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Chamber and committees

Question reference: S6W-01729

  • Asked by: Dean Lockhart, MSP for Mid Scotland and Fife, Scottish Conservative and Unionist Party
  • Date lodged: 21 July 2021
  • Current status: Answered by Michael Matheson on 19 August 2021

Question

To ask the Scottish Government what plans it has to help companies in high-carbon sectors to transition to low-carbon technologies and services, as referred to in the statement on Scottish Government priorities in May 2021.


Answer

The Scottish Government is committed to delivering a just transition to net zero, which requires working in close partnership with high carbon sectors, businesses and our local communities.

The Scottish Government is working alongside high-emitting businesses to help them understand their carbon impact and to decarbonise while building resilience and strengthening competitive advantage. We have committed £62 million to support the oil and gas sector to progress the energy transition via the Energy Transition Fund, alongside £180 million via the Emerging Technologies Fund (EETF) to support the development of Scottish hydrogen and Carbon Capture and Storage (CCS) industries over the next five years. These technologies will facilitate the faster decarbonisation of energy intensive industries across Scotland.

In addition, we have commenced £60 million of co-investment with industrial manufacturers to transition towards lower carbon production. The £34 million Scottish Industrial Energy Transformation Fund (SIETF) is supporting industrial energy efficiency and deeper decarbonisation projects, tailored to the specific needs of Scotland’s industrial base. The £26 million Manufacturing Low Carbon Challenge Fund (MLCCF) will build on the successes of the Advancing Manufacturing Challenge Fund to support innovation in low carbon technology, processes and infrastructure.

As highlighted in Scotland’s Climate Change Plan update, we will launch a Net Zero Transition Managers Programme, facilitating a number of non-revenue generating roles within Scottish manufacturing businesses to incentivise energy intensive industries (EII) to compete in low margin markets. The Managers will be embedded in their organisations and tasked with identifying, quantifying and recommending decarbonisation opportunities for the businesses.

The Scottish Government regularly engages with the business community to help support the transition, with a specific focus on high carbon and strategic economic sites, like Grangemouth. Last year, we established the Grangemouth Future Industry Board to help support the sustainability and competitiveness of that core manufacturing cluster, and help harness its assets, capabilities and skills as we transition to net zero.

The Scottish Government is currently working to establish a high-level, cross-sector strategic partnership, the Scottish Industrial Decarbonisation Partnership (SIDP) to shape the long-term policy approach to the decarbonisation of energy intensive industries. This new policy commitment is a direct response to engagement with stakeholders, is in line with the Climate Change Committee recommendations and will focus on improving the conditions for delivery of deep decarbonisation. To develop a whole-system approach to net zero industrial transition, SIDP will have a diverse membership that is reflective of the markets, and the culture, that Scottish industry operates within.

Early and strategic planning is required to ensure the benefits of the transition to net zero are captured, and risks mitigated. As such, the Scottish Government will work with businesses, trade unions, and communities, to bring forward sectoral Just Transition Plans, charting the transition of sites, industries, and regions.

The Scottish Government is committed to delivering a just transition to net zero, which requires working in close partnership with high carbon sectors, businesses and our local communities.

The Scottish Government is working alongside high-emitting businesses to help them understand their carbon impact and to decarbonise while building resilience and strengthening competitive advantage. We have committed £62 million to support the oil and gas sector to progress the energy transition via the Energy Transition Fund, alongside £180 million via the Emerging Technologies Fund (EETF) to support the development of Scottish hydrogen and Carbon Capture and Storage (CCS) industries over the next five years. These technologies will facilitate the faster decarbonisation of energy intensive industries across Scotland.

In addition, we have commenced £60 million of co-investment with industrial manufacturers to transition towards lower carbon production.

  • a £34 million Scottish Industrial Energy Transformation Fund (SIETF) will support industrial energy efficiency and deeper decarbonisation projects, and be tailored to the specific needs of Scotland’s industrial base
  • a £26 million Manufacturing Low Carbon Challenge Fund (MLCCF) will build on the successes of the Advancing Manufacturing Challenge Fund to support innovation in low carbon technology, processes and infrastructure.

As highlighted in Scotland’s Climate Change Plan update, we will launch a Net Zero Transition Managers Programme, facilitating a number of non-revenue generating roles within Scottish manufacturing businesses to incentivise energy intensive industries (EII) to compete in low margin markets. The Managers will be embedded in their organisations and tasked with identifying, quantifying and recommending decarbonisation opportunities for the businesses.

The Scottish Government regularly engages with the business community to help support the transition, with a specific focus on high carbon and strategic economic sites, like Grangemouth. Last year, we established the Grangemouth Future Industry Board to help support the sustainability and competitiveness of that core manufacturing cluster, and help harness its assets, capabilities and skills as we transition to net zero.

The Scottish Government is currently working to establish a high-level, cross-sector strategic partnership, the Scottish Industrial Decarbonisation Partnership (SIDP) to shape the long-term policy approach to the decarbonisation of energy intensive industries. This new policy commitment is a direct response to engagement with stakeholders, is in line with the Climate Change Committee recommendations and will focus on improving the conditions for delivery of deep decarbonisation. To develop a whole-system approach to net zero industrial transition, SIDP will have a diverse membership that is reflective of the markets, and the culture, that Scottish industry operates within.

Early and strategic planning is required to ensure the benefits of the transition to net zero are captured, and risks mitigated. As such, the Scottish Government will work with businesses, trade unions, and communities, to bring forward sectoral Just Transition Plans, charting the transition of sites, industries, and regions.