Grangemouth Industrial Cluster - draft Just Transition plan: consultation

Ministerial Foreword

For over a century, Grangemouth has played an important role in Scotland's economy, as a central base of industrial manufacturing. Over time, that industrial base has grown and diversified, becoming one of Scotland's largest manufacturing hubs. The cluster comprises multiple large operators focused on fuel production, port operations and logistics as well as chemicals and pharmaceuticals manufacturing, with a cohort of many smaller businesses co-located nearby. Grangemouth is synonymous with Scotland's long standing industrial heritage.

Many of the products made at Grangemouth are critical to the day-to-day functioning of the Scottish and UK economy. This, combined with the wealth of skills, knowledge, expertise, and critical infrastructure, makes Grangemouth crucial for Scotland's transition to net zero.

The Grangemouth industrial cluster also faces a series of challenges on this journey. Global market volatility impacting the cost of energy, combined with sector specific market conditions, make long-term commitments to low carbon manufacturing and refining challenging. Recent announcements, such as that at the Grangemouth Refinery, create a potentially uncertain future that has a real impact for businesses, workers, and communities. Grangemouth now faces a unique turning point, where making the right decisions, at the right time will be critical.

That is why the Scottish Government, alongside our partners on the Grangemouth Future Industry Board, have been working to develop a comprehensive plan that can support a sustainable, prosperous future for this critical area, embedding a Just Transition approach that bridges the technical and commercial actions required to support industrial decarbonisation and realising the potential of low-carbon economic opportunities, with wider place-based actions that will support both the existing and future workforce, as well as the community of Grangemouth, long into the future.

Scotland is a global leader in ensuring that Just Transition outcomes are at the heart of climate change planning. That is why we have been carefully developing this plan over the course of the last year – working to ensure that it is grounded in evidence and that all who should have a say in its design have the opportunity to do so.

This plan, alongside other sectoral Just Transition plans, continues to reinforce the approach that Scotland is taking to support the growth of a decarbonised economy in a way that improves equality outcomes and maximising the benefits for people, communities, and places of Scotland. Increasing fairness and equity is central to our vision for a Just Transition to net zero. Our approach to Grangemouth is no different and we will continue to do our utmost with current devolved powers.

In setting out our commitment to develop this plan, as an initial first step in supporting Grangemouth's Just Transition, we would also like to outline the steps the Scottish Government is taking today to support its delivery. This includes:

Our recently announced support package in response to the planned closure of the Grangemouth Refinery, which includes £20 million in additional joint funding from the Scottish and UK Governments that will supplement the Falkirk and Grangemouth Growth Deal

Support for the refinery workforce's future, providing immediate tailored career support that will help affected workers.

Our funding for Project Willow: Alongside the UK Government, we are working with the Grangemouth refinery business and its shareholders to assess viable options and understand the implications on transitioning the Grangemouth refinery site into a new low carbon fuels hub. This work is being developed in the context of national objectives for the energy and industrial sectors and in support of the Just Transition goals for the region.

Funding for a dedicated Community Engagement and Participation Manager: We have supported CVS Falkirk & District to establish a Community Participation and Engagement Programme in Grangemouth. This role is designed to strengthen community networks across Grangemouth in relation to the just transition and enhance the representation of local people in the decision-making process for Grangemouth's future.

Our work is uniquely supported by a bespoke and expanded delivery group in the form of the Grangemouth Future Industry Board. This group provides an evaluation and decision-making forum for both the Scottish and UK Governments, wider public sector, industry, workforce and community representatives – providing a mechanism that provides meaningful assurance of actions that are focused on delivery and co-design.

It is also clear that we cannot do this alone and welcome the collaboration of the UK Government to work with us on this journey to secure a long-term and sustainable future for Grangemouth.

Many of the policy levers needed to secure Grangemouth's future lie with Westminster, and as members of the Grangemouth Future Industry Board, we look forward to understanding in more detail the contribution of our UK counterparts as we take this work forward.

Finally, we would like to offer our sincere thanks to all of those who have played a role in shaping this pivotal document, which acts as the first iteration of our shared and lasting ambition to support the Grangemouth cluster in achieving a Just Transition to net zero.

Gillian Martin

Cabinet Secretary for Energy and Net Zero

Dr Alasdair Allan

Minister for Climate Action