Green Ports Delivering Freeports for Scotland: Applicant Prospectus (DRAFT)

Section 3. Delivery requirements

3.1. Contribution to decarbonisation and environmental impact

Driving the decarbonisation agenda

3.1.1. Green ports have great potential to contribute towards the Scottish Government's decarbonisation agenda and net zero ambition. The Scottish and UK Governments are supporting the demonstration and deployment of new technologies, including emerging renewable and low-carbon solutions, as part of measures to create an innovative environment (see Section X.X). In addition, there remain opportunities for green ports to align with wider decarbonisation and Green Recovery interventions, including the Scottish Government's funds for Low Carbon, Emerging Energy Technologies, and Vacant and Derelict Land. As part of the assessment process, we will ask applicants to outline how their sustainable green port ambitions support decarbonisation and how they aim to contribute to Scotland's target to reach net zero-emissions by 2045 or earlier. Proposals could include:

a. Making sure that greenhouse gas emissions of on-land freight distribution are minimised.

b. Making sure that vessels using the port operate in a low-carbon manner (e.g. reducing use of fossil fuels).

c. Ensuring any construction work is sustainable and low-carbon.

d. Reduction in use of carbon-intensive energy within the green port and/or transition towards renewable or low-carbon energy use.

e. If applicable, increasing the use of technologies such as carbon capture and storage and renewable or low-carbon hydrogen.

Minimising environmental impact and other considerations

3.1.2. The Scottish and UK Governments are committed to ensuring green ports can be exemplars for both safety and security while driving green economic growth and investment in their areas. Any Scottish green port model will ensure that the Scottish and UK Governments' high standards on the environment will not be compromised. Green port applications must outline how their proposals will ensure compliance with all applicable environmental regulations and standards.

a. Green port applicants will be required to demonstrate how they will ensure compliance with applicable regulations as they pertain to air and water quality, the management of waste, the treatment and handling of chemicals, and any additional assessment and mitigation of impacts on protected sites and species.

b. It is essential that green ports are bio-secure and ensure robust adherence to sanitary and phytosanitary (SPS) standards. The Scottish Government sets policy and enforces controls and restrictions on the import and movement of animals and animal products, certain plants, plant pests and other materials such as soil into Scotland. The Scottish Government will provide future operators with guidance on adherence to SPS standards and the role of a Border Control Post for the performance of controls to ensure the protection of public, animal and plant health. Green port applications will be assessed by the Scottish Government to assure proposals are sufficient for the port to act as a Border Control Post in cases where such facilities are required.

c. Successful applications must carry out an Environmental Impact Assessment (EIA) before planned development can proceed, if required to do so.

3.1.3. The Scottish and UK Governments welcome applications which voluntarily demonstrate environmental benefits beyond regulatory baselines. This could include the provision of net gains for biodiversity, creating new or improved green spaces for people and wildlife, tree planting, or furthering other objectives that meet local needs. It may also include adopting working practices which support environmental improvements, such as home working and other flexible arrangements, and optimising technology to reduce the carbon footprint in the workplace.

3.1.4. Successful applicants will be expected to conduct an assessment of the environmental impact of their proposals as part of the Business Case process, before any public funds or tax measures are authorised. Successful applications will also be asked to demonstrate how resilience to future climate change has been considered, with reference to the latest supplementary guidance to the Green Book on 'Accounting for the Effects of Climate Change', and the Scottish Government's 'Delivering sustainable flood risk management' guidance and 'Guidance to support SEPA and the responsible authorities: Options appraisal for flood risk management'.

3.2. Preventing illicit activity

These reserved matters are subject to the approval of UK Government. The Scottish Government takes this issue very seriously and will continue to work with the UK Government to ensure the highest standards are met as successful green port bids are approved and developed through to operation.

See the Freeport Bidding Prospectus for England for details.

3.3. Equalities impact

3.3.1. When formulating a policy proposal, the Scottish and UK Governments are required to have due regard to the Public Sector Equality Duty (PSED) as laid out in the Equality Act 2010, Section 149. The duty requires public bodies to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations between people with different protected characteristics when carrying out their activities. A Fairer Scotland Impact Assessment (EA 2010 Section 1) is also be required, which sets out how the proposals can reduce inequalities of outcome caused by socio- economic disadvantage.

3.3.2. These impact assessments should focus on how the proposals will advance equality of opportunity for groups who are currently underrepresented in the envisaged green port industries and how people affected by socio economic disadvantage can benefit. Applicants should set out the likely impact on these groups - both positive and negative – and should set out how the proposals can contribute to greater community prosperity particularly with reference to wages.

3.4. Monitoring and evaluation

3.4.1. Rigorous monitoring and evaluation will be key to the success of green ports.

3.4.2. Green ports will need to collect data on reliefs and their realised outcomes, including monitoring the effectiveness of tax and the adoption of Fair Work First criteria and other conditionality measures. Applicants will need to provide details on their plan for collecting this data. This should include a point of contact, resourcing and funding to collect data in green ports.

3.4.3. The Scottish and UK Government's focus is to encourage business investment and create new economic activity in green ports ensuring green ports are exemplar, rather than displacement of local economic activity from deprived areas. Applicants will be asked to demonstrate how they will collect data on this local displacement. Applicants will be encouraged to share their plans for monitoring and mitigating displacement of local economic activity from deprived areas. Proposals should also set out how the impact on equality and socio-economic inequality as set out in section X.X will be monitored and reported.

Scottish Government contacts

Scottish Government
St. Andrew's House
Regent Road
Edinburgh
EH1 3DG
Tel: 0300 244 4000
Email: ceu@gov.scot