Climate Change Plan: monitoring reports 2022

Chapter 4: Industry

Part A - Overview of sector

The 2019 annual emissions envelope published in the 2018 Climate Change Plan^[10] for this sector was for 10.2 MtCO₂e, whereas the outturn emission statistics for this year (published in June 2021) show a position of 10.8 MtCO₂e. On the basis of comparing these figures, the sector was outside its envelope in 2019.

The updated Plan sets out the following two policy outcomes for the sector, the indicators for which are summarised below:

Scotland’s industrial sector will be on a managed pathway to decarbonisation, whilst remaining highly competitive and on a sustainable growth trajectory	On Track	Off Track	Too Early to Say
Industrial energy productivity (£GVAm per GWh)	x
Industrial emissions intensity (tCO2e per £GVAm)	x

Technologies critical to further industrial emissions reduction (such as carbon capture and storage and production and injection of hydrogen into the gas grid) are operating at commercial scale by 2030.	On Track	Off Track	Too Early to Say
% of Scottish gas demand accounted for by biomethane and hydrogen blended into the gas network	x

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 (ONS): 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.

This year we have also included ONS experimental statistics that look at green activity in the economy. These stats reflect green activities in both LCREE and non-LCREE sectors.

Over the next few years we will work to develop a meaningful set of success outcomes and indicators aimed at tracking the impacts of our policies on a just transition to net zero.

Sector commentary on progress

There has been a considerable decline in Scotland’s industrial emissions since 1990, falling by almost 50% (10.3 MtCO₂e) between 1990 and 2019. Research estimates that emissions from Scotland’s large industrial sites could feasibly reduce by 80% or more by 2045, while maintaining output.

At present, around 30% of total Scottish GHG emissions are generated by a diverse range of industrial sub-sectors, predominantly manufacturing, as well as mining and construction. Our Climate Change Plan Update estimates that by 2032 industrial emissions need to decrease by 43% on 2018 levels to meet Scotland’s Climate Change targets, whilst ensuring Scottish industry remains globally sustainable and competitive.

However, due to the balance of reserved and devolved responsibilities, to some extent progress is often dependent on UK Government and/or international policy and markets. For example, UK Government decision-making on where to focus its support to develop carbon capture and storage infrastructure, and the lack of clarity this is delivering for Scottish projects, is beginning to negatively impact on investor confidence for Scottish decarbonisation projects.

There remains a significant risk of carbon leakage: if the Scottish industrial sector were to have a less supportive policy environment for decarbonisation than their competitors in the rest of the UK, Europe and beyond, they could be faced with higher costs as a result of carbon pricing mechanisms which could push production, and therefore jobs, overseas. From 2019 estimates, there are 93,000 employees in industrial sectors in Scotland at risk of carbon leakage. The UK Emissions Trading Scheme (UK ETS) is currently the key carbon pricing tool available to us, with the Scottish Government jointly responsible for the scheme alongside the UK Government and the other devolved authorities. Continued work to ensure a level regulatory playing field is needed.

Developments in monitoring arrangements since last report

No changes to indicators.

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 (Milestone/Targets)

Year-to-year change

Most Recent Data: 2020

Data Source(s): Office of National Statistics: Low Carbon Renewable Energy Economy (LCREE), Time spent of Green Tasks

Assessment: Too early to Say

• In 2020, the Scottish low carbon renewable energy (LCREE) sectors were estimated to directly provide 20,500 jobs, down from 21,700 in 2019 and from a high of 24,000 in 2016.
• The estimates of LCREE are based on a relatively small sample of businesses and hence are subject to wide confidence intervals. LCREE employment in Scotland in 2020 is similar to previous years and the difference is not statistically higher or lower than any previous year.

Industry graph 1

Source: Scottish Government presentation of ONS stats

• The ONS also released experimental statistics on a wider perspective of green activity in the economy with their time spent on green tasks release. These stats reflect green activities in both LCREE and non-LCREE sectors.
• This release showed that in 2019 Scotland achieved an all-time high of hours spent on green tasks and proportion of workers doing green tasks, including workers who spend more than 20% of their time on green tasks.
• The proportion of workers doing green tasks in Scotland was 36% in 2019, up from 23.8% in 2004. Workers who have spent more than 20% of their time doing green tasks was 14%, up from 9% in 2004.
• The proportion of overall hours spend doing green tasks in Scotland was 7%, up from 4.9% in 2004.

Industry graph 2

Source: Scottish Government presentation of ONS stats

Policy Outcome

1

Indicator

Industrial energy productivity (£GVAm per GWh)

On-Track Assessment (Milestones/ Targets)

Progress to target [Increase 30% by 2032]^[11]

Most recent data: 2019

Data source(s): BEIS sub-national energy consumption statistics, BEIS Energy Consumption in the UK statistics, Scottish Government Quarterly National Accounts Sectoral breakdown – unpublished.

Assessment: On track – however, it should be noted that there is a high level of uncertainty with this assessment rating. Fundamental decisions on the Scottish Carbon Capture Utilisation and Storage (CCUS) Cluster status and UK ETS could have a material impact on the assessment of this indicator.

Commentary:

• Industrial GVA comprises the manufacturing, construction and mining sectors.
• Industrial energy productivity is 7.8% above the baseline year 2015.
• Industrial energy productivity in Scotland (the GVA obtained through each GWh of energy used in the industrial sector) grew steadily, by over 55%, from 2005-2015, followed by a 6% decline over the next two years, and an uptick of 11.8% over the two most recent years 2018-19.
• There has been a strong (7.8%) rise in productivity from the 2015 baseline to 2018.
• This compares to 2018 where the rise on the 2015 baseline was 1.8%.
• Improvements on this indicator are likely to be stepped, or lumpy, rather than gradual year-year changes, as success depends on substantial process changes at a small number of large sites. We’ll continue to review the suitability of the indicators used to reflect success in the sector and refine these as needed
• Industrial GVA fell slightly (0.7%) in 2019 from 2018. Industrial energy consumption has fallen 30% from 2005-2019.
• Industrial energy consumption fell by 6.2% from 2018 to 2019. This has contributed to the upward trend in GVA per GWh.

Policy Outcome

1

Indicator

Industrial emissions intensity (tCO₂e per £GVAm)

On-Track Assessment (Milestones/ Targets)

Progress to target [Reduce 30% by 2032]^[12]

Most recent data: 2019

Data source(s): Scottish Government Greenhouse Gas Emissions publication, Scottish Government Quarterly National Accounts

Assessment: On track – however, it should be noted that there is a high level of uncertainty with this assessment rating. Fundamental decisions on the Scottish CCUS Cluster status and UK ETS could have a material impact on the assessment of this indicator.

Commentary:

• Industrial emissions intensity in Scotland (the volume of emissions produced through each £1m of GVA in the industrial sector) fell by over 36% 2005-2015, rose 8% to 2017, decreased 3.6% to 2018, and fell a further 7.5% to 2019.
• This puts the total decrease from the 2015 baseline at 3.7%.
• Improvements on this indicator are also likely to be stepped, or lumpy, rather than gradual year-year changes, as success depends on substantial process changes at a small number of large sites. We’ll continue to review the suitability of the indicators used to reflect success in the sector and refine these as needed
• Total industrial emissions fell by 30.8% between 2005 and 2019, this is reassuring given 2017-2018 saw a rise in industrial emissions.
• Compared to the 2015 baseline year Industrial emissions intensity has fallen 3.7%. However, as discussed above due to the nature of decarbonisation in a number of large sites we expect changes to be stepped.

Policy Outcome

2

Indicator

% of Scottish gas demand accounted for by biomethane and hydrogen blended into the gas network

On-Track Assessment (Milestones/ Targets)

Based on trend

Most recent data: 2021

Data source(s): SGN

Assessment: On track

Commentary:

• 1.7% Scottish gas demand accounted for by biomethane blended into the gas grid in 2021
• Although moderate, this growth in biomethane levels has contributed to a lower emissions intensity of the gas grid.
• There was 126 GWh of biomethane injected into the SGN in 2015 and 802 GWh in 202, a 536% increase. So despite a 2.6% increase in Scottish gas consumption from 2015 to 2021 the percentage of biomethane in the gas network increased from 0.3% to 1.7%.

Part C - Information on implementation of individual policies

Outcome 1: Scotland’s Industrial sector will be on a managed pathway to decarbonisation, whilst remaining highly competitive and on a sustainable growth trajectory.

Policy

Emissions Trading Scheme (ETS): following EU Exit we will work with UK Government and other devolved administrations on maintaining carbon pricing that is at least as ambitious as the EU ETS. The Scottish Government’s preference is to establish a UK ETS will have an interim cap 5% tighter than the EU ETS, and will be reviewed for consistency with Net Zero in 2021.

Date announced

June 2020

Progress on implementation since time of last report / CCPu

The UK ETS, established jointly by Scottish Ministers with the UK Government and the other devolved administrations, became operational on 1 January 2021. It currently mirrors the EU ETS to provide a smooth transition for the new market, but with clear commitment to review it for consistency with net zero.

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

The policy was implemented on 1 January 2021.

There are no specific indicators in the CCPU.

The first data from participants will not be available until Q2 2022.

Timeframe and expected next steps?

We have publically committed to consult on this within 9 months of the CCC’s sixth Carbon Budget advice (so Sept 2021). And implement and changes by Jan 2023 if possible, but Jan 2024 at the latest.

Policy

Deliver an Energy Transition Fund (ETF) to provide support for a sustainable, secure and inclusive energy transition in the North-East.

Date announced

June 2020

Progress on implementation since time of last report / CCPu

Project delivery underway for Energy Transition Zone, the Global Underwater Hub, the Net Zero Technology Transfer Partnership and Aberdeen Hydrogen Hub

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

The overall ETF timescales is to invest £75m over a five year timescale to 2024/5.

Timeframe and expected next steps?

The overall ETF timescales is to invest £75m over a five year timescale to 2024/5.

Policy

Establish and deliver a Scottish Industrial Energy Transformation Fund ( SIETF) – to support the decarbonisation of industrial manufacturing through a green economic recovery.

Date announced

June 2020

Progress on implementation since time of last report / CCPu

8 businesses offered received grants in the first application window. Many of these projects are at procurement stages but some have progressed to installation.

A second application window closed in December 2021. Due diligence is underway for around 15 deployment or study projects.

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

Estimates of annual cumulative carbon savings resultant from co-investment from SIETF will be annually reviewed. However actual savings are unlikely to evidence until 2024 after significant energy efficiency or decarbonisation deployments are operational. We will monitor number and value of projects supported, and track projected emissions and energy productivity savings

Timeframe and expected next steps?

A third application window will open during Q3 2022.

Policy

Making Scotland’s Future: multi-faceted programme will boost manufacturing productivity, innovation, and competitiveness, supporting manufacturing businesses to make the transition to net zero and realise the opportunities of a low carbon economy.

Date announced

December 2020

Progress on implementation since time of last report / CCPu

Final version of Manufacturing Recovery Plan (MRP) published on 3 June 2021.

A range of actions in the MRP delivered successfully in broader terms and others in review for next steps in the forward programme for Making Scotland’s Future.

Specific to the low carbon theme and the CCPu, partners established a CivTech 6.0 Challenge which has successfully entered its pre-commercialisation agreement (PCA) with one start-up company – iSumio – to develop and deliver a technological solution to helping manufacturers decarbonise. £605k funding approved via the Low Carbon Manufacturing Challenge Fund (LCMCF) to support the PCA. As with any CivTech Challenge, projects supported can be considered highly innovative and, therefore, there is no guarantee of success until the project is fully delivered.

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

In relation to the CivTech Challenge, six milestones have been established to manage the one year project (milestone zero to milestone five). Each of these have a set of contractually agreed measures that require to be met prior to the approval of each payment associated with that respective milestone.

To date, the project has successfully completed and passed milestones zero, one and two.

Timeframe and expected next steps?

Working towards milestone three expected for completion by the end of June 2022. Milestones four and five have been set for end Sept and Dec 2022 respectively.

Beta product expected for launch by end Dec 2022.

The Making Scotland’s Future partnership will continue to work with iSumio to maximise the opportunity for success.

Policy

Low Carbon Manufacturing Challenge Fund: to support innovation in low carbon technology, products and processes. Will be delivered as a R&D scheme with focus on implementing product circularity through design, reducing product/process waste and reducing emissions through product lifecycle

Date announced

2020-2021 PFG

Progress on implementation since time of last report / CCPu

Confirmation of Fund announced in PfG 2020. Working with Scottish Enterprise to develop and deliver the Fund.

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

Fund recently approved by the Scottish Enterprise Board. The first tranche of capital funding in FY 21/22 has been used to support CivTech 6.0 Challenge, as a part of the Manufacturing Recovery Plan, to help manufacturers to more effectively track their emissions and to decarbonise. This complements the wider aims of the LCMCF.

Timeframe and expected next steps?

The LCMCF was launched as a R&D fund in May 2022. SE’s processes to deliver and manage the Fund are being finalised.

Working to agree and establish plans to launch Fund.

Policy

The Renewable Heat Incentive ( RHI) is a GB-wide scheme created by the UK Government (with the agreement of the Scottish Government).

Date announced

August 2020

Progress on implementation since time of last report / CCPu

Closed on 31 March 2021, with the regulations for its closure laid on 25 January 2021, though qualified extension for both Tariff Guarantee and non-Tariff Guarantee applications have been implemented.

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?

N/A

Policy

Scottish Industrial Decarbonisation Partnership ( SIDP): Scottish Government -convened cross-sector energy-intensive industrial ( EII) stakeholder forum with representatives from manufacturing sites. Initial objectives: bring together other initiatives; build a shared narrative between government/ industry on decarbonisation; and disseminate best-practice.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Developing the proposal’s mission, objectives, structure and governance. Then consider options in context of other initiatives, and consider breadth of membership.

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

Too early to set indicators or milestones

Timeframe and expected next steps?

Launch by end of 2022

Policy

Deliver a Net Zero Transition Managers Programme to embed Managers in organisations tasked with identifying, quantifying and recommending decarbonisation opportunities for the business.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Consultancy support has been procured and targeted external engagement is 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?

Design and delivery of a pilot programme in 2022.

Policy

Establish a Grangemouth Future Industry Board ( GFIB) – forum to coordinate public sector initiatives on growing economic activity at the Grangemouth industrial cluster, whilst supporting its transition to our low-carbon future.

Date announced

2020-2021 PfG

Progress on implementation since time of last report / CCPu

GFIB has been established.

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?

The Board will meet every 2 months to discuss specific areas of interest for the board and work together to deliver on priorities (February 2021-22).

Policy

Develop policy on providing market-benefit for Scottish industries that invest to decarbonise production.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Research commissioned to explore demand-side policy options completed by Frontier Economics and published on the ClimateXChange website at the end of November 2021

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

It includes a measurement and benchmarking case study on cement. Final report can be accessed here Improving the market benefits for lower-carbon industrial production in Scotland (climatexchange.org.uk)

Timeframe and expected next steps?

N/A

Policy

Green Jobs Fund, to help businesses create new, green jobs, working with enterprise agencies to fund businesses that provide sustainable or low carbon products and services to help them develop, grow and create jobs. Further funding will help to ensure that businesses and supply chains across Scotland can capitalise on our investment in low carbon infrastructure such as the decarbonisation of heating and green transport.

Date announced

2020-2021 PfG

Progress on implementation since time of last report / CCPu

Year 1 funding has been allocated and projects are underway. With over 50 projects being approved for funding, creating and safeguarding more than 850 FTE jobs.

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

The overall Green Jobs Fund timescales is to invest £100m over a five year timescale to 2025/26.

Timeframe and expected next steps?

N/A

Policy

Seizing the economic opportunity, we will work across government, enterprise agencies and the innovation system to identify strengths that can be built on as part of the decarbonisation journey, for example on The Clyde Mission and continued support for the Michelin Scotland Innovation Parc ( MSIP).

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Re MSIP: The Net Zero Industrial Cluster Exchange (NICE) network was announced at COP26 by the Cabinet Secretary and CEO of Michelin. The NICE network will bring together a range of European partners to facilitate practical knowledge sharing between private companies, public authorities and other stakeholders in supporting the drive for industrial transformation undertaking decarbonisation towards net zero.

The MSIP Skills Academy will be a showcase establishment to the emerging needs of the sustainable mobility and renewable energy industries and support the creation of green jobs and skills in Scotland

Clyde Mission: Clyde Mission has undertaken extensive cross-sector engagement on areas of need and opportunity. A Strategy Group has been convened, comprising representatives from government agencies, local authorities and universities. Working-level Mission Groups are considering and making recommendations on potential opportunities for net zero and climate adaptation activities.

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

Re MSIP: A cross- policy workshop advertised the network and enabled further links to be established across a range of policy areas including Energy and Just Transition.

On 24 March, the Cabinet Secretary announced £2.1 million of funding for the Skills Academy at the Michelin Scotland Innovation Parc (MSIP).

Clyde Mission: Clyde Mission has committed to investing at least £25 million in heat decarbonisation along the Clyde over the current Parliamentary term. An independent study on climate adaptation pathways for the River Clyde has commenced – it is anticipated that this will help to inform the approach taken to decision making on adaptation to the risks of future tidal flooding.

Timeframe and expected next steps?

Re MSIP: The formal launch of the NICE network is planned for 10 June at Scotland House, Brussels.

Opening of the Skills Academy is scheduled for August 2022.

Clyde Mission: Further information on funding for heat decarbonisation activities is expected to be provided later in 2022.

Outcome 2: Technologies critical to further industrial emissions reduction (such as carbon capture and storage and production and injection of hydrogen into the gas grid) are operating at commercial scale by 2030

Policy

ACORN CCS Project: support the delivery of the CCS and Hydrogen capability at St. Fergus Gas Processing complex by 2025.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

In October 2021, UK Government failed to award the Scottish Cluster (led by the Acorn Project at St Fergus) Track 1 status in their CCUS cluster sequencing process. The Scottish Cluster was instead given “reserve status”.

In response:

• SG has called on UK Government to reverse its decision and grant the Scottish Cluster Track-1 status. The UK Government has been clear that it will not re-open its Track 1 selection decision.
• SG is continuing to engage with UK Government on how the Scottish Cluster’s planning and development can best be supported.
• SG has offered to provide funding of up to £80 million, from the Emerging Energy Technologies Fund, to support an accelerated timetable for the Scottish Cluster.

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

There are no specific indicators in the CCPU. However, it does note that “…Acorn CCS is anticipated to be operational by 2024 and is well placed to attract support from the UK Government’s £1 billion CCUS Infrastructure Fund” (3.4.35).

UK Government’s failure to award the Scottish Cluster Track-1 status will delay Acorn CCS’ ability to become operational.

Timeframe and expected next steps?

SG will continue to engage with UK Government on how the Scottish Cluster’s planning and development can best be supported.

Further clarity from UK Government on the Track-2 cluster sequencing process (anticipated in early 2022) will impact timeframes and next steps.

Policy

Establish and deliver a Carbon Capture and Utilisation (CCU) Challenge Fund.

Date announced

2020-2021 PfG

Progress on implementation since time of last report / CCPu

Fund launched in April 2022.

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

There are no specific indicators in the CCPU.

Timeframe and expected next steps?

The Fund launched in April 2022 and will fund projects for 2 years.

Policy

Emerging Energy Technologies Fund – to support the development of Hydrogen, CCUS and Negative emissions technologies.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

In development – First tranche due to launch in June 2022.

SG has offered to provide funding of up to £80 million, from the Emerging Energy Technologies Fund, to support an accelerated timetable for the Scottish Cluster.

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?

N/A

Policy

Carbon Capture Utilisation and Storage (CCUS): work closely with the UK Government to achieve commercial, policy and regulatory frameworks required to support CCUS at scale in the UK.”

Date announced

2020-2021

Progress on implementation since time of last report / CCPu

SG continued to engage with UK Government on the development of relevant frameworks (e.g., business models) required to support CCUS at scale in the UK.

The remaining £100m of the £180m EETF has been confirmed as a hydrogen investment programme.

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

There are no specific indicators in the CCPU.

Timeframe and expected next steps?

SG is continuing to engage with UK Government on the development of relevant frameworks, including how business models could effectively support the Scottish Cluster to continue its development.

The EETF- £10m Hydrogen Innovation Scheme will launch in June 2022

Policy

Forums for CCUS and Blue (low-carbon) Hydrogen: to bring together industry, academics and membership organisations to promote and attract investment in CCUS and Blue Hydrogen.

Date announced

NECCUS 2019

Progress on implementation since time of last report / CCPu

North East Carbon Capture, Utilisation and Storage Alliance (NECCUS) has become established as a major industry led membership forum and the Scottish Government has now delivered over £300,000 of grant funding to NECCUS between the 2019/20 and 2021/22 financial years.

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

SG has now delivered over £300,000 of grant funding to NECCUS between the 2019/20 and 2021/22 financial years.

Timeframe and expected next steps?

SG is now exploring the potential for further grant funding to support NECCUS in the 2022/23 financial year.

Policy

Evidence for CCUS and Blue Hydrogen: building the evidence base on impact of technology, regulatory and market barriers.

Date announced

PfG 2020/21

Progress on implementation since time of last report / CCPu

SG has commissioned and finalised a study with SE on the economic impacts of CCUS in Scotland.

SG has commissioned and finalised a study through ClimateXChange on developing a CO₂ utilisation economy.

SG has commissioned a study into the potential for CO₂ shipping in Scotland (ongoing).

A regulatory steering group has been convened to explore regulatory barriers. A draft CCUS regulatory report prepared by external legal consultants is now being reviewed.

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

There are no specific indicators in the CCPU.

Timeframe and expected next steps?

Further steps on regulatory barriers will be explored as part of the regulatory steering group.

Work is ongoing on the study into the potential for CO₂ shipping in Scotland.

Policy

Strategic development of Scotland’s hydrogen economy - This is a cross-portfolio proposal that will impact on the delivery of multiple outcomes.

Date announced

Hydrogen Assessment and Policy Statement 2020, draft Hydrogen Action Plan 2021

Progress on implementation since time of last report / CCPu

The finalised Hydrogen Action Plan requires cross-portfolio and its implementation cross-portfolio governance and delivery.

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?

Governance structures to support the implementation of the Hydrogen Action Plan and delivery of the EETF will be established.

Policy

Hydrogen Demonstration: to replicate and scale-up demonstration projects and the evidence base for hydrogen based technologies.

Date announced

Hydrogen Assessment and Policy Statement 2020, draft Hydrogen Action Plan 2021

Progress on implementation since time of last report / CCPu

The draft Hydrogen Action Plan set out that a £10m Scottish hydrogen innovation funding element of the EETF would be launched in 2022 as the first tranche of the £100m hydrogen funding programme, to support Scottish researchers and innovators to drive innovation that will support the realisation of Scotland’s 5GW by 2030 ambition. Hydrogen Demonstration forms a key part of the objectives for the scheme: Stream 1: Feasibility and Demonstration Stream 2: Test & Demonstration Facilities Stream 3: Scottish Participation in EU Funded Projects

Timeframe and expected next steps?

The EETF- £10m Hydrogen Innovation Scheme will launch in June 2022