oil and gas. However, as we know, there has been a steady decrease in oil and gas operations, while renewables operations, particularly in offshore and onshore wind, are ramping up.

For the offshore wind supply chain, we know that, as a result of the licensing round for ScotWind, there will be an enormous boost in activity as the innovation and targeted oil and gas—INTOG—projects take shape and get their consents and the ScotWind licences take hold. We have to make sure that the offshore wind supply chain—I would actually say the energy supply chain—is able to ramp up its activities and prepare for the orders that it will have, and that it does so in such a way that it can perhaps pivot some of its activities to what is required for offshore wind. Quite a lot of supply chain companies will probably be servicing contracts for oil and gas, as well as for renewables, for decades to come. We are trying to make sure that they have the support to be able to pivot. Some companies might have to increase their capacity, because they will be serving oil and gas as well as opening up opportunities for offshore wind.

We are tripling the capital funding for offshore wind to £150 million, which will stimulate private investment as well. I will give an example of how that works in terms of the supply chain. We and our overseas agencies did a lot of work in attracting Sumitomo to build its high-voltage direct current—or HDVC—cable in the Cromarty Firth. That is the result of work that was done to put in the right conditions but also of having the right initial funding to attract a big company to Scotland. We are very pleased that that has been done.

We have also committed to a £500 million strategic investment to leverage additional private investment of £1.5 billion to the offshore wind supply chain. The Government’s commitment to that sector is already prompting private companies to come together to, in effect, pledge money for additional infrastructure. As a result of the work that we have been doing through the Scottish offshore wind energy council and the strategic investment model, billions of pounds have been pledged, because companies are seeing that the Government is committing money. That money is not just a Government investment in the supply chain, but a prompting of additional investment from private resources.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Gillian Martin

The supply chain is about an awful lot more than manufacturing. Manufacturing is a part of it, but there is innovation, too. Traditionally, Scotland has always been very good at innovating with technologies, particularly in its subsea work. For example, we are innovating with floating offshore wind developments, and that will be an exportable skill. Once we have completed our ScotWind developments, you will see other countries looking to Scotland to see what we have done with floating offshore wind. As with oil and gas in the 1980s, Scottish engineers and innovators will be going all over the world to help other countries with that technology. It is not just about manufacturing; it is about skills and innovation, too. The supply chain is about an awful lot more than that.

However, I agree that there is absolutely a space for more manufacturing in Scotland. I point out that, as part of the onshore wind sector deal, we pledged to have a blade remanufacturing plant in Scotland. Therefore, there is not just manufacturing, but the remanufacturing of materials in Scotland. Those are all important components.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Gillian Martin

The aim is to deliver a yes or no decision on a consent application within 52 weeks.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Gillian Martin

The aim is 52 weeks.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Gillian Martin

That is why we are increasing the budget to £150 million, which is a tripling of the activity that the monies have done up to now. That tripling will prompt the kind of things that Mr Matheson described as ambitions.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Gillian Martin

I do not agree that it is slow. I would say that we are probably oversubscribed with the number of projects that want just transition funding. Being a north-easter, I have had the pleasure of visiting quite a lot of projects, including those that have been successful in getting just transition funding.

Other work has also been done. There has been investment in the green hydrogen hub and in the Net Zero Technology Centre. There has been other investment that has not come directly from the just transition fund but that has had a just transition effect.

The just transition fund supported projects as well as a participatory budgeting section, which went out to third sector partner organisations that invited applications from small community groups, for example. At the moment, my officials and I are trying to assess the outcomes of the £75 million that was spent, so that we ensure that the money that is going out from the just transition fund has positive outcomes associated with it and targets the areas where we need intervention in terms of a just transition—that relates to the basis of your question. We have been doing that work over the past year, and it will inform the detail of the next allocation round.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Gillian Martin

All funds are oversubscribed, but there are certain projects that do not have the right criteria in the way that others do, so you have to make a judgment—you cannot just give out public money without that assessment.

There is a great deal of interest in the fund, and I am delighted to say that we are reopening the fund this year. We are looking at the criteria for the fund and where we might want to target it.

Next year’s allocation might be different, based on what happens this year. However, as far as I am concerned, the £500 million just transition fund is an extremely important tool for the north-east and Moray, and it shows our commitment to an energy transition that is happening principally in those areas.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Gillian Martin

ACVO. Thank you very much. We are working with them to get that analysis.

I have done quite a lot of visits and talked to people who have been involved in participatory budgeting. A great example is what has been done with a disused bowling green in the city centre, where there is now a climate cafe that makes available its own fruit and vegetables. I highly recommend that you visit it. Those things have had an impact on not just the climate, but the community. I want to take that into account, too.