Current status: Answered by Richard Lochhead on 30 May 2025
To ask the Scottish Government what its response is to the Goldman Sachs report, Carbonimics: Tariffs, deglobalization and the cost of decarbonization, which reportedly estimates that the cost of certain decarbonisation measures could rise as a result of global trade tariffs, and whether it will assess any potential impact on Scotland.
The Scottish Government recognises the investment and funding challenges associated with the transition to a net zero and climate adapted economy. Meeting the costs will require close working between the public and private sectors domestically, as well as with our trading partners. Delivering our climate and economic growth ambitions will provide opportunities that support jobs, trade, investment, and growth.
The Carbonomics report notes that promoting local manufacturing (deglobalisation and protectionism) can increase costs for certain clean technologies, thus slowing the overall rate of global decarbonisation. There is therefore a trade-off between fostering domestic industries and ensuring affordable clean energy solutions from abroad.
Global challenges require global solutions; it is through cooperation, not isolation, that the world will tackle the climate crisis. Scotland is committed to a rules-based trade agenda and supports open, fair, and transparent trade. Trade should also be a lever to increase progress towards a green economy, including through increasing trade in environmental goods and services.