Scottish Government must take proactive role in just transition investment, report says

The Scottish Government must take a more pro-active role in stimulating investment in the just transition to a green economy, an advisory committee has said.

The Just Transition Commission, an independent expert group set up by the government, has warned the cost of failure is “sky high” if the government puts off investing in the short- and medium-term due to the current fiscal context.

In its latest report, the Commission says the government must nurture new and emerging industries, and be a driving force in coordinating efforts with local government and investors.

It also calls for the government to set out a “credible list of just transition investments aligned with strategic outcomes”.

Commission co-chair Satwat Rehman said: “Our report leaves no room for doubt that if investment in Scotland’s journey to net zero is left to the market alone, we will see an unjust and ineffective transition.

“We need government at all levels to play a proactive role in making sure the costs and benefits associated with these major but foreseeable changes are shared equitably.

“This will involve new ways of working collaboratively and building up capacity where required to meet this  challenge head-on, demonstrate responsible economic stewardship, and make the most of the tremendous opportunities net zero brings for economic and social renewal.”

The Commission urged the Scottish Government to “make the most” of opportunities presented by new initiatives at UK level, such as the creation of GB Energy and the National Wealth Fund.

But it also calls on ministers to provide clarity over roles and responsibilities, particularly as they split across government, public bodies and local authorities.

And it warns against equating investment in the drive to net zero with investment in the just transition, highlighting both will require considerable cash and focus to ensure the benefits of the new green economy are shared across society.

A Scottish Government spokesperson said: “The Scottish Government will carefully consider this report as it continues the drive to reach net zero emissions by 2045. With emissions in Scotland already nearly cut in half, we are well positioned to continue leading on climate action that is fair, ambitious and capable of rising to the emergency before us.

“Our upcoming energy strategy and just transition plan will set out how we will take advantage of the enormous opportunities offered by becoming a net zero economy."