Draft Energy Strategy and Just Transition Plan

Annex F - Monitoring and evaluation

Monitoring and evaluation of the Energy Strategy and Just Transition Plan will align with the principles and outcomes of our National Performance Framework. During the development of the final Strategy and Plan we will develop a monitoring framework which takes into account our National Performance Framework, outputs from our impact assessments, the wider just transition monitoring framework, activities of our Energy Transition Taskforce and the Climate Change Plan Monitoring and Evaluation Framework.

Climate Change Plan monitoring and evaluation framework

This draft Strategy and Plan has been developed with consideration to the next economy-wide Climate Change Plan, a draft of which will be laid in Parliament in late 2023. The next Climate Change Plan will include assessments of costs and benefits of policies, and be accompanied by a thorough monitoring and evaluation framework, which will support the monitoring and evaluation of the final Strategy and Plan policies.

Impact assessment

In line with the principles of the Just Transition, assessment of the impact of this strategy is an important part of its development. Alongside consultation, and in response to our statutory obligations, we are working with key stakeholders to develop a series of impact assessments. These are evidence–based assessments of the economic, social and environmental effects of policy. These will be reflected in the actions that we take and include:

• Equalities Impact Assessment (EQIA)
• Island Communities impact assessment (ICIA)
• Fairer Scotland Duty (FSD)
• Child Rights and Wellbeing Impact Assessment (CRWIA)
• Business and Regulatory Assessment (BRIA)
• Strategic Environmental Assessment (SEA) - findings and consultation responses received will inform the finalised Strategy and Plan

The Scottish Government is required to undertake relevant statutory and other impact assessments, including a Strategic Environmental Assessment (SEA) and Business and Regulatory Impact Assessment (BRIA), prior to policy finalisation. The preferred policy position on onshore conventional oil and gas is being included in the impact assessments of the wider Energy Strategy and Just Transition Plan, and the finalised policy position will be confirmed on conclusion of this process.

Monitoring and reporting of Just Transition Plans

Through ClimateXChange, we have research to inform a monitoring and evaluation framework for a just transition in Scotland, incorporating an evidence assessment of just transition monitoring internationally. In light of the Just Transition Commission's remit to advise on monitoring and evaluation progress towards achieving a just transition in Scotland, the Commission has been involved in this research from the beginning and will incorporate its advice at key moments. We will engage with stakeholders to build on the findings of this research in early 2023 and develop a framework that reflects the Just Transition Commission's recommendations around effective engagement on monitoring progress. The overarching Just Transition Monitoring and Evaluation Framework will inform further development of the Draft Monitoring and Evaluation Plan for this Strategy and Plan.

Draft Just Transition Outcomes for the Energy Sector

The following table sets out the draft outcomes for the Strategy and Plan under the vision. We have distilled these into four broad themes: Jobs, Skills and Economic Opportunities; Communities, People and Equity; and Adaptation, Biodiversity and the Environment. We are inviting views on these outcomes through this consultation.

Draft Outcomes

Jobs, Skills and Economic Opportunities

• More jobs – The transition to net zero has resulted in net positive employment in the energy economy.
• Better jobs – The jobs created in the net zero energy economy are good, meaningful, high value and sustainable jobs, underpinned by a commitment to collective bargaining and ensuring workers have the ability to shape their place of work.
• Access to jobs – People have the skills to make meaningful choices about jobs in the energy sector and employers have access to a skilled workforce. These jobs further the diversification of the workforce and young people of all backgrounds aspire to them. People can access jobs in their area and communities.
• Renewables are a critical part of Scotland's economy – The renewable energy sector is a valuable and growing part of Scotland's wider economy in terms of gross value added (GVA), trade, supply chains, investment and prosperous businesses. ​Fossil fuel companies' operations in Scotland have successfully diversified and transitioned to compete and grow the net zero economy.
• A continuously innovative and competitive energy sector – The net zero energy economy is innovative and competitive in domestic and international markets, and has capitalised on the opportunities of growing and creating markets to develop intellectual property, supply chains, and exports.

Communities and Places

• Maximised energy production and community ownership – Communities have been supported to maximise their energy production potential, which will vary by geography, including increasing the number of community owned energy assets, supporting their energy security and energy affordability.
• Community empowerment – Communities have been empowered to shape their energy use, the infrastructure they host and to maximise the benefit they receive from that.
• Local content and job creation – Local content, local job creation and wider community benefit has been increased in major energy infrastructure projects, such as Scotwind and the development of larger wind and hydrogen projects.
• Supporting regions and communities most at risk – Recognising that the energy transition will not impact all communities equally, particular support and provision, such as the North East and Moray Just Transition Fund and the Energy Transition Fund, has supported the transition of those regions and communities most at risk.

People and Equity

• Affordable energy that reduces poverty and furthers equity – People have access to energy efficient housing, and affordable clean energy without sacrificing other basic needs (such as food). Actions to reduce fuel poverty and child poverty were aligned to ensure both statutory targets were met. People with additional energy needs, such as those experiencing disability, have been supported with energy costs.
• Access to transport – People and places have access to the energy needed for transport regardless of location and socioeconomic background
• Fair distribution of costs – The costs of the energy transition have not disproportionally been borne by vulnerable households.
• Improved health outcomes – The energy transition has improved health outcomes, including indoor and outdoor air quality.

Adaptation, Biodiversity and Environment

• Adaptation and resilience – Power assets and the power system have reduced vulnerability to the impacts of climate change, including storminess, higher temperatures and flooding, and the most vulnerable people are identified and supported during and after instances of power failure to ensure a reliable and affordable power supply for all in a net zero economy.
• Environmental protection and restoration – The energy transition supports Scotland's ambitions for restoring nature and biodiversity - including by carefully managing and avoiding potential negative impacts in Scotland and overseas - as part of our joined up approach to tackling the climate and nature crises.
• Natural capital – Our net zero energy system helps to restore and rebuild Scotland's natural capital.
• Access to the natural environment – People are consulted and can influence decisions around energy and their natural environment and have access to nature.