Climate change - adaptation programme: progress report 2021

Chapter 3: Progress towards "our inclusive and sustainable economy being flexible, adaptable and responsive to the changing climate"

A green recovery for Scotland's economy from the impacts of COVID-19 is central to the Scottish Government's approach. As set out in the introduction, such a recovery must include building resilience to the impacts of climate change.

This chapter relates to progress towards SCCAP2 policies which aim to increase adaptive capacity for businesses directly using natural resources, such as farming and forestry, and for the wider economy, ensuring that businesses are prepared for the impacts of climate change and that new opportunities for innovation are harnessed.

A recent report by Scotland's Rural College (SRUC) found that in 2018, the natural economy contributed £29 billion to the Scottish economy. Ensuring that this economy is sustainable and resilient to the changing climate is vital to managing Scotland's natural resources and providing jobs and business opportunities. It is also important for adaptation and risk management itself. For example, the management and creation of woodland in Scotland is informed by decision support tools based on the latest scientific evidence, and target mapping that helps promote the use of tree species suited to future climate. This supports improvements to the long-term resilience of timber supply and helps ensure that woodlands provide wider environmental benefits such as contributing to natural flood management and enhancing biodiversity.

Good, green jobs will be central to Scotland's green recovery. A recent report by NatureScot suggests a huge opportunity for nature-based jobs to secure a green economic recovery and support the transition to net zero. The Scottish Government has announced a £100 million Green Jobs fund, investing capital in businesses, organisations and supply chains over the next five years to support new and increased opportunities for green job creation across Scotland. We have also committed to boosting youth employment opportunities in nature and land-based jobs by expanding apprenticeship and undergraduate schemes in public agencies, including Scottish Forestry, Forestry and Land Scotland and NatureScot.

Policies covering the marine economy can also be found in Chapter 6.

Examples of progress on policies in support of sub-outcome that "Scotland's businesses based on natural resources are informed and adaptable to climate change"

Farming for a Better Climate - This Scottish Government supported initiative continues to promote practical and cost effective climate change mitigation and adaptation measures to farmers and land managers, alongside real time findings from the Farming for a Better Climate Soil Regenerative Agriculture Group. Messages are promoted via a project webpage, social media accounts, a regular podcast and other press and promotional material. The farmer-led soil regenerative agriculture network continues to focus on positive actions that can be taken on Scottish farms to support, enhance and protect their soils. The group have trialled new approaches to allow them to improve production whilst delivering wider benefits such as building soil resilience, improving water retention, storing carbon and enhancing bio-diversity.

Integrating Trees Network - this jointly facilitated project between Scottish Forestry and the Scottish Government, is a farmer-led demonstrator network of farms, crofts and estates, hosting events and promoting the benefits to landowners of new woodland creation. Planting trees can help land-based businesses to adapt by providing shelter for livestock, habitat for wildlife, diversification opportunities for future income, and a contribution to flood prevention of flooding. Two introductory events have already taken place in March 2021, with further hosts and events to be announced summer 2021. It is hoped that on-site demonstration events will take place in 2022. An online community forum is also being developed to share information and experiences relating to woodland creation and tree planting.

Monitor Farm Scotland - In February 2020, the Scottish Government announced that a new Monitor Farm Legacy Project for 2020-21 would be introduced with an estimated budget of £100,000. This project will offer an evidence based evaluation of a past Monitor Farm Programme but would also include climate change and environmental factors not previously addressed. The project will act as a transition in advance of a new 2021-24 Monitor Farm Programme with the groups involved also acting as sounding boards for future delivery. On a practical level this will involve six legacy farms each meeting four times over the course of the year and delivering associated Integrated Land Management Plans, Carbon Audits, Environmental Audits and case studies.

Farm Advisory Service - Scotland's existing Farm Advisory Service has been extended until the end of 2021, after which a new contract will be procured. The Advisory Service has developed a mature concept which is well-placed to provide advice aligned to priorities on climate change adaptation, as well as emissions reduction and biodiversity.

Farming with Nature - This Soil Association Scotland led project completed in 2020 and has encouraged and enabled more of Scotland's farmers to adopt nature-friendly farming and land management practices which are productive and profitable. Over 590 farmers and crofters were given advice and support and the results overall present a positive picture in terms of motivation and intention to adopt sustainable practices and change in attitudes towards sustainable practices; especially in relation to farming and biodiversity, climate change and low input farming. The final report was published in August 2020.

Resilience of our natural resources: timber in construction - Subject to durability requirements, wood fibre can substitute for non-renewable comparable construction materials, such as concrete and steel, to achieve substantial benefits when accounting for whole-life carbon. Over the last year, Scottish Forestry has continued to promote the use of wood fibre in construction and supported research and innovation in this area. For example, Scottish Forestry has partnered with Edinburgh Napier University and the Construction Scotland Innovation Centre to obtain a better understanding of the timber properties of domestically grown timber and the use of Scottish timber in engineered timber products and wood fibre insulation, as well as working to improving the design software used by architects so that designing houses made from domestic timber becomes easier.

Youth engagement in Scotland's rural economy - This year, Scottish Forestry worked with Young Scot to develop and deliver a campaign designed by young people, for young people, to raise the profile of forestry in delivering environmental, social and economic benefits plus the associated opportunities for employment. As a result, Young Scot are currently developing an online resource, as well as TikTok and Instagram videos, which will be launched in the summer. These resources will provide young people with information on a range of forestry-related subjects, including trees and climate change.

Examples of progress on policies in support of sub-outcome that "Scotland's economy is innovative and harnesses the opportunities created as a result of climate change"

Making Things Last: A Circular Economy Strategy for Scotland - The Strategy focusses on innovation, seeking new ways to reduce consumption of natural resources and keep materials flowing through the economy at high value for as long as possible. The opportunities from a more circular economy are fundamental to tackling the greenhouse gas emissions that arise from the consumption of goods, thereby also preserving natural capital and building a more resilient economy. Underpinning the circular economy is the idea of sustainable resource management, through reuse, repair and remanufacturing. This extends to both natural and manufactured materials. Reducing consumption of natural materials can help to reduce pressure on the natural environment, leaving increased space and capacity for it to adapt.

Digital solutions to climate change challenges -The Scottish Government's CivTech programme encourages business and innovators to develop innovative technical solutions. The 2020 Accelerator (CivTech 5) prioritised the Scottish Government environmental agenda and culminated in a Demo Week in February 2021. Examples of challenges explored as part of CivTech 5 include a collaboration with Forestry and Land Scotland to improve the management of timber forests timber to improve sustainability and profitability thus improving the resilience of the woodland economy (Challenge 1) and a project with NatureScot which aims to use digital technology to help farmers improve the environment under their stewardship and monitor and evaluate this improvement (Challenge 3). This aims to empower farmers to analyse the data in order to improve climate change actions and increase biodiversity on their farmland. CivTech also continues to work on challenges from previous Accelerators such as RiverTrack (started in 2016 and continues to operate with support from SEPA, Scottish Flood Forum, EU Horizon 2020 research and innovation grants). RiverTrack is a local flood alerting tool that can used by communities without a formal SEPA flood warning scheme. The Scottish Government is encouraging more communities to consider the RiverTrack system which can alert home and business owners to take action prior to a flood event. This includes deploying flood guards and moving possessions upstairs which helps to reduce flood damage.

How the Adaptation Scotland Programme is supporting progress towards this outcome

Adaptation Scotland continues to promote its climate ready business guidance and support others to develop sector specific guidance; for example, the programme contributed to new climate change adaptation guidance for agriculture developed by SRUC. Adaptation Scotland also continues to work closely with Forestry and Land Scotland who are leading work to implement the Adaptation Capability Framework and to share their experience with others.

The Adaptation Scotland Programme established a new Climate Finance Working Group during 2020 to identify and address barriers to increasing financial flows into adaptation. This group has attracted involvement from UK and Scottish finance experts and institutions. New adaptation guidance is being developed along with a financing directory that will signpost users to different forms of adaptation funding and finance. Example business cases for financing adaptation will be developed during 2021 in partnership with organisations selected through a competitive process, with the learning from this shared widely.

Some forms of direct business engagement through the programme has been severely impacted by the COVID-19 pandemic. The programme has, nonetheless, championed online business engagement including through supporting the organisers of the CAN-DO innovation summit to develop a resilience theme to their event which targeted around 800 SMEs.