Energy strategy: position statement

A Green Economic Recovery

Scotland is facing considerable challenges as we respond to the health and economic crises presented by the COVID-19 pandemic. As regards our economic recovery, although we remain aligned to the principles set out in our 2017 Energy Strategy, our objectives have been refocused to include delivery of a green economic recovery from the COVID-19 pandemic. This section therefore sets out our current work to support the energy sector and wider society in the transition to net zero underpinned by the key themes presented in the Programme for Government.

Skills and Jobs

Creating green jobs are at the heart of the Scottish Government's plans for a fair, resilient and green economic recovery. This year's Programme for Government set out a national mission to create:

• new jobs;
• good jobs; and
• green jobs.

The Climate Emergency Skills Action Plan, published alongside the Climate Change Plan update in December 2020 identifies energy as a key sector for future green jobs, including the just transition of those vulnerable to losing their jobs in the transition to net zero. The support we have provided for specific energy sectors in order to help maintain and create jobs is set out in the final section of this document on Support for Our Energy Sectors.

Action We Are Taking:

Our new Green Jobs Fund will invest £100 million to help businesses create new, green jobs. This includes making £50 million available to businesses who provide sustainable or low carbon products and services to help them develop, grow and create jobs. Our apprenticeship system and the National Transition Training Fund will help people to develop the skills required to move into sectors with the greatest potential for future growth and job opportunities.

The Climate Emergency Skills Action Plan set out short and long-term actions to help people to access green job opportunities.

Through the Climate Emergency Skills Action Plan we will establish a new Green Jobs Workforce Academy that will support existing employees, and those who are facing redundancy, to assess their existing skills and undertake the necessary upskilling and reskilling they need to secure green job opportunities as they emerge.

Supporting Local Economies

Along with creating jobs and helping our workforce to retrain and upskill, ensuring our local communities and economies reap the opportunities from a just transition to net zero is a priority for the Scottish Government.

Action We Are Taking:

We are taking a place based approach in our work to support Hydrogen projects in the North East. We hope that the Aberdeen Hydrogen Hub with its initial focus on hydrogen mobility projects in Aberdeen could, alongside other key projects, anchor the development of a place-based hydrogen industry in the North East and deliver a model which is replicable to support the development of hydrogen projects in other parts of Scotland.

We are continuing our work to support the Highlands and Islands economy through the £8.3 million of assistance provided by the Scottish Government through Highlands and Islands Enterprise (HIE) to support the development of the new East Quay at Nigg Energy Park. The investment will enable further investment at Nigg in manufacturing for offshore wind and also increase the amount of work staging and assembling offshore wind towers.

A further place-based approach can be found in our establishment of the Grangemouth Future Industry Board (GFIB) - in recognition of the economic strength of the cluster, and its role as Scotland's foremost concentration of industrial and manufacturing activity. GFIB will coordinate public sector initiatives to help futureproof this key industrial hub for net-zero, and help support a vibrant and sustainable future for the locality; one that can deliver a significant impact on Scotland's just transition to net zero.

Investment

Our Programme for Government set out the considerable investments we are making in low carbon infrastructure in areas such as the decarbonisation of heat and transport designed to bolster the supply chain, allow businesses to grow and support our citizens in the transition to net zero. Our ambitions for net zero present us with an opportunity to build long-term prosperity in Scotland based on new, net-zero investments, to maximise national and global opportunities.

The Scottish National Investment Bank was launched by the First Minister in November last year with a commitment of £2 billion funding over ten years. The bank has been tasked with driving a just transition to net zero emissions and promoting inclusive growth and innovation. It will help Scotland develop sustainable technology, services and industries, while investing in employment, housing, education and local regeneration.

At an international level, low carbon energy continues to be a priority in meeting our wider trade and investment opportunities. Our Trade Vision publication, published in January 2021, sets out our principles and values for the trading relationships we want Scotland to have in the future. It will also be used to influence the approach the UK Government takes in developing trade agreements with other countries and blocs while reflecting the Scottish Government's aim of a just transition to net zero.

Our recently published Inward Investment Plan and forthcoming Capital Investment Plan also underline the importance the Scottish Government attaches to the energy sector in achieving our international trade and investment opportunities.

Action We Are Taking:

We are investing to support businesses in Scotland's journey to net zero is through our £34 million Scottish Industrial Energy Transformation Fund (SIETF). The SIETF is designed to support manufacturing industries in their transition to a low carbon future and will enable match-funded co-investment to decarbonise processes, contributing to a more secure future.

Our new £180 million Emerging Energy Technologies Fund will support the development of the hydrogen economy, alongside development of CCUS and other Net Emissions Technologies (NETs).

On an international level, low carbon energy continues to be a priority in meeting our wider trade and investment opportunities. Our Trade Vision publication, published in January 2021, sets out our principles and our values for the trading relationships we want Scotland to have in the future. It will also be used to influence the approach the UK Government takes in developing trade agreements with other countries and blocs while reflecting the Scottish Government's aim of a just transition to net zero greenhouse gas emissions.

Our recently published Inward Investment Plan and forthcoming Capital Investment Plan also underline the importance the Scottish Government attaches to the energy sector in achieving our international trade and investment opportunities.