Climate Change Plan: monitoring reports - 2021 compendium

Chapter 8: NETS

Part A - Overview of sector

This is a new sector and therefore we cannot compare the 2018 emissions envelope to the real emissions. However, once we have the data for the CCPu period, we will provide a comparison of emissions reduction against the envelope as laid out in the CCPu.

The updated Plan sets out the following policy outcomes for the sector. Given how new this sector chapter is, there are no indicators for these outcomes.

Detailed feasibility studies on NETS will assess the opportunities for negative emissions in Scotland, and identify applications with the greatest potential, including specific sites where possible

CCUS: the continued development of CCUS technologies and systems is prioritised to ensure these can be rolled out commercially and at scale by the late 2020s.

Bioenergy: a cross-sectoral approach for the appropriate and sustainable use of biomass in energy applications is agreed and implemented (taking into account competing land and feedstock uses).

Just-Transition And Cross-Economy Impacts

We wish to understand and report on the broader just transition and cross-economy impacts of our emissions-reduction activities in addition to these sector specific policy outcomes and indicators. To do this, we use data from the Office of National Statistics: Low Carbon Renewable Energy Economy (LCREE) publication.

The LCREE is based on survey data of businesses which perform economic activities that deliver goods and services that are likely to help generate lower emissions of greenhouse gases, for example low carbon electricity, low emission vehicles and low carbon services.

The LCREE indicator is narrowly defined and, while useful within its limited scope, does not give us the full picture of the impacts on workforce, employers and communities and progress towards a just transition. Over the next few years we will work to develop a meaningful set of success outcomes and indicators which can improve our ability to track the impacts of our policies on a just transition to net zero and a wellbeing economy.

Sector commentary on progress

We have updated the Climate Change Plan to include an additional sector chapter for Negative Emissions Technologies (NETs), reflecting our recognition, in line with the advice of the UK Committee on Climate Change, that such technologies will be essential for Scotland reaching net-zero. The chapter includes policies on assessing opportunities for NETS, through the underpinning technology of CCUS (carbon capture utilisation and storage) and then the full systems to achieve net negative emissions, such as BECCS (Bioenergy with Carbon Capture and Storage) or DACCS (Direct Air Capture with Carbon Capture and Storage). It should be noted that natural net carbon sinks, such as forestry, do not fall within the scope of the NETS chapter (they are covered in the LULUCF chapter). Given that the NETS chapter is new to the Climate Change Plan update, the majority of the policies set out are necessarily at an early stage, and therefore Section B focuses mainly on planned actions, which we will monitor annually. Where policies have been a more longstanding part of our approach (e.g. support for the development of CCUS), we have included progress since the previous round of monitoring reports on the 2018 Plan.

Developments in monitoring arrangements since CCPu / last report:

N/A since NETs is a new sector chapter

Part B - Progress to Policy Outcome Indicators

Policy Outcome: Cross-sectoral social and economic indicator

Indicator: FTE employment in Low Carbon Renewable Energy Economy

On-Track Assessment (Milestones/ Targets): Year-to-year change

Most recent data: 2018

Data source(s): Office of National Statistics: Low Carbon Renewable Energy Economy (LCREE)

Assessment: Too early to say^[57]

Commentary:

• In 2018, Scottish low carbon and renewable energy (LCREE) sector was estimated to directly provide 23,100 full time equivalent (FTE) jobs
• The LCREE estimates are based on a relatively small sample of businesses and hence are subject to fairly wide confidence intervals. LCREE employment in Scotland in 2018 is similar to previous years and not statistically significantly different to 2017.

Source: ONS

Part C - Information on implementation of individual policies

Outcome 1: Detailed feasibility studies on NETS will assess the opportunities for negative emissions in Scotland, and identify applications with the greatest potential, including specific sites where possible.

Policy:

In 2021/22 carry out a detailed feasibility study of opportunities for developing NETs in Scotland ready for the early 2030s. This will identify specific sites and applications of NETs, including developing work to support policy on Direct Air Capture and its role within NETS in our future energy system

Status: New, Boosted or Maintained compared to last CCP [date announced]:

New [CCPu 2020]

Progress on implementation since time of last report / CCPu:

Scoping work on a feasibility study commenced in Q1 2021.

Policy development on DAC underway.

Have any implementation Indicators / milestones been set for this policy? If so, most recent data for progress against these.:

N/A

Timeframe and expected next steps:

Feasibility study scoping 2021

Policy:

From 2022, based on the outcomes of the feasibility work, we will provide support for commercial partners to develop NETs proposals.

Status: New, Boosted or Maintained compared to last CCP [date announced]:

New [CCPu 2020]

Progress on implementation since time of last report / CCPu:

New to the CCPu

Have any implementation Indicators / milestones been set for this policy? If so, most recent data for progress against these.:

Initiated in 2022 supported by the EETF.

Timeframe and expected next steps:

Initiated in 2022 supported by the EETF.

Policy:

Put in place a continual process to review the development of NETs and progress against its envelope.

Status: New, Boosted or Maintained compared to last CCP [date announced]:

New [CCPu 2020]

Progress on implementation since time of last report / CCPu:

New to the CCPu

Have any implementation Indicators / milestones been set for this policy? If so, most recent data for progress against these.:

N/A

Timeframe and expected next steps:

Timing and arrangements to be confirmed.

Policy:

We will work with UK Government to ensure that they bring forward suitable mechanisms to support the development of NETs business cases in relevant sectors.

Status: New, Boosted or Maintained compared to last CCP [date announced]:

New [CCPu 2020]

Progress on implementation since time of last report / CCPu:

New to the CCPu

Have any implementation Indicators / milestones been set for this policy? If so, most recent data for progress against these.:

Scottish Government response to UK Government Greenhouse Gas Removals consultation submitted in March 2021

Timeframe and expected next steps:

Engagement with UK Gov throughout 2021 on business case development

Outcome 2: CCUS: the continued development of CCUS technologies and systems is prioritised to ensure these can be rolled out commercially and at scale by the late 2020s.

Policy:

Support the development of NETS technologies within Scotland.

Status: New, Boosted or Maintained compared to last CCP [date announced]:

New [CCPu 2020]

Progress on implementation since time of last report / CCPu:

New to the CCPu

Have any implementation Indicators / milestones been set for this policy? If so, most recent data for progress against these.:

NETs feasibility study in 2021.

Funding for NETs will be available via the EETF from 2022

Timeframe and expected next steps:

NETs feasibility study in 2021.

Funding for NETs will be available via the EETF from 2022

Policy:

Support the inclusion of NETS in the development of strategic, industry lead pathways for CCUS infrastructure in Scotland.

Status: New, Boosted or Maintained compared to last CCP [date announced]:

New [CCPu 2020]

Progress on implementation since time of last report / CCPu:

New to the CCPu

Have any implementation Indicators / milestones been set for this policy? If so, most recent data for progress against these.:

Completion of the industry led Scotland's Net Zero Roadmap (SNZR) and Scotland Net Zero Infrastructure (SNZI) projects in 2022. These projects set pathways for industrial decarbonisation and the infrastructure to deliver this.

Timeframe and expected next steps:

SNZR and SNZI expected to conclude in 2022

Policy:

Funding through the Scottish Industrial Energy Transformation Fund to consider the development of NETs demonstrators

Status: New, Boosted or Maintained compared to last CCP [date announced]:

New [CCPu 2020]

Progress on implementation since time of last report / CCPu:

NETs demonstrators to be considered for inclusion in subsequent calls of SIETF.

Have any implementation Indicators / milestones been set for this policy? If so, most recent data for progress against these.:

As for SIETF

Timeframe and expected next steps:

As for SIETF

Policy:

Provide a focus on integrating NETS projects with CCS infrastructure through the Emerging Technologies Fund.

Status: New, Boosted or Maintained compared to last CCP [date announced]:

New [CCPu 2020]

Progress on implementation since time of last report / CCPu:

New to the CCPu

Have any implementation Indicators / milestones been set for this policy? If so, most recent data for progress against these.:

Funding for NETs and CCS will be available via the EETF from 2022

Timeframe and expected next steps:

Funding for NETs and CCS will be available via the EETF from 2022

Outcome 3: Bioenergy: a cross-sectoral approach for the appropriate and sustainable use of biomass in energy applications is agreed and implemented (taking into account competing land and feedstock uses).

Policy:

We will publish a Bioenergy Update in early 2021, laying out our current position and understanding of the role of bioenergy in the energy system and setting out in more detail how we will move forward.

Status: New, Boosted or Maintained compared to last CCP [date announced]:

New [CCPu 2020]

Progress on implementation since time of last report / CCPu:

We published the Bioenergy Update on 24 March 2021

Have any implementation Indicators / milestones been set for this policy? If so, most recent data for progress against these.:

We published the Bioenergy Update on 24 March 2021

Timeframe and expected next steps:

We published the Bioenergy Update on 24 March 2021

Policy:

In 2021, building on the Bioenergy Update, we will establish a cross sectoral Bioenergy Expert Working Group to consider and identify the most appropriate and sustainable use for bioenergy resources across Scotland. It will also assess the volume of bioenergy resources that we can grow or produce within Scotland, and confirm the level of import that we believe is compatible with a sustainable global trade in bioenergy

Status: New, Boosted or Maintained compared to last CCP [date announced]:

New [CCPu 2020]

Progress on implementation since time of last report / CCPu:

We have established an internal Working Group.

We will set up an Expert Panel to support to Working Group during the summer of 2021. This group will work for 18-24 months to make recommendations for the Bioenergy Action Plan, expected to be published in 2023.

Have any implementation Indicators / milestones been set for this policy? If so, most recent data for progress against these.:

Initial meeting of the Working Group in March 2021.

Expert Panel to be established over summer of 2021.

Timeframe and expected next steps:

Ongoing meetings of the working group and expert panel over the next 24 months. Gathering evidence and sharing knowledge across multiple sectors.

Engagement with UK Government in the lead up to their Biomass Strategy due to be published by 2022.

Policy:

By 2023, in time to inform the next Climate Change Plan, we will publish a Bioenergy Action Plan, incorporating the learning developed by the expert working group and our understanding of the options to use Bioenergy in both NETs and other applications.

Status: New, Boosted or Maintained compared to last CCP [date announced]:

Boosted [CCPu 2020]

Progress on implementation since time of last report / CCPu:

See above

Have any implementation Indicators / milestones been set for this policy? If so, most recent data for progress against these.:

See above

Timeframe and expected next steps:

To be developed from the findings and recommendations from the Working Group and Expert Panel (see above).