Update to the Climate Change Plan 2018 – 2032

1.1 Engagement with Stakeholders Waste and the Circular Economy 230 on a Green Recovery 37 Land Use, Land Use Change

1.2 Delivering a Green Recovery 42 and Forestry 233

1.3 Conclusion 57 Agriculture 236 Negative Emissions Technologies 241 Part 2: Coordinated Approach 58

2.1 Whole System Energy Approach 59 ANNEX B: Monitoring Framework 243

2.2 Land Use, Nature Based Solutions Sector Policy Outcome Indicators 246 and the link to Biodiversity 64

2.3 Circular Economy 66 ANNEX C: Derivation of Sector

2.4 Transport Demand 68 Emissions Envelopes 251

2.5 The Planning System and National Planning Framework 4 69

2.6 Wellbeing and National Outcomes 70 2   Update to the Climate Change Plan | Ministerial Foreword Ministerial Foreword In this context, it is clear that the challenge of meeting our emissions reductions targets becomes more difficult. COVID-19 has affected every aspect of our lives, with thousands of people losing their jobs and businesses in distress; and a fundamental shift in how we live and work in our local communities, towns and cities. We are witnessing war-time levels of lending and significant pressure on budgets, especially on devolved budgets where we lack the necessary financial levers. When we first set out to update Amid the enormous challenges of the global pandemic, the climate emergency the 2018 Climate Change has not gone away – far from it – and Plan, to outline the pathway the Scottish Government remains to delivery of our ambitious absolutely committed to ending Scotland’s contribution to climate change by 2045 climate change targets, we in a just and fair way. Indeed, it is central never imagined it would be to our recovery. We have the opportunity published in the midst of a to design a better future and, coming out of the pandemic, put things back together global pandemic. The impacts differently. of COVID-19 are profound; a public health, economic and That is why we have committed to a ‘green recovery’ from COVID-19, one social crisis. The challenges we which captures the opportunities of face as a country to recover our just transition to net zero. That from it are unprecedented. means creating green jobs, developing sustainable skills and nurturing wellbeing. This approach recognises climate change as a human rights issue and the transition to net zero as an opportunity to tackle inequalities. It is an approach that is fundamentally important to the future prosperity of our people and planet. Update to the Climate Change Plan | Ministerial Foreword  3 Put simply, a green recovery is our innovative, to learn as we are going and commitment to transition to net zero to utilise new and exciting technologies emissions in a way that is just, and that and ideas. It will also mean supporting delivers a thriving, sustainable economy individuals and businesses to adapt their that works for all of us. Our last two choices and behaviours, as set out in our Programmes for Government have new Public Engagement Strategy: ‘Net committed to delivering a Green New Zero Nation: Draft Public Engagement Deal, setting out how the investments Strategy for Climate Change’. This Plan we are making will support this holistic update therefore gives clear signals of and fair transformation of our economy where we are going, what the Scottish in the coming decades, leading to greater Government is doing to enable us to get prosperity and social outcomes. This there and how others can contribute. Climate Change Plan update builds on that work and sets out the actions we are Looking ahead to the UN Climate taking to make this Deal a reality through Conference, COP26, that will take place in our green recovery. The prize of achieving Glasgow in 2021, we are also reminded this is a better world – a more equal that not only do we need a truly national world, a world of greater opportunities, endeavour, we also need this spirit and and a natural environment that is vibrant commitment to be applied internationally. and diverse. This plan sets out areas where we are already collaborating with our global We have developed our approach based partners; but also provides a foundation on the advice and contributions received to strengthen and deepen our engagement from the Climate Change Committee, Just with other countries, states and regions Transition Commission, Advisory Group on around the world. Economic Recovery, Climate Emergency Response Group, Scottish Science Advisory Over and above the impacts of COVID-19, Council and the Sustainable Renewal we are also facing the impacts of EU Exit, Advisory Group. a set of circumstances which is not of Scotland’s choosing. As we move to a new This update to the 2018 Climate Change relationship, we remain committed to a Plan sets out bold actions, which together deep and close partnership with the EU, chart our pathway to our new emissions its Member States and other European reduction targets out to 2032. This actors, and indeed to Scotland re-joining journey will not be easy, and will need the bloc as an independent country. to be a truly national endeavour with We believe this plan can support that business, communities, and individuals important collaboration. contributing fully. It will require us to be 4   Update to the Climate Change Plan | Ministerial Foreword Glen Affric, Highland The scale of the challenge ahead, both to rebuild our economy in the wake of COVID-19, and to deliver our world- leading climate change targets, is unprecedented. However, we know the huge opportunities that a transition to a fairer, more sustainable and greener economy can bring for Scotland, including in creating green jobs and wellbeing for everyone. We are therefore determined to grasp these opportunities and transform our country for the better. This Climate Change Plan update is a vital step in this process, ahead of the next full Plan, to be completed by early 2025. Update to the Climate Change Plan | Ministerial Foreword  5 Roseanna Cunningham MSP Rt Hon Nicola Sturgeon John Swinney MSP Cabinet Secretary for First Minister of Scotland Deputy First Minister Environment, Climate Change and Cabinet Secretary and Land Reform for Education and Skills Aileen Campbell MSP Michael Russell MSP Fiona Hyslop MSP Cabinet Secretary for Cabinet Secretary for the Cabinet Secretary for Communities and Local Constitution, Europe and Economy, Fair Work Government External Affairs and Culture Kate Forbes MSP Jeane Freeman MSP Humza Yousaf MSP Cabinet Secretary Cabinet Secretary for Cabinet Secretary for Finance Health and Sport for Justice Fergus Ewing MSP Shirley-Anne Somerville MSP Michael Matheson MSP Cabinet Secretary Cabinet Secretary for Cabinet Secretary for for Rural Economy Social Security and Transport, Infrastructure and Tourism Older People and Connectivity 6   Update to the Climate Change Plan | Executive Summary Executive Summary Update to the Climate Change Plan | Executive Summary  7 This document updates the 2018 Climate Change Plan. Since that Plan we have set new ambitious targets to end our contribution to climate change by 2045. We have committed to reduce emissions by 75% by 2030 (compared with 1990) and to net zero by 2045. COVID-19 does not change our ambitions. As Scotland emerges from COVID-19 we have a chance to rebuild our economy in a way that delivers a greener, fairer and more equal society. This Plan sets out our approach to delivering a green recovery, and sets out a pathway to deliver our world leading climate change targets1. In line with the 2018 plan, the focus is on the period up to 2032. You will see from what we have set out here that our approach must be iterative, we must learn by doing. No-one currently has all the answers on how we deliver the transition over the next 25 years or how emerging technologies can be deployed efficiently at scale. Many of the solutions rely on further technological innovation, market development and wider take up and adoption as well as action by others. By monitoring, evaluating, updating and adapting this plan over the coming decade we can be on track to meeting our ambitious targets and capturing the opportunities of the transition. This iterative approach will prepare the ground for the next statutory Climate Change Plan, which is to be completed by early 2025. Delivering a green recovery is at the Green Recovery heart of the 2020-2021 Programme for It is essential that our recovery from Government. Part 1 of this Update sets the pandemic responds to the climate out the progress that is being made in emergency, and puts us on a pathway delivering these commitments and the to deliver our statutory climate change further actions we will take to secure targets and a just transition to net zero, a green recovery from the COVID-19 by ensuring our actions in the immediate pandemic. Our response is framed term are in line with our long-term goals. around the following key themes which The Scottish Government has been clear have consistently been highlighted by in its commitment to securing a just stakeholders as priorities: and green recovery, which prioritises Ħ Recognising the role that both public economic, social and environmental and private investment must play in wellbeing, and responds to the twin delivering the transition to net zero. challenges of the climate emergency The Programme for Government and biodiversity loss. committed the first tranche of the £2 billion Low Carbon Fund and In developing our understanding of what this update sets out a number of a green recovery will mean for Scotland, additional investments being made by we have listened to stakeholders from Government as well as opportunities across academia, industry, business, trade to leverage in investment from others. unions and environmental organisations The second tranche will deliver: and other experts including the Climate Change Committee, Just Transition Ħ £180 million for an Emerging Commission, Advisory Group on Economic Energy Technologies Fund, Recovery, Scottish Parliament, Climate supporting the development of Emergency Response Group, Scottish hydrogen and providing impetus Science Advisory Council and the to the development of Negative Sustainable Renewal Advisory Group. Emissions Technologies (NETs); 1 Targets set in law in the Climate Change (Scotland) Act 2009 (as amended by the Climate Change (Emissions Reduction Targets) (Scotland) Act 2019) 8   Update to the Climate Change Plan | Executive Summary Ħ £120 million for Zero Emission will continue to engage with citizens in Buses, driving forward a fully developing and implementing climate decarbonised future for Scotland’s policy that has widespread support and bus fleet and support the Scottish encourages action. supply chain; Ħ We are also committed to delivering Ħ £50 million to transform Vacant a place-based approach to our green and Derelict Land, ensuring that recovery working closely with those this land is utilised for maximum communities and organisations that environmental and community need change, are undergoing change benefit or affected by change. Our ongoing Ħ £50 million to create Active planning system reforms will aim to Freeways, providing a sustainable reduce process and procedures so that link between our towns, cities and planning can focus more on places and some of our most beloved national people and evolving concepts such landmarks. as 20 minute neighbourhoods will Ħ These investments will be critical prioritise quality of life and health as in laying the foundations for our well as our net zero ambitions. transition to net-zero. The green recovery and transition to Ħ At the centre of our approach is a net zero present considerable economic commitment to increase the number of opportunities for Scotland. By capitalising good, green jobs, and to enable people on Scotland’s strengths in energy, natural to access these jobs through training capital, innovation and our skilled and reskilling. To further align the skills workforce and universities, we can set system with the demand resulting from Scotland at the forefront of growing global a green recovery and the transition markets. The recent Inward Investment to net zero, the Climate Emergency Plan identified Energy Transition and Skills Action Plan has been published Decarbonisation of Transport as two areas alongside this update. of competitive strengths in Scotland as well Ħ The COVID-19 pandemic has proven as strengths in Digital, Health, Space and the importance of embedding resilience Food and Drink which will all contribute to and security into our society and a thriving net zero economy in the future. economy. Adaptation and resilience are key components of our green recovery. Scotland is already harnessing our The Programme for Government considerable strengths and expertise committed to investing an extra £150 in offshore energy to drive our energy million for flood risk management over transition and develop and deploy new the next 5 years and £12 million in technologies in hydrogen production coastal change adaptation. and use and in Carbon Capture and Ħ We know the impacts of COVID-19 on Storage. This is driving a revolution in our people’s lives and livelihoods have transport system, with new hydrogen bus been enormously difficult. In their fleets on the streets of Aberdeen. advice the CCC recommended that Scotland’s natural capital is one of our actions to maintain positive behaviours greatest assets and is central to our in the long term are prioritised and our future net zero economy, developing update sets out the policy measures thriving rural economies based around to embed behaviour change in each woodland creation, peatland restoration of the sectors. Our new Draft Public and biodiversity as well as sustainable Engagement Strategy, published tourism, food and drink and energy. alongside this update sets out how we Update to the Climate Change Plan | Executive Summary  9 Our Coordinated Approach Ħ investment in heat and energy efficiency creates jobs and includes The policies and actions in this update explicit support for those least able to to the 2018 Climate Change Plan are set pay. out on a sector-by-sector basis. However, achieving our climate change targets We are committed to taking a Whole will require us to align and deliver these System Energy Approach, encouraging policies in a joined-up way. This means joined-up and collaborative thinking that some of our policies will involve across sectors, particularly with regards two or more sectors (for example, the to emerging technologies related to development of renewable energy will hydrogen, bioenergy and Negative support decarbonisation across the whole Emissions Technologies. The Scottish energy system, including electricity, Government also recognises the vital transport, industry and buildings or importance of innovation in meeting our land use relates to agriculture, forestry climate change targets, and this Plan and bioenergy crops), and also means update includes details of our actions to integrating climate change action into all of date and plans for the future to support the decisions we make across government. world-leading innovators in Scotland. In 2017 we published Scotland’s first Energy For this reason, we have dedicated Part Strategy in alignment with the 2018 Plan. 2 of this update to our ‘Coordinated This championed a whole system view of Approach’ to meeting our emissions energy as one of its three core principles, reduction targets. This section looks at along with an ‘inclusive energy transition’ how we take a cross-cutting, systems and ‘a smarter local energy model’. based approach that harnesses We will update our energy strategy in opportunities for inclusive jobs, growth 2021 to lay out a coordinated vision for and well-being. the whole energy system. This will be based on our best understanding of the A coordinated approach is fundamental technologies and options available today, to delivering a just transition, given that and focused on delivering our economy- the transition will transform all parts of wide emissions reduction targets and our society and economy. Fairness will just transition and wellbeing economy be at the heart of our climate action, outcomes. ensuring that individuals and communities are not left behind. Collectively, we must Another area where a coordinated plan and prepare, so that that these approach is essential is on land use. transformational changes are harnessed Not only is our land the cornerstone of to tackle inequalities, provide good jobs, our society and bedrock of Scotland’s improve our environment and support natural capital, but it has many uses. a thriving, wellbeing economy. In this We have a finite amount of land and update we present a range of policies are making increasing demands upon it. that will boost social and economic Our upcoming third Land Use Strategy opportunities and, in particular, underpin will set out how the various aspects the importance of equity, engagement and of land use and actions of the Scottish planning. For example: Government come together to deliver on our overarching sustainable land use Ħ improvements for bus priority vision. The Coordinated Approach section infrastructure will improve connectivity also includes details of our approach to for people in lower socio-economic a circular economy in Scotland, and our groups; and commitment to a Wellbeing Economy. 10   Update to the Climate Change Plan | Executive Summary Cullen Bay, Moray We also have an excellent opportunity to Electricity embed emissions reduction and climate In Electricity, the Climate Change Plan change adaptation into Scotland’s long update announces further policies to term development strategy through the continue the rapid growth in renewable National Planning Framework 4. generation over the past twenty years, moving from a low to a zero carbon Policies and Proposals: electricity system, with the potential for NETs to deliver negative emissions. In our a sector approach Energy Strategy Update, to be published This update includes policies and in 2021, we will set out in detail the proposals for each sector that build on role that electricity generation will have those contained in the 2018 Plan. We in the wider energy system. We will have also added an eighth sector for this continue to review our energy consenting update: Negative Emissions Technologies processes, making further improvements (NETs). and efficiencies where possible, and we will deliver the actions from our Offshore The key policies which underpin this Wind Policy Statement published in progress are set out below, as well as in October which supports the development Part 3, and in full at Annex A. of between 8 and 11 GW of offshore wind capacity by 2030. Update to the Climate Change Plan | Executive Summary  11 We will review and publish an updated confirmed our New Build Zero Emissions Electricity Generation Policy statement from Heat Standard will be introduced by 2022 reflecting the contribution that from 2024 by which point all new builds renewable electricity generation is likely will have to have zero emissions heating to have to achieving our Net Zero target systems. We are seeking evidence on the in line with the CCC recommendation to impact of introducing these requirements do so. We will continue our efforts to earlier than 2024 if feasible. We have also ensure a sustainable security of electricity set out a clear approach to developing supply, and in 2021 we will launch a call a long term regulatory framework, for evidence and views on technologies within the limits of our competence, including energy storage, smart grid for decarbonising heat in buildings and technologies and technologies to deliver ensuring a good level of energy efficiency. sustainable security of supply. There are a number of important actions We will stimulate adoption of zero that affect a number of sectors, including emissions heating systems and pursue electricity. expanded investment in zero emissions heating by developing innovative We will also take forward actions to solutions to leverage private capital. develop the role of hydrogen in our We will bring forward the review of energy system. We will build on the the existing Energy Efficient Standard outputs of the Hydrogen Assessment for Social Housing to conclude in 2023. project and publish a Hydrogen Policy As announced in the Programme for statement this month, and then a Government, we will invest £1.6 billion in Hydrogen Action Plan in 2021. heat and energy efficiency over the next Parliament, using this to leverage in UK We know that bioenergy will be important Government and private finance to see, in helping us deliver negative emissions, as a minimum, the rate of zero emissions and a key challenge for the early 2020s heat installations in new and existing is to understand the extent to which homes and buildings double every year bioenergy should be used in each of our out to 2025. sectors. In early 2021 we will publish a Bioenergy Update and will establish an Expert Working Group to consider and identify the most appropriate and sustainable use of bioenergy resources within Scotland. We will publish a Bioenergy Action Plan in 2023. Buildings In Buildings, we know that around 50% of homes and non-domestic buildings will need to convert to a low or zero carbon heating system by 2030. We will set out a clear, long term vision and policy direction for heat in buildings in the forthcoming Heat in Buildings Strategy. Our approach will be framed around 3 key areas: regulatory change, delivering significant investment and supporting supply chain growth. In this Plan update we’ve 12   Update to the Climate Change Plan | Executive Summary Transport transformational active travel projects with In transport we set out ambitious actions a £500 million investment over 5 years for which are aligned with our new National active travel infrastructure, access to bikes Transport Strategy. There is a key focus and behaviour change schemes. on technological advances, but equally on measures to encourage mode-shift Industry and significant societal changes. This In industry, we know that emissions need update commits to reduce car kilometres to continue to decline significantly whilst by 20% by 2030, a truly world-leading ensuring Scottish industry competes on a aspiration, and we are not aware of any level playing field and remains globally other country that has committed to such sustainable. We also know that Scottish an ambitious transformation. Once the industry has much to gain from being at pandemic has moved to a phase to allow the forefront of the transition to net zero. more certainty regarding future travel In this Climate Change Plan update we demand we will produce a route-map to commit to taking a properly sequenced meet the reduction. Alongside that we will and strategic approach to Scotland’s phase out the need for new petrol and industrial sector, creating opportunities diesel cars and vans by 2030 (bringing for Scottish industries and supply chains this ambition forward from the 2018 plan to expand exports into global markets. by 2 years), We will work with public Many industrial decarbonisation powers bodies to lead the way by phasing out lie with the UK Government and we will the need for new petrol and diesel light continue to press the UK Government to commercial vehicles by 2025. implement the jointly developed UK ETS and agree a link to the EU ETS to enable We will continue to work to establish a Zero a smooth transition for industry. Carbon Emission Heavy Duty Vehicle programme capture and storage (CCS) is essential to with Scottish Enterprise to support reach net zero emissions. innovation in the Scottish supply chain for HGVs and we will engage with industry We are announcing a new Emerging to understand how changing technologies Energy Technologies Fund of £180 million and innovations in logistics can help that will support the development of reduce carbon emissions. On aviation, we hydrogen and CCS, which will add new will decarbonise scheduled flights within impetus to the development of NETs, and Scotland by 2040 and will work with the we will work with our agencies to develop sector to encourage sustainable growth post a £5 million Carbon Capture and Utilisation COVID-19. As announced in our Programme Challenge Fund to boost early stage work for Government we will aim to create the and technologies in this area. In these world’s first zero emission aviation region challenging economic conditions, we will in partnership with Highlands and Islands continue to develop the conditions for Airports. private sector investment by supporting innovation throughout the industry On public transport, Scotland’s rail services sector: the Scottish Industrial Energy will be decarbonised by 2035 and we Transformation Fund commits £34 million will work with the newly formed Bus for projects at industrial sites for energy Decarbonisation Taskforce, comprised of efficiency or deeper decarbonisation and leaders from the bus, energy and finance the £26 million Low Carbon Manufacturing sectors, to ensure that the majority of Challenge Fund will support innovation new buses purchased from 2024 are zero- in low carbon technology, processes and emission (brought forward from 2032). infrastructure. We are investing £100 On active travel, as announced in the million to help businesses create new, Programme for Government we will support green jobs via the Green Jobs Fund. Update to the Climate Change Plan | Executive Summary  13 Waste in a way that maximises carbon saving In waste, Scotland’s progress in reducing potential, and are investing £70 million emissions in the waste and resources to make the right option the easy option sector over the past 20 years has been for household recycling. We are currently striking, but we know there is still consulting on banning a number of single progress to be made. We will continue to use plastic items and will continue to embed circular economy principles in to work with the UK Government and other the wider green recovery and take steps devolved administrations on reforms to reduce food waste through the Food to the packaging extended producer Waste Reduction Action Plan delivering responsibility regime. We will introduce against our ambitious target to reduce measures to encourage people to shift food waste by one third by 2025 (against toward reusable products and encourage a 2013 baseline). We are committed more sustainable consumption. We will to ending landfilling of biodegradable work with partners to develop a post municipal waste by 2025 and recycling 2025 route map to identify how the 70% of all waste by 2025. We will develop waste and resources sector will contribute a route map to outline how we will towards Scotland’s journey towards net deliver our waste and recycling targets zero in the period to 2030 and beyond. 14   Update to the Climate Change Plan | Executive Summary Land use, land use change and forestry market intermediaries to increase private Our landscape and natural environment investment in new woodlands in order is one of our greatest national assets to increase the woodland carbon market and has a vital role to play in meeting by at least 50% by 2025. As of March our ambitious climate change targets. 2020 over 25,000 hectares of peatland Through significant increases in forestry have been put on the road to restoration, and widespread peatland restoration in and earlier this year we announced a particular, we can reduce greenhouse £250 million ten-year funding package gases and other pollutants and increase to support the restoration of 250,000 the levels of carbon dioxide being hectares of degraded peat by 2030. To absorbed and locked up in timber deliver on the 2032 emissions reduction products. We will continue to expand envelope annual peatland restoration forest cover in Scotland, building on the needs to be far higher than the current success of creating 22,000 hectares of 20,000 hectare annual target and we will new woodlands in the last two years. We work closely with delivery partners, land will increase new woodland creation from owners, managers, farmers and crofters the current target level of 12,000 hectares to continue to encourage more restoration annually in 2020/21 up to 18,000 of peatland, both traditional bog but also hectares in 2024/25. Scottish Forestry and land that offers the highest emission Forestry and Land Scotland will work with savings per hectare. investors, carbon buyers, landowners and Dumfries and Galloway Update to the Climate Change Plan | Executive Summary  15 Agriculture enhancing advice for farmers, crofters In agriculture, we know that we must and land managers to meet Scotland’s continue to produce high quality food, but goal of having food production of world also deliver high environmental standards leading sustainability. We will ensure that and emissions reductions. How we use our rural support enables, encourages and land will evolve as we respond to climate where appropriate requires the shift to change with more woodland, restored low carbon sustainable farming. We will peatland as well as potential increase in scale up the Agricultural Transformation land for growing biomass. We also know it Programme across all policies, including is important that our soils and grasslands to enable farmers and crofters to are managed appropriately, and that purchase equipment that should assist in technology is deployed as innovatively as reducing emissions and support practice possible to reduce emissions. The Update change. We will explore options for land- provides a route map for agricultural use change to optimise uses beyond transformation, having started in 2020 traditional farming and food production and working in partnership through to multi-faceted land use including farmer led groups, with the introduction forestry, peatland restoration and of environmental conditionality, piloting management and for biomass production, new mechanisms of support and including provision of advice for farmers and crofters who wish to step back from agricultural businesses by providing an opportunity to consider alternative land- uses or alternative agricultural uses. Negative emissions technologies (NETs) We know that NETs will play an important role in emissions reductions during the 2030s and 40s; this has become clear from the detailed modelling and evidence building that we have undertaken to identify pathways to meet our net zero and our interim targets. While this update lays out the scale of the contribution required, we need further work to establish the way in which those emissions might be spread across the sectors to meet our annual targets in the early 2030s. While there are opportunities in several sectors, establishing the most effective and efficient way to use NETs will need a focus on developing technologies, identifying options, and the early stage development of potential projects. This update includes urgent measures in this area, designed to ensure that concrete proposals are brought forward in the next few years. By the time of our next Climate Change Plan, we will be in a position to reallocate negative Sheep on Ben Tianavaig mountain, Isle of Skye emissions to specific sectors. Route 16   Map to Update to the 2032 Climate Change Plan | Executive Summary 2020 £500 million investment £62 million Energy £1.6 billion Heat in active travel projects Transition Fund and in Buildings fund over five years, £500 £34 million Scottish announced, to be million to improve bus Industrial Energy invested over the next priority infrastructure Transformation Fund Parliament; £6.9m and £9 million Scottish (SIETF) launched. support for H100 Ultra Low Emission Bus Hydrogen Policy hydrogen for domestic Fund. Statement published. heat demonstration; and initiation of Heat pumps cashback schemes. 2022 2021 Updated Electricity Legislation to restrict Environmental Low Carbon Generation Policy Statement supply of specified conditionality Manufacturing Challenge reviewed and published. single use plastic items introduced to extend Fund launched. comes into force. requirements to Carbon Capture and Consultation launches all farmers and At least 20,000 ha Utilisation Challenge Fund on a charge on single crofters to undertake of peatland restored use disposable beverage environmental actions. annually. initiated, concluding in 2024. cups and legislation to Energy Strategy First tranche of funding Implementation increase the carrier bag Update published. available from the £180 of Deposit Return Scheme minimum charge from million Emerging Energy (DRS) for single use 5p to 10p. Hydrogen Action Plan Technologies Fund. drinks containers. published. £70 million fund £120 million over the to improve local next five years for Zero authority recycling Emission Buses. collection infrastructure established. 2023 Subject to the passage of the Regional Land Use Heat Networks (Scotland) Bill, Frameworks developed. district and communal heating systems become regulated. Bioenergy Action Plan published. Local Heat and Energy Efficiency Strategies launched across all local authorities. Update to the Climate Change Plan | Executive Summary  17 2030 2032 Need for new petrol Renewable energy At least 50% of Scotland’s passenger rail and diesel cars and generation in Scotland Scotland’s building services considerably vans phased out accounts for the stock is heated using decarbonised, with just a few and car kilometres equivalent of 50% of zero emission systems. years to go until they are reduced by 20%. our energy demand fully decarbonised (in 2035). across electricity, heat First delivery-scale At least 250,000 and transport. NETs installations hectares of peatland begin operation. restored. 2025 4th Climate Change Plan Food waste reduced Zero emissions published. by 33% from heating systems 2013 baseline and account for at least Need for any new 70% of all waste 50% of new systems petrol and diesel light recycled. Landfilling being installed each commercial vehicles in of biodegradable year. public bodies phased municipal waste has out. ended. 2024 18,000 Ha of new woodlands created annually. New Build Zero Emissions from Heat Standard. Acorn Project Development begins, concluding with Direct Air Capture and Storage operating from St Fergus Gas Plant in 2026. 18   Update to the Climate Change Plan | Executive Summary Our pathway to 2032: costs and benefits of the growth in our electricity demand and systems will what our policies mean be shared fairly across all members in practice of society, with vulnerable groups and fuel poor households protected at By 2032, our energy system will be in every stage. the midst of a major transformation, integrating new ways of producing, We will ensure a just and managed transporting and using energy transition for Scotland’s industrial with existing technologies. This sector, and by 2032 Scotland’s transformation will be planned and industrial sites will be highly developed through a systems-led competitive, embracing sustainable approach, ensuring that decisions take growth and low carbon technologies. account of the benefits across all of the The necessary infrastructure will be energy sectors as well as the economic in place to enable the deployment and social benefits they create for of Carbon Capture, Utilisation and everyone in Scotland. By 2032, we will Storage (CCUS),and the production generate at least the equivalent of 50% and utilisation of hydrogen. With of our energy across heat, transport these evolving technologies will and electricity demand from renewable come significant opportunities for sources. Scotland will have benefitted investment and employment, as well from the development of new, as sustainable industrial innovation. pioneering infrastructure such as that Decarbonising, diversifying and used for CCUS, hydrogen and green expanding our industry into a range of hydrogen production. The process low carbon markets, such as technology of developing this world leading, and sustainable manufacturing, will sustainable energy system will have also mean that we attract financial created secure and well paid jobs, and investment and talent from all over supported sustainable economic growth the globe. We will manage this across all regions of Scotland. transition to ensure that Scottish businesses and industries benefit Our electricity system will have from these opportunities, and our deepened its transformation for the Climate Emergency Skills Action Plan better, with over 100% of Scotland’s will support reskilling and retraining electricity demand being met by skilled workers so that they can access renewable sources. More and more new, good quality jobs that become households, vehicles, businesses and available. industrial processes will be powered by renewable electricity, combined We will also deliver a step-change with green hydrogen production. There in our transport system and how will also be a substantial increase in we consider the need to travel. By renewable generation, particularly 2032, there will be no need to buy a through new offshore and onshore new petrol or diesel car, and almost wind capacity. Innovation and all of our passenger railways will new technologies will help ensure be decarbonised. Our innovative and maintain the resilience of our and well-connected public transport electricity systems, and local electricity network will mean more individuals generation will be commonplace. The choosing sustainable transport as their first choice. We will have reduced Update to the Climate Change Plan | Executive Summary  19 the kilometres driven by car by 20%, over 10 years, protecting this complemented by our commitment significant carbon store, and restoring to develop a Work Local Programme, wetland habitats. The prioritisation supporting flexible, remote and local of these “nature-based solutions” working to drive the establishment and restoration projects will deliver of walkable and liveable 20 minute multiple benefits, not only in terms neighbourhoods. Our £500 million of carbon sequestration, but also investment in active travel will enhanced biodiversity, improved air have transformed the way we move and water quality, and landscapes and around, ensuring accessibility to bikes ecosystems that are more resilient to and e-bikes, and delivering high- climate change. quality walking, wheeling and cycling infrastructure. Meanwhile, the agricultural sector will have supported these changes We will feel the benefits of climate in land use, through the use of change action in our homes, and appropriate land for afforestation, by 2032 our homes will be better including further integration of insulated, have lower demand for heat, woodlands on farms, and peatland, and will be more energy efficient. The while continuing the important role of benefits of our landmark investment of food production. Farmers and crofters £1.6 billion in zero emissions heating will continue to be supported for their will be widely felt, both in our homes key roles of producing high quality and workplaces, and will have levered food and environmental stewardship in the private investment required while meeting conditionality for for roll out across Scotland. We will delivery of high environmental have made considerable progress to standards for emissions reduction remove poor energy efficiency as a and biodiversity. They will be driver of fuel poverty, and we will be adopting all available low-emission continuing to work in close partnership technologies and practices, with energy retailers to ensure a good supported by the introduction of new deal for consumers. Delivering a just approaches, alongside environmental transition will be at the heart of all of conditionality. Through partnership these decisions, and we will seek to working between government and ensure that decarbonisation does not industry, for example through the disadvantage those already struggling work of the farmer-led groups and to heat their home. realigned and enhanced advice, agricultural businesses will have the By 2032, the natural environment skills and tools they need to produce and landscapes around us will have food more sustainably, while adopting undergone significant restoration, with new technologies and innovative a sustainable land use system that approaches. prioritises nature and biodiversity. 21% of our land will be covered by By 2032 we will have transformed forest, following increased funding of our relationship with waste and £150 million as well as our target of consumption in Scotland, meaning planting 18,000 hectares per year by we’ll be well on the way towards a 2024/25. We will also have restored fully circular economy. Consequently, over 250,000 hectares of peatland our economy will be designed to with £250 million of investment reduce, reuse, and repair materials 20   Update to the Climate Change Plan | Executive Summary and to recycle our waste more than 2020s to ensure that we are focusing ever. By 2025, we will have reduced on the most suitable applications and the percentage of our waste going to locations for NETs. landfill to 5%, and 70% of our waste will be recycled. Pending consultation, Throughout all of these transformations, it’s likely that we will have introduced the Scottish Government’s priority charges for single use items such as will be to ensure that the costs of the disposable cups, as well as a ban on transition are distributed fairly and problematic single-use items. that our economy is benefiting from opportunities for the creation of highly Finally, by 2032 Scotland will benefit skilled and secure jobs. Our approach from Negative Emission Technologies will be led by science and the people (NETs) underpinned by developing and places who are already helping us carbon capture, transport and storage to generate new and innovative ideas. infrastructure. These world leading This place-based and “learning by projects will deliver clean energy doing” approach, recommended by the while removing emissions from our Sustainable Renewal Advisory Group, atmosphere. A well-developed evidence will ensure that people and communities base will have been combined with are involved in the transition and the learning from trial and demonstration benefits are shared by all as part of a projects which came online during the just transition. Credit: Peter Cairns Update to the Climate Change Plan | Executive Summary  21 Our vision for 2045 we heat our homes and how we travel, for example, will have helped The Scottish Government’s vision for to improve wellbeing and tackle fuel 2045 is one of a society that prioritises poverty alongside wider equalities the environment and the wellbeing issues as part of a just transition. of its people2. Crucially, we will have reached net zero in a way that is fair Scotland will continue to be seen and just to all and involves people as a world leader in climate change and communities so everyone can mitigation and our low carbon benefit from the widespread, positive technologies, processes and services changes we will have experienced. mean we’ll have been able to attract These include changes to how we live, skills and investment from all over work and travel, our energy system, the globe, and create new export and industries, natural environment, our trade opportunities. Even when we’ve agriculture sector and how we use reached net zero, our part in tackling and process materials. Significant the climate emergency will by no technological advancements, building means be over. We will continue to on current pilot projects, such as work with other countries, share our negative emissions technologies, zero practices and drive emissions reduction emissions heat and zero emission at a global scale. vehicles will undoubtedly have helped to accelerate our transition to net zero and for Scotland to benefit from the economic opportunities that these developments bring, including jobs and trade. It’s clear that the impact of our measures will go further than ending our contribution to climate change, with widespread benefits for our citizens, economy and natural environment. A sustainable economy will be built upon innovative green jobs, providing reliable, and skilled, employment for many. Nature and biodiversity will also have benefitted significantly from our transition, with nature-based solutions helping to restore and protect our ecosystems. Our places and communities will support the wellbeing and healthier lifestyles for people, while driving regional inclusive and sustainable economic growth. Changes to how 2 This will support the 2045 vision of Scotland’s Environment Strategy: By restoring nature and ending Scotland’s contribution to climate change, our country is transformed for the better - helping to secure the wellbeing of our people and planet for generations to come. 22   Update to the Climate Change Plan | Executive Summary Working Together mobilising the £12.6 billion of public sector procurement and collaborating across the The transformation of Scotland’s society public sector on tools and guidance to and economy to net zero emissions can support the green recovery and our wider by no means be delivered by Government climate and circular economy ambitions. alone. It will require a national effort across all sectors - public, private and third We are committed to mobilising the £12.6 – and from communities and individuals billion spent through public procurement across Scotland. We must therefore to support our net zero ambition and have ensure that our transition to net zero is established the Climate and Procurement collaborative and delivered in partnership. Forum to coordinate the procurement effort across the public sector, building Each of the sector chapters in Part 3 set out on the existing sustainable procurement in detail how we will work with the public duties placed on public bodies through the sector, individuals, businesses, industry, the Procurement Reform (Scotland) Act 2014. UK Government and other countries as we We have targeted programmes underway pursue net zero emissions by 2045. to underpin traction on a green recovery and wider climate and circular economy Leadership in the public sector ambitions. This includes collaborating at Scotland’s public sector bodies have a national and sectoral levels to maximise strong leadership role in delivering the collective purchasing power, for example transition to net zero. Strengthened to decarbonise buildings and vehicles, and legislation requires public bodies to report we are also engaging with local leaders as on their targets for achieving zero direct key enablers, ensuring early procurement emissions and reducing indirect emissions, involvement in projects and working and to report how spending aligns with with public procurers to build climate emissions reduction. change capability across the procurement community. COSLA recognises the climate and biodiversity crisis and all 32 of Scotland’s Engaging individuals local authorities signed Scotland’s Climate Public buy-in and behaviour change Change Declaration in 2007. Between is key to climate action. CCC research 2005 and 2018 end-user CO2 emissions estimates that more than 60% of fell by 35% across all 32 local authorities emissions reductions to meet net zero in Scotland. The NHS in Scotland has cut will need to come from societal change. buildings’ emissions by over 60% since The 2019 Scottish Household Survey 1990 and committed to net zero by 2045. figures indicated that 68% of the Scottish Some public bodies have cut emissions by public believe that climate change is an up to 50%, with Scottish Water and Zero immediate and urgent problem; a steady Waste Scotland launching new net zero increase since first inclusion in 2013. transition plans in 2020. In our most recent research, reaching out to a representative sample of 1000 The Scottish Government has pledged people in October 2020, we found that at least £95 million to decarbonise the this figure had further increased to 79%3. public sector estate and will implement a This concern will need to be transformed Net Zero Carbon Standard for new public into societal action if we are to achieve buildings. We are working to decarbonise our goal to end Scotland’s contribution to the public sector car fleet by 2025. We are climate change in a generation. 3 [Reference for Ipsos Mori Research] Update to the Climate Change Plan | Executive Summary  23 To help achieve this, we will have The move to a net zero economy developed our ‘Net Zero Nation: a provides an opportunity to build thriving, Draft Public Engagement Strategy competitive Scottish businesses and for Climate Change’, which has been supply chains and associated employment. published alongside this update for Our investment in transformational public consultation. It sets out our projects such as the Michelin Scotland vision and guiding principles for future Innovation Parc and the National engagement, while detailing how we will Manufacturing Institute Scotland will communicate our climate change policies, support this. Furthermore, the Green Jobs enable participation in policy design Fund will provide £50 million through our and encourage action. It complements enterprise agencies to help businesses the actions set out in this document that which provide sustainable and/or low individuals and Scottish households need carbon products and services to develop, to take for each sector. grow and create jobs; and a further £50 million to support businesses and supply Working with business and industry chains across sectors to take advantage We recognise the leadership role that of public and private investment in low many businesses are already playing carbon infrastructure. and the action they are taking to reduce carbon emissions. Businesses from all The Scottish Government will support sectors and in all parts of Scotland have businesses to set ambitious science- an integral role to play in the transition. based emissions reduction targets and They can join government in investing develop strategic, net zero transition in skills, infrastructure and innovation plans to meet these targets. A number to deliver the growth and employment of Scottish Businesses are already doing opportunities that a just transition to net this, for example Scottish Water has set zero offers. a target for net zero emissions by 2040 by transforming the way they operate An example of this is the Grangemouth and invest, and have set out a route Future Industry Board, which will provide map for how they will achieve this. a forum that brings together key decision By Spring 2021, we will have worked makers across the Scottish Government, with stakeholders across the business Scottish Enterprise and Falkirk community to systematically map Council, with a focus on Scotland’s key business needs in relation to transition manufacturing cluster. It will strengthen planning. This is a an opportunity to alignment and co-ordinate activity to demonstrate Scottish private sector ensure the significant opportunities ambition and action in the run-up to for low carbon economic growth are COP26. We will showcase the best of what maximised at Grangemouth. The board Scottish businesses are doing to deliver will focus on specific and agreed work a just transition alongside opportunities streams that will inform and shape to attract investment to Scotland and efforts to unlock potential investment and promote exports. identify policy levers that can support sustainable growth at Grangemouth, with decarbonisation, longevity, competitiveness and just transition at the heart of the board’s efforts. 24   Update to the Climate Change Plan | Executive Summary Michelin Scotland Innovation Parc, Dundee. Credit MSIP. Our Net Zero Transition Managers Working with Green Finance and Investors Programme will facilitate new Private finance is vital to securing the managerial roles into Energy Intensive level of investment required to reach net Industries, tasked with recommending zero. The transition will in turn create a decarbonisation options. We will wealth of opportunities across the Scottish encourage businesses to take advantage economy. Enhancing Scotland’s position of Scottish Government support to invest as a destination for green investment in energy efficiency measures and onsite will be crucial to achieving our targets renewable generation. We will support and capitalising on these opportunities. businesses and industry to promote a We will work with institutions like circular economy and tackle waste across City Of London Corporation and the their supply chains, for example by Green Finance Institute to understand using the circular Economy Investment these markets, and with private sector Fund to stimulate innovation. Support stakeholders to understand and reduce for retraining, upskilling and recruiting the barriers to further investment. We employees will be progressed through the will also work with regulators at the Climate Emergency Skills Action Plan and UK level to ensure that our financial the Fair Work agenda. National Planning system is resilient to the economic Framework 4 will help to identify where challenges that we face from a changing new development can be delivered, climate, increasing financial stability and ensuring that we make best use of our investment in the green economy while assets and opportunities to support net protecting businesses zero targets and maximise opportunities and savers. to draw in private finance. This update covers a number of examples of what The Scottish National Investment Bank has Scottish business and industry are doing been set a principle mission to support a to promote a shift to net zero within their just transition to net zero and will act as own organisations. a catalyst in de-risking both technology Update to the Climate Change Plan | Executive Summary  25 and early stage roll-outs and crowd This Plan update sets out our specific in investment. The Green Investment requests of the UK Government on a Portfolio, launched in September 2020, sector-by-sector basis, emphasising the identifies low carbon investment need for still more increased ambition opportunities to attract private capital and support as we work towards a green and is built to expand, taking in both future, particularly as we recover from the private sector-led opportunities around COVID-19 pandemic. These asks include: technology, industrial sites and energy generation, as well as public sector Ħ reform the Contract for Difference led projects around heat networks, mechanism to deliver specific support electrification of transport, and the use of for wave and tidal generation and hydrogen where coordination is needed investment and jobs in domestic around supply, demand and regulation. energy businesses; The Scottish Government’s Inward Ħ accelerate the development of negative Investment Strategy, published in October emissions technologies, carbon capture this year, is aimed at attracting investment and storage, and hydrogen as essential from overseas and other parts of the UK components of our energy system; and has renewable energy and low carbon Ħ accelerate demonstration of the transport as priority areas. Our Capital technological solutions to cutting Investment Plan, due in spring 2021, will emissions from our homes and take a systematic approach to turning our buildings, and in particular set out clear sectoral ambitions into investable projects timescales for taking strategic decisions that can attract finance and deliver net about the future scale and pace of zero living across Scotland. decarbonisation of the gas network to support delivery of our targets for heat We are working directly with investors to in buildings; understand and address barriers to key net zero markets, such as natural capital Ħ update energy regulation by giving and biodiversity and will explore and Ofgem a statutory objective to support adopt innovative financing approaches the delivery of net zero and interim to mobilise more private capital into statutory greenhouse gas emissions Scotland’s net zero transition. targets and address the imbalance in pricing for electricity and gas to better Working with the UK Government incentivise the deployment of zero As highlighted by the Committee on emissions heating technologies; Climate Change in their 2020 progress Ħ commit to a UK Emissions Trading report, UK Government action, in Scheme common framework post- parallel to the decisions of the Scottish Brexit (which would respect the Government, is essential if Scotland is devolution settlement) and rule out to meet its targets. The UK Government implementing a reserved Carbon holds a number of key powers that Emissions Tax over which devolved will be vital to our net zero transition, administrations would have no say; and including fiscal and pricing elements of Ħ review options on fuel duty and emissions trading, decisions on the future vehicle excise duty to help reduce of the gas grid, investment in electricity unsustainable travel. network infrastructure, regulation on energy networks, vehicle standards and regulation of renewable energy investment. 26   Update to the Climate Change Plan | Executive Summary International action and collaboration We are facing a global climate emergency, The Under2Coalition which affects us all. This plan is being published in the midst of a global The First Minister was recently pandemic. These challenges highlight the voted as European co-chair of the enormous importance of international Under2 Coalition, a group of more cooperation; Scotland is determined than 220 governments representing to play its part. Through the COVID-19 over 1.3 billion people and 43% of crisis, Scotland has collaborated with the global economy. We will use our international partners, using our networks position as co-chair to: to secure insights into best practice in reducing transmission and the other Ħ mobilise action ahead of COP26; harms caused by the virus. We will Ħ work to imbed inclusivity at the build on this internationally networked heart of the coalition, ensuring approach and work collectively to that that those who are least keep Scotland open, connected and responsible for the global climate able to make a positive contribution emergency, but are being first internationally. This is true for both the and most severely affected by it, COVID-19 effort and for climate change. are represented and heard; Ħ and pursue and develop the In 2021, the UK will host the UN Climate green recovery agenda with our Conference, COP26 in Glasgow. Just partners. as COP21 led to the landmark Paris Agreement, this important international We will build on the work to date event must be a milestone in delivering with the Coalition which includes: increased collaboration and action needed for a global transition to net zero in a Ħ the peer-learning Industry way that is fair and just. The Scottish Transition Platform (ITP), which Government is committed to working aims to support participating closely with the Glasgow City Council, governments to develop the UK Government, the European Union, effective policies and strategies UNFCCC and all other partners to deliver a to achieve deep emissions cuts safe, successful and inclusive summit. in traditionally heavy-emitting industries; We want to showcase the world-leading Ħ funding for the Future Fund, work we are doing in Scotland, both by which fosters knowledge the Scottish Government through, for exchange through secondments example, our emissions reduction ambition, between developing and our renewable energy delivery and developed regions; expertise, our knowledge and experience of afforestation and peatland restoration, Ħ and taking a leading role in the and our scientific strengths and innovation ZEV Community, a platform for expertise on nature based solutions; but inter-governmental peer learning also the innovation and expertise that on zero emission vehicles. exists in our academic institutions, industry and business, communities and people. We also want to work with and learn from others. We do not have all the answers but are committed to being an integral part of the global solution. Update to the Climate Change Plan | Executive Summary  27 Under2 Coalition Steering Group Meeting, Madrid Relations with the EU The Scottish Government is committed to The people of Scotland voted decisively maintaining or enhancing environmental to remain within the European Union and standards in Scotland, and to seeking Scottish Ministers continue to believe that to keep pace with EU Directives and EU membership is the best option for Regulations as far as possible. The Scottish Scotland. At the time of writing, despite Government’s Continuity Bill contains ongoing negotiations, No Deal remains a measures to bring EU environmental real possibility. Even if a deal is secured, principles into Scots Law as the “guiding the UK Government’s approach means principles on the environment”. This will it will be a very basic “low deal”. The ensure that these principles continue impact on the opportunity to collaborate to inform the development of our with other nations and EU programs, environmental law and standards. The such as Horizon 2020, makes it all the Bill will also establish an environmental more challenging to achieve our shared governance body, Environmental Standards objectives. Scotland, to secure full and effective implementation of environmental law. 28   Update to the Climate Change Plan | Executive Summary In a crucial year for the Paris Agreement, Monitoring framework heading into COP 26 in Glasgow in This Plan update includes a refresh of the November 2021, Scotland’s voice is monitoring framework from the 2018 more important than ever and we remain Plan, with a revised set of policy outcome committed to collaboration with the EU indicators to reflect the new and boosted institutions and at Member State level, underlying policies and, where possible, across all the sectors covered by this plan to improve the quality and robustness of and in line with the EU Green Deal. Indeed the indicators themselves. This updated we also believe it is vital that the UK monitoring framework will form the basis Government facilitates close collaboration of statutory annual reporting on progress and cooperation with the EU and Member to delivering the Plan, at a sector by States at every level. Scotland continues sector level, to the Scottish Parliament to be a committed, open, global actor, from May 2021 onwards. as evidenced by our European Co-Chair position on the Under 2 Coalition. This is not only about Scotland’s position in Europe, it is also about our ability to work with our friends and neighbours to achieve the targets and policies set out below. Scottish Parliament, Edinburgh Update to the Climate Change Plan | Introduction  29 Introduction 30   Update to the Climate Change Plan | Introduction How this document relates to the 2018 Climate Change Plan 1. In February 2018, the Scottish of this virus is not yet quantifiable. Government published the ‘Climate Our work on a green recovery will Change Plan: the Third Report continue to evolve and develop on Policies and Proposals: 2018- beyond this Plan update towards our 2032’ (the 2018 Plan). In response longer term vision to deliver a just to the global climate emergency, transition to net zero by 2045. the Scottish Government brought forward primary legislation to amend 4. It is also important to note that many Scotland’s emissions reduction elements of the 2018 Plan still stand targets. In October 2019, the Climate and this Plan update should be read Change (Emissions Reduction Targets) alongside that document. In addition (Scotland) Act 2019 received Royal to the new focus on green recovery, Assent and was commenced in March this Plan update: 2020, setting annual and interim Ħ shows which of the emissions emissions reduction targets for reduction policy outcomes, policies Scotland, on a trajectory to net zero and policy proposals within the emissions by 2045. These targets 2018 Plan will be updated (by include the world-leading interim ‘boosting’ or accelerating actions), goal of a 75% reduction in emissions and what new policies have been by 2030 (relative to the 1990 added since 2018. The sector baseline). The Scottish Government chapters in Part 3 set out the detail also committed, in line with of the new policy package and recommendations from the Scottish Annex A provides a complete list Parliament, to updating the 2018 of the policies; Plan, in order to account for these new targets. This update to the 2018 Ħ includes updated emission Plan fulfils that commitment. envelopes for each sector which reflect the pathway to the new 2. We had planned to lay this Plan emissions reduction targets; update before Parliament earlier Ħ includes additional abatement in this year, and were on track for April the updated emissions reduction 2020, however, its progress was pathway sufficient to make up the necessarily postponed due to the excess emissions of 5.5 MtCO2e COVID-19 pandemic. In light of the from the 2017 and 2018 annual unprecedented circumstances we targets having been missed. As are faced with, this Plan update now such, the present document also demonstrates not only our pathway fulfils the requirements of section to meeting Scotland’s emissions 36 of the 2009 Act in relation to reduction targets over the period those targets; and to 2032, but is also a strategic Ħ updates the monitoring framework document on our green recovery from the 2018 Plan. This will from COVID-19. now be used for annual, sector by 3. It’s clear that, at time of publication, sector, reporting on progress from we are very much still in the midst of May 2021 onwards. See Annex B the pandemic and the lasting impact for more information. Update to the Climate Change Plan | Introduction  31 Edinburgh, Scotland Engagement highlighting the benefits that tackling climate change can have for jobs and 5. In Scotland we have a particular the economy, as well as biodiversity. approach to policy-making, putting Actions tested included support for people and organisations at its heart additional charges on the sale or and engaging those who live here provision of items that are harmful to in decision-making. Collaborating the environment, reducing personal with stakeholders and the public is car travel, as well as regulations especially important when it comes to requiring low or zero emissions tackling climate change because of the heating and increased investment in scale of the challenge we are facing. low-carbon companies4. 6. The changes we make as we 8. These latest findings build on and decarbonise will transform all our complement those originating from daily lives and this transformation the 2019 Big Climate Conversation, can only be achieved with the which offered citizens, businesses endorsement of, and active and public sector organisations engagement with, the public. the opportunity to have their say on Scotland’s transition to net 7. To assess how public opinion on zero emissions. A number of key climate change may have changed themes emerged and these have in light of the pandemic, the Scottish been reflected in this Plan update, Government commissioned research including the importance of a just to address the current evidence transition, the need for a systemic gap on public views surrounding approach and the importance potential actions for climate of education and skills. The change mitigation and a green conversations also highlighted a recovery in Scotland. When asked number of policy actions that we are specifically about climate change, taking forward in this Plan update, most respondents (79%) say it is an including: investment in home energy “immediate and urgent problem”, and efficiency improvements; increased the level of concern has increased tree planting; switching to low-carbon over time, including since the start methods of farming; and encouraging of the pandemic. All actions tested the switch from private car use to with the public received a majority public transport. level of support, with respondents 4 See ‘Research into public attitudes to climate change policy and a green recovery: report of findings’ as a supporting document here: https://www.gov.scot/isbn/9781800044302 32   Update to the Climate Change Plan | Introduction priorities for the Climate Change Plan update and our vision for Citizens Assembly a net zero Scotland. Covering a The establishment of a citizens’ wide range of views and interests, assembly on climate change is those in attendance were generally part of our commitment to open supportive and positive regarding government, where citizens are the level of ambition demonstrated facilitated to contribute meaningfully by the Scottish Government. There to the policies that affect their was acceptance that urgent action lives both now and in the future. is required to meet our targets and Scotland’s Climate Assembly is maximise the opportunities from independent of Ministers and emissions reduction, acknowledging operates according to principles that businesses, organisations and of transparency and inclusion. The the public have a fundamental part to Assembly comprises of around 100 play in this. There were a number of members selected randomly to be key, cross-cutting, themes identified broadly representative of the adult from these conversations. These population. The Assembly has begun remain highly relevant and have its meetings online due to current helped to inform this Plan update Coronavirus guidance and will meet and our green recovery work. They over six weekends, beginning in include: November 2020 and concluding Ħ the importance of prioritising in March 2021. The Assembly will fairness, and a just transition; provide a report of recommendations managing any risks, avoiding following its deliberations. The exacerbating inequalities, and Scottish Government is required ensuring that everyone can to respond within six months experience the benefits of a of receiving this final report. transition to net zero; More details on the Assembly’s operations can be viewed at Ħ prioritising the wellbeing of www.climateassembly.scot. citizens when developing and implementing policy; Ħ the need for a more coordinated 9. In producing this update we have and joined up approach, with also engaged closely with experts, collaboration between the advisory bodies, businesses and Scottish Government, local other organisations. This engagement government, business, industry and has come in a number of forms, communities; including the Sustainable Renewal Ħ the value of setting clear and Advisory Group, advice from the accurate standards and targets, Committee on Climate Change, the (such as waste reduction, energy Scottish Science Advisory Council efficiency and goods production) and the Just Transition Commission, to help those outside government as well as considering the green take action; and recovery recommendations of a Ħ the importance of influencing number of other organisations. behaviours to implement policies In February 2020, the Scottish and interventions which are Government engaged with over effective and successful. 200 stakeholders to consider our Update to the Climate Change Plan | Introduction  33 Looking forward to the next 12. The range of strategies and publications with which this Plan full Climate Change Plan update interlinks demonstrates how firmly our climate change targets are 10. The Plan update recognises the embedded in decision-making across continual need for learning by the Scottish Government. doing, review and further policy development, especially given 13. Scotland’s statutory framework on the limits of devolution, technical climate change also ensures that complexity of measuring emissions strategic planning on emissions reduction, significant uncertainties reduction will continue to be and changing markets as well as revisited on a regular basis, with emerging technologies and how they annual monitoring reports on can be deployed at a commercial progress each May and the next scale. full statutory Climate Change Plan process due to be completed by early 11. As such, this Plan update does 2025 at the latest. not, and cannot, contain all of the answers; it builds upon learning to date from a broad range of sources which are explored further in this document, but also needs to be further updated through future Climate Change Plans and a range of associated national policies and strategies. It has been created with, and aligned to, a range of publications and will be built on and adapted through future strategies and other publications. These include: Ħ ‘Net Zero Nation: Draft Public Engagement Strategy for Climate Change’ Ħ National Planning Framework 4 Ħ Infrastructure Investment Plan Ħ [Scottish Government] Housing Strategy Ħ Energy Strategy Ħ Heat in Buildings Strategy Ħ National Transport Strategy Delivery Plan Ħ Hydrogen Policy Statement Ħ Hydrogen Action Plan Ħ Climate Emergency Skills Action Plan Ħ Previous monitoring reports on progress to the 2018 Plan 34   Update to the Climate Change Plan | Introduction Just Transition The transition to net zero emissions will transform our society and economy, therefore the manner of our transition will be crucial. If we plan and prepare, building consensus about our collective future through dialogue and engagement, then we can ensure Scotland benefits from the opportunities of net zero. The transition can realise green jobs, a better environment and a healthy economy that supports our wellbeing. Failure to plan risks abrupt shifts, the loss of key industries and jobs, and deepening inequalities. This is why Scotland has committed to a just transition to net zero. A just transition puts people, communities and places at the heart of our approach to climate change action. It ensures we work together in order to capture opportunities, tackle existing inequalities and exclusion, whilst anticipating and mitigating risks to those worst impacted so no one is left behind. As the pace of the transformation increases, the need for a collaborative just transition becomes ever more important. This approach is at the heart of Scotland’s ambitions to move to a wellbeing economy that prioritises society’s wellbeing as the core aim of our economy. The just transition concept features in the Paris Climate Agreement. It encompasses a range of social interventions to secure workers’ jobs and livelihoods and has often been closely aligned with particular industries or regions undergoing transitions, for example coal mining. Scotland’s just transition approach and decision to establish an independent Just Transition Commission was informed by the trade union movement as well as private sector, third sector and academia. In Scotland we have taken a broad approach to just transition, looking across the economy and the whole of Scotland. This recognises that the scale of the net zero transition will impact everyone, but not equally. We need a plan to ensure that the decisions we are making take into account different circumstances and enable everyone to access and benefit from the opportunities of net zero whilst supporting those potentially at risk from an unmanaged shift away from fossil fuels. The just transition principles in our Climate Change legislation emphasise the importance of taking action to reduce emissions in a way which: Ħ supports environmentally and socially sustainable jobs; Ħ supports low-carbon investment and infrastructure; Ħ develops and maintains social consensus through engagement with workers, trade unions, communities, non-governmental organisations, representatives of the interests of business and industry and such other persons as the Scottish Ministers consider appropriate; Ħ creates decent, fair and high-value work in a way which does not negatively affect the current workforce and overall economy; and Ħ contributes to resource efficient and sustainable economic approaches which help to address inequality and poverty. Update to the Climate Change Plan | Green Recovery  35 Part 1: Green Recovery 36   Update to the Climate Change Plan | Green Recovery

1.0.1 The COVID-19 pandemic has been 400 million tonne CO2 reduction in an unprecedented global crisis 2009 was followed by a rise of 1.7 which has fundamentally changed billion tonnes in 2010, which is the every aspect of our lives. While sharpest upswing in history5. there are many challenges there are also important opportunities 1.0.4 Analysis of the impact from in this time of change. In our COVID-19 on emissions, published recovery from COVID-19, we can in April 2020, suggests the rebuild our society and economy pandemic could result in global in a greener, fairer and more emissions reductions this year of sustainable way. around 2 billion tonnes of CO2, or 5.5% of 2019 emissions, which

1.0.2 To deliver on that opportunity, would be the largest ever annual the Scottish Government has fall in CO2 emissions6. committed to a green recovery from COVID-19: a recovery which 1.0.5 However, the resurgence of sets us on a path to meeting our emissions following the 2008- world-leading emissions reduction 10 financial crash should make targets in a way that is just us treat anticipated emissions and improves the outcomes for reductions with caution. Indeed, everyone in Scotland, ensuring more recent evidence suggests that no one is left behind. COVID-19 at least some of these gains may has demonstrated the risks of be temporary. One study tracking abrupt, unplanned shifts and how global emissions, using fossil fuels these exacerbate inequalities in and cement production as key our society. However, a green indicators, shows an increase of recovery offers opportunities CO2 levels by late April7. Another to address these inequalities, study tracking emissions through create and maintain good, green consumer expenditure in the jobs right across Scotland, and UK shows an increase in CO2 empower people and communities emissions between quarter two to make decisions about their and quarter three of 2020, likely future through community wealth related to loosening of lockdown building. A green recovery drives policies8. It is critical for the future action to reduce our emissions and of our planet, and for Scotland’s protect and restore our natural contribution to tackling the climate environment. emergency, that we do not repeat the mistakes of the past. We

1.0.3 While recognising the impacts are must secure this opportunity to different, there are lessons to be lock-in as much of the emissions learned from crises of the past, reductions as possible through a for example the 2008-10 financial just and green recovery, setting us crash. As the International Energy on a pathway to net zero. Agency noted earlier this year, a 5 https://www.iea.org/commentaries/what-the-2008-financial-crisis-can-teach-us-about-designing-stimulus-packages-today 6 https://www.carbonbrief.org/analysis-coronavirus-set-to-cause-largest-ever-annual-fall-in-co2-emissions 7 https://www.nature.com/articles/s41597-020-00708-7 8 https://www.lloydsbankinggroup.com/globalassets/documents/media/press-releases/lloyds-banking-group/2020/ consumers-cut-carbon-with-emissions-down-12-percent-on-20192.pdf Update to the Climate Change Plan | Green Recovery  37

1.1. Engagement with 1.1.4 The actions tested with the public received high levels of support Stakeholders on a and respondents highlighted the Green Recovery benefits that these measures can have for our jobs, the economy

1.1.1 Our approach to a green recovery and wellbeing, as well as climate is being informed by experts, change. For example, in terms stakeholders and the public. of actions to deliver a green recovery, a majority would support Public engagement requirements on homeowners to

1.1.2 Our approach to a green recovery replace their current gas or oil- has been informed by the latest fired boiler and radiators with a public opinions and research, new type of heating system that including proposals to embed is more environmentally friendly, climate positive behaviour changes although respondents did not feel we have experienced since March homeowners should bear the cost 2020. of this. Most respondents also supported investing public money

1.1.3 The Scottish Government in low carbon companies, noting commissioned research on public the co-benefits for the economy views for a green recovery in and our climate. Furthermore, in Scotland. The research findings line with public attitudes data are based on a nationally which shows that people intend representative telephone survey to walk and cycle more in the of 1,045 adults across Scotland, future10, a majority would be and provide robust data exploring willing to reduce the amount they views on potential actions to travel by car. Among the minority reduce carbon emissions and opposed to the measures, the support our recovery. The vast most common reasons given were majority of respondents (79%) said concerns about who might carry climate change is an “immediate the cost, implications on jobs and and urgent problem” and the perceptions of financial risk. We number of respondents rating must continue to consider such change as “urgent” is significantly factors as part of our commitment higher than in the 2019 Scottish to a just transition, ensuring we Household Survey. Over a quarter reduce our emissions in a way that (26%) of respondents said they is fair. are more concerned about tackling climate change since the COVID-19 pandemic began, with only 7% saying they are less concerned9. 9 See ‘Research into public attitudes to climate change policy and a green recovery: report of findings’ as a supporting document here: https://www.gov.scot/isbn/9781800044302 10 COVID-19 Public Attitudes Survey Data: Wave 10, published 19 November 2020, accessible: https://www.transport.gov.scot/publication/covid-19-public-attitudes-survey-data-wave-10/ 38   Update to the Climate Change Plan | Green Recovery Workshop at the 2019 Big Climate Conversation

1.1.5 We have also commissioned circumstances. To complement this research via ClimateXchange to in-depth study, we are funding a better understand how and nationally-representative random why behaviours are changing household survey of over 1,100 as a result of the pandemic. The people in Scotland, which will research is following a cohort of generate quantitative data on 30 participants over approximately post-pandemic attitudes and 8 months to explore participants’ behaviours relating to net zero and experiences of behaviour change, green recovery. There will be two including the factors influencing rounds of data collection, with the whether new behaviours are first wave of results expected in likely to be sustained over January 2021. time. Participants were selected to represent a mixture of 1.1.6 The findings of our public research demographics and a variety are a key step to assess how of attitudes to climate change, public opinion on climate change allowing for investigation of the and behaviours have changed in factors influencing behaviours light of COVID-19. Despite the for people living in different challenges we’ve faced as a result of the pandemic, it’s clear that Update to the Climate Change Plan | Green Recovery  39 levels of concern around climate recovery that aligns with our change continue to grow and the climate ambition. Further public public recognises the dual benefits engagement, including the Citizen’s of tackling climate change and Assembly on Climate Change, will an effective green recovery of provide an opportunity to further the economy. We will continue to our insight into public attitudes, engage closely with the Scottish behaviours and recommendations public as we deliver upon a to tackle climate change. Draft Public Engagement Strategy Alongside the publication of this document we have also published our Net Zero Nation: Draft Public Engagement Strategy for Climate Change for public consultation. This strategy outlines our new overarching framework for engaging the people of Scotland in the national effort required to successfully realise the ambition included within the Climate Change Plan Update. The draft strategy marks a step change in our approach to public engagement in climate change policy, moving from encouraging incremental changes in attitudes and behaviours, to supporting a society-wide transformation. We want to put people at the heart of everything we do have therefore structured our new approach around three strategic objectives: 1. People are aware of the action the Scottish Government is taking to tackle climate change and how it relates to their lives. 2. People actively participate in shaping fair and inclusive policies that promote adaptation to and mitigation of climate change. 3. Taking action on climate change is normalised and encouraged in communities and places across Scotland. Delivery of the strategy will require collaboration with a wide range of stakeholders, from community groups to local authorities and delivery bodies. We encourage interested parties to contribute to the consultation, here. 40   Update to the Climate Change Plan | Green Recovery Stakeholder recommendations 1.1.8 The Sustainable Renewal Advisory

1.1.7 In April 2020, the Cabinet Group brought together Members Secretary for the Environment, of the Scottish Parliament and Climate Change and Land Reform, stakeholders from across academia, Roseanna Cunningham, requested industry, business, trade unions advice from the Climate Change and environmental organisations. Committee and established the They were tasked with identifying Sustainable Renewal Advisory concrete, deliverable ways Group, recognising the importance of embedding sustainability of bringing experts together to in Scotland’s recovery from consider the green recovery from COVID-19, as well as exploring the the pandemic. new challenges and opportunities in achieving our climate change targets. The Cabinet Secretary In response to a request for advice, chaired the group, which met six the Climate Change Committee times from May to November wrote to the Cabinet Secretary 2020, thoroughly exploring topics for Environment, Climate Change around a green recovery and and Land Reform on 6 May informing this Climate Change Plan recommending that the Scottish update. Government, in partnership with Westminster, prioritises actions 1.1.9 The Scottish Government also according to six principles for a requested advice on a green resilient recovery11: recovery from the Just Transition Commission and the Advisory 1. Use climate investments to Group on Economic Recovery. support the economic recovery Furthermore, we have considered and jobs recommendations from a number of organisations, such as the 2. Lead a shift towards positive Climate Emergency Response long-term behaviours Group (CERG), Stop Climate Chaos Scotland, Scottish Environment 3. Tackle the wider ‘resilience deficit’ Link, WWF Scotland and other on climate change environmental organisations; from the Infrastructure Commission 4. Embed fairness as a core principle for Scotland; and from private 5. Ensure the recovery does not sector stakeholders including the ‘lock-in’ greenhouse gas emissions Scottish Council for Development or increased climate risk and Industry, Scottish Renewables, Scottish Renewables, SSE and EON, 6. Strengthen incentives to reduce among many others. emissions when considering fiscal changes 11 https://www.theccc.org.uk/publication/letter-building-a-resilient-recovery-from-the-covid-19-crisis-to-roseanna- cunningham-msp/ Update to the Climate Change Plan | Green Recovery  41 Just Transition Commission Recommendations The Just Transition Commission is an independent Commission tasked with providing Scottish Ministers with practical, realistic, affordable recommendations for action to deliver a just transition to net zero in Scotland. The Commission will run for two years and is expected to deliver its final report in March 2021. In July 2020 the group’s Recommendations for a Just, Green Recovery advised on immediate priorities in response to the pandemic. The report highlighted four “hot spot” areas that would require particular attention in the near term: (a) the particular risk to young people, (b) the uncertainty around changes in transport use patterns, (c) the rapid, unplanned transition unfolding in the oil and gas sector and (d) the fact that parts of the rural economy had been particularly hard hit. Specific recommendations for action can be summarised as: 1. Boosting measures that will help keep people warm, create jobs and save money for energy consumers 2. Backing buses and boost the supply chain 3. Helping rural Scotland by helping Scotland’s nature 4. Maintaining jobs for workers in oil and gas while transitioning into jobs of the future 5. Aligning skills development – for young and old – to the net zero transition 6. Giving business direction and attach conditions to funding

1.1.10 We have conducted an analysis of all change targets and investment of this advice, from which a number in Scotland’s natural capital; of key cross-cutting themes and Ħ Prioritising resilience in our recommendations have emerged: economy to protect it from future crises, such as those Ħ Opportunities for green job caused by climate change; creation, including reskilling and retraining of the workforce into Ħ Locking in positive behaviour, sustainable, good jobs; particularly active travel and remote working, and Ħ Delivery of a just and fair investment in high-speed recovery; telecommunications to support Ħ Use of green finance and working from home; and investment initiatives such as Ħ Ensuring that we harness a carbon pricing; place-based approach, taking Ħ Encompassing conditionality actions at a local level to ensure into our recovery, ensuring that that the benefits are spread support for sectors aligns with widely. our commitment to climate 42   Update to the Climate Change Plan | Green Recovery

1.1.11 Other recommendations are sector- transition is key to our focus on specific, such as: good, fair jobs and Community Wealth Building. It also takes a Ħ Transport - Further commitment place-based approach to policy to green transport, including development and delivery. We investment in electric vehicle will consider the detailed design infrastructure, increased of these policies and initiatives affordability of public transport, to deliver a just transition and decarbonisation of public examine the costs to ensure transport and prioritisation of they do not disproportionately active travel. disadvantage certain groups, places Ħ Buildings - Emphasis on or sectors. sustainable housing, for example in the delivery of housing Investing to drive demand in the retrofits to increase energy net zero economy efficiency, tackling fuel poverty, 1.2.2 The transition to net zero will and higher carbon standards for require significant upfront new homes. investment in modernised Ħ Electricity - Increased infrastructure and capital investment in renewable projects, preserving and restoring energy, particularly onshore and Scotland’s natural environment, offshore wind. and modernising our building Ħ Land Use, Land Use Change and stock. As stakeholders such Forestry - Focus on biodiversity as the CCC and CERG have and ‘natural capital’ through stressed, while government has the optimisation of land use such a crucial role to play, the scale as restoration of peatland, tree of this transformation cannot planting, and “re-wetting” of bog be funded by the public purse land. alone. Mobilising private sector and personal investment in the

1.1.12 These recommendations have quantity and at the pace required informed our delivery of a will put Scotland in prime position green recovery to date. Details to maximise the economic benefits on sector specific policies are from the low carbon global included within the relevant sector economy, as well as on the path to chapters in Part 3; cross sector meet our emissions targets. recommendations are addressed below. Public investment and stimulus

1.2.3 The fiscal challenges posed by the

1.2. Delivering a Green COVID-19 crisis are considerable, but we have continued to prioritise Recovery action to reduce our emissions, demonstrating our commitment

1.2.1 Across all of the actions in this to ending Scotland’s contribution Climate Change Plan update, we to climate change. Using are embedding a just transition, public investment to create an ensuring that we assess how environment where new industries, green recovery actions address markets and innovations can thrive inequalities and deliver wellbeing is key to securing a just transition outcomes for everyone. A just to net zero by 2045. Update to the Climate Change Plan | Green Recovery  43

1.2.4 Since setting our new emissions targets in the Climate Change (Emissions Reduction) (Scotland) Act 2019, the Scottish Government has made significant spending commitments for net zero initiatives. Our 2020–2021 Budget brought our overall low carbon capital spend to £1.8 billion on an annual basis, while our 2020-2021 Programme for Government and our draft Infrastructure Investment Plan committed an additional £2 billion capital investment to support the green recovery over the life of the next Parliament.

1.2.5 Those investments included the first tranche of the Low Carbon Fund set out in the 2020-2021 Programme for Government and Draft Infrastructure Investment Plan. The Low Carbon Fund 1.2.6 The draft Infrastructure Investment was designed to support Plan for 2021/22 to 2025/26 transformational projects which published in September 2020 accelerate our just transition to net details around £24 billion of major zero, provide a level of certainty projects and national programmes, needed to grow new markets for with more to be confirmed in private investment, and create future years. These investments employment opportunities. The will provide a near-term stimulus final tranche of the Low Carbon to support Scotland’s economic Fund is set out in this Plan update recovery, and also lay the with £180 million for Emerging foundations for long-term green Energy Technology, including an growth. The draft Plan provides emphasis on Negative Emissions a robust pipeline of low carbon Technologies (NETs), £120 projects, creating the conditions million to drive forward a fully for new supply chains to develop, decarbonised future for buses, and for the creation of good, green £50 million to transform vacant jobs in areas such as construction and derelict land to support our and building retrofit, nature and climate objectives, and a further environmental projects, and £50 million uplift to active travel transport and digital infrastructure. through the creation of “Active Freeways”. The role of public investment is crucial in helping prove a concept or an approach that could become central to our transition. 44   Update to the Climate Change Plan | Green Recovery Infrastructure Investment Plan Infrastructure investment has a vital role to play in helping businesses and communities to adapt and recover from the economic, health and social harm arising from COVID-19. It cuts across all of the sectors included in this Climate Change Plan update, from our energy systems and how we heat our homes, to our transport links and green spaces. The Scottish Government’s investment in publicly-funded infrastructure has a critical role to play in supporting the transition. Committing to multiyear investments in this Plan update sends a clear signal to businesses and supply chains to invest in people and technology, and help us deliver the net zero transition. But it is only a share of the effort, and cannot deliver such targets on its own. What we are doing: We already invest £1.8 billion of capital each year in low carbon policies and programmes. Scottish Ministers have committed to increasing the level of spending by an additional £2 billion over the next 5 years. New schemes have already been announced in the 2020-2021 Programme for Government that will deploy £1.6 billion of this investment. Our draft Infrastructure Investment Plan (IIP)12 was published in September and we are committed to finalising the Plan alongside the forthcoming Budget and Medium Term Financial Strategy. The IIP is the key delivery programme for the National Infrastructure Mission which represents over £33 billion of Scottish Government investment in the next five years (from April 2021). The draft IIP sets a long-term vision of infrastructure supporting an inclusive, net zero carbon economy in Scotland. It also recognises the vital role that Scotland’s natural environment can play in our infrastructure system and highlights climate resilience as a key priority over the coming years. The proposed common infrastructure investment hierarchy emphasises making the most of our existing assets in order to increase sustainability and address the climate emergency. In passing the Climate Change (Emissions Reduction Targets) (Scotland) Act 2019, the Scottish Parliament agreed that a new methodology should be developed in order to assess the contribution made by the infrastructure investment plan to our new climate change targets. In order to respond to this new requirement, and in recognition of the limitations of the current approach, an independent research project was commissioned to explore alternative options. This research was facilitated by ClimateXChange, Scotland’s centre for expertise connecting climate research and policy. The Scottish Government plans to consider these research findings carefully and invited views on the approach within the consultation on the draft IIP. 12 A National Mission with Local Impact - draft infrastructure investment plan 2021 2022 to 2025 2026: consultation: https://www.gov.scot/publications/national-mission-local-impact-draft-infrastructure-investment-plan- scotland-202122-202526/ Update to the Climate Change Plan | Green Recovery  45

1.2.7 As we invest in a green recovery, 1.2.9 Our public sector leaders will need we will work in partnership with to encourage their organisations to businesses to best align business work across boundaries to identify recovery support with our long- opportunities to procure in an term climate, environmental, environmentally-friendly way, and economic and social goals. will need low carbon options to help This partnership approach to them make sustainable choices. For ‘conditionality’ of business support example, this will include using the was set out in our response Non-Domestic Energy Efficiency to recommendations from the Frameworks that provide public Advisory Group on Economic bodies with advice on and a route to Recovery in August 202013. retrofit public buildings to improve Conditionality might be applied their energy efficiency.14 to a wide range of interventions and may carry risks of unintended 1.2.10 The climate emergency is a very consequences. For example real clear priority for higher emission (or perceived) threats to business products and services with key competitiveness can lead to areas of focus outlined in the emissions being off-shored as within this Climate Change Plan production is moved elsewhere. update, including commitments Therefore, as part of our response to decarbonise the public sector to COVID-19, we have taken a fleet and heat. There continues bespoke, partnership approach to be significant investment in to conditionality. For example, upskilling public procurers to support for high emitters would understand and implement the be expected to be contingent sustainable procurement duty and on credible, robust transition to deliver on our ambitions. The plans that align with Scotland’s Scottish Government’s sustainable climate change ambition. In procurement tools15, available to other cases we would expect all public bodies, already include those seeking support to publicly indicators and guidance to support align with Scottish Government Scottish public sector buyers to values, particularly those relating consider and act on climate change to climate and environmental considerations. These include the ambition and fair work. Sustainable Public Procurement Prioritisation Tool, designed to assist Mobilising public sector strategic planning and prioritisation procurement spend of economic, environmental and

1.2.8 We are mobilising the £12.6 billion social wellbeing considerations of public sector procurement and in public procurements to ensure collaborating across the public an appropriate focus within sector on tools and guidance to organisational and category/ support a green recovery and commodity planning. All of this our wider climate and circular allows us to make best use of economy ambitions. existing public procurement policy and law in Scotland. 13 Economic Recovery Implementation Plan: Scottish Government response to the Advisory Group on Economic Recovery - gov.scot (www.gov.scot) 14 For more information, go to the Utilities section at Scottish Government Frameworks and Contracts: www.gov.scot/publications/frameworks-and-contracts/ 15 Sustainable procurement tools: https://sustainableprocurementtools.scot/ 46   Update to the Climate Change Plan | Green Recovery Mobilising private investment and 1.2.13 For example, to support the shift green finance away from petrol and diesel

1.2.11 A central objective of Scottish cars and vans by 2030, we are Government investment in a investing £30 million in an electric green recovery is to mobilise vehicle charging network, and we and attract additional private have extended our low carbon investment. The transition to transport loans to used vehicles. net zero presents a considerable Combined, these measures not opportunity to position Scotland only make investing in an electric to benefit from increased, global vehicle more economically viable private investment, as well as for Scottish households, but also an opportunity for investors provide a level of certainty to the themselves. Demonstrating private sector that demand for Scotland’s net zero investment ULEV-supporting infrastructure opportunities to business and will continue to grow, raising investors, while identifying and the expected return on these reducing barriers to investment in investments and crowding in the low carbon transition, will be additional finance. vital to achieving the emissions targets outlined in this Climate 1.2.14 The establishment of the Scottish Change Plan update. National Investment Bank, and its capitalisation of £2 billion of public

1.2.12 Scotland’s commitment to the money over the next ten years, is net zero transition is already central to driving net zero market attracting significant investment, growth and mobilising private such as Scottish Power’s pledge to investment for the transition. invest over £10 billion in North The Bank’s primary mission will Sea renewables in the coming be to support a just transition to decade. The Scottish Government net zero by 2045, and will work has a role to play in making with public, private and third clear the value of investment in sector partners to channel and net zero to private actors, and crowd in investment. In addition we are working to develop an to co-investment, the Bank will attractive investment environment also actively seek to develop and in Scotland. By providing clear introduce further mechanisms to guidance over future government leverage its available capital and policy, regulations, and the path of catalyse even greater investment public investment, we are laying in the Scottish economy. the ground for new sustainable markets in net zero products and services that will stimulate private investment over the coming years. Update to the Climate Change Plan | Green Recovery  47

1.2.15 The Scottish National Investment Bank The Scottish National Investment Bank launched on 23 November 2020. Working in tandem with the business community and public sector partners, the Bank will be at the forefront of shaping an economy with the transition to a net zero economy, fair work, and inclusive growth at its heart. The Scottish Government has committed to capitalising the Bank with £2 billion over 10 years. As a mission-based investor, the Bank is in a unique position to influence the direction of Scotland’s economic recovery and growth. The Bank’s primary mission is to support Scotland’s climate change ambitions, ensuring the highest possible environmental, economic and social return on its investments. This work will contribute to Scotland’s Green New Deal, kick-starting investment and building the momentum needed to make a significant impact on reducing emissions and guaranteeing new, high quality jobs. The Bank will align with, complement, and wherever appropriate, consolidate existing investment activities provided by the Scottish Government and its agencies. The Bank’s missions are: Ħ Net Zero Mission: Achieving a Just Transition to net zero carbon emissions by 2045. Ħ Place Mission: Extending equality of opportunity through improving places by 2040. Ħ People Mission: Harnessing innovation to enable our people to flourish by 2040.

1.2.16 We are also supporting the 1.2.17 In spring 2021, we will publish development of Scotland’s green a Capital Investment Plan which project pipeline and promoting this aims to build market certainty to investors. The first phase of the in Scotland’s net zero transition. Green Investment Portfolio, launched The Capital Investment Plan will in September 2020, identified ten build on sector climate change low carbon investment opportunities policies and set out investable with around £1.16 billion of projects. It will link these to commercially viable propositions. attracting capital and inward This portfolio is built to expand, investment into Scotland’s future taking in both private sector-led competitive opportunities around opportunities around technology, infrastructure, innovation and net industrial sites and energy zero. Proactively supporting the generation, as well as public sector greening of the financial sector, led projects around heat networks, including by mainstreaming the electrification of transport, and the EU and UK green investment use of hydrogen where coordination taxonomies and Taskforce is needed around supply, demand for Climate-related Financial and regulation. Our aim remains Disclosures (TCFD) reporting to find, structure and present £3 standards, will also be key to billion worth of projects to market reinforcing Scotland’s status as a in 3 years. place for global green investment. 48   Update to the Climate Change Plan | Green Recovery CASE STUDY: MOSSEND INTERNATIONAL RAILFREIGHT PARK (MIRP) Scotland is inviting investment into Additional investment in PD Stirling’s a new Green Investment Portfolio. Mossend facility will drive ambition to be The range of opportunities within a leading provider of low carbon logistics, this portfolio will expand over time putting Scotland at the forefront of a to include £3 billion of projects Europe-wide network and transforming ready for green finance investment, our current logistics system. covering sectors from environmentally sustainable commercial real estate David Stirling, Director of Mossend to low emission transportation and International Railfreight Park operator green energy. Peter D Stirling Ltd, said: Mossend International Railfreight Park “We are fully supportive of the Scottish is one of 10 market-ready projects Government’s target to achieve net featured in the Green Investment zero emissions by 2045 and indeed Portfolio seeking investment. are contributing to this by providing Scotland’s largest zero-carbon, multi- A major expansion of Scotland’s modal rail freight park. The Green national railfreight terminal, MIRP is a Investment Portfolio is a valuable tool game-changer for Scotland’s railfreight to help us reach out to global investors. infrastructure and environmental ambitions, and will bring extensive “With future plans including Scotland’s commercial opportunities. MIRP will first 775-metre electric rail terminal, also take HGV freight off Scotland’s we hope to benefit many local roads onto rail, directly contributing businesses as well as those based to the green agenda. across Europe and beyond.” Update to the Climate Change Plan | Green Recovery  49 Skills and training for good, 1.2.20 To further align the skills system green jobs with the demand resulting

1.2.18 At the centre of our green recovery from a green recovery and net is a commitment to increase the zero transition, the Climate number of good, green jobs and to Emergency Skills Action Plan has enable people to access these jobs, been published alongside this including through training and Climate Change Plan update. This reskilling. This is fundamental to Action Plan sets out the growing the National Mission for Jobs set evidence base for the kinds of out in the 2020-2021 Programme skills and jobs needed to deliver for Government. This approach a just transition to net zero, as builds on the recommendations well as the actions we are taking from the Sustainable Renewal in the short and medium term Advisory Group, the CCC and the to support these green jobs and Just Transition Commission while skills. It sets out immediate actions also responding to stakeholder to support a green recovery by calls for jobs to feature aligning retraining and skills prominently in the green recovery programmes with immediate green and a just transition to net zero. job opportunities. In addition the Action Plan sets out longer

1.2.19 The 2020-2021 Programme term actions to enable the skills for Government set out the key system to become more responsive interventions that the Scottish to net zero labour market Government is taking to drive demands, supporting individuals labour market demand for green and employers to access the jobs; for example, our £1.6 billion information and skills or retraining invested in transforming heat and support they need to thrive in the energy efficiency of buildings will transition to net zero. stimulate 3,000-5,000 jobs in the coming years. We also committed 1.2.21 Key to delivering our ambitious to a £100 million Green Jobs Fund climate change targets and to help businesses which provide ensuring a just transition is how sustainable, low carbon products we transition Scotland’s labour and services to grow and support market in coming years. The green jobs. As part of the national Scottish labour market has world- mission for jobs16, immediate leading expertise in industries, supply-side interventions have such as oil and gas, that will be been launched and quickly critical to delivering net zero scaled to support those at risk of solutions like offshore renewable unemployment or labour market energy, carbon capture and storage scarring. This includes the £25 (CCS) and hydrogen, all of which million National Transition Training are opportunities in which Scotland Fund, which will support those is globally competitive. We are losing their jobs due to COVID-19 working with industry to plan how to retrain to sustainable careers, to support workforces to transition and the £60 million Young Person’s to these new job opportunities, Guarantee that includes support ensuring no one is left behind. for green apprenticeships and careers advice. 16 Protecting Scotland, Renewing Scotland: The Government’s Programme for Scotland 2020-2021 - gov.scot (www.gov.scot) 50   Update to the Climate Change Plan | Green Recovery

1.2.22 The green recovery offers an job opportunities, providing opportunity to accelerate that them with a sustainable, resilient retraining and bring much needed future. skills and labour into sectors scaling up for the transition to Building our resilience as part of a net zero, including where there is green recovery immediate demand for skills and 1.2.24 The COVID-19 pandemic has labour such as in construction, proven the importance of land-based roles in woodland embedding resilience and security creation and peatland restoration, into our society and economy; and in energy. We will also lay this is also essential for our the foundations to support people green recovery. Whilst reducing to shift to opportunities within emissions towards net zero is the sectors as part of the transition, focus of the Climate Change Plan such as ecotourism, green finance, update, the Scottish Government project management, law and also recognises the wider teaching/training. We must importance of preparing for the consider where these opportunities climate changes which are already are geographically and how to taking place. We are already seeing support places to create good, warming in Scotland, with more green job opportunities, as the extreme weather events, increased Energy Transition Fund is doing rainfall, and rising sea levels. As in the North East of Scotland. We a nation we must adapt to the must ensure everyone can access changes caused by climate change these jobs and the training and and ensure that we are prepared skills support they need. This for the future. means individuals from a wide range of backgrounds having the 1.2.25 Adaptation and resilience are opportunity to develop careers therefore also key components of and access good, green jobs, our green recovery from COVID-19. and ensuring that women, single In the 2020-2021 Programme parents, people with disabilities for Government we committed to and people from minority ethnic investing an extra £150 million for communities are particularly flood risk management over the considered. next five years (in addition to the £42 million we spend annually),

1.2.23 Younger generations are at risk and £12 million in coastal change of being particularly impacted adaptation to help us adapt to the by the economic downturn from threat of sea level rise and protect COVID-19. We will do all we can our natural coastal defences from to prevent long-term scarring erosion. Adaptation investment in this regard and want to help is also a key driver of economic young people go on to reliable, growth and jobs across Scotland rewarding career pathways. This and presents opportunities generation is alive to the dangers for Scotland to attract inward of climate change and has the investment into this area. potential to supercharge our transition to net zero. Through 1.2.26 Adaptation is key to a just initiatives such as the Young transition as we know the impacts Person’s Guarantee, we will make of climate change impact the sure they are able to access green poorest and most vulnerable in Update to the Climate Change Plan | Green Recovery  51 society first and most acutely. 1.2.29 Our approach recognises that Ensuring we are planning and behaviours are interlinked and taking action to adapt to the context-dependent, and takes impacts of climate change is vital account of all of the factors that in mitigating the risks to people shape people’s lifestyles: the and businesses and ensuring a just social, material, and individual. By transition. considering the contextual factors influencing behaviours, we are Positive Behaviour Change more likely to implement policies

1.2.27 The impacts of the COVID-19 and interventions which are pandemic on people’s lives and effective and successful. livelihoods have been enormously difficult. The restrictions on travel, 1.2.30 It is important to recognise work, and leisure necessary that individuals also drive to control the virus have been societal change not only through extremely challenging for us all. specific behaviours, but also via One unexpected consequence of acceptance and adoption of low- these restrictions has been to carbon technologies and support show us some examples of what for policies. Our Draft Public a net zero future might look like Engagement Strategy, published and the benefits of that future. alongside this update, sets out For example, research between how we will continue to engage March and May 2020 shows that with citizens in developing and there was a marked drop in air implementing climate policy that pollution17, as well as an uptake in has widespread support and active travel18, and that across the encourages action. UK there was a reduction in food waste as households chose to cook Place-based approach more meals at home19. 1.2.31 “Place” is where people, location and resources combine to create

1.2.28 In its green recovery advice, the a sense of identity and purpose. CCC recommended that actions that It is at the heart of addressing maintain these positive behaviours the needs of communities in the long-term are prioritised as and realising their potential. part of a green recovery20. In doing In order to prioritise place so we will consider the impacts and local communities, and to of behaviour change on different encourage better collaboration groups to avoid unintended and community involvement in consequences as part of delivering decision-making, the Scottish a just transition. This document Government and COSLA have therefore sets out the policy adopted the “Place Principle”21. measures that we will introduce to This principle underlines a embed positive changes, making commitment to work with local them the easy and obvious choice communities in order to improve as well as the green choice. the lives of people, support 17 http://www.scottishairquality.scot/assets/documents/news/COVID19%20lockdown%20-%20Time%20Variance%20analysis%20 of%20air%20quality%20in%20Scotland%20-%2027-05-2020.html 18 https://www.transport.gov.scot/publication/covid-19-transport-trend-data-20-26-april-2020/ 19 https://www.wrap.org.uk/content/citizens-and-food-covid-19-lockdown 20 CCC-to-Cabinet-Secretary-Roseanna-Cunningham-Covid-19-recovery.pdf (theccc.org.uk) 21 https://www.gov.scot/publications/place-principle-introduction/ 52   Update to the Climate Change Plan | Green Recovery Credit, the SHRUB COOP, Edinburgh inclusive and sustainable economic 1.2.33 Rethinking how our places are lived growth, and create more successful in, planned, delivered and adapted places. will help to futureproof our villages, towns, cities and regions from the

1.2.32 We know that people and more extreme and costly impacts of communities, particularly those climate change. The development experiencing disadvantage and of low carbon and resilient places inequality, face complex and often across Scotland, for example inter-related challenges. A place- through 20 minute neighbourhoods, based approach must therefore be will provide ready access to the at the heart of delivering a green facilities for our everyday lives, recovery and a just transition significantly reducing private car to net zero. We are committed dependency and increase walking to working closely with those cycling and public transport use, communities and organisations and supporting the well-being in areas that need change, are economy. We will support and learn undergoing change or are affected from those places across Scotland by change. which are already taking the Update to the Climate Change Plan | Green Recovery  53 lead in bringing together the key promote the health, wellbeing, and ingredients to create new ways of resilience of communities across living and working locally; and in Scotland, particularly in deprived 2021 we will begin to share lessons areas where the blight of vacant from several key demonstrator and derelict land is most prevalent. locations, to promote good practice, facilitate conversations, and offer 1.2.36 As well as the National Planning resources and a route map for other Framework 4, new regional places pursue their own climate spatial strategies and local change goals. development plans can guide our future development and help to

1.2.34 Our Place Based Investment deliver infrastructure in a way Programme will be implemented that responds to the challenges in 2021. This will bring together of climate change. Established investments in localities, tools such as the Place Standard streamlining their delivery and and emerging local place plans increasing their collective impact. will provide communities with the It will provide a framework for scope to set out how they see their ensuring that how we invest places develop and improve in the in places to deliver national future. Meanwhile, our commitment priorities is also framed by to working collaboratively across local characteristics, needs and sectors, portfolios and partners to opportunities. We will assess the nurture 20 minute neighbourhoods totality of investments’ impact will continue to prioritise quality of on improving the circumstances life and health, as well as our net of peoples’ lives, and on key zero ambitions. priorities such as reaching net zero emissions. We will build on 1.2.37 Further information on the cross- the good work of communities cutting opportunities for the and their partners on the ground planning system and National to re-think our places with pace Planning Framework 4 to support and ambition, To do this we will green recovery are outlined in Part need to make best use of public 2 of this Plan update. resources now, redesign how and

1.2.38 We are also aware that rural where assets and services are and island economies are facing provided tomorrow, and facilitate particular pressures as a result behaviour change for the future. of the COVID-19 pandemic, given

1.2.35 We will establish a new £50 million their greater reliance on micro Vacant & Derelict Land Investment and small businesses and self- Programme in recognition that employment, as well as availability sustained investment and effort of access to both export markets is needed to unlock persistent and domestic food service markets. vacant and derelict land for Our approach to a green recovery, appropriate reuses, and that we and the Place Principle, will should prioritise such sites when ensure that we work together with seeking opportunities to develop rural and island communities to the built environment and tackle collectively protect and deliver climate change. In turn, this will thriving, resilient communities. 54   Update to the Climate Change Plan | Green Recovery Community and Place-based Climate Change Action 1. Warmer Greener 2. Thurso Grows Homes for Shetland 3. Appleseed - Grow your own future 8. Climate Cafes 14. Grangemouth Future Industry Board 12. Coire Glas Pumped Hydro Electric Storage scheme 4. Swapping Normal 5. VeloCommunities 13. City of Edinburgh Carbon Scenario Tool 11. Meadowbank and North Maryhill – 10. 10k raingardens social housing and green infrastructure 6. One Planet Forth Valley 9. Community Wealth Building Strategy 7. Peebles CAN - the Road to Carbon Reduction Update to the Climate Change Plan | Green Recovery  55 Community and Place-based Climate Change Action Key 1. Warmer Greener Homes for Shetland: This project, run by Shetland Islands Citizens Advice Bureau, is helping Shetlanders to tackle fuel poverty and the climate crisis. Individuals are offered free advice on improving home energy efficiency and opportunities are highlighted for installing renewables. 2. Thurso Grows: Thurso Community Development Trust’s Thurso Grows project runs a thriving community garden which educates about food growing and assists the community to reduce food miles. The project also offers support to help the residents of Thurso learn more about how to reduce food waste and the links between food choices and climate change. 3. Appleseed - Grow your own future: Applecross Community Company is developing a community allotment to promote local growing, recycling, healthy eating and minimisation of food waste in Applecross 4. Swapping Normal: The SHRUB Coop’s project offers free support to help Edinburgh residents to rethink their relationship with waste. They run a Swapshop and Food Sharing Hub in their Zero Waste Hub, plus reuse collections, repair workshops and carbon literacy events. 5. VeloCommunities: This project, run by Bike for Good, offers free support to enable people in west and south Glasgow to reduce their use of carbon emitting modes of transport, and instead cycle for short local journeys. Project activities include free access to cycle training, increased access to bikes, route planning rides, bike maintenance training and more. 6. One Planet Forth Valley: This community project, led by the Central Scotland Regional Equality Council, offers free support to help people from the Forth Valley to tackle waste and understand more about how purchasing decisions impact on climate change. 7. Peebles CAN - The Road to Carbon Reduction: Peebles CAN (Community Action Network) are offering free support to people in Peebles and the surrounding area through carbon literacy education and community activities such as Skill Shares, active travel courses, Eco driving courses and community growing workshops.* 8. Climate Cafes: There is a network of Climate Cafes across Scotland, for example in Pitlochry, Birnam & Dunkeld, North Berwick and Aberdeen. Climate Cafes are informal, open spaces where members of the community can come together to have a cup of tea or coffee, chat and take climate action. 9. North Ayrshire Community Wealth Building Strategy: North Ayrshire launched their “build back better” strategy in May 2020, including an emphasis on utilising public land and assets to tackle climate change. 10. 10k raingardens: The 10,000 Raingardens for Scotland campaign is designed to promote and encourage the use of raingardens as a sustainable and natural way to manage water, particularly in urban areas. It will also support the creation of wildlife friendly, accessible greenspace, reduce pollution, and provide attractive places for people to visit. Over 950 raingardens have been recorded so far across Scotland in a range of settings from schools, to residential areas, offices, shopping centres, hotels, to Waverley Station. 11. Meadowbank and North Maryhill - social housing and green infrastructure: These social housing projects are exploring how green roofs could create a sustainable neighbourhood. Green roofs can help to reduce the energy costs of cooling buildings in the Summer, as well as insulation in Winter. They provide greenspace for people and wildlife, and can also slow run-off of rainfall and surface water, helping the neighbourhood cope with extreme rainfall events. 56   Update to the Climate Change Plan | Green Recovery 12. Coire Glas Pumped Hydro Electric Storage scheme: This would be the first large-scale pumped storage scheme to be developed in the UK for more than 30 years, and has a potential capacity of up to 1500 MW1500MW. Both the construction and operation of this site will bring significant investment and associated job creation to the Scottish Highlands. 13. City of Edinburgh Carbon Scenario Tool: The Council has collaborated with the Edinburgh Centre for Carbon Innovation to develop an open source quantitative emissions calculation tool that enables the Council to better understand the emissions consequences of its decisions across a range of topics. Work has been commissioned to develop this tool further for all Scottish Cities as part of the Scottish Cities Alliance. 14. Grangemouth Future Industry Board: The Grangemouth Future Industry Board (GFIB) has been established both in recognition of the economic strength of the industrial cluster, and in recognition of the fact that it accounts for 30% of industrial emissions in Scotland. A specific focus on Grangemouth is therefore key to delivering a just transition, and to achieving net-zero emissions by 2045. GFIB activity will take a ‘Team Scotland’ approach, co-ordinating public sector initiatives for sustainable economic activity across the Grangemouth industrial cluster, whilst supporting its transition to our low-carbon future. Future-proofing this key industrial hub for net-zero will help support a vibrant and sustainable future for the locality, and in turn significantly contribute to Scotland’s decarbonisation efforts as a whole. *Projects 1-7 are some examples of projects funded through the Scottish Government’s Climate Challenge Fund (CCF). The full list of currently funded CCF projects is available here: https://www.keepscotlandbeautiful.org/sustainability-climate-change/climate-challenge-fund/ccf-in-action/ Credit: Peebles CAN - the Road to Carbon Reduction Update to the Climate Change Plan | Green Recovery  57 Credit: Peebles CAN – the Road to Carbon Reduction

1.3. Conclusion

1.3.1 This Climate Change Plan update is the next step in delivering a green recovery from COVID-19. The policies set out here are aimed at driving economic demand in key net zero markets, providing opportunities for Scottish businesses and supply chains, and creating demand for good, green jobs now and in the future. By acting now to deliver a green recovery, we can set Scotland on a pathway to meeting our ambitious climate change targets in a way that is just and delivers opportunities for all. 58   Update to the Climate Change Plan | Coordinated Approach Part 2: Coordinated Approach Update to the Climate Change Plan | Coordinated Approach  59

2.0.1 While a sectoral approach is 2.1. Whole System Energy useful in capturing the nuances of each sector, sectors cannot be Approach treated in isolation. There are clear synergies and interdependencies 2.1.1 Scotland’s energy system is central across the sectors in Part 3 of to our economy and society. We this Plan update; what happens in believe that everyone in Scotland one sector can have a knock-on has the right to an affordable, effect upon another, and so we secure and increasingly low carbon need to take a holistic, coordinated supply of energy. The way energy approach. is produced, transported and used will change dramatically along the

2.0.2 This section summarises some pathway to net zero, and in ways of the ways in which the that are difficult to predict. Scottish Government is taking a cross-cutting, systems-based 2.1.2 Much of Scotland’s electricity approach to reducing greenhouse generation has been successfully gas emissions, harnessing decarbonised over the past opportunities for economic decade, with renewable generation development, inclusive growth, in 2019 accounting for the jobs and wellbeing. It therefore equivalent of more than 90% of brings together some of the our electricity demand. We will material from the sector chapters need to replicate this success (Part 3 of the Plan update) and over the coming decades as we sets this out under a series of decarbonise buildings, transport cross-cutting themes. Many of and industry. We will need to learn the actions in this section span from the past, and ensure that we beyond the period covered by this capture the opportunities for a just Plan update, and our next Climate transition, including high quality Change Plan, to be published by green jobs, thriving businesses early 2025, will include further and supply chains and positioning details of our coordinated Scotland to attract private approach to policy-making. investment into the transition. Navigating this transition successfully will depend on the development of a coordinated approach across the whole energy system to complement our focus on reducing emissions within each sector. 60   Update to the Climate Change Plan | Coordinated Approach

2.1.3 We will need to focus on retaining some of the flexibility harnessing Scotland’s potential, afforded by gas. Large-scale making the most of our vast green hydrogen production may wind and marine resources, our also be important in balancing substantial potential for carbon generation and demand, providing capture and storage, and our flexibility that helps integrate expertise and experience in driving the expected large increases in forward innovation. This will mean variable renewable generation into aligning policy across government our energy systems. Policies and in a way that makes the most market mechanisms will have to of these strengths and captures be developed and aligned in ways growing market opportunities. We that reflect this system need. must also bring different sectors of our energy system closer 2.1.5 These pathways are not mutually together, and ensure that the exclusive: when we talk about ways in which we plan and deliver taking a whole systems approach, change take fully into account we mean that we need to the impacts that decisions in one understand and make decisions sector can have on decarbonisation based on where and when each in others. For example, today’s solution, or combination of these, electricity sector is almost wholly is most appropriate. A systems independent of the supply of approach is also central to energy to the transport sector, delivering a just transition, which while gas networks deliver the takes into the account the different vast majority of energy for heat to impacts that these decisions will the domestic, industry and services have on individuals, places and sectors. A net zero energy system sectors, and factors this into policy will see much greater interaction making. For example, we need to between each of these sectors, consider the impact that decisions driven by the electrification on how we decarbonise domestic of heat and transport, and the heating will have on those in fuel growing opportunities provided by poverty and the delivery of our hydrogen. target of eradicating fuel poverty, as far as is reasonably possible, by

2.1.4 Different low and zero carbon 2040. solutions will be appropriate in different sectors and for different 2.1.6 What we are doing: In 2017 we communities. Take-up of these published Scotland’s first Energy solutions will depend in part on Strategy in alignment with the technology development, market 2018 Plan. This championed a and consumer preference, as whole system view of energy as well as on decisions taken by one of its three core principles, government. We need to see along with an ‘inclusive energy adoption of electricity-based transition’ and ‘a smarter local solutions, for example in heat energy model’. We will update our and transport, taking advantage energy strategy in 2021 to lay out of the large potential for growth a coordinated vision for the whole of onshore and offshore wind energy system. This will be based capacity in Scotland. We also on our best understanding of the need to repurpose parts of the technologies and options available gas network to deliver hydrogen, today, and focused on delivering Update to the Climate Change Plan | Coordinated Approach  61 our economy-wide emissions be decoupled from its use. This reduction targets, as well as just means that hydrogen may provide transition and wellbeing economy a sustainable replacement for the outcomes. The different energy energy storage that natural gas system pathways we can take to and petroleum products currently net zero mean that we need to provide, and a way to capture develop greater certainty about and store renewable energy from the options that exist and how to when it is available until when it is deliver them. We will therefore needed. develop a set of whole system scenarios for Scotland during 2021 Ħ Hydrogen in industry: hydrogen which will explore the timelines has an important potential role and interdependencies in each of in the reduction of emissions these options. from industrial heat, especially in specialist processes such as

2.1.7 The following subsections explore those in furnaces and kilns. some aspects of the energy Ħ Hydrogen in transport: transition in further detail. hydrogen fuel cells could help decarbonise heavy-duty vehicles Hydrogen (e.g. buses, trains and lorries),

2.1.8 A combination of improving ferries, aviation and commercial energy efficiency and greater shipping. The Scottish electrification based on zero- Government has delivered carbon electricity can make over £15 million of investment a significant contribution in hydrogen bus fleets and to the decarbonisation of hydrogen infrastructure in Scotland’s whole energy system. Aberdeen over the past few However, energy efficiency and years. electrification alone is unlikely to Ħ Hydrogen for heat: depending be enough. on the future of the gas grid,

2.1.9 Producing hydrogen in zero-carbon hydrogen could provide a and low-carbon ways, and showing heating solution for buildings, that it can be used to meet displacing natural gas. The challenging energy demands (e.g. Scottish Government has for heat, transport and industry), provided £6.9 million towards will be part of the next stage of the H100 hydrogen heat Scotland’s energy transition. network demonstration in Fife. Ħ Hydrogen in the electricity

2.1.10 Hydrogen can be a strong sector: there are opportunities complement to electrification for hydrogen to replace the and can provide alternatives to role of natural gas in providing the uses of carbon-based fuels back-up electricity generation, across the energy system, helping as well as playing an important to decarbonise high emission role in energy storage. Large- sectors such as transport, heat scale green hydrogen production and industry. Hydrogen can could also provide an essential provide flexibility to the whole balancing and flexibility energy system; unlike electricity, function, helping to integrate it is relatively easy to store, the expected large increases in meaning that its production can offshore wind. 62   Update to the Climate Change Plan | Coordinated Approach

2.1.11 The development of a hydrogen 2.1.14 What we are doing: alongside this economy is a substantial economic Plan update we are publishing a opportunity for Scotland. During Hydrogen Policy Statement, setting 2020, we have carried out a out the strategic priorities of the hydrogen assessment project to Scottish Government regarding the deepen the evidence base in order various applications of hydrogen in to inform our policies on hydrogen. our energy system in the context From our assessment, it is clear of the global climate emergency. that hydrogen offers energy and This will be followed in Spring emissions reduction opportunities, 2021 with a Hydrogen Action Plan. and can help develop a sustainable economy in Scotland. Bioenergy

2.1.15 Bioenergy is a flexible renewable

2.1.12 The assessment concludes energy resource that can be used that Scotland has many of to meet demand for electricity, the key natural resources and heat, or to support industrial components necessary to grow decarbonisation. This means that it a strong hydrogen economy, will play an important role in our supporting jobs and GVA growth, transition to net zero. Our policy and developing new industrial objective to date has been to opportunities on a significant promote small-scale combined heat scale. By acting now, Scotland can and power. However, bioenergy position itself to take advantage of may also be used in future to growing global hydrogen markets, produce hydrogen, or combined driving demand for Scottish with carbon capture and storage businesses and jobs, supporting (CCS) to deliver negative emissions. exports and attracting investment. Deploying bioenergy sensibly and Scottish hydrogen projects are sustainably may therefore be an already securing global green important part of compensating investment and supporting local for any residual emissions as move industry growth. towards net zero emissions. We explore the role that bioenergy

2.1.13 UK policies, business models and might play in developing negative market mechanisms will need to emissions in Chapter 8 of this Plan be developed to support hydrogen update. production and the growth of the hydrogen economy. The UK 2.1.16 Deciding where bioenergy will Government’s 10 Point Plan, be most effectively deployed will published in November 2020, set depend on which sectors will make out a target to generate 5 GW of the best use of the bioenergy hydrogen production capacity feedstocks that we can grow by 2030 for industry, transport, domestically or import. The use of power and homes, with the aim of bioenergy resources in the energy developing the first town heated system must also be compatible entirely by hydrogen by the end of with a sustainable land use policy the decade. A full UK Government and our obligations to ensure a Hydrogen Strategy is expected in sustainable global transition. the Spring of 2021. Update to the Climate Change Plan | Coordinated Approach  63

2.1.17 Some key levers in the expansion Energy innovation of bioenergy are reserved to the 2.1.21 Many of the technology solutions UK Government. We therefore required to support the energy ask that the UK Government system transition to net zero are signals its intention to put in place relatively mature and competitive. market and regulatory frameworks However, the global tightening of to support the acceleration of emissions standards introduces a negative emissions technologies. new set of opportunities, and space This will enable us to make the to further develop competitive most appropriate decisions for our advantage for Scottish business. overall decarbonisation pathway, including a whole system approach 2.1.22 The Committee on Climate to bioenergy and negative Change (CCC) has highlighted emissions. the importance of innovation in delivering our statutory

2.1.18 What we are doing: We are targets. The Scottish Government publishing a Bioenergy Update recognises the important in early 2021 and will set up role that Scotland’s world- a Bioenergy Expert Working leading innovators can play in Group to inform a more detailed decarbonising our energy system Bioenergy Action Plan by 2023 as well as delivering economic which will urgently tackle these benefit as part of a just transition challenging questions as we begin to net zero. Our recent inward the next stage of decarbonisation investment plan22 identified in Scotland. energy transition and transport decarbonisation as two areas of Negative Emissions Technologies strength in Scotland, including the (NETs) strength of our innovation base in

2.1.19 Negative Emissions Technologies attracting investment. The skills (NETs) will play an important and expertise in our offshore part in the pathway to net zero, energy industry is an asset compensating for the residual which we are harnessing towards emissions in hard-to-decarbonise innovating solutions for the energy sectors, such as agriculture and transition. international aviation.

2.1.23 What we are doing: We have a

2.1.20 There are a range of different strong track record of support for NETs pathways, which combine innovative low carbon technologies. bioenergy, electricity generation, Our consistent support for fuel and hydrogen production and the marine energy sector has industrial processes. We describe maintained Scotland’s world leading and explore these options in position in the development of Chapter 8 in Part 3 of this Plan technologies such as wave and tidal update. energy. We have invested nearly £50 million since 2014 through our internationally recognised Wave 22 Shaping Scotland’s economy: inward investment plan - gov.scot (www.gov.scot) 64   Update to the Climate Change Plan | Coordinated Approach Energy Scotland programme and in 2019 we awarded £5 million to Scottish tidal energy projects through the Saltire Tidal Energy Challenge Fund.

2.1.24 In 2020, we announced eight winners of our ‘Floating Wind Technology Acceleration Competition’. The eight technologies will receive a share of £1 million from the Scottish Government to address key industry challenge areas in the deployment of innovative floating offshore wind technology.

2.1.25 We work closely with the Energy Technology Partnership (ETP), an alliance of Scotland’s world-class academic institutions. Our support 2.2. Land Use, Nature Based of the ETP includes funding for Solutions and the link the Knowledge Exchange Network, and the Energy Industry Doctorate to Biodiversity Programme, which supports PhD projects tackling innovation 2.2.1 Our land is, in many ways, challenges across the energy sector. the cornerstone of our society and economy and the Scottish

2.1.26 To date we have made over £85 Government is committed to million of commercial investments ensuring that it is used sustainably in the energy sector through our and that its benefits are shared Energy Investment Fund. This has more equitably. Not only is our supported innovative technology land the bedrock of Scotland’s companies to develop ideas and natural capital, but it provides deliver projects, alongside support us with food, timber, renewable for community energy projects. energy, bioenergy (see above), climate adaptation (such as

2.1.27 As outlined in the Electricity and nature-based solution to flooding), Buildings chapters in Part 3 of this transport links and our settlements. Plan update, we are developing Our land is also deeply linked a new framework of support for to individual/community health energy innovation. To underpin and wellbeing; it forms our this, we will launch a call for iconic landscapes, enjoyed for evidence in early 2021 seeking recreational activities, our cultural views on how best to maximise heritage and our economic Scotland’s world-leading research prosperity; and it provides us with talent and facilities for energy a range of further benefits, from innovation. We will publish details clean air and drinking water to of our new support framework in flood management, tourism and 2021, setting out details of the successful pollinator populations. funding and support available. Update to the Climate Change Plan | Coordinated Approach  65

2.2.2 We have a finite amount of Again, ensuring a just transition land, and are making increasing in this context will be critical to demands upon it. We need to find developing a strategic plan that the optimal balance between these captures future opportunities sometimes competing demands, whilst safeguarding livelihoods in particular to find more space and rural economies. Nature-based for trees, peatland and nature to solutions to climate change, such as thrive, if we are to deliver not only high nature value farming, offer a our emissions reduction targets but sustainable means of producing the also our wider national priorities products we all depend on such as for the environment and land food and timber. use. We need to maintain rural populations, support thriving rural 2.2.4 There is a wealth of evidence both economies and jobs and produce on a global and a local scale that food on suitable land; if we do we are now in the midst of a global this by creating more localised crisis in terms of biodiversity and regionalised supply chains loss. Biodiversity loss reduces and lower food miles, we will be the complexity and resilience helping to meet the challenge of ecosystems, weakening their of reducing emissions and ability to provide the benefits producing food more sustainably. to people which we rely on and Our upcoming third Land Use ultimately risking collapse. Our Strategy will set out how the actions to restore biodiversity are various aspects of land use and intrinsically linked to many of the actions of the Scottish Government policies within this Plan update, come together to deliver on our and our Biodiversity Strategy. overarching sustainable land use

2.2.5 Climate change is one of the main vision. We need to take people drivers of biodiversity loss, and with us as our land use changes nature-based solutions can also and we will initiate a conversation protect, sustainably manage, and with communities, particularly help restore ecosystems. These those likely to be most impacted, solutions have the potential to to ensure people understand what enable climate change mitigation, we are doing and why. resilience, adaptation and positive

2.2.3 The Committee on Climate Change social change, providing benefits suggest that around a fifth of for both people and biodiversity. agricultural land in Scotland will

2.2.6 What we are doing: The Scottish be required to change use23, Government is committed to which may include not farming on deploying nature-based solutions peatland or using farmland to plant at scale and in a sustainable trees. We must do this in a way that and managed way; our work to does not lead to ‘offshoring’; for date on peatland restoration and example reducing domestic food woodland creation (outlined in Part production could lead to increased 3, Chapter 6 of this Plan update) imports if domestic consumption is a prime example. Increased (what and how much we eat) peatland restoration and woodland and our exports stay the same. 23 https://www.theccc.org.uk/publication/land-use-policies-for-a-net zero-uk/ 66   Update to the Climate Change Plan | Coordinated Approach creation has been recommended estimating that circular actions by the CCC, and, when accounting could eradicate up to almost a fifth for local ecological and social of Scotland’s carbon footprint by sensitivities, can bring benefits for 2050. One simple way to express carbon sequestration, biodiversity the concept of a circular economy and natural flood risk management is that: it is designed to reduce and job creation. Nature-based the demand for raw material in solutions will form a key part of products; it encourages reuse and our overall coordinated approach, repair of products; and it promotes which aims to bring together the manufacture and design of climate change, biodiversity, products and materials to last as infrastructure, planning, land use, long as possible. This is relevant marine and economic strategies. across all sectors of the Climate Change Plan update and in wider

2.2.7 We are also exploring and public procurement. developing innovative approaches to financing nature based solutions including increasing the levels of private investment in these areas. This could include a greater use of carbon markets to support projects such as woodland creation and peatland restoration, but might also include a greater emphasis on payments for the benefits or services our environment provides to the economy (such as flood prevention and urban cooling services) which can be brought forward to finance capital investment in nature-based solutions.

2.3. Circular Economy

2.3.1 While Scotland’s statutory emissions reduction targets are based on emissions from sources located here in Scotland, our wider carbon footprint associated 2.3.2 What we are doing: Actions we’re with the goods and services we taking include encouraging more import is also very important. sustainable consumer purchasing, Consumption of products and implementing a deposit return materials accounts for an scheme and improving local estimated 74% of Scotland’s carbon authority recycling collection footprint24. The move towards a infrastructure. More details are circular economy is a crucial part included in Chapter 5 of this Plan of tackling this, with some studies update. 24 https://www.zerowastescotland.org.uk/sites/default/files/CIoCE%20Summary%20Report%20-%20FINAL%20-%2015.06.15.pdf Update to the Climate Change Plan | Coordinated Approach  67 Food and climate change The Scottish Government has a long standing commitment to the concept and reality of achieving our vision of Scotland as a Good Food Nation where: Ħ it is the norm for Scots to take a keen interest in their food, knowing what constitutes good food, valuing it and seeking it out whenever they can; Ħ people who serve and sell food, from schools to hospitals, retailers, cafes and restaurants are committed to serving and selling good food; Ħ everyone in Scotland has ready access to the healthy, nutritious food they need; Ħ dietary-related diseases are in decline, as is the environmental impact of our food consumption; and Ħ Scottish producers ensure that what they produce is increasingly healthy and environmentally sound. The Good Food Nation ambitions cut across five key areas of health, social justice, knowledge, environmental sustainability and prosperity, and we are working hard to make a real and positive difference to the lives of the people of Scotland by: Ħ helping to improve their access to, and understanding of, the benefits of healthy local foods; Ħ ensuring sustainability of our wonderful food industry; Ħ ensuring food companies are a thriving feature of the economy and places where people want to work; and Ħ looking to grow Scotland’s reputation as a Good Food Nation from which other countries can learn. COVID-19 means some work has been delayed, for example the Good Food Nation Bill will not be introduced in this parliamentary session as planned. However, the statutory provisions that were drafted for the Bill will be used to inform the development of a statement of policy on food, which was announced by the Cabinet Secretary for Rural Economy and Tourism on 18 August 2020. The statement will incorporate the experience gained in response to the COVID-19 pandemic, ongoing work under the umbrella of the Good Food Nation policy and, more widely, work such as the EU Farm to Fork Strategy and the UK Government’s National Food Strategy. This work will be led by the Ministerial Working Group on Food to ensure that the cross-cutting approach that is needed to take forward key aspects of national policy is in place. 68   Update to the Climate Change Plan | Coordinated Approach Food and climate change – Continued Work is ongoing to achieve other commitments set out in the Programme for Government. This includes working with business, the public and the third sector to develop guidance so that more people are encouraged to eat locally-produced, sustainable and healthy food that supports our aims to tackle climate change, and the development of a Local Food Strategy for Scotland. Scottish Government also provides support for the Climate Challenge Fund (CCF), allocating over £110 million across all projects in communities across Scotland. Many of these have had a food focus, and in 2019-2020 around a third of projects had food or reducing food waste as their focus. Current CCF projects include Forth Environment Link’s ‘Climate Kitchen Garden’ project and Sustainable Kirriemuir’s ‘Nourish Kirriemuir’.

2.4. Transport Demand 2.4.2 What we are doing: Alongside our commitments on broadband,

2.4.1 Transport is Scotland’s biggest for example through the R100 emitting sector, accounting for 35.6 Programme27, the Scottish per cent of emissions in 201825. It Government is committed to is also a particularly challenging building on the Place Principle. sector to decarbonise, as it is a We will establish a Place-Based derived demand: the way people Investment Programme to support live, work, learn and access goods building sustainable places, local and services are all key to the access to goods and services, net need to travel. We are committed zero carbon, and inclusive growth to reducing car kilometres by 20% which complements the Localism, by 2030, but this vision will take a Community Wealth Building, cross-sectoral effort going beyond Town Centre, Work Local, and 20 transport, to reduce people’s need minute neighbourhood agendas. to travel with more local access Development of the fourth to goods and services. Likewise, National Planning Framework digital connectivity and flexible (NPF4) will also take account of working approaches will play a the need to refocus our existing key role. The Scottish Government transport policies to specifically is committed to exploring options draw out how land use planning around encouraging remote can build in sustainable travel working to reduce kilometres choices. driven as part of commuting, which accounted for 23% of journeys in Scotland in 201926. 25 Scottish Greenhouse Gas Emissions 2018, published 16 June 2020, accessible https://www.gov.scot/news/scottish- greenhouse-gas-emissions-2018/ 26 Transport and Travel in Scotland 2019: Results from the Scottish Household Survey, accessible https://www.transport.gov. scot/media/48191/transport-and-travel-in-scotland-2019.pdf 27 https://www.gov.scot/publications/reaching-100-superfast-broadband/ Update to the Climate Change Plan | Coordinated Approach  69

2.5. The Planning System 2.5.3 What we are doing: An NPF4 Position Statement28 was published and National Planning this Autumn, setting out the Framework 4 areas of likely key policy change as a foundation from which the

2.5.1 The National Planning Framework draft NPF4 will be prepared. The is a long-term plan for Scotland Position Statement strongly signals that sets out where development a need to have climate change as a and infrastructure is needed to guiding principle for all plans and support sustainable and inclusive decisions. It signals key outcomes growth. We expect to lay a draft that planning policy can further of the fourth National Planning support: reducing emissions, Framework (NPF4) in the Scottish building resilient communities and Parliament, and for public supporting the wellbeing economy. consultation to be undertaken, From opportunities around 20 from September 2021. We then minute neighbourhoods and expect to adopt the finalised NPF4 peatland protection, to emissions in 2022. efficient design and town centres, our preparation of the next

2.5.2 Planning is a key delivery generation of planning policy is mechanism for many of the a significant opportunity to work policies within this Climate Change across the sectors of this Plan Plan update, across all sectors. By update to help deliver it, rapidly making the right choices about providing a coherent vision for where and what development carbon conscious places.29 should take place in the future, planning can help to reduce emissions whilst improving the wellbeing of communities and the quality and resilience of places across Scotland. 28 https://www.gov.scot/publications/scotlands-fourth-national-planning-framework-position-statement/ 29 National Planning Framework 4 and wider planning and place-based policies will be informed by recent work by Architecture and Design Scotland, 2020, Designing for a Changing Climate: Carbon Conscious Places: https://www.ads.org.uk/ wp-content/uploads/Carbon-Conscious-Places-Main-Report.pdf 70   Update to the Climate Change Plan | Coordinated Approach

2.6. Wellbeing and requires progress towards all of the National Outcomes, and application National Outcomes of the NPF values. Societal wellbeing will increase when

2.6.1 Scotland’s National Performance social outcomes, environmental Framework (NPF) sets an overall outcomes, economic outcomes purpose and vision for Scotland: and democratic outcomes are all it seeks to create a country that’s being delivered and are in balance. success is not judged solely on Wellbeing can be defined as ‘living the performance of our economy well’ both as individuals and or on GDP, but instead on a wider collectively, as society. We view range of measures. The NPF is ‘living well’ in broad terms and Scotland’s ‘wellbeing framework’, see this as encompassing the key recognising that Scotland becoming areas which form the focus of our ‘a more successful country with National Outcomes. opportunities for all to flourish through increased wellbeing’ We have a globally We respect, competitive, We are open, protect and entrepreneurial, connected and fulfil human inclusive and make a positive rights and sustainable contribution live free from economy internationally discrimination We are creative We tackle and our vibrant poverty by and diverse OUR PURPOSE sharing cultures are To focus on creating a opportunities, expressed and more successful country with wealth and power enjoyed widely opportunities for all of Scotland more equally to flourish through increased wellbeing, and sustainable and inclusive economic growth We live in We value, enjoy, communities protect and OUR VALUES that are inclusive, enhance our We are a society which treats all our empowered, environment people with kindness, dignity and resilient compassion, respects the rule and safe of law, and acts in an open and transparent way We are We grow up healthy and loved, safe and active respected so that we We have We are well realise our thriving and educated, full potential innovative skilled and businesses, able to with quality jobs contribute and fair work for to society everyone Update to the Climate Change Plan | Coordinated Approach  71

2.6.2 The NPF helps us understand, 2.6.4 What we are doing: The Scottish publicly and transparently, the Government’s approach to the progress we are making as a nation delivery of a wellbeing economy towards realising our long-term for Scotland is clearly articulated vision. Its data helps us understand in our recent Economic Recovery the challenges in achieving our Implementation Plan. In that outcomes and to focus policies, Plan, we set out commitments services and resources on tackling to a range of actions that will those challenges. It brings ensure that our response to the together data and reporting impacts of COVID-19 will help systematically and objectively to improve the resilience of our across a range of economic, social economy, and do so in a way that and environmental indicators. protects and grows our natural It’s clear that policies aimed at assets. The Plan is underpinned tackling climate change can have by a focus on equality, in terms of co-benefits for wellbeing and the both opportunities and outcomes, delivery of our National Outcomes. and human rights. We continue The Scottish Government is to develop our understanding of committed to aligning a green the issues that are central to the recovery from COVID-19 alongside delivery of a wellbeing economy our transition towards a wellbeing through our lead role in the economy. A ‘wellbeing economy’ Wellbeing Economy Governments is one that has social justice and initiative. environmental health as the top priority and asks what sort of economic activity is needed to deliver those goals.

2.6.3 Scotland’s new Environment Strategy30 creates an overarching framework for our strategies and plans on the environment and climate change. It sets out a 2045 vision for restoring nature and ending Scotland’s contribution to climate change, highlighting the wider benefits this will create for our wellbeing, economy and global citizenship. It maps the significant contribution that our action on climate and the environment will make towards achieving many of the NPF National Outcomes and Scotland’s role in delivering the UN Sustainable Development Goals. Loch Brandy in Glen Clova, one of the Angus Glens 30 https://www.gov.scot/publications/environment-strategy-scotland-vision-outcomes/ 72   Update to the Climate Change Plan | Sector Chapters Part 3: Sector Chapters Update to the Climate Change Plan | Sector Chapters  73

3.0.1 Having world leading emissions 3.0.4 Annex A contains the full list of reductions targets means a policy outcomes, policies and significant and sustained effort proposals for each sector. Any will be needed by all to end our policies that are new since the contribution to climate change 2018 Climate Change Plan are by 2045. The following sector marked as ‘new’ and any that have chapters contain the policies and increased in scale or ambition are policy proposals that the Scottish marked as ‘boosted’. In cases where Government are committed to these new or boosted policies are delivering, as well as what actions already announced, footnotes point we need the public sector, private to when this was. Any policies that sector, individuals and the UK are unchanged since the 2018 Plan Government to take. are ‘maintained’.

3.0.2 Seven of the eight sectors below 3.0.5 The emissions envelopes set out in relate directly to the seven sector the chapters below are based upon chapters set out in the 2018 TIMES modelling with technical ‘Climate Change Plan: The Third refinements made by Scottish Report on Proposals and Policies Government sector analysts. 2018-2032’31. An additional eighth Though TIMES modelling provides chapter brings Negative Emissions an integrated and consistent Technologies (NETs) out of sector approach to the envelopes, there chapters and in to its own, is also inherent uncertainly in allowing us to be transparent with areas such as cost, technological our assumptions of these evolving development and energy demand. technologies. This uncertainty increases over time, and we have therefore

3.0.3 As outlined in Annex B: Derivation accompanied the results of TIMES of Sector Emissions Envelopes, modelling with other evidence a key element of this update is in order to produce the final the presentation of emissions envelopes included in this Plan envelopes for each sector, which update. add up to the annual emissions reductions targets. In the 2018 3.0.6 The combined envelopes are plan, the Electricity and Industry shown below; this shows the chapters spoke of Bioenergy and relative effort required by Carbon Capture and Storage, and each sector to meet the annual the sector envelopes contained emissions reduction targets to elements of NETs. 2032. 31 https://www.gov.scot/publications/scottish-governments-climate-change-plan-third-report-proposals-policies-2018/ 74   Update to the Climate Change Plan | Electricity Chapter 1 Electricity Update to the Climate Change Plan | Electricity  75

3.1. Electricity Introduction

3.1.1 Scotland is widely recognised 3.1.2 Over the same decade, the last as a world leader in renewable two coal stations in Scotland energy. We have an abundance (Cockenzie and Longannet) have of renewable resources, and closed, with the carbon intensity our targets and achievements of Scottish electricity generation reflect that. More than 83% of the falling by close to 90% between electricity generated in Scotland 2000 to 2018. during 2018 came from renewable or low carbon sources, nearly three times as much as was generated a decade earlier. Scotland’s renewable electricity generation has grown rapidly over the last twenty years. In 2019, a record year for renewable electricity generation in Scotland, over six times more electricity – 30.5 TWh – was generated from renewable sources compared to the year 2000. This is the equivalent of powering all households in Scotland for over three years. There is currently around 12 GW of renewable generation capacity installed across the country, while the carbon intensity of electricity generated in Scotland has fallen to less than 50 g CO¬2 /kWh in both 2018 and 2019. 76   Update to the Climate Change Plan | Electricity

3.1.3 The decarbonisation of Scotland’s 3.1.7 In further decarbonising our electricity sector has been driven electricity system, we also need to by our rich natural resources, address the substantial challenges a supportive approach to of maintaining security of supply planning, a drive to involve local and a resilient electricity system. communities in decisions that Operating a zero carbon electricity affect them, supportive market system will mean finding new ways frameworks, and rapidly declining to provide a range of technical prices of renewable technology services and qualities currently globally - with wind and solar provided by fossil fuel and nuclear now the lowest cost forms of new generation. These include inertia, generation32. frequency response and voltage support services, which help keep

3.1.4 As Scotland transitions to net the system stable. Pumped storage zero, a growing and increasingly also has an important role to play, decarbonised electricity sector as it can release stored electricity is critical to enabling other parts when the demand is high and of our economy to decarbonise – the system needs it most (e.g. notably transport, buildings and when there is less wind energy industry. available).

3.1.5 We also want Scotland to continue to export large amounts of clean electricity to England, Northern Ireland, Wales and Europe, supporting carbon emissions reductions across the UK and beyond, and maintaining Scotland’s position of a net exporter of electricity.

3.1.6 Our climate change targets mean that we need to continue our progress, and move from a low to a zero carbon electricity system, with the potential for Negative Emission Technologies (NETs – see Chapter 8) to deliver negative emissions from our electricity sector, for example through the use of bioenergy for electricity generation combined with carbon capture and storage (BECCS). 32 Electricity Generation Costs 2020 (UK Government) - https://assets.publishing.service.gov.uk/government/uploads/system/ uploads/attachment_data/file/911817/electricity-generation-cost-report-2020.pdf Update to the Climate Change Plan | Electricity  77 Dersalloch Black Start Trial33 While there has never been a total black-out across the whole country, and the chances of one happening are small, its impact would be substantial. “Black start” services across Britain still rely heavily on fossil fuel power stations, along with some hydro and pumped storage capacity. The Scottish Government provided £550,000 to support a demonstration project delivered by Scottish Power Renewables at its Dersalloch Wind Farm looking at the potential for delivering black start from wind. The project delivered a global first during a test in October 2020 by delivering black start capability from wind power to re-start part of the electricity system. The project used “virtual synchronous machines” (VSM) to regulate the frequency and voltage of the power from the wind turbines to keep the local electricity system stable and balanced, throughout the process of restoring the part of the system that had been blacked out. This project shows that Scotland is developing expertise that will be critical to net zero both here and around the world. The Scottish Government will continue to support the development of technologies that can support sustainable security of supply, with renewable generation delivering technical services that currently depend on fossil fuel power stations. 33 Photo of Dersalloch Wind Farm courtesy of Scottish Power Renewables. 78   Update to the Climate Change Plan | Electricity

3.1.8 Planning has been, and will Green recovery and just transition remain, a critical enabler of 3.1.13 A number of stakeholders and rapid renewables deployment in advisory bodies, including the Scotland. The position statement Just Transition Commission, the on our fourth National Planning Advisory Group on Economic Framework (NPF4), published in Recovery, SSE, Scottish Power November, makes clear the Scottish and Scottish Renewables, have Government’s intention to actively emphasised the importance of facilitate decarbonised electricity renewable technologies in our generation and distribution34. green recovery. We agree that decarbonising our electricity

3.1.9 Key energy infrastructure, generation and networks will including electricity generation, provide a range of opportunities large scale storage such as pumped for existing and new Scottish storage hydro, development companies. of the high voltage electricity transmission networks, and a CCS 3.1.14 In 2018, the low carbon electricity network capable of supporting sector directly supported 7,800 BECCS are all being considered full time equivalent jobs across in the preparation of the fourth Scotland, and contributed more National Planning Framework. than £3.6 billion to the Scottish economy. Recent analysis by

3.1.10 However, two of the key levers National Grid estimated that needed to release Scotland’s 50,000 jobs in Scotland will be further renewable energy potential required in the Net Zero Energy – electricity policy and regulation Workforce35. – are reserved. This means that achieving our targets critically 3.1.15 The economic opportunities depends on the UK government are huge and wide ranging. Our taking the right decisions and Offshore Wind Policy Statement36, actions and acting urgently. published in October 2020, sets out our assessment of Scotland’s New context offshore wind capacity to 2030

3.1.11 The electricity sector has continued and, together with the Sectoral to operate and ensure a safe, Marine Plan and ScotWind leasing and secure supply of electricity rounds, provides the market with throughout the COVID-19 an understanding of the available pandemic. Scottish potential.

3.1.12 Meanwhile, the need to invest in 3.1.16 Floating wind is an emerging renewable generation, networks technology, and, with the first large and related infrastructure to scale floating wind farm off the reduce greenhouse gas emissions is coast of Peterhead, and Scotland’s also critical to creating good, green huge resource potential, there are jobs as part of our green recovery significant opportunities here, for and longer term energy transition both development and innovation as discussed below. 34 https://www.gov.scot/publications/scotlands-fourth-national-planning-framework-position-statement/ 35 https://www.nationalgrid.com/stories/journey-to-net zero/net zero-energy-workforce 36 https://www.gov.scot/publications/offshore-wind-policy-statement/pages/1/ Update to the Climate Change Plan | Electricity  79 in installation and maintenance. 3.1.19 SSE and Scottish Power, along with The Carbon Trust’s Floating Wind National Grid, have also announced Joint Industry Project, which the plans in November 2020 to take Scottish Government has helped forward a multi-billion subsea fund, published a report37 this link between the east coasts of summer which forecast that as Scotland and north east England. much as 70 GW of floating wind The 4 GW project is designed could be installed by 2040. to help connect Scotland’s huge offshore wind potential, with the

3.1.17 Offshore wind has an important companies forecasting that the role to play in supporting the project could support “hundreds transition from oil and gas to of green jobs” during construction low and zero carbon renewables. and operation. Scotland’s decades long experience across the oil and gas industry, 3.1.20 Recent work from the University and the offshore experience of Strathclyde highlights that and innovation that this has investing in our electricity system developed, can be brought to bear to support the uptake of electric in the development of offshore vehicles (EVs) can deliver sustained renewables and carbon capture economic growth and new jobs and storage. It is also evident that into our economy38- for example, many of the skills, expertise and the report says that there could be technologies held within the oil up to 3,000 new jobs associated and gas industry will be crucial with 20% EV penetration by 2030. in the development of net zero solutions at scale. The Scottish 3.1.21 We also aim to take full Government’s £62 million Energy advantage of new and developing Transition Fund, announced in technologies. For example, summer 2020, will aid this process. hydrogen can play a major role in a net zero electricity system,

3.1.18 Approximately £1 billion is spent directly complementing renewable each year on maintaining and generation, and providing new developing electricity networks, ways and opportunities to use, leading to substantial work for transport and store that energy. local supply chains. Both Scottish This isn’t just true for Scotland, transmission networks (SSE and but is likely to be part of the Scottish Power) included potential global solution to Climate Change. investments totalling around £2.5 Scotland has the opportunity to be billion in their recent business plan at the forefront of global change, submissions to Ofgem – comprising developing and exporting expertise a mixture of new and upgraded and support new skilled jobs. networks to help accommodate more renewable generation and 3.1.22 The Scottish Government has a investment to maintain the existing strong track record for supporting network. innovation in areas of key competitive advantage, such as wave and tidal power. Recent work 37 https://www.carbontrust.com/news-and-events/news/floating-wind-joint-industry-project-rd-findings-delivered-to-support- 70gw-by 38 https://strathprints.strath.ac.uk/67741/19/Turner_etal_CEP_2019_Who_ultimately_pays_for_and_who_gains_from_the_ electricity_network_upgrade.pdf 80   Update to the Climate Change Plan | Electricity by the Offshore Renewable Energy identifying where and how we Catapult39 suggests that the tidal need to support our workforce in stream industry could generate a net the transition towards net zero, cumulative benefit to the UK of £1.4 including supporting delivery of billion and support 4,000 jobs by the ongoing work of the Energy 2030 and wave energy could add a Skills Alliance. net positive contribution to the UK economy of £4 billion and support 3.1.26 The Scottish Government is 8,100 jobs by 2040. However, both working closely with the Energy these technologies remain at an Skills Alliance, a newly created early stage of development, with the and cross energy collaborative key levers required to commercialise group whose focus is to develop the technology reserved to the UK an integrated skills strategy for a Government. strong, net zero energy industry. The work streams include mapping

3.1.23 We will continue to do all that we future energy skills demand, taking can to maximise the opportunities a phased approach looking out for Scottish businesses in our to 2030, and ahead to the 2050 green recovery and longer term development of the My Energy transition, supporting jobs, skills Career Programme, delivery of an and enterprise, ensuring that integrated energy apprenticeship the correct support is in place to scheme by 2022, and longer term strengthen Scotland’s renewable development of a roadmap for electricity supply chains, and aligning all energy training and supporting investment in the standards. Skills Development necessary infrastructure. Scotland is also progressing a Climate Emergency Skills Action

3.1.24 There is already substantial Plan, published alongside this plan inward investment in energy update, which will focus on the infrastructure, including provision of green skills necessary renewables, in Scotland. Our for our journey to net zero. inward investment strategy, published in October this year, 3.1.27 In our 2017 Energy Strategy we has renewable energy and were clear about the need for a decarbonised transport as two key smarter, local energy model, one priority areas and seeks to attract that supports local solutions to global companies to Scotland from meet local need, and links local across the UK and oversees. generation and use. To support the development of local energy,

3.1.25 We collaborate with the energy we will publish a Local Energy industry to ensure that we develop Policy Statement that sets out and use Scotland’s potential and key principles, that the Scottish expertise. The First Minister’s Government wish to see adopted Scottish Energy Advisory Board to ensure an inclusive energy (SEAB) and its Strategic Leadership transition - one that has people Groups (SLGs) will help us to at its centre - supported by develop our understanding of the strong partnership working and challenges and opportunities on collaboration at a local level. skills and expertise in Scotland, 39 https://ore.catapult.org.uk/wp-content/uploads/2018/11/Tidal-Stream-and-Wave-Energy-Cost-Reduction-and-Industrial- Benefit.pdf Update to the Climate Change Plan | Electricity  81

3.1.28 We will also ensure that Our vision for 2032 and 2045 community-led renewables 3.1.32 Renewable generation will increase continue to grow as part of the transition, building on the substantially between now and success over recent years of our 2032, and we expect to see the Community and Renewable Energy development of between 11 and Scheme. (CARES). 16 GW of capacity during this period, helping to decarbonise

3.1.29 The costs of moving to a fully our transport and heating energy decarbonised electricity system demand. must be shared fairly and shouldn’t fall disproportionately to those 3.1.33 Our recent Offshore Wind Policy who can least afford to meet them. Statement40 describes the potential The Scottish Government remains for between 8 and 11 GW of determined to protect vulnerable offshore wind capacity to come consumers, consistent with our forward by 2030. Our first Scot commitment to ensure that those Wind leasing round in 2020/21 who are least able to make the provides property rights for transitions are not forced to pay substantial new offshore wind higher costs. We are committed to capacity, with a second round to eradicating fuel poverty, with our follow in 2023. statutory and ambitious targets setting out that by 2040 no more 3.1.34 This renewables growth will lead than 5% of households are in fuel to a more diverse and renewable poverty and no more than 1% in electricity system, with a range of extreme fuel poverty. generating technologies and local / community energy developments

3.1.30 The independent Energy combining with advances in Consumers Commission has a role flexibility and smart networks to as SEAB’s consumers SLG, and ensure that consumers have access will continue to advise on how to reliable and affordable power. the transition to a decarbonised system, and the costs and 3.1.35 Our current dependence on fossil opportunities associated with fuel power stations to ensure this, can work for all consumers system stability and security will including those in vulnerable change radically over the next circumstances. decade. By 2030, innovation and trial projects will have

3.1.31 Many of the levers needed to demonstrated new ways to deliver ensure a fair distribution of costs sustainable security of supply, with and access to smarter energy updated market and regulatory systems are reserved to the UK. mechanisms in place which value We will work with BEIS, Ofgem, and reward these new services. consumer groups and industry to push for the changes that will be required for consumers in Scotland. 40 https://www.gov.scot/publications/offshore-wind-policy-statement/ 82   Update to the Climate Change Plan | Electricity

3.1.36 Renewable electricity will also fuel poor households protected at combine with hydrogen to provide every stage. heat and power to households, businesses, large transport fleets 3.1.38 Scotland’s economy will benefit from and a range of industrial processes. the growth and manufacture of new The development of carbon capture renewable generation out to 2045, and storage (CCS) and NETs will with a new, skilled and innovative mean that the electricity system workforce including many who have in 2032 could potentially deliver made a fair and just transition from negative emissions, compensating other parts of today’s energy sector for residual emissions elsewhere in and industries. the energy system.

3.1.39 Greater interconnection across the

3.1.37 Electricity demand will have grown rest of the UK and to other parts of considerably, with heat pumps Europe will benefit our system and and electric vehicles commonplace enable the export of renewable across Scotland. This means that electricity across the continent. electricity will play a much greater Consumers of all sizes will be role across our wider energy system, able to support the network, economy and society than it did in with electric vehicles and other 2020. The costs and benefits will be household devices rewarded for shared fairly across all members of consuming and supplying power to society, with vulnerable groups and the local grid when required. Emissions Reduction Pathway to 2032 Electricity 2.0 Emissions (MtCO2e) 1.5 1.0 0.5 0.0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Route map to 2032 Update to the Climate Change Plan | Electricity  83 2021 We will ensure that Energy Strategy Update First tranche of The process of both the technology published, outlining the funding available introducing new and system challenges role that we envisage the from the £180 million requirements for of the electricity sector electricity system playing Emerging Energy developers to are reflected in our new in our wider energy Technologies Fund. include supply framework of support system, considering how chain commitments for energy research, it is increasingly used to ScotWind applications when applying development and decarbonise other sectors, evaluated and option to the ScotWind innovation. including buildings, agreements awarded leasing process industry and transport. to site developers. run by Crown Estate Scotland is completed. 2022 An updated Electricity Draft National Planning Generation Policy Framework (NPF4) laid Statement (or “Clean in Parliament during Power Plan”) is reviewed Autumn 2021. Full and published ahead of public consultation on the next Climate Change the draft NPF4 will run Plan. alongside Parliament’s consideration, with NPF4 expected to be adopted in Spring/ Summer 2022. 2030 Offshore wind in 2017 commitment to Scotland has expanded ensure all renewable to between 8 and 11 GW, energy accounts for the building on the measures equivalent of 50% of our laid out in our Offshore energy demand across Wind Policy Statement. electricity, heat and transport is successfully delivered. 84   Update to the Climate Change Plan | Electricity The actions we aviation, energy and other stakeholders, exploring best are taking practice for collaboration through our Aviation 2030 Vision Supporting onshore wind Taskforce, tackling the technical,

3.1.40 We will continue to review our regulatory and financial barriers energy consenting processes, which will ensure that all radars making further improvements and are wind turbine tolerant/neutral, efficiencies where possible, and and freeing up much more capacity seeking to reduce determination for development. timescales for complex electricity generation and network Supporting offshore wind infrastructure applications. Faster 3.1.42 We will deliver the actions determinations will enable any from our Offshore Wind Policy projects awarded consent to Statement, published in October41. develop more quickly, which will These actions, ranging from benefit onshore wind in particular. support for supply chain, planning, innovation and skills, will support

3.1.41 The interaction of wind turbines the development of between 8 and with aviation radar can sometimes 11 GW of offshore wind capacity present a barrier to development. by 2030. We will continue to work with 41 Announced in Offshore Wind Policy Statement, October 2020 Update to the Climate Change Plan | Electricity  85

3.1.43 We will complete the first Support new Pumped Storage ScotWind leasing round, granting Hydro Capacity42 property rights for seabed 3.1.47 We will continue to fight hard for in Scottish waters for new measures to unlock investment commercial scale offshore wind in Pumped Storage Hydro (PSH), energy projects. We expect a following the recent Scottish second round to follow by 2023. Government consent for major projects at Coire Glas in the Clean Power Plan and security Highlands, and Glenmuckloch in of supply Dumfries and Galloway in south

3.1.44 We will review and publish an west Scotland. We have asked the updated Electricity Generation UK Government to bring forward Policy Statement (or “Clean Power mechanisms, potentially similar to Plan”) by 2022. In line with the those available for interconnectors, recent CCC recommendation to which will enable the substantial do so; this work will reflect an investment needed to develop PSH; assessment of the contribution that we will work with the developers renewable electricity generation is to ensure that this can deliver likely to have to make to achieving sustainable and secure jobs and Scotland’s net zero target. supply chain benefits to Scotland’s rural areas.

3.1.45 We will also continue our efforts to ensure a sustainable security 3.1.48 The following policies will benefit of electricity supply, enabling all sectors, and are related to the renewable electricity to provide whole system actions described in vital network services and the Coordinated Approach chapter. including this component within future Scottish Government energy New technology funding innovation funding programmes. 3.1.49 We will launch a call in 2021 for evidence and views on Infrastructure Improvements technologies that can transform

3.1.46 We will work with our Enterprise our electricity system, including Agencies to support the required energy storage, smart grid infrastructure improvements to our technologies, and technologies ports and harbours to ensure that to deliver sustainable security of Scotland’s supply chain companies supply. This will help ensure that can benefit from the continued our funding and interventions growth of renewable energy. support world leading activity in Scottish based companies. 42 Included in Climate Change Plan 2018 86   Update to the Climate Change Plan | Electricity CASE STUDY: INNOVATION SUPPORT FOR RENEWABLE ELECTRICITY Scotland is a world leader in marine in and out. This innovation significantly renewable energy innovation, as a increases the potential renewable result of consistent and committed energy generation, with the O2 capable funding and support from the Scottish of powering more than 1,700 homes Government. Initiatives such as the per year. Key parts of the device were Saltire Tidal Energy Challenge Fund and fabricated in Fife and Orkney, using our Wave Energy Scotland programme steel from Motherwell, and assembled have supported projects at the cutting- in Dundee. edge of the marine energy sector, demonstrating key innovations while utilising the Scottish supply chain. In 2019, Orbital Marine Power received £3.4 million of support through our Saltire Tidal Energy Challenge Fund to build and demonstrate the O2 2 MW tidal turbine, due to be launched in 2021 at the European Marine Energy Centre in Orkney. The 72-metre long device uses turbine rotors which can be turned 360 degrees so that power can be extracted from the tide as it moves Update to the Climate Change Plan | Electricity  87 Carbon Capture and Negative policy outcomes contained within Emissions Technologies this Plan update will depend to a

3.1.50 We will carry out detailed research, large extent on policy decisions and development and analysis actions from the UK Government. during 2021 to improve our understanding of the potential to 3.1.54 We are already working with the deliver negative emissions from UK Government to ensure that it the electricity sector43. understands the scale and context of our ambition for Scotland, as well Role of bioenergy in the as the importance of renewable electricity system electricity in Scotland for wider UK

3.1.51 The Bioenergy Update will be decarbonisation ambitions. published early next year to be 3.1.55 In order to help decarbonise followed by the development of the electricity sector at a pace a Bioenergy Action Plan44. This consistent with the Scottish will consider the role of bioenergy Government’s ambition and for electricity generation (as well targets, we are calling on the as others sectors) including its UK Government to: potential combination with CCS to deliver negative emissions from Ħ Radically reform the Contract the electricity sector, ahead of the for Difference (CfD) mechanism next climate change plan in 2024. – this needs to go beyond the confirmed reintroduction of Developing Scotland’s Hydrogen eligibility for onshore wind and Economy solar. The UK Government’s

3.1.52 We will support the development recent response to its CfD of hydrogen linked to the consultation contains some electricity system during the welcome elements, notably the 2020s, building on the outputs of separation of offshore wind the Hydrogen Assessment Project from floating and remote island and hydrogen policy development wind, which we believe will make process45. This will identify the latter technologies more and develop the opportunities competitive in future allocation for generating hydrogen from rounds. However, we continue renewable electricity generation to press the UK Government in ways that can support the to make targeted and effective integration of new wind, solar and support available for wave and marine capacity. tidal generation. We have also campaigned hard for changes to the CfD which strengthen the Our call to others requirement to use Scottish and The UK Government UK supply chains, with measures on this front now subject to

3.1.53 Electricity policy covering further consultation. We believe generation, transmission, there may also be a role for the distribution, supply and regulation CfD in supporting the production is reserved. This means that of green hydrogen from achieving the electricity sector renewable energy sources. 43 Announced in 2020-2021 Programme for Government 44 Announced in Scotland’s Energy Strategy, 2017 we would develop a bioenergy action plan 45 Announced in 2020-2021 Programme for Government 88   Update to the Climate Change Plan | Electricity Ħ Fully explore the options for Ħ Commit to carbon pricing hydrogen to play a role in – we are calling on the UK direct power generation itself, Government to commit to a potentially displacing natural UK ETS (as discussed in more gas as a provider of back–up or detail in the Industry chapter) baseload power generation. that, together with the reserved Ħ Support and enable the Carbon Price Support, provides commercialisation of negative a clear carbon price signal emissions technologies, CCS for investment in renewable and hydrogen in the electricity generation. sector as well as others – the Ħ Deliver better regulation – we, electricity sector has substantial along with many others, have potential for these technologies, called on the UK Government to and support mechanisms give Ofgem an explicit statutory such as CfDs have long been objective to support the delivery used to support developing of net zero. This will ensure that technologies. The development its regulatory mechanisms and of CCS urgently requires a stable decisions are fully consistent policy environment comprising with binding targets such as suitable incentives, regulatory Scotland’s 2045 net zero goal, environment, business model and flexible enough to meet the and financial frameworks. national and local ambitions The use of electricity support across Scotland, as well as in mechanisms needs to combine England and Wales. with a wider framework to develop CCS that will enable Scottish public sector negative emission technologies organisations commissioning in the UK from 3.1.56 In our Vision for Scotland’s Gas and the mid-2020s. Electricity Networks, we committed Ħ Ensure security of supply and to supporting local authorities operability – we have asked and other organisations to engage the UK Government to urgently more strategically on issues related address the matter of regional to the electricity system. We are security of supply. For example, working in partnership with local the GB-wide Capacity Market authorities to develop Local Heat has no locational element and and Energy Efficiency Strategies has failed to deliver investment (LHEES), aiming to have these in in new dispatchable electricity place across all local authorities generation in or near Scotland. by the end of 2023. LHEES will Our decarbonised system be an important enabler for will need enhanced black local authority engagement with start provision, and to unlock electricity network companies on investment in critical ancillary future investment in Scotland’s net services. This is especially true zero electricity infrastructure. of pumped storage hydro, where the plans and potential for huge new investments in Scotland will depend on the UK Government delivering a clear route to market. Update to the Climate Change Plan | Electricity  89

3.1.57 We will engage with partners on regulatory decisions affecting the the new Net Zero Carbon Standard way in which charges are levied, for new public buildings and we have the potential to encourage are accelerating efforts to use Scotland’s industrial sites to switch 100% renewable electricity on the towards low carbon and renewable Scottish public estate. electricity. This makes it all the more urgent that Ofgem’s decisions

3.1.58 We are already seeing ambitious clearly reflect the need to support and encouraging leadership in the net zero. public sector, and we will support others to follow suit. Scottish 3.1.61 In an electricity system with Water has committed to become very high levels of renewable a zero carbon user of electricity generation, businesses should have by 2040, five years before the more incentives to be flexible. This national net zero target, while means considering when they use Forestry and Land Scotland has electricity, for instance, looking for installed over 1 GW of wind and ways to reduce or increase their hydro capacity across the land it demand at certain times depending manages. on renewable generation and wider demand across the Scottish businesses and industry network. Electricity networks

3.1.59 Scotland has a host of companies are increasingly providing with impressive and innovative opportunities for large users who track records in renewables and can vary their use at particular network development, as well as in times and respond quickly to the growing market for flexibility certain signals / circumstances. services. We also have a financial These provide opportunities to sector, which includes the new reduce costs and earn additional Scottish National Investment Bank, revenue, while helping maintain in place and ready to work with system security. the electricity sector to deliver new and inward investment across Individuals/households Scotland. 3.1.62 The starting point for all of us, as individuals in our households,

3.1.60 The challenges facing Scottish and across communities, should businesses and industry will vary be to continue to invest in and according to an organisation’s follow energy efficiency measures size, electricity demand and and advice, and to reduce our ability to explore or invest in electricity demand. Home Energy onsite generation or flexibility Scotland provides advice to all measures. Changes and investment consumers on how to reduce in the electricity grid, including their energy use and improve the those which are influenced by energy efficiency of their homes. 90   Update to the Climate Change Plan | Electricity

3.1.63 Improved networks, renewable 3.1.66 We will continue to work with generation and smarter local energy the UK Government to urge it to systems can provide opportunities reform levies so that they are for a more flexible and resilient fairer and that the burden does not system, offering more attractive fall disproportionately on those in choices for consumers, for example, or at risk of fuel poverty. Ofgem, by programming EVs or smart electricity network companies and household devices to respond to suppliers also have a crucial role network and market signals about to play in ensuring that changes the need to use more or less energy. can help lift households out of fuel Individuals as well as businesses poverty across Scotland. should be able to benefit from being flexible in this way. International engagement

3.1.67 Scotland’s Energy

3.1.64 We know that these opportunities Strategy identifies won’t be available or easily internationalisation as a key accessible to everybody. The area, recognising the importance Scottish Government and others of working with international have a huge part to play in helping partners and the contribution promote and increase accessibility that this can make to sustainable amongst the widest possible range economic growth as we transition of consumers. This is especially to a net zero economy. Scotland true for consumers in vulnerable is renowned as a renewables circumstances who are often more pioneer, and we will continue reliant than others on a safe and to engage with international reliable electricity supply. partners, strengthening existing relationships, maximising

3.1.65 The Scottish Government is opportunities in new innovations committed to eradicating fuel and emerging technologies. poverty, with our statutory and ambitious targets setting out that 3.1.68 We will prioritise activity and by 2040 no more than 5% of collaborations that promote households are in fuel poverty learning and policy exchange, and no more than 1% in extreme build upon Scotland’s reputation fuel poverty. A key driver of fuel and increase our attractiveness to poverty is the cost of energy; international partners to ensure a the way in which our electricity flow of new investment. system develops, in particular how it is paid for, will be central to meeting these targets. Update to the Climate Change Plan | Buildings  91 Chapter 2 Buildings 92   Update to the Climate Change Plan | Buildings

3.2. Buildings conversions during this decade, from the current rate of around 0.1% of homes converting per year Introduction to a rate in the region of 5-10%

3.2.1 The scale and pace of the (over a hundred thousand) homes changes to how we heat our per year. buildings will be nothing short of 3.2.3 These changes will involve transformational. Emissions from households and businesses across heating all buildings across Scotland Scotland becoming familiar need to reach zero by 2045 and with new heating technologies, demand for heat in buildings must and seeking to adopt them. The be significantly reduced, with poor potentially significant costs energy efficiency removed as a associated with transforming our driver of fuel poverty. Currently, heating systems will need to be heat in buildings accounts for balanced in a fair way that neither 20% of Scotland’s greenhouse gas exacerbates fuel poverty rates nor emissions46. By 2040 our statutory allows the burden of paying for the fuel poverty targets require: that transition to fall on those least able no more than 5% of households to pay. Vital to Scotland’s transition are fuel poor; that no more than will also be very significant policy 1% of households are in extreme action from the UK Government in fuel poverty; and the fuel poverty key reserved policy areas. gap is reduced to £250 (adjusted for 2015 prices). We also have 3.2.4 We have made good progress on interim targets for 2030 and 2035. upgrading the energy efficiency Currently 24.6% of households are of Scotland’s building stock, with fuel poor, and 12.4% are in extreme 45%48 of homes now achieving fuel poverty47. We will deliver upon Energy Performance Certificate these targets in a way that carefully Band C or better. We are supporting coordinates the dual challenges of households to install energy decarbonisation and tackling fuel efficiency measures and zero poverty to ensure a fair and just emissions heating systems through transition. a range of schemes, as well as supporting an increasing number of

3.2.2 The zero emissions heat transition heat network projects where these will involve changing the type are appropriate and help with our of heating used in over 2 million fuel poverty objectives. homes and 100,000 non-domestic buildings by 2045, moving from 3.2.5 We still have a considerable high emissions heating systems, challenge ahead in order to deliver reliant on fossil fuels, to low and a net zero emissions buildings zero emissions systems such as sector. Currently, only around 11% heat pumps, heat networks and of households have a low carbon potentially hydrogen. Our interim heating system and just over half statutory target of a 75% emissions of our non-domestic building reduction by 2030 means we must stock has heating from low or rapidly accelerate heating system zero carbon sources. 46 Scottish Energy Statistic Hub: https://scotland.shinyapps.io/sg-scottish-energy-statistics/ 47 Scottish House Condition Survey, 2019 48 Scottish House Condition Survey, 2019, SAP 2012 (RdSAP v9.93) Update to the Climate Change Plan | Buildings  93

3.2.6 We will need to see a mass switch 3.2.9 This is a journey that will affect away from high emissions heating people right across Scotland in in homes and buildings (e.g. gas their homes and workplaces, and and oil central heating), as well as will require rapid growth of our further expansion of renewable domestic supply chains. There are electricity production and stronger many local economic opportunities electricity grid infrastructure, to to be captured that will support support the delivery of highly good quality local jobs, and there efficient and affordable electric is a great deal of potential to heating at scale. This transition will improve quality of life, including also require further development the health benefits that come of heat networks and, dependent with comfortable, well insulated upon successful demonstration and homes. We must also ensure a just positive decisions on the future transition, allowing consumers to of hydrogen in the gas grid, the easily access affordable low and development of new hydrogen zero carbon options. production, distribution and servicing industries. New context

3.2.7 We estimate that around 50% 3.2.10 The long-term impact of COVID-19 of homes, or over 1 million upon the Buildings sector is households, will need to convert uncertain, but the pandemic may to a low carbon heating system have a sustained effect on the by 2030 to ensure our interim ways we work and how we use our statutory targets are met. Our buildings. Increased homeworking initial focus will be on off-gas-grid has changed both domestic and buildings and those most suitable workplace heating patterns. We for connection to a heat network. are yet to see whether this trend However, we will need to go for homeworking will continue into further with some conversion of the future, and how that might the remaining on-gas-grid stock. affect how buildings are heated. Furthermore, up to an additional Increased domestic energy use 50% of non-domestic buildings will at present, along with reduced need to be converted to low and incomes for many, has increased zero emissions heating by 2030. the numbers of people at risk of fuel poverty and potentially

3.2.8 Achieving a good standard of increased energy debt. We need to energy efficiency across all mitigate these effects and design buildings will continue to have decarbonisation policy in a way a critical role to play. This will that does not exacerbate them. deliver emissions savings for buildings using fossil fuel heating systems, enable the roll out of low and zero emissions heating systems, and support progress towards our fuel poverty targets. 94   Update to the Climate Change Plan | Buildings Green recovery and just transition

3.2.11 A number of key stakeholders, including the Climate Emergency Response Group, the Just Transition Commission, and a number of industry stakeholders, have recommended that the Scottish Government prioritises investment in zero emissions buildings as part of a green recovery from COVID-19. Reflecting this, we put investment in decarbonising and modernising our buildings at the core of the green recovery investments announced in the 2020-2021 Programme for Government, with £1.6 billion committed over the course of the next five years. 3.2.14 Taken together, our policy

3.2.12 We will maximise the opportunities interventions and immediate that arise from this transition: policies and investments, delivered continuing to address poor as part of Scotland’s green recovery building quality and inefficiency from COVID-19, will build the scale as a driver of fuel poverty; driving of the zero and low emissions heat investment in improved insulation market, which should then deliver and affordable heating; developing new jobs, skills and retraining a skilled workforce based on high- opportunities. We expect to see quality jobs; and creating a strong industry develop expertise, and for domestic supply chain that builds costs to reduce through economies upon the experience and expertise of scale and product improvement. already developed by Energy This should ultimately bring cost Efficient Scotland. benefits to consumers. We will also prioritise a just transition for the

3.2.13 Currently, around 13,000 people heat sector and tackle fuel poverty: in Scotland are employed in the while energy efficiency measures low and zero emissions heat and can help to offset some of the energy efficiency sectors, and of increased costs of heating, we need that 8,200 people are estimated to to ensure that decarbonisation does work in the design, manufacture not disadvantage those already and installation of energy-efficient struggling to heat their home. products such as wall insulation and energy efficient doors and 3.2.15 Our policies will deliver very windows49. Zero emissions heating significant expansion of heat pump system manufacturing alone is deployment in the coming years. estimated to employ around 2,000 For example, Scottish Government in Scotland50. investment through our enhanced domestic and SME loans and 49 Low carbon and renewable energy economy, UK - Office for National Statistics (ons.gov.uk) 50 Based on Scottish Government understanding of the sector. Update to the Climate Change Plan | Buildings  95 cashback schemes, and our advice enterprise agencies, and will and support services that leverage maximise the impact of city and funding from UK schemes should sector deals as well as UK Research boost our domestic manufacturing and Innovation and Challenge and installer base. Fund funding. We are also working with Skills Development Scotland

3.2.16 Our investment in, and regulation to ensure that heat and energy of, heat networks will stimulate efficiency skills sit at the heart the development of new heat of the Climate Emergency Skills networks and the extension of Action Plan. existing networks. This will provide high quality, sustainable green jobs across Scotland’s towns and Positive vision for cities, such as in specialist design 2032 and 2045 and architecture, equipment manufacturing, civil engineering, 3.2.18 By 2032, through the scaling of and maintenance. Furthermore, our targeted support, a substantial direct investment and regulatory majority of Scotland’s homes will interventions will see increased have achieved a good energy rates of installation of energy efficiency rating, meaning that efficiency measures, potentially they are better insulated and supporting 1,200 jobs for every have lower demand for heat. The £100 million invested51; our number of socially rented homes support for further demonstration achieving a high energy efficiency of hydrogen, smart heating rating will be maximised, due to technologies and electricity the investment of social landlords. network innovation will create As a result, we will have made ripple effects across the wider significant progress in removing energy system supply chain; and poor energy efficiency as a driver our targeted support for innovation for fuel poverty in the majority of will support companies with a Scotland’s homes. high growth potential, boosting

3.2.19 In addition, we will have the economy and creating jobs. considerably accelerated the Overall, we estimate that as many deployment of zero emissions as 24,000 jobs could be supported heating, particularly in off gas-grid in Scotland by the roll out of low areas, and we will have seen a and zero emissions heat52. significant expansion of low carbon

3.2.17 We will publish a Supply Chain heat networks in heat dense areas. Strategy for energy efficiency All new homes and buildings and heat in buildings in 2021. consented from 2024 will use zero This will expand our existing emissions heating and be highly programmes of support for skills energy efficient. This process and retraining, cluster building, will see Scotland’s economy and funding for demonstrators and society benefit from new jobs and business support through the skills development. 51 Type 1 construction sector employment effects multiplier from the Scottish Government input-output tables, applied to 2021 prices. 52 The jobs estimate is derived by taking a Scottish household share of the UK capital spend on heat decarbonisation projected by the CCC (P99 of the CCC’s Net Zero Technical report) and applying the type 1 construction sector employment effects multiplier from the Scottish Government input-output tables. 96   Update to the Climate Change Plan | Buildings

3.2.20 Properties connected to the gas grid ensure that everyone is able to will be supported to decarbonise understand their energy use. through the electrification of heat We will seek to put in place and connection to heat networks, robust customer protections and through the significant and standards, supporting a just progress that will have been made transition and reliable market. to decarbonise the gas network. We will see the emergence of 3.2.23 Our vision for 2045 is that our an established zero emissions buildings will be much greener heating market, with a wide range and more energy efficient. We will of companies manufacturing, have reduced emissions from, and installing and innovating zero and demand for, heat, so that virtually low emissions heating products. all buildings are zero emissions. As these companies prosper in this Renewable sources of energy will transition, they will be exporting supply our heating, cooling and and commercialising their expertise. lighting needs. People will feel comfortable in their homes all year

3.2.21 Buildings across Scotland will have round, and we will have met our been supported to reduce their statutory targets for fuel poverty. energy demand, making it easier and more cost effective to install 3.2.24 Delivering these changes requires and operate low carbon heating further technology innovation, systems. We will seek to ensure cost reductions and increased that support is coordinated and familiarity with and adoption managed where possible to deliver of zero emissions heating economies of scale and high technologies by people and quality workmanship. businesses. They also mean our wider energy system will have

3.2.22 Through all of this, individuals to transform to be able to supply will be enabled to be active secure and affordable zero participants in the transition. emissions electricity at scale. Where we provide support and Furthermore, they depend upon advice to the general public, the right market and pricing signals we will do so in an appropriate and regulations being in place. range of languages and formats to Update to the Climate Change Plan | Buildings  97 Jordanhill, Glasgow Emissions Reduction Pathway to 2032 Buildings 8 7 Emissions (MtCO2e) 6 5 4 3 2 1 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Route 98   Map to Update to the 2032 Climate Change Plan | Buildings 2020 £1.6 billion Heat in Support for £6.9 million support for the Buildings announced, investment in H100 hydrogen for domestic to be invested over the Heat Networks: heat demonstrator. next Parliament. District Heating Loan Fund. Heat pumps cashback 2020-2024 – Non schemes for households and Domestic Public SME businesses initiated. Sector Energy Efficiency Framework. Consult on a skills plan for heat in buildings. 2021 Consultation on the Net Zero Public Sector Funding via CARES for use of existing powers Buildings Standard community zero and low to regulate for the for new builds. emissions heat projects connection of non- aimed at supporting domestic buildings to Public Engagement off-grid communities to heat networks. Strategy for heat transition to net zero. decarbonisation Response to the developed. Scottish Cities’ action recommendations of the plans on heat and Expert Advisory Group Minimum energy energy efficiency. on a heat pump sector efficiency standards deal for Scotland. for the domestic Provision for multi-year private rented sector Area Based Schemes introduced. put in place. 2022 Supply Chain Strategy A new national delivery for heat and energy scheme procured, efficiency developed to replace the existing and early actions Warmer Homes implemented, as well Scotland contract. as a new framework of support for energy innovation. Update to the Climate Change Plan | Buildings  99 2030 Proposed regulatory framework At least 50% of Scotland’s for zero emissions heating to building stock is heated drive scaled-up deployment, using zero emissions where appropriate and subject systems. to consultation. 2025 Zero emissions heating Scotland’s zero systems (including emissions heat connections to heat supply chain has networks) account for at grown significantly, least 50% of new systems supporting high- being installed each year. quality jobs and providing excellent service across the whole of Scotland. 2023 2024 Subject to the Local Heat and Energy Plan agreed with New Build Zero passage of the Heat Efficiency Strategies Scotland’s electricity Emissions from Heat Networks (Scotland) launched across all network companies Standard. Bill, district and local authorities. showing how Detailed research, communal heating network investment Regulations introduced demonstration and trials systems become can facilitate our for all buildings to conducted, and updated regulated. heat decarbonisation achieve a good level evidence published on pathway. the integration of heat of energy efficiency. pumps into electricity networks. 100   Update to the Climate Change Plan | Buildings The actions we d) driving innovation to secure efficiency improvements and cost are taking reductions;

3.2.25 As recommended by the e) exploring innovative finance and Committee on Climate Change service models; and (CCC), we will set out a clear, long- f) using tax based incentives to term vision and policy direction drive change. for heat in buildings in the Heat in Buildings Strategy. This will 3.2.28 Key enablers will be: include a comprehensive set of Ħ creating the conditions to secure policy actions out to 2025 to growth of heat networks in significantly scale up deployment Scotland; of zero emissions heating and energy efficiency in Scotland. Ħ Local Heat & Energy Efficiency This Climate Change Plan update Strategies for all of Scotland provides a summary of the policies by the end of 2023 to ensure a and actions that will be set out place-based approach; and in more detail in our Heat in Ħ working with the Heat Pump Buildings Strategy. During 2021 sector. we will set out the key elements of how the housing sector will drive 3.2.29 These key actions, principles towards net zero emissions in the and enablers of our approach context of the 20 year Housing to are outlined below. The Heat in 2040 strategy. Buildings Strategy will set out in more detail how we will achieve

3.2.26 Our early actions to 2025 will our critical milestones. focus on increasing deployment rates of zero and low emissions A. Standards and regulation heating through three broad 3.2.30 The Heat in Buildings Strategy mechanisms: will update the Energy Efficient Scotland route map53 and will A. standards and regulation; commit to putting in place B. significant investment, standards and regulation for heat including scaling up delivery and energy efficiency, where programmes; and it is within legal competence, C. supply chain support to ensure that all buildings are energy efficient by 2035 and use

3.2.27 Principles for action include: zero emission heating and cooling systems by 2045. a) taking a whole systems view; b) protecting consumers and 3.2.31 We will ensure the alignment and ensuring a just transition, including coherence of wider policies and supporting continued progress regulations so that these support towards meeting our targets on the reduction of emissions from fuel poverty; buildings. c) working closely with citizens, 3.2.32 As far as is within our legislative households and businesses; competence, we will put in place a new, appropriate framework by 2024-25. 53 Energy Efficient Scotland: route map: https://www.gov.scot/publications/energy-efficient-scotland-route-map/ Update to the Climate Change Plan | Buildings  101

3.2.33 Our initial focus for action before see, as a minimum, the rate of zero 2025 will be on: emissions heat installations in new and existing homes and buildings 1. new buildings, including double every year out to 2025. introducing a standard requiring all new homes consented from 2024 3.2.37 The investment will deliver against to use zero emission heating; four themes: 2. introducing minimum energy 1. Supporting those least able to efficiency standards for the pay, for example through increased domestic private rented sector; funding for our Area Based Schemes and Warmer Homes 3. introducing regulations for all Scotland and continuation of the buildings to achieve a good level of social housing funding stream energy efficiency; within the successor to the Low Carbon Infrastructure Transition 4. establishing a new net zero Programme (LCITP). As running carbon standard for new public costs for zero emissions systems buildings; and can in some instances be higher 5. taking steps to facilitate common than current fossil fuel equivalents, works in tenement buildings. we will also build in support to ensure people can continue

3.2.34 We will also work with social to enjoy warm homes that are landlords to bring forward the affordable to heat. review of the existing Energy Efficiency Standard for Social 2. Investing in strategic Housing (EESSH2) with a view technologies by making zero to strengthening and realigning emissions heat deployment a the standard with net zero priority funding theme in the LCITP requirements. successor programme, supporting communities to decarbonise their

3.2.35 The forthcoming Heat in Buildings buildings (through schemes such as Strategy will set out the steps we CARES, including dedicated support will take to develop proposals for for islands and our most remote a future regulatory framework for communities). zero emissions heating, to be put in place to drive very significant 3. Showcasing Net Zero scaling-up in deployment and Leadership through early accelerated market growth from adoption by providing support for 2025, subject to the limits of the decarbonisation of the public sector Scotland Acts. estate, maximising spend through domestic and small and medium- B. Delivering significant sized business cashback schemes, early investment and developing a new support

3.2.36 We will invest £1.6 billion54 in heat programme for the self-funded. and energy efficiency over the 4. Innovation and demonstration: next Parliament. This will leverage we will promote learning by doing, additional UK Government funding support technology and business and private household financing model innovation and maintain to deliver against our ambition to innovation and demonstration 54 Announced in 2020-2021 Programme for Government 102   Update to the Climate Change Plan | Buildings as a priority theme within the ahead of regulatory requirements LCITP successor programme. in 2024, through our Affordable Furthermore, we will support Housing Supply Programme. demonstration in strategic areas such as electrification 3.2.39 We will use our investment and hybrid systems, and in the to leverage additional UK more challenging aspects of Government and private decarbonisation such as multi- investment and target deployment tenure buildings. at no and low regret priorities in order to grow the customer base,

3.2.38 Investment commitments include: raise awareness and support supply chain development. 1. £50 million Green Recovery Funding Invitation to support low 3.2.40 We will: carbon and zero emissions heat projects in Scotland (already in Ħ increase our support for progress); community low and zero emissions heat projects through 2. up to £95 million for heat our flagship CARES programme; decarbonisation and energy and efficiency of the public estate; Ħ publish a Local Energy Policy 3. £25 million to support zero Statement which will be carbon energy infrastructure and underpinned by a set of key heat networks for residential and principles we wish to see commercial premises in the Clyde adopted, to ensure a just, Mission region55; inclusive energy transition, that has people at its centre, 4. up to £4.5 million over the next supported by strong partnership six months in a cashback scheme working and collaboration at a for households, providing 75% local level. cashback for zero emissions heating and 40% for domestic energy Protecting consumers and ensuring efficiency measures, with a total a just transition of £13,500 available per home; 3.2.41 We will establish clear principles 5. boosted and strengthened Energy to underpin our commitment to Efficient Scotland delivery schemes no one being left behind, ensuring to stimulate even greater take up our approach neither increases the of energy efficiency measures fuel poverty rate nor increases the across homes and non-domestic depth of existing fuel poverty. This buildings56 and a new commitment will include a boosted commitment to increase zero emissions heating to effective design and targeting installations; and of our fuel poverty and heat in buildings programmes to ensure 6. continued support for affordable we manage the heat transition in a housing providers who wish to way that does not exacerbate fuel install zero emissions heating supply poverty, with policies that build in excellent consumer care and 55 Announced in the 2020-2021 Programme for Government, with further commitments included in this Climate Change Plan update. 56 Boosted both in the 2019-2020 Programme for Government, and in the 2020-2021 Programme for Government Update to the Climate Change Plan | Buildings  103 boosted collaboration with energy 2. Continue to work closely with retailers to ensure a good deal for Skills Development Scotland to consumers57. develop the construction sector element of the Climate Emergency

3.2.42 While our funding programme for Skills Action Plan (CESAP) for 2021-22 is clear, we will consult energy efficiency and zero in our Heat in Buildings Strategy emissions heat. on specific investment options for our programme over the following 3. Deliver on actions in the four years where it significantly CESAP relating to the heat ramps up. transition, including investment in Scottish Colleges, and the

3.2.43 We will design future delivery skills development opportunities programmes to ensure significantly supported by our recent green accelerated retrofit of buildings, recovery announcements, including with new programmes to be the National Transition Training in place from 2025 in order to Fund, Youth Guarantee and Green secure long term delivery against Jobs Fund. the 2030 and 2040 targets. We will ensure housing makes its full 4. Set out new skills requirements contribution to our national target for installers, designers and retrofit of net zero emissions by 2045 by co-ordinators in a Skills Plan for signalling our long-term objectives consultation under the CESAP. This in Housing to 2040. will cover: adoption of the installer skills matrix, developed by sector C. Supporting supply chain growth skills bodies and industry, and

3.2.44 Supply chain growth is essential its integration into PAS 2030 and ahead of the mass-rollout of zero Microgeneration Certification and low emissions heating systems Scheme (MCS) installer standards; commencing in the mid-2020s. and development of qualifications for other roles in PAS 2035 wider

3.2.45 In the coming 12 months, we will retrofit standards where no rapidly build a more detailed qualifications currently exist in understanding of the potential for Scotland. supply chain growth in order to 5. Provide increased support for target support effectively and start Scottish colleges for training and to ramp up skills requirements and retraining for jobs in the energy support for colleges. efficiency and zero emissions

3.2.46 Specifically we will: heating sectors, including capital investment for colleges to buy 1. Develop a Supply Chain Strategy equipment. for energy efficiency and heat decarbonisation in partnership 6. Bring forward and support with the enterprise agencies, demonstrator projects, particularly and including a specific Islands those testing: hybrids and high component. This will set out a range temperature heat pumps; the use of wider actions to support supply of hydrogen for space and water chain growth and preparedness heating; projects to understand ahead of mass-rollout from the the impact of heat transition on middle of the decade. existing energy networks. 57 For example, through the work of the Energy Consumers Commission 104   Update to the Climate Change Plan | Buildings 7. Work with stakeholders to 2. a new Heat Electrification develop an approach to making Strategic Partnership to ensure Scotland a leader in net zero that the Scottish Government can carbon housing. We will build work closely with the electricity on lessons learned from the network sector to deliver the ‘Edinburgh Home Demonstrator’ network capacity needed in the project, which is developing a new right places across Scotland. business model for affordable housing and using it to build c. b) Protecting consumers and 1,000 homes to net zero standards ensuring a just transition across the Edinburgh City Region. 3.2.49 We will establish clear principles to underpin our commitment to 8. By the end of 2021, we will a just transition, ensuring our publish a new Scottish energy approach neither increases the technology innovation framework, fuel poverty rate nor increases the setting out new support for depth of existing fuel poverty. This innovation in heat generation, includes a boosted commitment storage and supply, as well as to effective design and targeting innovative methods for improving of our fuel poverty and heat in building energy efficiency. buildings programmes to ensure we manage the heat transition in a Our approach way that does not exacerbate fuel a) Taking a whole systems view poverty, with policies that build

3.2.47 The energy system as a whole in excellent consumer care and needs to be readied to support the boosted collaboration with energy delivery of an increasing proportion retailers, ensuring a good deal for of electrical heat, and to ensure zero consumers58. emission heating systems are ‘smart’ and can enable system flexibility. 3.2.50 Specifically, we will: We are ensuring a whole system approach through our boosted 1. Continue delivery of energy work with Ofgem and electricity efficiency investment to support network companies. This work will fuel poor households. This will help provide a well-developed evidence remove poor energy efficiency as base to support network planning, a driver of fuel poverty by making ensuring that we have the networks homes warmer and cheaper to needed to link electric heating in our heat by reducing demand. It will buildings to wind farms and other be vital that the UK Government sources of renewable electricity acts to reform the system of levies across Scotland. and charges on consumer bills, and promotes innovation in tariffs

3.2.48 This includes: to remove the disproportionate burden these place on low income 1. the trial and demonstration of consumers. the integration of zero emission heating into the electricity system, 2. Increase the number of zero including through the use of emission heating measures storage and demand management, funded through our fuel poverty to better understand the capacity programmes, targeting households and upgrades required; and, who can benefit most from 58 For example, through the work of the Energy Consumers Commission Update to the Climate Change Plan | Buildings  105 decarbonisation, avoiding those systems (and funding of these where there is a risk of detrimental through Scottish Government outcome, and providing uplifted programmes) to ensure fuel poor support where necessary to secure households can take advantage fuel poverty objectives. of the potential cost savings from heat pumps working in 3. Work with energy retailers combination with dynamic to encourage them to: offer energy tariffs. This will require tariffs suitable for zero emission considerable awareness raising and heat; to ensure that households consent. are on tariffs suitable for their individual circumstances; and 3.2.51 We will also urge the UK ensure that vulnerable consumers Government to: moving to zero emission heat are Ħ rebalance environmental and appropriately identified in network social obligation costs on energy operators’ vulnerable customer bills to make gas and electric strategies. systems relatively more cost 4. Increase Scottish Government comparable; and programme support for Ħ increase levy funding for social microgeneration (solar/thermal PV) obligations and make changes and storage systems, to support to how costs are charged to households to make maximum use low income and fuel poor of self-generated electricity. households with higher energy costs, to ensure that progress 5. Enable the installation of smart is maintained in reducing fuel enabled zero emissions heating poverty. 106   Update to the Climate Change Plan | Buildings CASE STUDY: WARMER HOMES SCOTLAND Warmer Homes Scotland (WHS) is in addition to saving an average of the Scottish Government’s national £300 per year on their energy bills. fuel poverty scheme. It is focused on Warmer Homes Scotland includes the installation of energy efficiency an Employment and Skills Action and microgeneration measures Plan, with targets for job creation, to improve the energy efficiency, apprenticeships, training and skills. warmth and comfort of properties The scheme invests in young people occupied by those living in or at risk and apprentices across engineering, of fuel poverty. Since the scheme was plumbing, electrical, construction and launched in September 2015, it has business administration skills and, as helped more than 20,000 fuel poor of October 2020, has supported 2,859 households across Scotland become jobs and training opportunities. warmer and healthier in their homes, c) Working with citizens, individuals, communities and households and businesses businesses across Scotland;

3.2.52 We will build public support for the 2. develop our digital heat transition through extensive communications and maximise and sustained engagement with the impact of our advice and individuals, communities and support schemes to build public businesses across Scotland. The awareness and understanding of Scottish Government’s Draft Public heat decarbonisation and energy Engagement Strategy for Climate efficiency solutions; Change, published alongside this Plan update, will raise awareness 3. build public engagement into our of the ways emissions from demonstration projects; buildings can be reduced and 4. use the development of Local secure buy-in to the long-term Heat and Energy Efficiency changes that are required. Strategies across all local authorities in Scotland as an

3.2.53 Specifically, we will: opportunity to ensure extensive 1. open up public dialogue and community engagement on local engagement on the heat transition, heat decarbonisation choices; and, including through a commitment 5. increase our support for to develop and implement a community low and zero emissions Public Engagement Strategy on heat projects through our flagship the heat transition with extensive CARES programme. and sustained engagement with Update to the Climate Change Plan | Buildings  107 d) Driving innovation will provide certainty to private

3.2.54 Our support for innovation in heat investors around long term returns generation, storage and supply, on their investments, as well as as well as innovative methods demand for finance. The risk and for improving building energy cost of lending should therefore efficiency will drive significant reduce, and the demand for the emissions reductions. private (including household) finance increase.

3.2.55 Actions will include:

3.2.58 Specifically, we will: 1. the development of a new 1. Establish a short life working framework of support for energy group on finance for the heat innovation with a strong focus on transition to consider and provide low carbon heat; and recommendations on options, 2. support for demonstration including: the use of guarantees projects, such as SGN’s H100 with financing institutions to hydrogen project. support de-risking of lending, such as guarantees for mortgage top- e) Support innovative finance and ups; co-investment funds with service models private sector institutions that

3.2.56 Innovations in finance and heat focus on heat decarbonisation supply services can leverage and investment; potential development secure low cost financing for of ‘heat as a service’ business zero emissions heat and energy models that promote private sector efficiency investment. In this investment in the supply chain; Climate Change Plan update, we collaboration and partnership with are announcing a new commitment the private sector and Scottish to support innovative approaches National Investment Bank to invest with a view to these models being long term, patient capital in key deployed from 2025, if appropriate strategic projects; and longer term and consistent with the developing financing options such as green wider UK market framework. bonds, public-private partnerships and regulated asset base models of

3.2.57 There is significant interest and financing. capital available across the private 2. Pilot innovative financing sector to invest in decarbonisation. approaches that provide additional However, a known barrier to support for de-risking of investment relates to the currently institutionally-provided finance, low (although growing) demand and therefore promote and support from building owners for investing early stage ‘crowding in’ of low in energy efficiency and heat cost private sector capital. decarbonisation measures. We will continue to promote demand 3. Commit to taking the growth through sustained recommendations from the working signalling to the market, utilising group forward for deployment from ongoing capital incentives and 2023 if appropriate and consistent support programmes, as well as with the developing wider UK committing to a phased regulatory market framework. framework across the domestic and non-domestic sectors. This 108   Update to the Climate Change Plan | Buildings f) Tax based incentives to drive 3.2.61 Specifically: change 1. Once passed, we will work with

3.2.59 We will consider how our local tax local authorities and developers powers, such as council tax and to implement the provisions of non-domestic rates, could be used to the Heat Networks (Scotland) incentivise or encourage the retrofit Bill by 202359.This will see the of buildings. We will commission creation of zones suitable for further analysis to identify potential heat networks, within which options, to be implemented from networks can be developed with the middle of the decade where assurances over demand, alongside appropriate, subject to consultation continuing and strengthening the and public engagement. support available to support local authorities and private investors Enablers to bring forward projects for Creating the conditions to investment. secure growth of Heat Networks 2. Where there is new in Scotland development, including where

3.2.60 Key enablers for the growth of infrastructure is required, our heat networks in Scotland will be planning system will support the the passing of our Heat Networks heat transition. Heat Network (Scotland) Bill, the planning system, Zoning and development planning and the roll out of Local Heat and will need to work together. Energy Efficiency Strategies. Large-scale heat pump 59 Heat Networks (Scotland) Bill: Financial Memorandum, the Scottish Parliament, 3 March 2020. Page 12 sets out the Scottish Government’s estimate that it will take two years to implement the secondary legislation resulting from the Bill (i.e. by 2022/23). Update to the Climate Change Plan | Buildings  109 3. Through National Planning employment, innovation and Framework 4 we will ensure that skills. The expert advisory group local development plans take will report in 2021 and we will account of where a Heat Network respond to its recommendations by Zone has been identified. Q1 2022. 4. We are also exploring how stronger planning policies can help Our call to others to ensure that future developments connect to heat networks. The UK Government

3.2.64 As set out by the CCC in their 2020 5. We will decide whether to Progress Report, Scotland’s success extend Permitted Development in decarbonising heat is contingent Rights (that remove the need to upon urgent action from the UK apply for planning permission) for Government. zero-emission heat networks and micro-renewable technologies. 3.2.65 We continue to urge UK Government to provide clarity Local Heat & Energy Efficiency on the steps it will take to ensure Strategies for all of Scotland by the rapid gas grid decarbonisation, and end of 2023 we call on the UK Government to

3.2.62 These local strategies will identify address the imbalance in pricing zones for different preferred for electricity and gas, to better heat solutions, to guide building incentivise the deployment of zero owner decision-making about emissions heating technologies. replacement heating systems, and forming the basis for local delivery 3.2.66 Whilst recent announcements plans targeting heat and energy are a welcome step, the UK efficiency investment. We are Government must significantly boosting our action by providing increase investment in innovation a structured methodology for and research and development, developing Strategies in early and scale-up its investment 2021, and will consider how to in place-based demonstrators introduce new zoning powers to for zero emissions heating, enable phased action to support including enhanced support for regulatory standards, which will be hydrogen demonstration and set out in more detail in the Heat targeted support for heat pump in Buildings Strategy. deployment. We will continue to press the UK Government to Working with the Heat Pump amend Ofgem’s remit to require sector the regulator to work to deliver on

3.2.63 We have established a new statutory climate change targets, expert advisory group to make including those of the Scottish recommendations to Scottish Parliament, in order to secure the Ministers on the scope of a investment that is urgently needed potential heat pump sector deal in our energy networks. for Scotland. The deal will forge an important partnership between the 3.2.67 To protect consumers, we need Scottish Government and industry a UK-wide legislative framework on sector-specific issues, creating that is fit to deal with the scale opportunities to boost deployment, of installations required to 110   Update to the Climate Change Plan | Buildings decarbonise buildings, protecting Scottish public sector customers from unscrupulous organisations installers or poor quality work. 3.2.69 Public sector organisations can set a strong example of climate

3.2.68 We have identified a number of action, and we will support them barriers to action to decarbonise to take steps to reduce emissions. heating. To address these, we call Our fund of at least £95 million on the UK Government to: for heat decarbonisation and 1. address the imbalance in pricing energy efficiency of the public for electricity and gas, to better estate will support improvements incentivise deployment of zero in energy efficiency, as well as the emissions heating technologies; replacement of existing heating 2. accelerate decisions on the systems with low carbon or future of the gas network and renewable alternatives. commit to an expanded programme 3.2.70 We will work collaboratively with of demonstration for hydrogen and the public sector to implement further funding for carbon capture a net zero new public sector and storage; buildings standard. In alignment 3. amend the Gas Safety with this standard, public sector Management Regulations 1996 organisations procuring new to enable increased blending of buildings should ensure that they green gas in the gas network. This are highly energy efficient and will support transitional steps, that heating is provided using such as blends of hydrogen, for renewable or low carbon systems. decarbonising the gas network; Building on the Non-Domestic Energy Efficiency Procurement 4. extend and expand forthcoming Framework60, we will work GB-wide schemes such as the collaboratively with partners to Green Gas Support scheme and facilitate uptake of zero emission the Clean Homes Grant to be heat solutions across the public able to flexibly take account of sector building stock. regional differences and the needs of a wide range of households, Scottish businesses and industry businesses and building types; 3.2.71 Currently, 50% of non-domestic 5. develop improved product buildings use zero emissions heat. standards, for example requiring We need more than half of the gas boilers to be hydrogen-ready; remaining stock to transition by 2030. 6. ensure UK primary legislation for heat networks creates powers 3.2.72 We will support Scottish businesses for the Scottish Government to to take measures to improve the appoint a regulator to enforce energy efficiency of non-domestic consumer protection requirements buildings, and to replace existing in Scotland; and heating systems with low carbon 7. amend the VAT regime so that or renewable alternatives. We all energy efficiency and low will provide enhanced advice and emissions/zero emissions heat support to businesses through retrofit receives the 5% reduced rate. existing programmes such the Energy Efficiency Business Support scheme. 60 Scottish Government frameworks and contracts: https://www.gov.scot/publications/frameworks-and-contracts/ Update to the Climate Change Plan | Buildings  111

3.2.73 To meet anticipated demand, 3.2.76 The step-change required to Scottish businesses involved in the meet these emissions reduction low carbon and energy efficiency targets will see a significant supply chain will need to scale up increase in the assessment and the manufacture and deployment improvement of homes, and with of energy efficiency measures and this the requirement for robust renewable or low carbon heating quality assurance and consumer systems, as well as investing in protection. Clear and effective the skills and workforce needed advice, information and complaints to maintain and operate these mechanisms are being developed systems. The rate of acceleration as part of our quality assurance required is somewhere between and consumer protection provisions 40% and 50% year on year for within Energy Efficient Scotland some technologies such as heat and the Heat Networks Bill. pumps. International engagement Individuals/households 3.2.77 The Scottish Government

3.2.74 CCC research estimates that over believes strongly in international 60% of emissions reductions to collaboration and knowledge- meet net zero will be predicated sharing: we have already forged on some kind of individual or a strong partnership with the societal behavioural change. In Danish Government to benchmark the buildings sector, higher impact our approach on heat and energy savings from behavioural changes efficiency against best practice, are needed, driven by increased with a focus on regulation and engagement with the public on deployment of heat networks; emissions reduction, particularly and we are active members of the due to low levels of awareness and Advisory Council of the European understanding of the connection Energy Efficient Mortgages between buildings and climate Initiative. change.

3.2.78 We were one of the first

3.2.75 We will: governments to sign the World Ħ set out clear messages and Green Buildings Council’s Net Zero support for all building owners Carbon Buildings Commitment in and tenants on what delivering 201861; our proposed approach to a net zero emissions buildings regulate to require new buildings sector by 2045 will mean for to use zero or low emissions heat them; from 2024 is an important step in realising this commitment. Ħ provide enhanced advice and support to households through existing programmes such as Home Energy Scotland; and Ħ continue to ensure that our programmes particularly support the most vulnerable in society and households in fuel poverty. 61 https://www.worldgbc.org/thecommitment 112   Update to the Climate Change Plan | Transport Chapter 3 Transport Update to the Climate Change Plan | Transport  113

3.3. Transport 3.3.2 Our National Transport Strategy (NTS2), published on 5 February64, sets our direction for Scotland’s Introduction transport over the next two

3.3.1 There are unique challenges decades and embeds taking climate to reaching net zero emissions action as a core priority while also in transport. It continues to be prioritising reducing inequalities, Scotland’s biggest emitting sector, helping to deliver inclusive accounting for 35.6% of emissions economic growth, and improving in 201862, and will always be our health and wellbeing. NTS2 essential in enabling people to sets out our vision for transport move around and meet their daily and is clear about the need to needs. It is a derived demand: reduce unsustainable travel. where people live, work, learn This strategic aim will guide our and access goods and services actions as we address climate are all key to the need to travel. change, respond to the impacts Additionally, the technological of COVID-19 and ensure a just solutions in certain modes, transition to net zero emissions. such as aviation, maritime and 3.3.3 Whilst a key focus will be on heavy goods vehicles, are in the technological advances to green early stages of development, vehicles in Scotland, it is self- and substantial innovation is evident that managing transport required to bring them to market. demand and embedding behaviour However, these challenges reflect change will also be of vital the fundamental importance importance. Cars currently account of transport and, as a society, for almost 40% of transport we must work through them to emissions65, therefore, the enable Scotland to reach net predominance of car use cannot zero emissions by 2045. This be overlooked. NTS2 commits target presents an opportunity us to look beyond technological to continue on the trajectory developments and clearly states established by the first fall in that the Scottish Government will transport emissions since 201363, not build infrastructure to cater and reduce emissions while for forecasts of unconstrained stimulating the economy. It will increases in traffic volumes. The allow us to instil substantial Committee on Climate Change improvements across society, (CCC) has also recommended including for local partners, that we reduce the demand businesses and individuals, with for less sustainable transport benefits to health, wellbeing and modes and therefore, following the economy. the sustainable travel hierarchy, we will continue to promote active travel and a shift to more sustainable modes, while deprioritising single-occupancy car use. 62 National Atmospheric Emissions Inventory 1990-2017 (published 2019) 63 National Atmospheric Emissions Inventory 1990-2017 (published 2019) 64 https://www.transport.gov.scot/publication/national-transport-strategy-2/ 65 Carbon Account for Scotland (P4) https://www.transport.gov.scot/media/48199/sct07209535161.pdf 114   Update to the Climate Change Plan | Transport New context transmission on public transport, and monitor emerging evidence

3.3.4 COVID-19 has had a profound on the matter. However, we impact on transport. The reasons understand that concerns around for how, why and when people using public transport are likely travel have been fundamentally to remain alongside continuing changed. Demand for public uncertainties due to COVID-19. transport reduced by up to 95% during lockdown in March to June 3.3.7 However, amid the disruption, 202066, resulting in significant the pandemic has presented Scottish Government funding opportunities to live and work support being required for public differently. There has been a mass transport operators as passenger shift to home working in some fare revenues reduced. professions. ONS’ latest research on homeworking found that 44% of

3.3.5 Ongoing equalities impact Scotland’s workforce were working assessments show that certain from home in April 2020 compared groups, women and disabled to 4% in 2019.69 Furthermore, people in particular, have been Transport Scotland found that disproportionately affected 36% of people agree that they by COVID-19 and lockdown will work from home more often measures67, and future transport in the future.70 This provides policy needs to ensure these an opportunity to consider how groups are supported. remote and flexible working could offer benefits for people in

3.3.6 Additionally, low confidence in a variety of jobs, while reducing public transport, the uncertainty demand for commuter travel. Such over how long that will last, and trends have been adopted quickly the continuing dominance of due to the pandemic in certain private car use, present significant professions, though evidence is still challenges. In Transport Scotland’s emerging on the wider implications Covid Public Attitude Survey, for some jobs or people’s personal 75% of people were very or fairly circumstances. The Scottish concerned about contracting or Government will monitor such spreading the virus while using developments closely, and we are public transport, and private car already working across portfolios or van has continued to be the to ensure consideration is given main mode of transport used to the potential for increased across most trip purposes68. use of heating and lighting in Transport Scotland will continue to homes, and reviewing the health ensure that mitigation measures and wellbeing impacts of remote are in place to reduce the risk of working, as well as the potential 66 Transport Scotland, trends in transport and travel in Scotland for first six months of the COVID-19 pandemic, accessible: https://www.transport.gov.scot/publications/?q=trend&topic=63625&page=1 67 Transport Transition Plan Statutory Assessments Interim Update September 2020, published 12 October 2020, accessible https://www.transport.gov.scot/media/48363/equalities-transport-transition-statutory-assessments-interim-update- september-2020.pdf 68 COVID-19 Public Attitudes Survey Data: Wave 10, published 19 November 2020, accessible https://www.transport.gov.scot/ publication/covid-19-public-attitudes-survey-data-wave-10/ 69 ONS, Coronavirus and Home Working in the UK: April 2020, published July 2020 70 COVID-19 Public Attitudes Survey Data: Wave 10, published 19 November 2020, accessible https://www.transport.gov.scot/ publication/covid-19-public-attitudes-survey-data-wave-10/ Update to the Climate Change Plan | Transport  115 benefits. Sustained remote and developed than for cars, but are local working practices could developing quickly. However, promote a better work/life balance it is vital that we consider the and result in less exposure to air impacts of recent trends in pollution, while also causing less relation to e-commerce and congestion71. Reducing congestion, their legacy as Scotland moves in turn, will allow public transport out of the pandemic. Scotland’s to run more smoothly and improve freight sector is fragmented and safety for active travel. The privately controlled, and therefore repurposing of existing buildings we must work collaboratively to in town centres could also help promote solutions. There are ever- renew local economies, and developing opportunities to make support a reimagining of city and lower carbon deliveries, such as town landscapes by encouraging the introduction of consolidation more businesses and services to be centres, of pick-up and drop-off based there and enabling people points, or the widespread use of to visit. e-bikes and cargo bikes. It is key that the Scottish Government,

3.3.8 It is not just passenger transport local authorities and the industry that has seen shifting trends during review the challenge holistically to COVID-19, the logistics and freight develop comprehensive solutions. sector has also been affected. Public messaging around people 3.3.10 We also want to move freight from limiting their movements and their road to rail where possible. Rail contact with others to reduce the freight has been key in keeping potential for transmission has critical goods such as food and seen rises in online shopping. medicines on the move during the The use of e-commerce was pandemic, highlighting the role, already increasing before the importance and opportunities of COVID-19 pandemic; however, this moving freight by rail. In addition, trend accelerated as lockdown there is increasing interest in the restrictions were imposed during potential to bolster the movement the pandemic72, with resultant of ‘light’ or ‘express’ freight by vehicle movements needed to rail. We will work to maximise all support it. opportunities for rail freight during our recovery from the pandemic.

3.3.9 We know that the freight sector will have to respond 3.3.11 The Scottish Government has to the increasing need to already outlined a variety of decarbonise through the use of measures which promote a new technologies and business place-based agenda and support models, as well as adapting to localism, such as the 20 minute changing demands of consumers. neighbourhood concept and Technologies and established the Work Local Programme markets for heavier zero emission (which builds on the Scotland vehicles, such as HGVs, are less Loves Local initiative). Among 71 Angeliki Karanasiou et al, Assessment of personal exposure to particulate air pollution during commuting in European cities— Recommendations and policy implications, Science of the Total Environment, vol 490, 2014, p.785-797, accessed 20 October: https://www.sciencedirect.com/science/article/abs/pii/S004896971400713X 72 https://www.ons.gov.uk/businessindustryandtrade/retailindustry/timeseries/j4mc/drsi 116   Update to the Climate Change Plan | Transport the benefits of this approach Green recovery and is to increase proximity of where people live, work, learn just transition and access goods and services, reducing distances travelled and 3.3.12 The transport sector can play a the need to travel unsustainably. key role in delivering Scotland’s Moreover, it is key that transport green recovery from the pandemic implications are a cornerstone and ensuring a just transition. The of planning considerations and CCC recommended the Scottish the fourth National Planning Government leads a shift to Framework (NPF4) is aimed at positive long-term behaviours, radically accelerating emissions including encouraging home reduction, including by directing working and providing active future development to the right travel infrastructure73. Ensuring locations. On digital access, the more people choose active and Scottish Government has a host sustainable travel will not only of investments and initiatives to result in fewer emissions, but can support individuals and businesses also promote healthier lifestyles to promote digital connectivity and better equality of access to (including the Reaching 100% transport connections. Helping to Programme, Scottish 4G Infill give people access to bikes and Programme), digital adaptation, e-bikes, particularly in areas of and to tackle digital exclusion, with multiple deprivation, can drive the Digital Strategy for Scotland equality and promote physical currently out for consultation. The activity, and there are substantial Scottish Government implemented Scottish Government measures programmes to support a shift to already in place for us to build on. sustainable transport modes via 3.3.13 People in low income households the £39 million Spaces for People are more likely to travel by bus, Programme to allow people to while those in higher income physically distance, while also households are more likely to keeping them safe from traffic travel by car, a trend that has whilst exercising, shopping or been exacerbated by COVID-19. commuting. Reduction in car traffic The Scottish Government is also benefits bus performance taking a broad suite of actions to through reduced congestion. The promote bus use and the policies £10 million Bus Priority Rapid and outcomes in this plan take Deployment Fund has therefore bold additional steps forward. been introduced to maximise The Just Transition Commission the efficiency of available bus recommended rapid roll-out of operations as traffic levels the over £500 million committed increased from early lockdown on bus priority infrastructure levels. Our 2020-2021 Programme and indeed we have launched for Government outlines legacy the Bus Partnership Fund and are funding to build on the momentum expediting work on reallocation of these investments in future of road space on the motorway years. network around Glasgow. Bus 73 UKCCC, Letter: Building a resilient recovery from the COVID-19 crisis to Roseanna Cunningham MSP, 6 May 2020, accessed: https://www.theccc.org.uk/publication/letter-building-a-resilient-recovery-from-the-covid-19-crisis-to-roseanna- cunningham-msp/ Update to the Climate Change Plan | Transport  117 usage also tends to be more active University of St Andrews on the than a car journey as travelling application of hydrogen fuel by bus typically involves a walk cell technology to rail traction. to or from the bus stop. Therefore Additionally, the Just Transition the resurgence of a healthy bus Commission recommended that an network in our recovery from enhanced and accelerated national COVID-19 s vital to securing a just plan for charging infrastructure transition and delivering our vision should be implemented to for a sustainable, inclusive, safe support the electrification of road and accessible transport system. transport. The Scottish Government already has a firm foundation of

3.3.14 In terms of job creation, economic bold action, with the actions of this development and promoting Plan update taking further strides a green recovery there are forward. opportunities in transport regarding technological innovation. Furthermore, working across Positive vision for the finance, manufacturing and 2032 and 2045 innovation sectors can help utilise market mechanisms to impact 3.3.16 In keeping with the National positive change in our efforts to Transport Strategy vision, decarbonise transport. The Scottish Scotland’s transport system Government’s work to promote must encourage people to make investment in zero emissions buses travel choices that minimise is one such example. Moreover, the long-term impacts on our investments such as the Scottish climate and improve the lives of Ultra-Low Emission Bus Scheme future generations by reducing can help support domestic inequalities and improving health. manufacturing, with Alexander The derived nature of transport Dennis Ltd being a significant exemplifies how critical it is employer in central Scotland, for climate policies to be firmly in what has been a turbulent embedded within the transport economic backdrop emanating system to enable people to access from the global health pandemic. jobs, services and opportunities with less need to travel or, when

3.3.15 The CCC recommended that a they do, to have easily-accessible long-term vision for hydrogen sustainable options. is set out for Scotland’s future. Transport Scotland has launched 3.3.17 By 2032 our roads will contain Scotland’s Hydrogen Accelerator no new petrol and diesel cars Programme, which attracts and vans; we will have almost technical experts to Scotland completely decarbonised our to scale up the deployment of passenger railways; and we will hydrogen technologies in Scotland. have begun to work to decarbonise This supports a just transition by challenging transport modes, such growing the Scottish supply chain, as HGVs, ferries and aviation. Car encouraging inward investment kilometres will have reduced by and creating jobs, while also 20%, and sustainable transport will developing skills and expertise. be the instinctive first choice for We are also funding a joint project people. Our research into biofuels with Scottish Enterprise and the and hydrogen will have stimulated 118   Update to the Climate Change Plan | Transport private investment and innovation. 3.3.18 By 2045, in line with our vision in By 2032, the pendulum will have NTS2, we will have a sustainable, swung away from the dominance inclusive, safe and accessible of private car use, particularly transport system, helping single occupancy, to a society deliver a healthier, fairer and which has embraced more walking, more prosperous Scotland for wheeling, cycling, public transport communities, business and visitors. and shared transport options, The Sustainable Travel and particularly in urban settings. Investment Hierarchies (below) We will reduce reliance on cars will have informed infrastructure in Scotland to reduce emissions development and ensure that but where people do use private transport options focus on cars, these will predominantly be reducing inequalities and the need electric and be in rural settings to travel unsustainably. We will where public transport is less not have catered for unconstrained accessible. increases in traffic volumes and will first make best use of existing assets. Consequently, our future The Sustainable Travel Hierarchy vision encompasses improved Walking and wheeling transport and planning approaches, better utilisation of space and place-setting, and enhanced digital connectivity. Cycling The Sustainable Investment Hierarchy Public transport Reducing the need to travel unsustainably Maintaining and safely Taxis & shared transport operating existing assets Making better use of existing capacity Private Car Targeted infrastructure improvements Update to the Climate Change Plan | Transport  119 Scottish Cycle Repair Scheme Emissions Reduction Pathway to 2032 Transport 12 10 Emissions (MtCO2e) 8 6 4 2 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 RouteUpdate 120   Map toto2032 the Climate Change Plan | Transport 2020 2021 £500 million £9 million Scottish Publication of a route investment in active Ultra Low Emission map to meet reduction of travel projects Bus Fund. 20% car km by 2030. over five years with £39 million £500 million Zero Emission heavy duty invested through the to improve vehicle programme established Spaces for People bus priority and investment in new zero programme in 2020. infrastructure. drivetrain testing facility. £120 million over the next five years for Zero Emission Buses. 2030 2025 2024 Need for new petrol Conditions created to Need for any new petrol Majority of new buses and diesel cars and phase out the need and diesel light are zero emissions. vans phased out. for all new petrol commercial vehicles in and diesel vehicles public bodies phased out. Car kilometres in Scotland’s public reduced by 20%. sector fleet. Delivery of our first Active Freeways: segregated active travel routes on main travel corridors. 2032 Scotland’s passenger rail services considerably decarbonised, with just a few years to go until they are fully decarbonised. Update to the Climate Change Plan | Transport  121 The actions we second Strategic Transport Project Review (STPR2) will be published are taking in early 2021. It will begin the process of reviewing the best use Reduce car kilometres by 20% of existing assets and consider by 2030 what new infrastructure may or

3.3.19 Achieving our vision for 2032 and may not need to be built. STPR2 beyond will take cross-sectoral will cover the strategic road effort which goes beyond transport, and rail networks, and national reducing people’s need to travel infrastructure investment to with more local access to goods support active travel and island and services. Likewise, digital connectivity, as well as providing connectivity and flexible working an evidence base for investment approaches will play a key role. The decisions. It will also align with Scottish Government is therefore our fourth National Planning announcing this new commitment Framework (NPF4), with its to reduce car kilometres on spatial plan and planning policies Scotland’s roads through improved delivering carbon conscious places. transport and planning approaches, better utilisation of space and 3.3.21 Initiatives to promote active travel place-setting, enhanced digital and public transport will aid a shift connectivity and an increased to more sustainable choices and location-focus. At this time, help to reduce reliance on cars. COVID-19 is creating significant To encourage modal shift we will uncertainty on future transport invest over £500 million in bus trends and people’s behaviours, priority infrastructure76 to tackle including work and lifestyle the negative impacts of congestion choices. Therefore, assuming the on bus services and raise bus health pandemic has moved to usage. As part of this, last month a phase to allow more certainty we launched the Bus Partnership regarding future forecasting, a Fund77 to support local authorities route map to meet this reduction to achieve their ambitions around will be published in 2021. This bus priority in partnership complements our commitment with bus operators. We are also to develop our 20-minute progressing work to provide bus neighbourhoods and our Work priority on the trunk road network, Local Programme74. initially via managed motorways focussing around Glasgow. We

3.3.20 These actions will support remain committed to delivering innovation in workplaces to a National Concessionary Travel better enable flexible and Scheme for free bus travel for remote working. In keeping with young people aged under 1978, our commitment not to plan and have begun the necessary infrastructure for unconstrained preparations, including planning, traffic demand75, phase 1 of the undertaking a consultation, legal 74 Our 2020-2021 Programme for Government included a commitment to work with local government to take forward ambitions for 20 minute neighbourhoods where people can live, work and learn in communities close to home, as well as the launch of our Work Local Challenge to drive innovation in work place choices and remote working to support flexible working and our net zero objectives. 75 Commitment announced in our National Transport Strategy (NTS2), published on 5 February 2020 76 Announced in our 2020-2021 Programme for Government 77 Complementing powers in the Transport (Scotland) Act 2019 78 Announced in the 2020-2021 Scottish Budget and reaffirmed in our 2020-2021 Programme for Government 122   Update to the Climate Change Plan | Transport review and due diligence. A review Choices, Smarter Places programme of discounts available on public to encourage this behaviour transport to those under the age change81. On cycling, we are of 2679 has also begun, due for offering new support to increase completion by the end of this year. access to bikes for all including Both of these projects will have the provision of public bike and social benefits and will help to e-bike share schemes, particularly embed positive travel behaviours in areas of multiple deprivation in younger people before they and support the use of e-bikes and adapt to using a private car. adapted bikes through interest free loans, grants and trials82.

3.3.22 To support transformational active We will support the provision travel projects we have boosted of child and adult cycle training our commitments on active travel, and safety programmes including with a five year investment of driver awareness training83. To help over £500 million80, including increase confidence in active travel infrastructure, access to bikes and choices, we will publish Scotland’s behaviour change schemes. On Road Safety Framework to 2030, infrastructure, we will promote a following consultation on an consolidated approach, aligning ambitious and compelling long‑term with the corresponding bus vision for road safety where there measures, to promote a coherent are zero fatalities or serious injuries transport network. We want local on Scotland’s roads by 205084. authorities to develop ambitious joined-up plans across bus and 3.3.23 We will continue to develop and active travel so they make sense promote awareness of the role as a whole. This will enable the and benefits of shared transport delivery of high quality and safe such as car clubs and promote walking, wheeling and cycling bike sharing, ride sharing and infrastructure. To build on this multi-modal journeys. This will we are committing an additional be supported by Mobility as a £50 million to ‘Active Freeways’ Service (MaaS) and promotion of which will involve identification peer-to-peer car sharing85. We and design development of the are harnessing innovation within strategic active travel network, to our transport system, investing provide segregated active travel up to £2 million over three years routes on main travel corridors to to develop MaaS in Scotland, and city and town centres and major we are grant-funding CoMoUK, trip attractors linking communities to increase awareness of the role throughout Scotland. Education and and benefits of shared transport advocacy to encourage more people and look at the barriers to uptake to choose active and sustainable of car clubs. We also have a travel will also be vital, and we will new commitment to support the continue to support the Smarter monitoring requirement for the 79 Announced in 2020-2021 Programme for Government 80 Boosted since 2018 CCP in 2020-2021 Programme for Government 81 Smarter Choices, Smarter Places (SCSP) was rolled out across Scotland in 2015/16. More information can be found here: https://www.transport.gov.scot/active-travel/smarter-choices-smarter-places/# 82 Free loans, grants and trials announced in 2020-2021 Programme for Government 83 We are continuing to support the provision of child and adult cycle training, and safety programmes including driver cycling awareness training through Bikeability Scotland: https://www.cycling.scot/bikeability-scotland 84 Announced in 2020-2021 Programme for Government 85 Announced in 2018-2019 Programme for Government Update to the Climate Change Plan | Transport  123 National Transport Strategy set Phase out the need for petrol and out in the Transport (Scotland) diesel cars and vans in Scotland by Act 2019, and to further our 2030 understanding of how and why 3.3.25 We have boosted this target from people travel we will invest in data 2032 to 2030 in line with the and develop a data strategy. CCC’s recommendation in its 2020 Progress Report for Scotland87.

3.3.24 We will take forward policy We are already delivering a range consultation in advance of drafting of measures to address the key regulations and guidance to enable barriers to Ultra-Low Emission local authorities to implement Vehicle (ULEV) uptake, including workplace parking levy schemes investing £30 million to establish that suit their local requirements86. the fourth largest electric vehicle Transport Scotland will also have (EV) charging network in the a new commitment to work with UK (measured by market share) local authorities to continue to and delivering our Low Carbon ensure that their parking and Transport Loan which continues local transport strategies have to transform demand for electric proper appreciation of the needs vehicles across Scotland and has of climate change, as well as the already provided over £80 million impact of road users, including of funding to support the switch public transport operators, to low carbon vehicles88. Our new disabled motorists, cyclists and focus on used vehicles will help pedestrians. households, who may otherwise Project PACE, Falkirk 86 Included in Transport (Scotland) Act 2019 87 https://www.theccc.org.uk/publication/reducing-emissions-in-scotland-2020-progress-report-to-parliament/ 88 Policies announced in 2018 Climate Change Plan, and boosted with further investment announced in 2019 124   Update to the Climate Change Plan | Transport be put off by the higher purchase 3.3.26 We have a boosted commitment price of ULEVs, benefit from the to work with public bodies to cheaper running costs associated. phase out the need for any new We will consider and develop new petrol and diesel light commercial financing and delivery models vehicles by 202591 and to create for electric vehicle charging the conditions to phase out the infrastructure in Scotland and are need for all new petrol and diesel working with the Scottish Futures vehicles in Scotland’s public sector Trust to do so89. Furthermore, fleet by 203092. Our existing we will continue to promote the Switched on Fleets programme has uptake of ULEVs in the taxi and supported the decarbonisation of private hire sector, promote the almost 2500 vehicles in Scotland’s benefits of EVs to individuals fleets to date. We will continue to and fleet operators and invest support the public sector to lead in innovation to support the the way in transitioning to EVs development of ULEV technologies. including using public procurement Additionally, we will take to support decarbonisation. forward the initiatives in respect of connected and autonomous vehicles set out in the Connected and Autonomous Vehicles (CAV) Roadmap for Scotland90. 89 Boosted in 2019-2020 Programme for Government 90 https://www.transport.gov.scot/transport-network/roads/connected-and-autonomous-vehicles-cav/a-cav-roadmap-for- scotland/ 91 Boosted in 2019-2020 Programme for Government 92 Boosted in 2019-2020 Programme for Government Update to the Climate Change Plan | Transport  125 CASE STUDY: GIVING BUS THE PRIORITY IT DESERVES Bus services are vital to a just transition to net zero. Bus is used proportionately more by people in lower socio-economic groups, a large number of people rely upon bus services for all manner of journeys, and, crucially, a full double decker can remove 75 single occupancy cars from the road. Cars account for 40% of Scotland’s transport emissions93. We are supporting mode shift from car to bus through over £500 million of long term bus priority infrastructure funding to tackle the negative effects of congestion on bus, so that bus journeys are quicker, more punctual and reliable. The Bus Partnership Fund is also intended to bring forward further action and investment from local authorities and bus operators to provide their communities with an even better alternative to car use. In parallel, the Bus Decarbonisation Taskforce, made up of leaders from the bus, finance and energy sectors, are co-designing the pathway to a zero-emission bus fleet. This year Scottish Enterprise provided Alexander Dennis Ltd with £10 million in R&D grant support for manufacture of ultra-low emission buses, and the Scottish Ultra-Low Emission Scheme is supporting the purchase of 41 new electric buses, of which 35 will be manufactured in Scotland. To reduce emissions in the freight to decarbonise the movement of sector, we will work with the goods and our overall logistics industry to understand the most network are central pillars to efficient methods and remove the Scotland’s efforts to reach its need for new petrol and diesel emissions reduction targets. Work heavy vehicles by 2035. has begun on this, and we have committed to phase out the need

3.3.27 Freight accounts for 25% of for new petrol and diesel vans transport emissions in Scotland94. by 2030 (as outlined above). To Additionally, we have seen a rapid complement this, we have a new increase in online shopping and policy to engage widely across e-commerce across Scotland during industries to create opportunities COVID-1995. Therefore, helping for changing technologies and 93 Carbon Account for Scotland (P4) https://www.transport.gov.scot/media/48199/sct07209535161.pdf 94 Scottish Greenhouse Gas Emissions 1990-2018, https://www.gov.scot/news/scottish-greenhouse-gas-emissions- 2018/#:~:text=Source%20emissions%20were%2041.6%20million,cent%20between%202017%20and%202018. 95 Office of National Statistics - https://blog.ons.gov.uk/2020/09/18/how-the-covid-19-pandemic-has-accelerated-the-shift-to- online-spending/ 126   Update to the Climate Change Plan | Transport innovations in logistics, such as 3.3.28 We have also supported various consolidation centres, to reduce trials and demonstrations of ultra- carbon emissions. We also have a low emission heavy duty vehicles new commitment to explore the not connected with freight (such development of green finance as refuse collections vehicles and models to help draw private gritters). We have established the sector investment in zero-carbon Zero-Emission Mobility Industry solutions for the movement Advisory Group, and this year of goods. We will continue to we launched the new Hydrogen work with public bodies, the Accelerator Programme98 to automotive sector and Scotland’s help scale up and quicken innovation community to explore the deployment of hydrogen effective solutions to reduce technologies across multiple emissions from the freight sector vehicles types. and make a significant positive contribution to the net zero target. We will work with the newly We have a new commitment to formed Bus Decarbonisation establish a Zero Emission Heavy Taskforce, comprised of leaders Duty Vehicle Programme with from the bus, energy and finance Scottish Enterprise to support sectors, to ensure that the majority innovation in the Scottish supply of new buses purchased from 2024 chain and will invest in a new are zero-emission, and to bring zero emission drive train testing this date forward if possible. facility in 202196. We will also 3.3.29 The Climate Change Plan 2018 continue to deliver on the actions policy outcome on ultra-low or from our Rail Freight Strategy, zero emission buses has been consolidating and furthering our boosted and we will work with the progress to date demonstrating bus, finance and energy sectors to how a shift from road freight to ensure that the majority of new rail can be an important part of buses purchased from 2024 are the solution. We are supporting rail zero-emission, and to bring this freight with innovative regulatory date forward if possible. Since targets to encourage growth and the Climate Change Plan 2018 significant investment, including was published, we have held a a £25 million ring-fenced fund for workshop on opportunities from the period 2019 to 202497, helping a just transition of the sector to to unlock opportunities for rail zero emissions and commissioned freight across the country. Since analysis which shows that the 2019, freight capacity has been whole-life costs of battery-electric improved across Scotland and the buses are approaching parity Freight Facilities Grant and Mode with diesel vehicles. We have Shift Revenue Support schemes also revised the green incentive remain available to companies; of the Bus Service Operators they have already enabled rail Grant, run an initial round of the freight services to remove millions Scottish Ultra-Low Emission Bus of lorry miles from our roads. Scheme and established a Bus 96 Announced in 2020-2021 Programme for Government 97 Announced 2019: https://www.gov.scot/news/rail-freight-fund-announced/ 98 Announced in 2019-2020 Programme for Government Update to the Climate Change Plan | Transport  127 Decarbonisation Taskforce. The forthcoming Aviation Strategy. Bus Decarbonisation Taskforce is Moreover, as part of that strategy, made up of leaders from the bus, we also make a new commitment finance and energy sectors and has to explore options for incentivising one year to co-design a pathway the use of more sustainable to a fully decarbonised bus fleet, aviation fuel, recognising that identifying solutions to any significant levers in this area are remaining hurdles. We recognise reserved. the impact that COVID-19 has had on the sector and supply- 3.3.31 The Scottish Government will chain and over the period of the continue to engage with the Climate Change Plan and we will Aviation sector to encourage work to align government financial sustainable growth in the recovery support of £120 million over the from COVID-19. We note the CCC’s next 5 years with private sector recommendation on demand investment to decarbonise the bus management in relation to aviation sector in a way that is good for emissions101, and as we work with passengers, businesses, and the the aviation industry to help restore workforce, as well as the climate. connectivity, we will do so in a way that reduces the environmental We will work to decarbonise effects of aviation growth, both in scheduled flights within Scotland the air and on the ground. by 2040.

3.3.30 This new commitment aims to 30% of Scottish Government create the world’s first zero owned ferries will be low emission emission aviation region, in by 2032 partnership with Highlands and 3.3.32 We commit to continue to examine Islands Airports Limited (HIAL)99, the scope for utilising hybrid and including action to decarbonise low carbon energy sources in HIAL’s airport operations. We the public sector marine fleet as will also support trialling and part of our vessel replacement the introduction of low or programme. We also have a new zero emission aircrafts100 to commitment to work with the UK support cost-reductions for Government to support proposals decarbonisation, with a view to at the International Maritime securing economic opportunities Organisation (IMO) to significantly for Scotland. We have a new lower shipping carbon emissions commitment to explore the in the global sector, including the potential for the purchase of option of introducing a global levy zero/low emission aircraft by on marine fuel to fund research in the Scottish Government, for cleaner technologies and fuels102. lease back to operators, with more detailed assessment in the 99 Announced in 2019-2020 Programme for Government 100 Announced in 2019-2020 Programme for Government 101 https://www.theccc.org.uk/wp-content/uploads/2020/10/Reducing-emissions-in-Scotland-Progress-Report-to-Parliament- FINAL.pdf 102 Announced in 2020-2021 Programme for Government 128   Update to the Climate Change Plan | Transport By 2032 low emissions solutions Scotland’s passenger rail services will be widely adopted at Scottish will be decarbonised by 2035. ports 3.3.34 We have boosted our commitment

3.3.33 We will achieve this with our new to decarbonise Scotland’s policy to work with individual passenger rail services by 2035103, ports and the British Ports which will be delivered through Association to consider a process investment in electrification for encouraging shared best (also benefitting rail freight) practice initiatives for reducing and complementary alternative emissions across the sector. traction systems. In July this year, Additionally, we will work with the Transport Scotland published ports sector and with its statutory the Rail Services Decarbonisation consultees through the Harbour Action Plan, which builds on the Order process to ensure future port significant rail electrification developments are environmentally programme that has already underpinned. removed a large number of diesel trains across the central belt, and 103 Announced in Rail Services Decarbonisation Action Plan: https://www.transport.gov.scot/media/47906/rail-services- decarbonisation-action-plan.pdf Update to the Climate Change Plan | Transport  129 encourages the conversion of 3.3.36 Fuel duty has a direct influence freight from carbon-fuelled road- on the attractiveness of buying based vehicles to electric rail- and running a petrol or diesel based traction. Work is ongoing by car. It is a wholly reserved industry partners to develop the matter and the Infrastructure initial schemes. We will establish Commission for Scotland’s 2020 an international rail cluster in report104 recommended that Scotland to unlock supply chain ‘To enable a managed transition opportunities using the interest at to an inclusive net zero carbon Longannet as a catalyst. This will economy road infrastructure, the be built around existing strengths Scottish and UK Governments in rail in Scotland and will seek to should immediately commit enhance the innovation and supply to work together to establish chain in the decarbonisation of our a charging/payment regime rolling stock and wider network. alternative to the existing fuel and road taxation based structure’. Our call to others The Scottish Government has welcomed this proposal and the The UK Government Cabinet Secretary for Transport,

3.3.35 Decarbonising the transport sector Infrastructure and Connectivity will require substantial action by has made representations to the the UK Government in areas where UK Government in order to seek to key powers remain reserved. In progress on it. To enable reduced addition to the 2030 ban on the private car use, we will continue sale of new petrol and diesel cars to press the UK Government to and vans the UK Government must review options on Fuel Duty and take action in other areas. The Vehicle Excise Duty, in the context UK Government must continue of the need to end unsustainable promoting parity with the EU’s car travel and potential revenue and van CO2 targets following full generation therefrom. departure from the EU later this

3.3.37 If the UK Government joined year, and set stretching CO2 targets Scotland in setting stretching for new cars and vans beyond targets for emissions reductions 2020, requiring a high electric from new HGVs, it would address vehicle market share. Additionally the rise in emissions and enable we call on the UK Government businesses to exploit opportunities to implement policies, including to improve logistics and increase fiscal instruments, to strengthen the uptake of eco-driving. incentives to purchase cleaner Moreover, we are calling on the UK vehicles, including loan schemes. Government to continue to invest This will enable progression towards in pilot and early stage roll-out of a complete discontinuation of new hydrogen projects and to develop petrol and diesel cars and vans. We a strategic approach to refuelling are also seeking further investment infrastructure, as well as continuing in public and active travel, including to support developments in biofuel in high speed rail connections to technology. This will enable the full Scotland, connecting communities decarbonisation of technologically and decreasing the need for single- challenging modes, such as HGVs. occupancy car journeys. 104 https://infrastructurecommission.scot/page/key-findings-report 130   Update to the Climate Change Plan | Transport

3.3.38 We call on the UK Government to developed or updated, e.g. parking commit to a UK ETS (as discussed strategies, support transport’s in more detail in the Industry contribution to Scotland’s climate chapter) that, together with the change targets. For example, we international arrangements being have recently seen the Spaces developed by the International for People fund used by local Civil Aviation Organization authorities to support temporary (ICAO), continues to incentivise road space re-allocation for active decarbonisation of international travel, and we will work with local aviation. authorities on permanent schemes where appropriate. We will also Scottish public sector work closely with local authorities organisations on the further measures that will

3.3.39 The Scottish Government necessary to dissuade car use; for recognises the vital relationship example, bus prioritisation in town between national, regional and centres and parking restrictions. local public sector organisations in achieving transport emissions 3.3.41 Local authorities can implement reductions. We have already been Low Emissions Zones where working with local authorities and Air Quality Management Areas Regional Transport Partnerships on exist, reducing access to the this, including on the collaborative most polluting vehicles. Councils development of the National also have decriminalised Transport Strategy (NTS). The NTS parking enforcement options provides the strategic context and can implement pay-and- of decision-making that allows display and other parking local and regional authorities to regulations are part of their continue their work to decarbonise local strategies or approaches transport and reduce transport to transport management. The emissions. Workplace Parking Levy (WPL) provisions contained in Part 7

3.3.40 Public Sector bodies recognise of the Transport (Scotland) Act the level of ambition required to 2019 provide local authorities see the scale of change needed with discretionary powers to on transport, as Scotland’s largest implement a WPL scheme once emitting sector. Community commencement and supporting engagement and participation, regulations are in place. for example through local authorities and Regional Transport 3.3.42 Furthermore, we will continue Partnerships, will be increasingly to support local authorities to important to garner support for green their bus, HGV and other this shift, delivering local measures vehicle fleets and encourage that encourage use of active and them to embrace this change, sustainable transport and reduce while also considering further car use. Transport Scotland will additional ways to reach net zero also work with these key local in their localities. This may include and regional partners to continue looking at implementing new to ensure that local and regional infrastructure, such as consolidation transport strategies that are centres, expanding electric vehicle Update to the Climate Change Plan | Transport  131 infrastructure or continuing to help to travel. It is also particularly change behaviours through parking important that local authorities regulations or education campaigns. have regard for roads around Scotland’s seven Regional Transport schools and consider how to Partnerships (RTPs) also have a disincentivise car use in these strategic role to play in the public areas. sector on reducing transport emissions. The RTPs are listed as 3.3.44 We will continue to work relevant public authorities required collaboratively to ensure that to publish an annual report on their when planning decisions are made climate change duties as required they are supported by stronger by the Climate Change (Scotland) policies that prioritise accessibility Act 2009. and sustainable modes of travel, avoiding building-in car

3.3.43 There are legacy transport and dependency. This will further related environmental issues with embed the vision and priorities of how our existing cities, towns the National Transport Strategy and wider settlements, including within the development planning business and industry, have process, and will have a positive evolved. We need to do all we impact on choices about the can to support liveable places and types of journeys we make, employment locations which are when we make them and how we accessible by walking, wheeling make them, delivering long-term and public transport, discouraging benefits to air quality, emissions car use, while continuing to ensure reduction and improving physical appropriate access for those and mental health. with reduced mobility. We will therefore support local authorities Scottish businesses and industry to consider the implications for 3.3.45 Achieving Scotland’s emissions transport when making spatial reductions targets, both in the planning and land use decisions, transport sector and more widely, strengthening application of the is a national endeavour with all sustainable transport hierarchy sections of society having a role to development proposals. We to play. Scottish businesses and will also promote patterns of industry are vital to our successful development which help us economy, and transport connects to transition towards local, businesses and communities low carbon living and working together. We want to work with patterns, including by applying businesses and industry to enable the 20 minute neighbourhood them to invest in and implement concept. This includes prioritising policies that will help Scotland to development in locations that are reach our targets as part of a green well located in relation to existing recovery from the pandemic, while infrastructure and services, as well also improving the health and as considering where we locate wellbeing of their employees. new schools, workplaces, shops and services using a place-based approach to reduce the need 132   Update to the Climate Change Plan | Transport

3.3.46 The CCC has recommended that a ways to reduce their transport green recovery requires businesses emissions: where possible, to explore and disclose climate businesses should use rail rather risks and to make plans105. We than road to transport goods to are asking businesses to consider market, and support consolidation flexible or remote working centres in relation to freight practices where these are viable and e-commerce. There are also and do not adversely affect opportunities around last mile business model and to examine deliveries to electrify van fleets, closely the potential for business or to use e-cargo bikes to deliver travel plans to be developed and more locally. Furthermore, we implemented. We are also asking encourage businesses to welcome businesses to support employees 20-minute neighbourhoods and to reduce the number of flights set up businesses locally to taken for business purposes and encourage people to shop, live to enable digital connectivity and work nearby. solutions in place of these meetings. The Scottish Government Individuals/households encourages businesses to consider 3.3.48 Individuals have a significant how their employees commute, contribution to make to help and to support and incentivise reduce emissions from transport. employees to choose walking, We therefore ask that individuals cycling and/or public transport to consider their transport choices for commuting, as well as for holistically and to consider their business journeys. Where possible, need to travel on a daily basis. we also encourage businesses For instance, when COVID-19 to support and/or incentivise restrictions are lifted, those employees to access zero emission who can may consider working transport to work, and to help remotely some of the week and address affordability of transport use online conferencing facilities, as a barrier to employability. rather than travel for employment The Scottish Business Pledge106 and business purposes. This already exists, and we are asking will reduce commuter travel businesses to take forward the and consequential emissions. environmental aspects of it. When travelling to work, we are encourage individuals to leave

3.3.47 Businesses in Scotland import, the car at home where possible, manufacture, produce and then and use public transport, walk or transport and export goods cycle for those journeys. Similarly, around the country and beyond, when travelling to school or for including key Scottish exports leisure purposes, and especially that are essential to our economy. for short journeys, where you can We ask that businesses consider we ask that you take the bus, cycle 105 CCC, Letter: Building a resilient recovery from the COVID-19 crisis to Roseanna Cunningham MSP, 6 May 2020, accessed: https://www.theccc.org.uk/publication/letter-building-a-resilient-recovery-from-the-covid-19-crisis-to-roseanna- cunningham-msp/ 106 https://scottishbusinesspledge.scot/#:~:text=What%20is%20the%20Scottish%20Business,voluntary%20and%20free%20to%20 make. Update to the Climate Change Plan | Transport  133 or walk. The Scottish Government International engagement also asks that you consider 3.3.49 We recognise that the Scottish your discretionary travel and transport sector cannot be work, shop and socialise locally, decarbonised without international wherever possible. This will help engagement. Reducing emissions reduce emissions from driving to from aviation and shipping other more distant locations, and in particular will require an has the potential to help revitalise international policy approach. local communities. Our recently We will continue to engage published National Planning through the UK Government Framework 4 position statement with the International Civil sets out that a significant shift Aviation Organization (ICAO) is required to achieve net zero and the International Maritime emissions by 2040 and the key Organization (IMO) to reduce the opportunities to achieve this environmental impacts of aviation including removing the need for and shipping. For other sectors we planning permission for active will seek to engage with countries travel and electric vehicle charging and cities around the world in points so that we can roll-out order to share good practice. new infrastructure widely and We will continue to work with quickly107. international organisations such as the Transport Decarbonisation Alliance to accelerate collective and timely action to reduce transport emissions worldwide. 107 Fourth National Planning Framework: Position Statement: https://www.gov.scot/publications/scotlands-fourth-national-planning-framework-position-statement/ 134   Update to the Climate Change Plan | Industry Chapter 4 Industry Update to the Climate Change Plan | Industry  135

3.4. Industry over 300,000 people. Recent Scottish Government commissioned research108 from Element Energy Introduction estimates that emissions from

3.4.1 There is no doubt that Scottish Scotland’s large industrial sites industry has much to gain from could feasibly reduce by 80% or being at the forefront of the more by 2045, while maintaining transition to a net zero economy. output. This, combined with Decarbonising our industrial additional efforts to tackle residual sector in a just and fair way, that emissions, potentially through leaves no one behind, will help the Negative Emissions Technologies sector to grow and compete in the (NETs, discussed later and in economy of the future, capturing Chapter 8), as well as action new export and investment taken in other sectors, could be opportunities and sustaining and consistent with a net zero pathway. creating jobs and wealth across 3.4.4 Within the Industry sector, Scotland. because of the balance of reserved

3.4.2 There has been a considerable and devolved responsibilities, decline in Scotland’s industrial progress is often dependent on UK emissions since 1990, falling by Government and/or international over 45% (9.5 MtCO2e) between policy and markets. There 1990 and 2018. This was driven remains a significant risk that by the closure of heavy emitting decarbonising faster than the rest sites, particularly in the steel and of the UK and Europe could lead to paper sectors, but also by the carbon leakage109. Both support for deployment of innovative and investment and a level regulatory more energy efficient technologies playing field is therefore needed. and processes. By 2032, emissions Nevertheless, the Scottish need to decrease by 43% on 2018 Government is ensuring that the levels while Scottish industry industrial sector understands remains globally sustainable and its role in decarbonisation, the competitive. opportunities this can bring, and the support being offered to

3.4.3 Emissions from industry continue manage their transition. to constitute a large proportion, around 30%, of total Scottish 3.4.5 There are opportunities for the emissions. These emissions industrial sector; for example, are generated from a variety the development of a carbon of activities across a diverse capture and storage (CCS) network range of sectors, predominantly is described by the Committee manufacturing, as well as mining on Climate Change (CCC) as a and construction. Combined, these “necessity, not an option” to sectors are fundamental to the achieve net zero emissions as it Scottish economy, contributing £26 underpins action for industrial billion annually and employing decarbonisation and negative 108 Deep Decarbonisation Pathways for Scottish Industries to be published alongside the Hydrogen Policy Statement in December 2020 109 Carbon leakage refers to the situation that may occur if, for reasons of costs related to climate policies, businesses were to transfer production to other countries with laxer emission constraints. This could lead to an increase in their total emissions. The risk of carbon leakage may be higher in certain energy-intensive industries (https://ec.europa.eu/clima/policies/ets/ allowances/leakage_en). 136   Update to the Climate Change Plan | Industry emissions technologies, where 3.4.8 The principal industrial Scotland is well positioned to decarbonisation challenges and capture economic benefits from impacts have been amplified as a any such major infrastructure result of the COVID-19 pandemic. investment. Globally there are A primary challenge is the ability more than 20 CCS facilities and willingness of companies to already in operation, including finance industrial decarbonisation in Norway, USA and Japan, with investments at this time of great nearly 40 more in construction global, national, financial and and development. CCS is a proven social uncertainty. In the current technology that offers great economic climate, financial opportunity if commercialised at resources are severely limited scale in Scotland. with many companies prioritising business-critical spending to

3.4.6 Another significant opportunity maintain operations and jobs, is the use of hydrogen to displace rather than new discretionary fossil fuels in industry, requiring capital expenditure for the development of regional hydrogen long-term transition to net zero production facilities, and also operations. servicing hydrogen demand for other sectors such as heat, transport and electricity. The Green recovery and Deep Decarbonisation Pathways just transition for Scottish Industries report, cited above, reiterates the critical 3.4.9 In supporting industry to recover role of CCS and Hydrogen, as and retain jobs, we will need to well as electrification and energy identify and capture green market efficiency, in decarbonising opportunities, including support industry in Scotland. for domestic supply chains through smart procurement, and reskilling and retraining skilled workers to New context access green jobs in the near and

3.4.7 The COVID-19 crisis has had, long term. and continues to have, an

3.4.10 A just transition will be an essential unprecedented effect on Scotland’s part of the green recovery of industrial labour market. Workers the industry sector. This means have been furloughed or lost supporting industry to transition their jobs as businesses have in a way that is fair and where temporarily or permanently no one is left behind, and closed, and the pandemic has positioning industry to capture the highlighted how abrupt and opportunities from net zero. A just unplanned shifts can exacerbate transition must be delivered in inequalities. Interrupted supply partnership between government chains have highlighted domestic and industry as well as with places, vulnerabilities and the need for regions and local communities. local and national resilience. Now, Such a partnership approach is more than ever, we need a just being demonstrated, with initiatives transition that supports sustainable such as the Grangemouth Future economic growth and jobs, whilst Industry Board, Scottish Industrial ensuring no one is left behind. Decarbonisation Partnership, and Update to the Climate Change Plan | Industry  137 North East CCUS (NECCUS), which 3.4.13 It is estimated that by 2030 will be described later in the anywhere between 7,000 and chapter. 45,000 UK jobs could ultimately be associated with Scotland securing

3.4.11 The CCC recognises the challenge 40% of the carbon storage element of pacing and sequencing policy of a European CO2 management interventions and decarbonisation market. By 2050 this could rise to initiatives to align with the between 22,000 and 105,000 jobs, timing of industry’s strategic and more as the industry extends decisions and the capital intensive to low carbon fuel supply110. Our repurposing and upgrading of economic impact assessment infrastructure. The Just Transition currently underway will provide us Commission’s report on green with greater clarity and Scotland- recovery (July 2020) states that specific job estimates over a broad leveraging private investment is range of development scenarios. an ‘absolute necessity’, and is a challenge in the current economic 3.4.14 We have carried out economic climate. That is why the Scottish impact analysis as part of the Government recently announced Hydrogen Assessment Project. The the Scottish Industrial Energy potential scale of the economic Transformation Fund (SIETF) opportunity from the production to match fund and leverage in of hydrogen has been calculated private investment tailored to the and the assessment scenarios particular characteristics of our attribute this in the main to industrial manufacturing sites, or future export demand from the clusters, and their supply chains. UK and Europe. The gross impacts by 2045 across three scenarios

3.4.12 A key element of securing a just modelled range from 70,000 transition is to create and protect to over 300,000 jobs protected employment as we decarbonise our or created and GVA impacts of industries. Looking ahead, emerging between £5 billion and £25 billion. energy technologies such as Carbon These figures are based on a range Capture Utilisation and Storage of current views and assumptions (CCUS) and Hydrogen have the and we are treating these figures potential to safeguard employment as illustrative, but nonetheless and create value in hard to they depict a significant potential decarbonise industries, as well as economic impact. gearing up the supply chain in terms of manufactured goods and services. 3.4.15 Scotland’s strategic energy In the 2020-2021 Programme intensive industrial (EII) sites and for Government, we committed the skills therein, such as those to expand our evidence base on present in the Grangemouth CCUS and have commissioned an cluster, must be harnessed as economic assessment of CCUS in assets in the energy transition. It Scotland which will consider the is key that a trajectory is set to associated jobs within a broad range support business, give confidence of scenarios for the development for investment, and provide of CCUS. a policy environment which 110 Centre for Energy Policy, University of Strathclyde (2019) The economic opportunity for a large scale CO2 management industry in Scotland: http://www.evaluationsonline.org.uk/evaluations/Search.do?ui=basic&action=showPromoted&id=689 138   Update to the Climate Change Plan | Industry protects employment and allows Negative emissions for growth. Doing otherwise will undermine or restrict the ability technologies in industry of Scottish industry to compete in global markets, with the risk 3.4.18 Negative Emissions Technologies that businesses will relocate (NETs) are technologies which operations to other countries with remove greenhouse gases from the less ambitious climate measures. atmosphere on a permanent basis Businesses considered by the through the use of carbon capture EU to be at risk of relocating, and storage (CCS) systems and predominantly in manufacturing, networks. employ over 95,000 workers in 3.4.19 The Industry sector provides a Scotland, have an annual turnover key opportunity for deploying of around £19 billion, and account NETs. For example, biomass or for over 45% of all Scottish waste gasification with CCS is a international exports. technology pathway which uses

3.4.16 Scotland’s Future Skills Action Plan heat, steam and oxygen to convert will also ensure the continued biomass or waste to hydrogen for advancement and development industrial use, and where carbon of skills across the industrial can then be sequestered. Utilising sector, necessary to support a low CCS, direct air capture (DAC) carbon transition and to safeguard removes atmospheric CO2 and jobs. The National Manufacturing can be used to manage emissions Institute Scotland is included in from distributed sources. DAC is this broader Action Plan, and will a complementary technology, and establish a Manufacturing Skills not an alternative, to traditional Academy to develop a catalogue of point source CCS. advanced manufacturing modules. 3.4.20 Delivering NETs in Scotland as part

3.4.17 The Scottish Government is of our pathway to net zero has also a member of the Energy the potential to deliver substantial Skills Alliance, a newly created benefits. Existing industries, which and cross energy collaborative are currently some of Scotland’s group established to develop an largest carbon emitters, may be integrated skills strategy for a able to move to a sustainable vibrant, net zero energy industry. business model, actively reducing The work streams include: mapping Scotland’s emissions, and future energy skills demand; potentially coupling economic taking a phased approach that activity with this emissions looks towards the near-term reduction. of 2030, and ahead to 2050; 3.4.21 NETs in industry is, however, development of the My Energy one of a number of potential Career Programme; delivery of an applications. We describe these, integrated energy apprenticeship our plans to better understand scheme by 2022; and longer-term their potential, and our ambition development of a roadmap for for the delivery of negative aligning all energy training and emissions across our energy standards. system in Chapter 8. Update to the Climate Change Plan | Industry  139 CASE STUDY: FOCUS ON ST FERGUS St. Fergus is currently the location will be safely removed and stored where 35% of the UK’s natural gas is using Acorn CCS infrastructure. The brought to shore. In the next decade, hydrogen produced can be used projects planned at St Fergus could to blend with existing natural gas, see it transform to a centre for initiating decarbonisation of heat and Scotland’s industrial decarbonisation, industry across Scotland, or to provide demonstrating and scaling emerging fuel for transport. new technologies, and generating opportunities for new markets. These Aberdeen Vision is a project led by activities could unlock and enable Scottish Gas Network (SGN) that would decarbonisation in other industrial take the hydrogen produced at St centres across Scotland; creating Fergus, transported via a new 100% an integrated network to support hydrogen pipeline, to the gas network Scotland’s industrial sector in its in Aberdeen City, introducing an transition to net zero. initial 20% hydrogen blend to support the city’s decarbonisation. Utilising Utilising existing offshore transport complementary green hydrogen infrastructure, Acorn CCS will create projects on Scotland’s North East Coast Scotland’s first carbon capture plant, could see this contribution increase capturing and storing CO2 at the St to 100%. The project could, thereby, Fergus gas plant. The project aims to provide a route for decarbonisation be in operation from 2024 and could in the region, while supporting the oil remove 340,000 tonnes of CO2 per and gas industry to transition to the year. Although initially a relatively production of blue and green hydrogen. small project, Acorn CCS will act as a major clean growth catalyst. Hydrogen is also an exportable By commercialising CCS, it will product, with potential markets establish the technology and open up across Europe. Infrastructure opportunities to access and capitalise development at Peterhead Port with on Scotland’s vast offshore storage good transport routes to St Fergus capacity. could open up international shipping routes for the export of hydrogen The Acorn Hydrogen project, and the complementary import of developing in parallel to Acorn CCS, CO2 from Europe, which would be will reform North Sea natural gas into stored by Acorn CCS in the North Sea. clean-burning hydrogen. It is expected The international trade in the gases to be operational in 2025, creating would generate income in Scotland’s a low carbon fuel which presents North East and anchor St Fergus as an various market opportunities. A high internationally renowned centre for proportion of the CO2 emissions decarbonisation. created from generating the hydrogen 140   Update to the Climate Change Plan | Industry Establishing CCS infrastructure will provide opportunities for further negative emissions technologies to be developed, initially at St. Fergus, where there is potential for the UK’s first Direct Air Capture (DAC) plant, and then across Scotland, as CCS transport infrastructure projects develop. The integrated approach to decarbonisation being taken at St. Fergus though the co-location of emerging technologies and infrastructure, will demonstrate what can be achieved in other industrial centres across Scotland to increase the options for industrial decarbonisation and maximise the economic opportunities these locations present for our net zero future. The St Fergus gas terminal. Credit: North Sea Midstream Partners (NSMP) Limited Vision for 2032 3.4.23 Our industries will be competitive in global markets for low carbon and 2045 products produced in Scotland, following investment that

3.4.22 By the early 2030s, Scottish supports low carbon industrial industrial sites will be global innovation and maximises export exemplars on a sustainable growth opportunities. Households and trajectory, having benefitted from businesses will have access to early adoption of low carbon, low carbon products from, for energy efficient technologies, example, the food and drink, and a supportive public/private cement, chemical and glass sectors. investment framework. The Manufacturing innovation will appropriate infrastructure will support the delivery of low carbon be in place that enables deep energy, transport and buildings to decarbonisation, including through society, as well as the transition to deployment of CCS technologies, a circular economy. electrification or operational production and utilisation of green and low carbon blue hydrogen. Update to the Climate Change Plan | Industry  141

3.4.24 This transition will be managed combine to offer an unique to ensure that Scottish industry opportunity to develop a Scottish and businesses will maintain and economy where renewables, grow their global competitiveness hydrogen and CCUS coexist and and will continue to be based complement each other. The in Scotland, retaining highly Acorn CCS Project is scalable skilled jobs and ensuring that and aims to develop into a much we maximise the employment larger CO2 transportation and opportunities that come with storage network, bringing with it sustainable industrial innovation. significant economic potential, not We will have attracted new least from the shipped import of industries and investment to CO2 via Peterhead Port by as early Scotland, on the basis of our as 2025 from Scotland’s industrial competitive advantages in CCS central belt, other UK regions storage capacity, renewable and European nations where CO2 energy generation, highly skilled transportation and storage is workforce and research and limited. development expertise.

3.4.26 In 2045, the industrial sector

3.4.25 The extensive potential for in Scotland will be highly renewable energy generation, the decarbonised and a recognised presence of major subsurface CO2 world leader at the forefront of storage sites, and the availability innovation, skills, and fair, quality of existing offshore pipeline work in the net zero economy. infrastructure in the North Sea, Emissions Reduction Pathway to 2032 Industry 15 Emissions (MtCO2e) 10 5 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 RouteUpdate 142   Map toto2032 the Climate Change Plan | Industry 2020 2021 Energy Transition Scottish Industrial Hydrogen Action On the basis that a UK ETS Fund launched. Energy Transformation Plan is published. is implemented, a further Fund (SIETF) launched, joint UK Government & Hydrogen Policy including £34 Low Carbon devolved administration Statement is million over 5 years Manufacturing consultation on changes published. (2021-2026) for Challenge Fund to the UK ETS for projects at industrial launched. consistency with Net Zero. Grangemouth sites for energy Future Industry Scottish Industrial First tranche of funding efficiency or deeper Board launched. Decarbonisation available from the £180 decarbonisation. Partnership million Emerging Energy launched. Technologies Fund. 2022 Scottish Net Zero Net Zero Transition Roadmap (SNZR) Managers Programme published. launched. 2026 Carbon Capture Jan 2023 or Jan Acorn Project Mid-phase of UK ETS – and Utilisation 2024 UK ETS cap Development: 2024 – this is when any changes Challenge Fund. on emissions is CCS Demonstration as a result of system changed following and commercialisation wide reviews could be consultation, for at St Fergus Gas implemented at the consistency with Plant; 2025 – Acorn earliest: change to free Net Zero. Hydrogen, hydrogen allocation, offsetting, production with CCS; scope etc. 2026 – Shipped imports of CO2 for storage in the Acorn store; 2026 – Direct Air Capture and Storage operating from St Fergus. Update to the Climate Change Plan | Industry  143 The actions we 3.4.30 The Scottish Government’s preference is to link the UK ETS to are taking the EU ETS, to continue to provide a level playing field for Scottish

3.4.27 Policies to deliver industrial industry and protection against decarbonisation must reach carbon leakage, as emissions beyond the need to improve caps reduce (both in the UK ETS process efficiencies, given the and the anticipated tightening of vital social and economic co- the EU ETS cap following an EU dependencies between industry commitment to net zero). and the communities where they are located. A properly sequenced 3.4.31 We will also continue to work and strategic approach to with the UK Government on future decarbonising Scotland’s industrial evolution of the UK ETS, which sector offers the chance to position could include expanding the scope Scottish industries and supply in future phases, and urge the UK chains to expand exports into Government to remain aligned to global markets. future EU developments in carbon pricing. Emissions Trading Scheme (ETS)111

3.4.28 The key mechanism to decarbonise Support for commercialisation of the Industrial Sector has been Carbon Capture Utilisation and the EU Emissions Trading System Storage (CCUS) (ETS), accounting for 28% of 3.4.32 CCUS is essential to reach net greenhouse gas emissions in zero emissions, as identified by Scotland. After leaving the the CCC, and is a key to industrial EU, the Scottish Government’s decarbonisation. It is expected preference is to establish a UK to be the most cost effective ETS jointly with the three other decarbonisation technology for UK administrations, which is linked key sectors of Scottish industry. the EU ETS and maintains a carbon price that incentivises industrial 3.4.33 The commercialisation of CCS is decarbonisation after leaving also necessary for NETs, which are the EU. needed to reduce emissions at the rate necessary to meet our climate

3.4.29 As announced by the four change targets. We will take action governments in June 2020, the to better understand the potential design of the UK ETS mirrors of each of these technologies in the EU ETS to enable a smooth industrial decarbonisation by transition for industry112. The UK commissioning detailed research. ETS will have an interim emissions However, action from the UK cap 5% lower than the current EU Government will be key to the ETS cap, and this will be reviewed development of CCS to enable for consistency with net zero NETs. We therefore call on UK following the CCC’s advice on the Government to urgently ensure Sixth Carbon Budget, and amended that the market and regulatory by January 2024 at the latest. systems are in place to support business plans for NETs. 111 Boosted in June 2020 announced in joint Government response to consultation on future of UK carbon pricing (publishing.service.gov.uk) 112 Joint Governments’’ Response on UK ETS June 2020: https://assets.publishing.service.gov.uk/government/uploads/system/ uploads/attachment_data/file/889037/Government_Response_to_Consultation_on_Future_of_UK_Carbon_Pricing.pdf 144   Update to the Climate Change Plan | Industry

3.4.34 Scotland’s vast potential for hydrogen and CCS, and which offshore CO2 storage, and legacy will add new impetus to the oil and gas infrastructure and skills, development of NETs in Scotland. provide internationally significant We will make £100 million advantages in CCUS that will available to support hydrogen enable us to remain internationally projects in line with our Hydrogen economically competitive. We Policy Statement, and a further continue to support the Acorn £80 million of this funding will be CCS Project located in the North directed to projects supporting the East of Scotland at the St. Fergus development of a CCS transport Gas terminal. This project is and storage network that will uniquely placed to be the least- further enable NETs projects to cost opportunity to deploy a full develop in Scotland. This funding chain CCS project in the UK and will help to deliver emissions also provide carbon management reductions, and sits alongside our solutions for Europe. ambitious innovation and energy transition programme including

3.4.35 Acorn CCS is anticipated to be within the marine environment. operational by 2024 and is well placed to attract support from Industrial Cluster Representation the UK Government’s £1 billion and Roadmap CCUS Infrastructure Fund. Once 3.4.38 The Scottish Government has the CCS infrastructure has been offered grant funding of up established, the Acorn Project will to £300,000 to NECCUS, an enable an economic opportunity industry-led alliance drawn from for the deep water Peterhead Port industry, academia, membership and become a catalyst for clean organisations and private sector growth, with major low carbon bodies established to promote blue hydrogen production aligned CCUS and support industrial with CCS at St Fergus. decarbonisation in Scotland. NECCUS represent the Scottish

3.4.36 Further support and investment in industrial cluster with an aim CCUS was a key recommendation to attract funding for CCUS of a number of stakeholders and and low carbon blue hydrogen advisory bodies, including the development, and to secure the CCC, Climate Emergency Response first UK CCUS project in Scotland. Group and the Advisory Group on Economic Recovery, amongst 3.4.39 NECCUS has used its position as a others. Scottish industries representative to lead the development of Emerging Energy Scotland’s Net Zero Roadmap Technologies Fund (SNZR), attracting over £800,000

3.4.37 We are announcing a new of funding from the UK Industrial Emerging Energy Technologies Decarbonisation Challenge Fund to Fund of £180 million that will complete this work. support the development of Update to the Climate Change Plan | Industry  145 Carbon Capture and Utilisation 3.4.43 The Hydrogen Assessment Fund Project is now complete; results

3.4.40 We will work with our agencies will be published alongside our to develop a £5 million Carbon Hydrogen Policy Statement, Capture and Utilisation Challenge helping to confirm that Scotland Fund113 to boost early stage has an abundance of the natural work and explore technologies resources needed to produce both and innovations that can capture blue and green hydrogen at scale and create value in CO2, reduce and enough hydrogen production emissions and develop new income potential to serve our own needs streams for Scottish businesses and service an export market as in this emerging market. Priming well. a utilisation market supports the acceleration of carbon capture in 3.4.44 Recognising Scotland’s natural the industrial sector by supporting resources and competitive innovation and cost reduction advantages, including our existing as well as providing markets to oil and gas skills, capabilities and sell into. The Carbon Capture and competence and Scotland’s large Utilisation Challenge Fund will onshore or offshore wind resource, require industry match funding we will consider the consenting which will leverage private process and produce guidance investment into cost reduction. for the construction of large- scale offshore wind to hydrogen Opportunities for Hydrogen in (commonly referred to as power- Industry to-gas) development.

3.4.41 Scotland has the opportunity and capability to produce large volumes of blue and green hydrogen. We are committed to supporting the development of the emerging hydrogen sector in Scotland114 and to maximise the ‘new industry’ benefits that the production of hydrogen itself may bring to Scotland.

3.4.42 We will work with the major point emitters in Scotland to assess applicable decarbonisation solutions, including opportunities for fuel switching to hydrogen and the opportunities that large scale hydrogen production can offer industry, particularly in the cross- sector nature of hydrogen systems. 113 Announced 2020-2021 Programme for Government 114 Boosted in 2020-2021 Programme For Government and Hydrogen Assessment and Policy Statement (2020) 146   Update to the Climate Change Plan | Industry CASE STUDY: H100 FIFE 100% HYDROGEN PROJECT Scottish Government have provided The project will connect with the £6.9 million funded support towards existing ORE Catapult 7MW offshore the cost of this ground breaking wind turbine, situated off the coast £27.7 million project. Other funders of Leven in Fife, to directly supply partnering in this project include power to the electrolyser for hydrogen Ofgem (Office of Gas and Electricity production, evaluating the opportunity Markets), SGN, Cadent, Northern for grid integration systems between Gas Networks (NGN), Wales and renewables and hydrogen production, West Utilities (WWU). The H100 Fife and demonstrating the business case Project is recognised as a key building opportunities that offshore wind can block in the strategic ‘Gas Quality offer for production of hydrogen at scale. Decarbonisation Pathway’ set out by UK gas distribution network operators The H100 Fife project is part of a larger and adopted by the Energy Networks phased programme proposed by SGN: Association (ENA). Phase 1 - H100 Fife (the project Scottish Gas Networks (SGN) will described above) will enable the partner with other UK gas operators in decarbonisation of 300 homes saving this project to ensure the delivery of 662 tonnes of CO2/annum. Only phase a world-first demonstration of an end- 1 is funded at present. to-end 100% hydrogen energy system, Phase 2 will offer opportunities to to evidence the role that hydrogen can expand H100 Fife to 1000 properties play in decarbonising heat, using the providing annual emissions savings gas network. The project will construct totalling 2,208 tonnes of CO2/annum. and operate a hydrogen heat network system in Fife able to service around Phases 3, 4 and 5 progressively grow 300 houses and will be of UK-wide the hydrogen production capability to significance, offering an important convert wider domestic, industrial and validation of the evidence base carried commercial gas demand of up to 5GWh out by the UK Government in their in the region to eventually reduce Hy4Heat Programme. emissions by 860,000 tonnes of CO2/ annum. Update to the Climate Change Plan | Industry  147 Green Jobs Fund create efficient and sustainable

3.4.45 We are investing £100 million to manufacturing practices, and better help businesses create new, green enable firms to enter low carbon jobs via the Green Jobs Fund115. markets and/or their existing Our enterprise agencies will supply chains116. provide £50 million to businesses which provide sustainable or low A partnership with Scottish carbon products and services industrial stakeholders to help them develop, grow and 3.4.49 A Scottish Industrial create jobs. A further £50 million Decarbonisation Partnership will help to ensure that businesses (SIDP) will strengthen existing and supply chains across Scotland engagement with energy-intensive can capitalise on our investment in industrial (EII) manufacturers. low carbon infrastructure such as Linked to the First Minister chaired the decarbonisation of heating and Scottish Energy Advisory Board, green transport. this partnership will foster mutual expectations to decarbonise in Investing with the industrial line with our economic recovery manufacturing sector implementation plan, bringing

3.4.46 We will continue to support together strategic initiatives. innovation throughout the industry sector, developing solutions that 3.4.50 SIDP will facilitate dissemination can be scaled up and contribute to of industrial decarbonisation best a pipeline of projects and leading practice and advise on the practical to wider benefits for jobs, place sequencing of policies or projects, and the environment. informed by evidence, including sub-sectors’ own ambitions of

3.4.47 The Scottish Industrial Energy how to reach net zero. It will feed Transformation Fund (SIETF) into programme reviews and commits £34 million for into capital infrastructure budget projects at industrial sites for planning that supports industry energy efficiency or deeper to set strategic and ambitious net decarbonisation. For the next five zero transition plans. years, via match-funding, SIETF will leverage asset-based private capital Net Zero Transition Managers into this vital productive part of our Programme economy and support the readiness 3.4.51 We will facilitate a number of of business cases for investment. non-revenue generating roles to incentivise Energy Intensive

3.4.48 The £26 million Low Carbon Industry (EII) to compete in low- Manufacturing Challenge Fund margin markets. The Managers will will build on the success of be embedded in their organisations the Advancing Manufacturing and tasked with identifying, Challenge Fund to support quantifying and recommending innovation in low carbon decarbonisation opportunities technology, processes and for the business. They will infrastructure. This fund will collaborate as a cohort to ensure help drive up project standards, consistent knowledge capture and the need for collaboration to dissemination. 115 Announced in the 2020-2021 Programme for Government 116 SIETF and MLCF announced in the 2020-2021 Programme for Government 148   Update to the Climate Change Plan | Industry Creating market benefit for Ħ The Scottish Government will Scottish industries that invest to continue to support Michelin decarbonise Scotland Innovation Parc

3.4.52 A key part of successful industrial (MSIP). The Parc is focused decarbonisation is improving on meeting public sector the market benefits for low procurement challenges in low carbon industrial production carbon energy and sustainable and incentivising forward-look mobility. The incubator will investment. The CCC’s Net Zero bring manufacturing prototyping Report (2019) called for a policy capabilities to integrate approach to decarbonising industry procurement with manufacturing that includes a suite of measures capabilities and supply chains. covering procurement, consumer behaviour and product standards Making Scotland’s Future to drive change. A study has been 3.4.54 We have already ensured that started that will contribute to the transition to the future low policy development on options carbon economy is at the heart to influence market conditions of our existing commitments for Scottish manufacturers who around advanced manufacturing, produce relatively lower carbon which includes substantial products than their competitors investments in the National and contribute to the circular Manufacturing Institute Scotland economy. and the Advancing Manufacturing Challenge Fund. In the short- Seizing the Economic Opportunity term we will champion a green

3.4.53 A key aspect of decarbonising recovery as a part of a broader the economy is to help industry manufacturing recovery plan. identify and engage with the This will utilise the framework measures both it and its customers of our longer-term ‘Making require in order to decarbonise. Scotland’s Future’ Programme for We will work across government, manufacturing, which will support enterprise agencies and the the delivery of net zero emissions innovation system to identify by 2045 by: strengths that can be built on as part of the decarbonisation Ħ establishing a supply chain journey, for example: strategy aligned to low carbon markets; Ħ The Clyde Mission provides an Ħ encouraging the development opportunity to bring together a of low carbon technologies for range of low carbon investments minimal environmental impact; and circular economy thinking, Ħ creating service offerings for example around transport, to enable companies to heating and housing, in a maximise low carbon market coherent and systematic way to opportunities; deliver sustainable and inclusive Ħ identifying and leveraging low growth at scale, £250-£500 carbon expertise and networks million, in a single place. in Scotland and beyond; and Ħ embedding circular economy skills and thinking in the future workforce. Update to the Climate Change Plan | Industry  149

3.4.55 ‘Making Scotland’s Future’ will zero economy. The National drive the development of low Manufacturing Institute Scotland carbon manufacturing techniques is included in this broader skills and work with partners to ensure action plan, through the Upskilling the successful delivery of the and Retraining theme, as it will £60 million Scottish Government establish a Manufacturing Skills investment in a Scottish Industrial Academy to develop a catalogue Energy Transformation Fund of advanced manufacturing (£34 million) and a Low Carbon modules. This will support skills Manufacturing Challenge Fund development, and help drive (£26 million). efficiency and productivity across the manufacturing and industrial Grangemouth Future Industry sectors. Board

3.4.56 The Grangemouth Future Industry Energy Transition Fund Board117 will provide a forum 3.4.59 The £62 million pound Energy that brings together key decision Transition Fund (ETF) is a package makers across the Scottish of investment for the North East Government, Scottish Enterprise that will support our energy sector and Falkirk Council, with a focus and help us make significant on Scotland’s key manufacturing progress on energy transition cluster. It will strengthen alignment as we move toward net zero by and co-ordinate activity to ensure 2045118. The projects that will be the significant opportunities for considered under the ETF are: low carbon economic growth are maximised at Grangemouth. Ħ a Global Underwater Hub; Ħ an Energy Transition Zone based

3.4.57 The board will focus on specific in Aberdeen; and agreed workstreams that will Ħ hydrogen projects including shape efforts to unlock potential Aberdeen Hydrogen Hub and investment and identify policy ACORN Hydrogen; and levers that can support sustainable growth, and advance the circular Ħ OGTC transition technology economy, at Grangemouth. projects. Decarbonisation, longevity, 3.4.60 We want to protect existing competitiveness and just transition jobs and create new jobs in the will be at the heart of the board’s North East, and across Scotland, efforts. by opening up opportunities Scotland’s Climate Emergency through energy transition and Skills Action Plan and harnessing private sector funding Manufacturing Skills Academy as companies move from oil and gas to low carbon and renewable

3.4.58 The Climate Emergency Skills investments. Action Plan (CESAP) remains central to our ambition to create a future workforce that can support our transition to a net 117 New policy announced in 2020-2021 Programme for Government 118 Announced June 2020: https://www.gov.scot/news/gbp-62-million-fund-for-energy-sector/ 150   Update to the Climate Change Plan | Industry Our call to others impressed upon the UK Government that the full The UK Government scale deployment of CCUS

3.4.61 The CCC analysis of the balance in Scotland is dependent on of reserved and devolved progress in development of responsibilities lists industry as the commercial, policy and one of the areas where progress is regulatory frameworks required most dependent on UK Government to support CCUS at scale in and/or international policy119. Vital the UK. Whilst BEIS have powers in regulation of the energy published their response to their market and fuels (namely oil, gas, consultation on CCUS business coal, electricity), are reserved to models, further clarity on this the UK Government. Crucially for is needed to bring forward the the decarbonisation of industry, investment decisions for critical hydrogen and aspects of CCUS are decarbonisation infrastructure. also reserved, limiting the Scottish This must include the creation Government’s power to enact of a stable policy framework, change where we want and need to. including business model and financial frameworks for blue

3.4.62 As noted above, there remains a hydrogen and for CCUS, in order significant risk carbon leakage if to build confidence and enable Scotland decarbonises faster than the development of the first the rest of the UK and Europe, CCUS facilities in the UK to be and therefore support for both commissioned from the mid- investment and a level regulatory 2020s. playing field is required. Ħ Include Scotland’s net zero ambitions within the UK’s

3.4.63 The Scottish Government calls on Industrial Decarbonisation the UK Government to: Strategy. Scotland will input into the development of a coherent Ħ Implement a UK ETS rather long-term vision to create a than a reserved carbon credible trajectory for getting emission tax to replace the industry to net zero emissions. EU ETS from January 2021, This strategy should reflect and to ensure that a link to devolved priorities, policies the EU ETS is agreed in UK-EU and programmes and allow our negotiations. Furthermore, in participation in disseminating ongoing development of the the conclusions of this strategy UK ETS policy between the four which will inform investment administrations, in particular on decisions across the UK. changes to the cap for net zero, we urge the UK Government to Ħ Support and Enable large scale take into account the different Green Hydrogen Production and statutory climate targets in integration into wider energy Scotland, and our particular systems, including the creation industrial landscape. of stable policy frameworks including the business models Ħ Support and enable CCUS and and financial instruments low carbon blue hydrogen. necessary to drive investment. Scottish Ministers have 119 Reducing UK emissions Progress Report to Parliament (June 2020) Page 167 Update to the Climate Change Plan | Industry  151 Scottish public sector Scottish businesses and industry organisations 3.4.67 The Scottish Government

3.4.64 Our Enterprise Agencies are encourages businesses and supporting key investments industrial sites to: by business in the low carbon transition. Scottish Enterprise Ħ review their energy intensive have begun to map key industry processes, pursuing all energy supply chains to better understand efficiency options available to where Scotland has a comparative them, working with the Scottish advantage and where targeted Government; investment may be required. Ħ further explore innovative and cutting edge solutions to remove

3.4.65 The Infrastructure Commission carbon from their operations have highlighted the (including CCUS); interdependence between Ħ investigate embedding carbon infrastructure and the move to low costs into their procurement carbon. Close engagement with this processes, to acknowledge the work will be important as we seek potential higher cost associated to maximise the economic benefits with low carbon production; and of the transition. Ħ work in partnership to support

3.4.66 Working with agency partners, low carbon suppliers and including SEPA, we will develop producers to define new methods of benchmarking the business relationships and efficiencies of some key energy models that will decrease the intensive industrial processes commercial risk in production of then explore how to drive low carbon goods. improvements. We encourage industry to discuss with SEPA Individuals/households entry into Sustainable Growth 3.4.68 The majority of the UK’s Agreements (SGAs), voluntary greenhouse gas emissions agreements that focus on practical arise from our production and action to deliver environmentally consumption of energy, whether positive outcomes such as that’s driving cars, manufacturing driving reductions in water, goods or simply boiling a kettle. energy and materials use and Decarbonising and diversifying all forms of waste. SEPA’s Scottish Industry will benefit sector plans, specifically those individuals by offering low carbon relevant to manufacturing, will energy and goods from Scottish also support decarbonisation manufacturing. Consumers can through their regulatory role and support this transition through by taking opportunities to work driving demand for low carbon with companies to go beyond goods and services, for example compliance. by switching to low carbon fuels. A just transition within the industry section will help to ensure that any costs are not passed unfairly to the consumer. 152   Update to the Climate Change Plan | Industry

3.4.69 Our research into improving maintaining Scotland’s valued market benefits for Scottish international relationships post-EU manufacturers who produce Exit. It will conclude in Brussels in relatively low carbon goods will June 2021, where members will investigate consumer behaviour share project results. and preferences. It will identify opportunities for green labelling to International Engagement Plans inform purchasing decisions for a for Hydrogen and CCUS range of energy intensive products 3.4.72 Hydrogen and CCUS are key areas produced in Scotland, including for international engagement food and drink. as we prioritise activity and collaborations that: increase our

3.4.70 Following the passage of the attractiveness to international Consumer Scotland Act 2020, we partners and lead to longer are in the process of establishing term investment and export ‘Consumer Scotland’, a non- opportunities; build upon Ministerial body that will advocate Scotland’s reputation; and promote the views of Scottish consumers learning and policy exchange. and that will be able to address consumer issues and opportunities 3.4.73 International activity on hydrogen in this area. It will build on the is growing at pace in Europe and work of the Energy Consumer further afield. We have acted Commission and will also work promptly to ensure Scotland is closely with other stakeholders engaged in the developing hydrogen within the consumer landscape to economy. A coordinated plan of ensure that consumers are able to international engagement activity make informed choices and issues has been developed to help advance of detriment are identified for our ambitions for international relevant challenge. collaboration in this area. International engagement 3.4.74 Our international engagement on

3.4.71 The Scottish Government, as hydrogen is already underway, European Co-Chair of the Under2 including Ministerial and official- Coalition, is participating in the level engagement, and working Industry Transition Platform with partners at various levels. (ITP) alongside several regions of The engagement plan will highlight Europe and North America. This Scotland’s strengths in offshore peer-learning forum explores wind and hydrogen, the potential for policy solutions that are relevant green hydrogen export, and possible for decarbonising energy intensive areas for collaborative development industry across the regions taking and future cooperation. part, and focuses on developing

3.4.75 This includes extensive regional hydrogen-based strategies engagement at strategic, sectoral for industry. It already benchmarks and company level, participation in our existing decarbonisation webinars and seminars to promote activities, as well as influencing Scotland’s potential, and ensuring our potential to work in close Scottish companies are aware of partnership with industry to international opportunities in the implement a policy framework. hydrogen supply chain where ITP provides a channel for these arise. ongoing international engagement, Update to the Climate Change Plan | Industry  153

3.4.76 Further details of the Hydrogen and delivering confidence to International Engagement Plan can emitters in Grangemouth of a long be found in the Hydrogen Policy term solution for their industrial Statement. emissions.

3.4.77 In a similar fashion there are 3.4.79 CCUS presents a significant international opportunities for economic opportunity for CCUS supporting decarbonisation Scotland; for this to be realised efforts in Europe and in the export and maximised, it needs to be of knowledge derived from our supported by a strong international ambition to be an early mover in promotion. CCUS. We are currently engaging with key industry partners and will 3.4.80 Scotland is the best placed be developing a strategy to steer country in Europe to realise our engagement in this area in CCUS on a commercial scale, and early 2021. we want to ensure our potential and experience is increasingly

3.4.78 Scotland’s vast storage potential recognised internationally. Our provides an opportunity for the international engagement on import of CO2 via ship from CCUS will focus around Scotland’s European carbon capture projects, significant storage potential, opening up the potential for a our practical expertise, and our CO2 transportation economy. An ambitious plans to develop the international revenue stream via sector. A priority for this activity, shipping of CO2 to projects such in the European context, will also as Acorn CCS will support our own be to raise the profile of Scottish industrial decarbonisation efforts activity and ensure visibility by anchoring storage projects post-Brexit. 154   Update to the Climate Change Plan | Waste and the Circular Economy Chapter 5 Waste and the Circular Economy Update to the Climate Change Plan | Waste and the Circular Economy  155

3.5. Waste and the New context Circular Economy 3.5.3 The COVID-19 crisis has had, and continues to have, a significant Introduction impact on the waste and resources sector. These impacts have been

3.5.1 Scotland’s progress in reducing felt differently across the sector, emissions in the waste and with changes in business leading resources sector over the past 20 to reduced demand for commercial years has been striking. Recycling collections, as well as reduced is now a more established part of quantities of materials for sorting our everyday life, and we recycle and reprocessing; and changes in over 60% of Scotland’s waste. The household behaviours affecting amount of waste going to landfill the volume and type of waste in Scotland is at its lowest since managed by local authority waste records began. In 2018, waste and services. resources sector emissions were over 70% lower than in 1998. 3.5.4 It is too soon to understand the full impact of the COVID-19 crisis on

3.5.2 However, we still have a significant our recycling targets in Scotland, challenge ahead in order to meet and we are undertaking further our ambitious emissions reduction work to explore this. There are targets. Emissions in the sector are some signs that consumer and currently around 1.9 megatonnes business behaviour has reverted per year; our aim is to reduce to a preference for single use/ these emissions to 1.2 megatonnes disposable items, which in some by 2025, and 0.8 megatonnes by cases has been a necessary step to 2030. Achieving these milestones prevent transmission of the virus. will require meeting our ambitious On the other hand, the Waste waste reduction and recycling and Resources Action Programme targets, including: ending landfilling (WRAP) reported that, from a of biodegradable municipal waste survey conducted in April 2020, and significantly reducing food households in the UK managed waste; accelerating efforts to their food better under “lockdown”, address legacy emissions from with reduced food waste120. closed landfill sites; and ensuring a more rapid transition to a fully 3.5.5 As a result of the pandemic’s circular economy in Scotland. This impact on our legislative agenda, process will require radical and we took the difficult decision to transformational changes, and we delay introduction of our Circular will work with partners to ensure Economy Bill. However, we remain that these changes are delivered in committed to achieving circular a managed and just way. economy outcomes and will continue to work with stakeholders to pursue these. 120 https://www.wrap.org.uk/content/citizens-and-food-covid-19-lockdown 156   Update to the Climate Change Plan | Waste and the Circular Economy Green Recovery and just transition Circular Economy In our existing economy, we

3.5.6 As we move towards our recovery “take, make and dispose”. We take from the pandemic, we need to resources from the ground, air support consumers and businesses and water; we make them into to make sustainable choices, products and structures; then we to adapt business models and dispose of them. We need to move to maintain positive behaviour to a circular economy where we changes. Our priorities include reduce the demand for raw material preventing waste by encouraging in products; encourage reuse more sustainable product design, and repairs through responsible reducing consumption of single-use production; and recycle waste and items, promoting reuse of products, energy to maximise the value of any and enhancing our recycling waste that is generated. infrastructure. We also have an opportunity for renewed impetus The circular economy represents an in building a fully circular economy enormous economic and industrial in Scotland which will drive opportunity for Scotland and materials up the waste hierarchy contributes directly to a green and keep them in high value recovery. It tackles emissions use for as long as possible. This through influencing product will also stimulate job creation: design, manufacturing and waste research has shown that 10,000 and resource management, and is tonnes of waste can create 1 job in a vital part of sectors delivering incineration, 6 jobs in landfill, 36 their net zero aspirations. It can jobs in recycling or up to 296 jobs improve productivity and open up in repair and reuse121. new markets, while also benefiting workers and communities by providing local employment and lower priced goods. A circular economy also contributes to a range of UN Sustainable Development Goals, including ensuring sustainable consumption and production patterns. Deposit Return Scheme 121 http://www.rreuse.org/wp-content/uploads/Final-briefing-on-reuse-jobs-website-2.pdf Update to the Climate Change Plan | Waste and the Circular Economy  157

3.5.7 As has been recommended by a or recycled right here in Scotland. number of stakeholders, including This is just one of the many the Advisory Group on Economic reasons why we will have moved Recovery, the Decoupling Advisory completely from a ‘take, make and Group and Scottish Environment dispose’ linear economy to a fully Link, we will embed circular circular economy. Our vision is that economy principles into our wider by 2045 Scotland’s cultural, social green recovery, prioritising areas and business norms will be driven with the biggest opportunities: by a focus on: construction; agriculture/food and drink; energy and renewables; Ħ Responsible Consumption, where procurement; skills and education; people and businesses demand and plastics. products and services in ways which respect the limits of our

3.5.8 Our approach to delivering natural resources. Unnecessary a circular economy must be waste, in particular food waste, inclusive. We will consider the will be unacceptable in Scotland. potential impacts on different Ħ Responsible Production, where a consumer groups, in order to circular economy is embraced by identify any barriers to fair access the businesses and organisations and ability to adopt new circular that supply products, ensuring economy practices. the maximum life and value from the natural resources used Positive vision for to make them. 2032 and 2045 Ħ Maximising Value from Waste and Energy, where the

3.5.9 By 2032 (and before) we will environmental and economic have the tools in place to value of wasted resources and equip individuals, businesses energy is harnessed efficiently. and organisations to make a fundamental shift in how we use and re-use materials. We will be Prevention If you can’t prevent, then ... well on track to embedding a fully circular economy approach, which is designed to reduce, reuse, Prepare for reuse If you can’t prepare for reuse, then ... repair and recycle. Recycling will be a much simpler option for Recycle households, with clear product If you can’t recycle, then ... labelling, effective communication, enhanced collection infrastructure, Recover other value and more consistent approaches to (e.g. energy) If you can’t recover value, then ... recycling across Scotland. Disposal

3.5.10 By 2045, as well as improving our Landfill if no alternative available position in the global market, we will produce many more goods that are bought, used and regenerated Waste Hierarchy 158   Update to the Climate Change Plan | Waste and the Circular Economy Emissions Reduction Pathway to 2032 Waste 2.0 Emissions (MtCO2e) 1.5 1.0 0.5 0.0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Route MapUpdate to 2032 to the Climate Change Plan | Waste and the Circular Economy  159 Consultation on banning priority single use items. 2020 2021 Consultation on a Increased support Consultation on £70 million fund to charge on single use for consumers and mandatory reporting improve local authority disposable beverage householders to of Scotland’s food recycling collection cups and legislation promote responsible surplus and waste by infrastructure to increase the carrier consumption (e.g. in food businesses, and established. bag minimum charge relation to reducing a mandatory national from 5p to 10p. food waste, and food waste reduction Climate considerations tackling throwaway target. Consultation embedded into public Legislation to restrict culture). on the current rural sector organisational supply of specified exemption and procurement strategies. single use plastic Consultation on food separation items introduced. electronic waste requirements for food tracking. waste collections. 2023 2022 Bio-waste (e.g. garden Implementation of our waste) is either separated Deposit Return Scheme and recycled at source, or (DRS) for single use is collected separately and drinks containers. is not mixed with other types of waste. 2025 Number of landfill Food waste reduced gas capture sites by 33% from the that undertake 2013 baseline. investigative or development work 70% of all waste doubled. recycled. Separate collection of Landfilling of textiles, in line with biodegradable EU requirements. municipal waste has ended. 160   Update to the Climate Change Plan | Waste and the Circular Economy The actions we 3.5.14 This will involve improving our monitoring and infrastructure by are taking considering a mandatory national food waste reduction target and Building the Circular Economy mandatory reporting of Scotland’s

3.5.11 We are boosting our commitment food surplus and waste by food to building a circular economy, businesses. We will also break where goods and materials down barriers to food recycling are kept in use for longer by by consulting on the current rural embedding circular economy exemption and food separation principles in the wider green requirements for food waste recovery. Through Zero Waste collections. Scotland and Scottish Environment Protection Agency (SEPA), we 3.5.15 We will work closely with the will intensify our work with public and private sectors, industry and businesses to promoting leadership, innovation, address emissions associated with and effectiveness in waste production, consumption and waste reduction and recycling. For of products/resources, and to example, we will support the promote resource efficiency. Zero development and implementation Waste Scotland will also continue of an NHS Scotland national action to develop tools and resources for plan on food waste. In partnership education at all levels. with Zero Waste Scotland, we will also carry out a sustained

3.5.12 Through our work on the fourth approach to public engagement National Planning Framework and communications to enable the (NPF4) we will update our public to make sustainable choices planning policies to reflect the around food and food waste. new opportunities arising from a shift towards a circular economy. Reducing waste sent to landfill Planning can support development 3.5.16 We will end landfilling of which reflects the waste hierarchy, biodegradable municipal waste by prioritising the reduction and 2025, reduce the percentage of reuse of materials, and helping all waste sent to landfill to 5% by to facilitate the delivery of new 2025 and recycle 70% of all waste infrastructure required to achieve by 2025. We will develop a route this. map to outline how we will deliver our waste and recycling targets Driving down food waste in a way that maximises carbon

3.5.13 We have boosted our efforts saving potential123. to tackle food waste by leading collaborative efforts to deliver 3.5.17 We have committed significant Scotland’s landmark Food Waste investments to deliver on these Reduction Action Plan, supported targets, including £70 million to by Zero Waste Scotland, in order to improve local recycling collection help deliver our ambitious target infrastructure. We have also to reduce food waste by one third committed to work with the against a 2013 baseline by 2025122. Convention of Scottish Local Authorities (COSLA) in the coming 122 2018 Climate Change Plan commitment to reduce food waste by 33% boosted through the Food Waste Reduction Action Plan, published 2019 123 Announced in the 2020-2021 Programme for Government Update to the Climate Change Plan | Waste and the Circular Economy  161 year to evaluate the Household Reducing emissions from closed Recycling Charter and review landfill sites its Code of Practice as key steps 3.5.21 We will accelerate our landfill in developing a future model of gas capture and landfill legacy recycling collections that promotes management. Working closely with high quality recycling and helps SEPA and waste operators, we will make the right choices easier for scale up the existing landfill gas householders124. capture programme to mitigate the negative effects of landfill and the

3.5.18 In line with EU Commission’s environmental impact of closed Circular Economy Package, we will landfill sites127. also consult on requirements to separately collect garden waste 3.5.22 We will double the number (by 2023), textiles and hazardous of landfill gas capture sites elements of household waste (by in Scotland that undertake 2025). These measures have the investigative or development work potential to further promote reuse (from 12 to 24 sites) by 2025 and and recycling125. will provide additional funding to support this. This will harness

3.5.19 In response to the Committee the energy generated from landfill on Climate Change’s (CCC’s) gas capture and maximise circular latest recommendations, it is economy opportunities. our intention to extend the forthcoming ban on sending Promoting efficiency of energy biodegradable municipal waste to from waste plants landfill to include biodegradable 3.5.23 In line with the waste hierarchy, non-municipal wastes, subject to our primary focus is on preventing appropriate consultation and work waste and promoting the reuse to provide assurance around some of materials. However, we still specific waste streams. need capacity to dispose of Improving waste data residual waste while we make the transition to a circular economy.

3.5.20 We will take steps to improve In the context of the latest CCC waste data by working with the recommendations and building UK Government, other devolved on progress already made by the governments, and agencies such as sector, we will consider measures SEPA, to develop and implement to ensure new energy from waste the electronic waste tracking plants are more efficient and system; and we will provide how waste infrastructure can be additional funding to support ‘future-proofed’ for carbon capture implementation in Scotland. This and storage (CCS) technology. step change in the quality and timeliness of waste data will Encouraging reprocessing support decision-making and investment underpin the key building blocks 3.5.24 We have a new action to work required to reduce emissions and with local authorities and the drive delivery on existing waste future Deposit Return Scheme and recycling targets126. administrator(s) to explore options 124 All announced in the 2020-2021 Programme for Government 125 First announced in the 2019-2020 Programme for Government 126 Boosted through Low Carbon Fund 127 Boosted through Low Carbon Fund 162   Update to the Climate Change Plan | Waste and the Circular Economy that will unlock reprocessing reduce waste and move up the investments, including pricing and waste hierarchy. Examples include incentive schemes, to create jobs the Deposit Return Scheme, and a ready supply of recycled reform of Extended Producer material for new packaging128. Responsibility schemes and our proposal to introduce a charge on Preventing waste single use beverage cups. However,

3.5.25 Banning problematic single if we are to meet our ambitious use items: We are currently targets for 2025 and beyond, consulting on banning a number then further, and likely more far- of problematic single-use plastic reaching fiscal incentives will items, such as straws and cutlery, be needed, alongside the other identified in the EU’s Single Use policy interventions set out in Plastics Directive, with a view to this chapter. As part of our work introducing legislation in 2021, to develop a route map to 2025, and considering how we will give we will therefore undertake a effect to the wider requirements of specific and focused piece of work the Directive129. to examine the range of fiscal measures used by other countries

3.5.26 Packaging reform: We will continue to incentivise positive behaviours to work with the UK Government and to develop proposals to go and other devolved administrations further in this area. on reforms to the packaging extended producer responsibility 3.5.29 We recognise that significant and regime, which we expect will more radical transformational deliver improved funding for local changes will be required in this authorities in the future130. area if we are to meet our targets in 2025 and beyond. Therefore, we

3.5.27 Environmental charging: We will will work with partners to develop introduce measures to encourage a post-2025 route map to identify people to shift toward reusable how the waste and resources sector products and to encourage more will contribute towards Scotland’s sustainable consumption, for journey towards net zero in the example, we will take further steps period to 2030 and beyond. to consult on a charge on single use disposable beverage cups and will introduce legislation to Our call to others increase the carrier bag minimum The UK Government charge from 5p to 10p in this

3.5.30 The Scottish Government is taking parliamentary session131. In recent action on policy measures that public research, we found that lie within devolved competence, these kinds of measures are but some of the policy measures supported by 82% of the public. required to drive the transition

3.5.28 Several of the measures outlined to a fully circular economy are in this plan are intended to dependent upon UK Government increase fiscal incentives for action. The CCC’s December 2019 producers and consumers to progress report made clear that UK Government policy ambition 128 Announced in 2020-2021 Programme for Government 129 https://consult.gov.scot/zero-waste-delivery/introducing-market-restrictions-on-single-use-plas/ 130 Announced in 2020-2021 Programme for Government 131 Boosted in 2020-2021 Programme for Government Update to the Climate Change Plan | Waste and the Circular Economy  163 did not match that of the Scottish include the forthcoming 2025 Government, and challenged the UK ban on landfilling biodegradable Government to “step up” in areas municipal waste. where key powers are reserved. The CCC’s latest Scottish Progress report 3.5.34 Food waste is a significant notes that the UK Government has contributor to emissions that come only delivered one of the CCC’s 16 from the public sector, and our Food key reserved policies that unlock Waste Reduction Action Plan132, action in Scotland. published in 2019, highlights the need for our public sector to reduce

3.5.31 We are already working with food waste throughout its buildings the UK Government and other and services. Key agencies, including Devolved Administrations on SEPA and Food Standards Scotland, reform of the packaging producer will provide the regulatory oversight, responsibility system to reduce support, and infrastructure to drive waste and boost recycling. This change and help deliver Scotland’s is key to both encouraging food waste targets. sustainable packaging design and to providing funding for more 3.5.35 SEPA have a vital role to effective collection services. play in supporting the future decarbonisation of the waste

3.5.32 We welcome the UK Government’s and resources sector in Scotland. plans to introduce a ‘plastics tax’ SEPA work with all sectors to to incentivise the use of recycled ensure compliance with waste content in plastic packaging. regulation, whether that be on However, there are a number of pollution prevention, producer key areas that require futher UK responsibility, waste exports or Government action. For example, landfill tax. We will continue to we call on the UK Government support SEPA with the appropriate to: introduce new fiscal measures funding and support it needs to to influence behaviour; reduce fulfil its aims. consumption of unsustainable material; boost the competitiveness 3.5.36 We are also working closely of recycled materials; and bring with Scottish Water, who have forward measures to influence huge potential for renewable global markets and reduce energy generation and energy imported emissions. efficiency, including in the waste water treatment network. For Scottish public sector example, over the last 5 years organisations Scottish Water has delivered 19

3.5.33 Public sector leadership is vital to GWh p.a. of energy efficiency achieving our emissions reduction and aims to deliver a further 20% targets in the waste and resources improvement. Scottish Water’s sector. We are therefore working ambitious Net Zero Route Map with the public sector to embed includes a wide range of action circular economy principles into to minimise emissions across all their procurement strategies, aspects of its activities to meet, and to accelerate reduction and and go beyond, their target of net recycling of waste. Examples zero emissions by 2040133. 132 https://www.gov.scot/publications/food-waste-reduction-action-plan/ 133 http://www.scottishwaternetzero.co.uk/ 164   Update to the Climate Change Plan | Waste and the Circular Economy

3.5.37 We also expect Scottish Water 3.5.40 Key priorities for businesses and to continue to invest heavily in industry include: modernising the waste water treatment capability across Ħ continuing to actively increase Scotland and to deliver additional waste prevention as well heat from sewers projects, building as reuse and recovery rates on those already in place. by rethinking operations, diversifying businesses and Scottish businesses and industry supporting innovation;

3.5.38 The second largest sector source Ħ putting in place alternative of food waste is Food & Drink treatment solutions for Manufacturing (25%)134. Reducing residual waste in order to this will involve transformative deliver the forthcoming ban on change in business practice biodegradable municipal waste throughout the food supply chain. to landfill by no later than 2025; The Scottish Government’s Food Ħ scaling up existing landfill gas Waste Reduction Action Plan capture measures to mitigate highlights the need for the Scottish the negative effects of landfill food and drink industry to show and the environmental impact of leadership and drive innovation closed landfill sites; to reduce waste throughout the Ħ taking further steps to maximise supply chain, as well as to drive efficiency of energy from waste changes in labelling and in food plants and considering how businesses’ corporate behaviour. infrastructure can be ‘future

3.5.39 The Scottish Government and Zero proofed’ for CCS technology; and Waste Scotland provide a range Ħ ensuring that the waste supply of advice and business support to chain supports a circular promote the adoption of circular economy by reusing where economy practices and to support possible and only landfilling innovation. Many businesses waste that has reached the end are doing so already through a of its life. range of voluntary initiatives, including the UK Plastics Pact and Individuals/households the Courtauld 2025 Commitment 3.5.41 The largest sector source of food on food waste, both of which waste in Scotland is Household the Scottish Government is a & Consumer (61%)135. In 2014, signatory of. The Circular Economy Scottish households threw away Investment Fund is the most high around 600,000 tonnes of food profile of the Scottish Government’s and drink waste. Household food financial support measures, and we waste alone accounts for 1.6 will continue to ensure the right million tonnes of carbon dioxide strategic interventions are in place equivalent emissions; this is 2.1% to provide maximum economic and of Scotland’s carbon footprint136. emissions reductions benefits in the future. 134 https://www.gov.scot/publications/food-waste-reduction-action-plan/, p.21 135 https://www.gov.scot/publications/food-waste-reduction-action-plan/, p.21 136 https://www.gov.scot/publications/food-waste-reduction-action-plan/ Update to the Climate Change Plan | Waste and the Circular Economy  165

3.5.42 To support and enable required International engagement behaviour change, we will 3.5.45 An estimated four fifths of deliver a sustained programme global climate emissions are of communications designed to currently linked to the production, raise people’s awareness and consumption and waste of products understanding of food waste, and resources. The importance including a second phase of our of promoting a circular economy marketing campaign planned for is therefore a global challenge. 2021. Many of the products that Scotland consumes are produced overseas

3.5.43 We encourage people in Scotland and imported, emphasising the to purchase products and services importance of waste reduction if in ways which respect the we are to reduce Scotland’s global limits of our natural resources; resource/emissions footprint as to see unnecessary waste, in well as domestic emissions. There particular avoidable food waste, is a risk of ‘offshoring’ a significant as unacceptable; and to embed proportion of Scotland’s waste reuse and recycling into everyday emissions given that they are behaviours. We regularly engage not accounted for under our own with the public to understand greenhouse gas inventory. attitudes towards waste, as we seek to help make the right choices 3.5.46 A number of EU frameworks easier for householders137. and Directives are directly relevant to Scotland, including

3.5.44 As we recover from COVID-19, we EU’s Circular Economy Package will support consumers to make (CEP) which introduces a revised positive decisions to tackle climate legislative framework on waste, change and make sustainable establishing an ambitious and choices, where possible. For credible long-term path for waste example, we will: encourage the management and recycling. In use of washable, reusable face March the European Commission coverings and a move from ‘fast adopted a new Circular Economy fashion’ clothing choices more Action Plan, which contains a generally; implement the deposit number of initiatives for the return scheme; improve local lifecycle of products, including authority recycling collection waste reduction, consumption, infrastructure; and consult on a repair, reuse, recycling, and charge on single use disposable bringing resources back into the beverage cups. economy138. As outlined in the UK Withdrawal from the European Union (Continuity) (Scotland) Bill, the Scottish Government is committed to maintaining or exceeding EU environmental standards after we leave the EU139. 137 Recent examples include the public consultation on single-use plastic items (https://consult.gov.scot/zero-waste-delivery/ introducing-market-restrictions-on-single-use-plas/) and engaging with island communities to identify potential impacts from the introduction of the deposit return scheme for single-use drinks containers (https://www.gov.scot/publications/ deposit-return-scheme-scotland-islands-communities-impact-assessment/) 138 https://ec.europa.eu/environment/circular-economy/index_en.htm 139 https://beta.parliament.scot/bills/uk-withdrawal-from-the-european-union-continuity-scotland-bill-2020 166   Update to the Climate Change Plan | Land Use, Land Use Change and Forestry Chapter 6 Land Use, Land Use Change and Forestry Update to the Climate Change Plan | Land Use, Land Use Change and Forestry  167

3.6. Land Use, Land Use poor and some native species are finding it hard to survive in our Change and Forestry current environment. Introduction 3.6.4 Changing these outcomes is both a challenge and an opportunity:

3.6.1 Land is key to Scotland’s history, through significant increases culture, and identity. Our landscape in tree cover and widespread and natural environment is one peatland restoration, we can of our greatest national assets, reduce greenhouse gases and contributing hugely to our other pollutants, increase the economy and society. How we use levels of carbon dioxide being our land matters to our collective absorbed and locked up in timber health and wellbeing. products, enhance and protect our biodiversity, derive other co-

3.6.2 We are rightly proud of our world- benefits such as flood mitigation renowned, diverse and rich nature and climate adaptation, and also and landscapes. They have a vital support clean, new jobs as part of role to play in our future, not the green recovery. least in supporting us to meet our ambitious climate change targets 3.6.5 We must now act urgently and and ambitions. The importance of make real and substantive progress our land in delivering Scotland’s in cutting emissions. We must emissions reduction targets has make large scale and rapid changes been highlighted by the UK Climate in the way we use and manage our Change Committee. The capacity land to help reach our statutory that our land has to deliver nature- net-zero targets. This will require based solutions to climate change, us to move appropriate land including through increased tree out of farming as we currently cover and restoration of degraded understand it into forestry and peatland, is unique within the UK. peatland, and require those who Scotland has a positive story to manage our land for whatever tell in these areas but we have purpose to embrace more not always fully understood that sustainable practices (such as those what we do on the land, and to set out in the agriculture chapter the land, can have far reaching of this update). consequences and negative impacts, some of them intangible 3.6.6 Increasing woodland creation and and long lasting. peatland restoration on this scale, and over this number of years, will

3.6.3 For example, it is estimated that result in significant changes in the around 80% of Scotland’s peatlands iconic landscape and environment are degraded and, despite the which has evolved over centuries significant progress over recent and for which Scotland is globally years, Scotland remains heavily renowned. We need to ensure that deforested compared to many the people of Scotland understand European countries, and imports and support these changes, significant quantities of timber and particularly those individuals and timber products. Our soil quality is communities likely to be most 168   Update to the Climate Change Plan | Land Use, Land Use Change and Forestry impacted. To do that will require Ħ providing a source of other long- early engagement, consistent term sustainable products like communication, and genuine Scottish timber; dialogue between different groups Ħ providing a base for more and communities. We must take renewable energy generation people with us in understanding like on-shore wind and bio- why the look of Scotland and energy, with appropriate key parts of our landscape are safeguards for biodiversity; changing. We must also ensure Ħ prioritising nature-based solutions that we don’t assume nor accept to societal challenges, including that radical reform of land use air quality, water supply and necessarily means fewer people quality, flood risk management, living in rural Scotland: the aim climate mitigation and adaptation should be to use land use change and much more; and to help repopulate remote and island areas too. Ħ providing more modern, affordable and energy-efficient

3.6.7 Achieving land use transformation rural housing. on this scale will require a major increase in the size and capability 3.6.9 Scotland’s forthcoming third Land of the workforce. This significant Use Strategy (due for publication in expansion of an already important spring 2021) will demonstrate how sector of the rural economy is an these priorities and the actions opportunity for more people to of the Scottish Government come work and live in rural Scotland. together as we deliver on our We will accordingly need more sustainable land use vision and rural housing and more planning objectives. flexibility in the provision of that rural housing. The two key pillars of

3.6.8 This chapter sets out the policies LULUCF in Scotland: and actions that the Scottish forestry and peatland Government is taking to enable, support and drive these land use 3.6.10 Expanding the area of Scotland’s changes. We are also determined forests and woodlands will to ensure that we transition in a contribute to reduced greenhouse just way, and in a way that also gas emissions, and will also supports our wider ambitions and generate an important commercial priorities such as: natural resource, improve biodiversity and provide spaces Ħ protecting and restoring for people to enjoy. We have Scotland’s biodiversity and created over 22,000 hectares of natural environment; new woodland in the last two Ħ investing in the natural capital years, and we will continue to that underpins our economy and invest to increase overall forest wellbeing; cover in Scotland. As part of the Ħ providing a platform for the Scottish Government’s Low Carbon sustainable production of high Fund, Scottish Forestry will receive quality food; an additional £100 million to increase new planting and Forestry Update to the Climate Change Plan | Land Use, Land Use Change and Forestry  169 and Land Scotland will receive an past two years. Although feasibility additional £30 million to expand studies have been carried out since Scotland’s national forests and 2012 on over 200,000 hectares land. We will also provide £20 (including nearly 75,000 hectares million to further increase tree annually in the past two years), nursery capacity, investing in the extent of restoration achieved new and redeveloped facilities thus far over 8 years illustrates to support higher production. the scale of our challenge. It also This investment will enable us highlights that achieving peatland to increase woodland creation restoration at scale requires a from the current level of 12,000 considerable step change in the hectares in 2020/21 up to 18,000 pace and geographical extent hectares in 2024/25, ensuring that of restoration and that new forestry and woodlands play an approaches need to be explored. important role in cutting emissions and sequestering carbon. 3.6.13 Earlier this year we announced a £250 million ten-year funding

3.6.11 Peatlands are a key part of the package to support the restoration Scottish landscape, our cultural of 250,000 hectares of degraded and natural heritage, forming more peat by 2030. We are currently than 20% of Scotland’s land cover. working with our peatland In good condition, they actively restoration delivery partners remove and store carbon from and others involved across the the atmosphere, support habitats public, private and third sectors and species and help to improve to improve and streamline how water quality and manage flood we organise, fund and deliver risk. When degraded, peatlands increased restoration in the no longer provide these benefits coming years, and to identify and and emit more carbon than they develop solutions to any current remove, becoming a net source of barriers. These include the need greenhouse gases. for multi-year funding, enhanced contractor capacity, as part of

3.6.12 The 2018 Climate Change Plan developing a peatland restoration established an annual peatland sector, and improved awareness restoration target of 20,000 among land owners and managers hectares (noting that using an of the opportunities and benefits area target is a proxy measure of peatland restoration. We will for achieving greenhouse gas also be exploring with major emissions reductions and the landowners and stakeholders a extent of restoration will vary strategic approach to achieve considerably according to the mix large-scale restoration projects of land type). Since 2012, over over multiple years. 25,000 hectares of degraded peatlands have been put on the 3.6.14 Modelling shows that in order to road to recovery through projects deliver on the 2032 emissions supported by Peatland Action envelope of this update, annual – the NatureScot programme peatland restoration would need that is funded by the Scottish to be far higher than the current Government. This includes around 20,000 hectare annual target. As 6,000 hectares annually over the highlighted at the start of this 170   Update to the Climate Change Plan | Land Use, Land Use Change and Forestry chapter, meeting these challenges will require fundamental change in the way land is used and managed, The Woodland Carbon and how support is provided. Code How to achieve this change will require careful thought; there are The Woodland Carbon Code is a many technical considerations standard for generating verified and uncertainties to overcome. carbon credits through planting new We will work closely with woodlands, enabling businesses public sector and other delivery to compensate for their residual partners, land owners, land emissions. The Code underpins managers, farmers and crofters to trust in the woodland carbon continue to encourage protection, market in order to attract additional maintenance and restoration of all investment into woodland creation peatland types and will explore by verifying that woodland carbon opportunities to restore more of projects are responsibly and the land that offers the highest sustainably managed to national emission savings per hectare. standards. An updated and expanded carbon registry, the UK Land Carbon

3.6.15 Determining the optimal mix of Registry, was launched in November land use involves a complex set 2020 and now also includes peatland of interlinked considerations and restoration credits generated under goals that are at times in tension. Peatland Code. Over 250 woodland We have commissioned research to projects have been validated under map the location of land that offers the Woodland Carbon Code to date. the greatest emissions savings These are predicted to sequester potential and to understand its over 5 million tCO2 in the future, current use and tenure in order to and provide a range of other inform targeted action. We have benefits for the environment and also commissioned research to local communities. better understand landowner and land manager motivations for, and A new mixed productive and attitudes towards, undertaking broadleaved woodland covering peatland restoration. over 225 hectares of former low quality hill grazing land in the Yarrow Valley, Scottish Borders, will generate over 70,000 verified carbon credits. Situated adjacent to the Minch Moor drove road and the Southern Upland Way, the woodland also offers recreation benefits for the surrounding area and supports flood mitigation and biodiversity in both the woodland and open ground areas. The code is a UK wide scheme and more information can be found here: https://www. woodlandcarboncode.org.uk/ Update to the Climate Change Plan | Land Use, Land Use Change and Forestry  171 New context sector will therefore form a key plank of our green recovery from

3.6.16 During the COVID-19 crisis, and COVID-19. the restrictions necessary in our response to it, we have seen 3.6.19 Government cannot fund this on people right across Scotland, in its own, we need everyone to get cities and rural areas alike, connect involved. Both public and private with nature and the environment investment in Scotland’s natural to a much greater degree. capital will be essential to deliver Nature has provided a source of on our emissions reduction targets, comfort, strength and solace at not least to support people and a time of national and personal businesses to make the changes we crisis, and has itself benefited need on how they use and manage from reductions in air and noise land. It will also be necessary pollution. to ensure long-term sustainable management of restored peatland

3.6.17 Many of the actions set out in so that the carbon it stores this Climate Change Plan update remains locked up in the long term. enhance and increase these As well as our commitment of opportunities. The expansion of £250 million of funding over ten new woodland and enhanced years, we are working to attract protection and restoration of increased private investment. peatlands will improve important natural habitats for a range of 3.6.20 For example the Woodland species, as well as expanding Carbon Code and Peatland Code opportunities to support public are recognised standards for health and wellbeing outcomes businesses to purchase and report through recreation and increased on carbon units for woodland interaction with nature. creation and peatland restoration. Scottish Forestry oversees the management and development of Green recovery and the Woodland Carbon Code and just transition through our grant funding via our delivery partners we contribute to

3.6.18 Scotland’s land and the natural the development and management capital it supports will play a of the Peatland Code and are fundamental role not only in our working with the IUCN to promote response to the climate crisis, but it more widely to land managers also in our green recovery from and businesses. COVID-19. Land use change at the required scale will provide 3.6.21 In the future we will work to green economic and employment integrate public and private opportunities, offer public health funding for woodland creation benefits, help to address rural and peatland restoration and depopulation and provide social management through better benefits to communities across coordination between the Scotland. This will in turn help Woodland Carbon Code, Peatland secure a just transition to our Code and government grants to economic and environmentally our delivery partners. A shared sustainable future. The LULUCF carbon registry has been set up 172   Update to the Climate Change Plan | Land Use, Land Use Change and Forestry in 2020 for the Woodland Carbon with our existing commitment to and Peatland Codes to reduce invest around £25 million annually complexity in the carbon market will build to supporting around and facilitate increased private 200 FTE contractor and delivery sector investment in nature-based jobs across Scotland140. solutions to tackle greenhouse gas emissions and improve wellbeing. 3.6.25 In addition to direct employment, these actions will support

3.6.22 We will also explore the employment in wider supply development of a Peatland chains associated with forestry and Restoration Standard to ensure woodland creation, and peatland best practice and continuous restoration. There will also be development in the success spill over benefits in the wider and effectiveness of peatland rural economy for rural and island restoration. communities.

3.6.23 Scotland’s forestry sector currently 3.6.26 As well as increasing the pace and supports over 25,000 jobs extent of restoration of degraded across Scotland, including among peatlands, we also need to protect demographic groups where job existing peatlands which may creation is particularly needed, be damaged by certain human such as in rural and remote areas activities including commercial and among younger age categories. extraction and development. Scottish Forestry is doubling its We will therefore accelerate recruitment of assistant woodland work towards our 2019-2020 officers and Forestry and Land Programme for Government Scotland is doubling the number commitment to seek to phase of opportunities for young people out the use of horticultural (including modern apprenticeships, peat by increasing uptake of student placements, etc.) creating alternative growing materials, high value, high skilled jobs often including undertaking research to in remote locations in the natural understanding the issues around economy. Employment in the transitioning to alternatives. Our private forestry sector will grow Position Statement on National in response to our more ambitious Planning Framework 4 confirmed targets for woodland creation our current thinking that through and increasing domestic timber the planning system we will not production, which is forecast to support applications for planning increase by over a third during the permission for new commercial next 10 years. peat extraction for horticultural purposes141. We are looking

3.6.24 Similarly, peatland restoration at strengthening controls on offers further potential to create development on peatland and skilled green jobs across rural we will help facilitate restoration Scotland. It is estimated that over through permitted development 3-5 years starting in 2021-22, rights. peatland restoration associated 140 On the basis that every £1 million of investment in peatland restoration is estimated to create around 10 contractor/ delivery jobs. This would actually comprise a higher number of contractor posts on a part-time basis due to the seasonal nature of the work on the ground (i.e. the need to work outside severe winter conditions and the bird breeding season). 141 Fourth National Planning Framework: Position Statement - https://www.gov.scot/publications/scotlands-fourth-national-planning-framework-position-statement/ Update to the Climate Change Plan | Land Use, Land Use Change and Forestry  173 Positive vision for change has created, and our rural communities will be recognised 2032 and 2045 as providing good employment opportunities and high-quality

3.6.27 By 2032, land use will have housing. already changed significantly. Since trees need to become established 3.6.28 By 2045, Scotland will be before they begin to sequester internationally recognised for carbon significantly, we need to its woodland and peatland plant in this decade to deliver to restoration achievements and 2045 targets. Increased forestry potential, attracting investors cover along with the restoration from international and domestic of degraded peatland and changes business organisations who want in the management practices of to play their part in delivering other land based industries will a more sustainable future. Our have begun to ensure that our landscapes will be a mosaic of land is used and managed more integrated land uses featuring a sustainably. We will have raised range of nature based solutions awareness of the importance of to produce high quality food our land and be firmly on the sustainably, to deliver a vibrant road to fully recognising and and enriched natural environment better understanding and valuing and to help Scotland be a the resources it offers. People prosperous, healthy, fair and and communities will accept why inclusive nation with a thriving landscapes are beginning to look natural economy. different, businesses will welcome the opportunities land use Emissions Reduction Pathway to 2032 LULUCF 2.5 2.0 Emissions (MtCO2e) 1.5 1.0 0.5 0.0 -0.5 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 RouteUpdate 174   Map toto2032 the Climate Change Plan | Land Use, Land Use Change and Forestry 2020 2021 Forestry sector Further Review of peatland Opportunities to attract private supported on plant and opportunities to restoration support finance into peatland restoration are seed supply strategy. attract finance into mechanisms to developed and promoted, including woodland creation remove embedded through supporting increased use of Timber Development are developed, barriers concludes, the Peatland Code. Programme including through restoration rates implemented. the Woodland increase, and Establishment of Regional Land Use Carbon Capture engagement by Partnership pilots and publication of Programme. land owners, Scotland’s third Land Use Strategy. land managers At least 20,000 Delivery plan and timetable for and crofters is ha of peatland phasing out horticultural peat promoted and restored annually. developed and produced following widens. engagement with stakeholders. 2022 Research commissioned to Draft Fourth National Planning (1) inform decisions about Framework published for where to target peatland Parliamentary consideration in restoration to deliver the late 2021: we anticipate that it highest emissions savings per will strengthen the role of the hectare and the mix of land planning system in not supporting use changes needed to meet applications for planning permission the new targets; and (2) to for new commercial peat extraction understand behaviours and for horticultural purposes. It will attitudes towards peatland also look at strengthening controls restoration. on development on peatland. 2023 2024 2026 2030 Regional Land Use 18,000 Ha of new Scotland’s fourth Land At least 250,000 Frameworks developed. woodlands created Use Strategy published. hectares of peatland annually. restored. Update to the Climate Change Plan | Land Use, Land Use Change and Forestry  175 The actions we 3.6.32 Scottish Forestry will: are taking Ħ provide strategic and technical support to some major private Woodland creation sector investment proposals,

3.6.29 We have boosted our policy helping them to develop new outcome on woodland creation142: business models and to design their woodland proposals; Year Proposed annual woodland Ħ work with market intermediaries creation target (hectares) to increase the accessibility 2020-21 12,000 and liquidity in the buying and 2021-22 13,500 selling of carbon credits in order to achieve greater scale and 2022-23 15,000 maturity in the market; and, 2023-24 16,500 Ħ further develop the Woodland 2024-25 18,000 Carbon Code to attract more private investment in woodland

3.6.30 The 2020-2021 Programme creation, building on the launch in for Government announced an November 2020 of a new UK Land increased woodland creation Carbon Registry in conjunction target of 18,000 hectares per year with the Peatland Code. by 2024/25, together with £150 million of funding support through 3.6.33 Forestry and Land Scotland will forest grants (£100 million), attract carbon investment with increased state nursery production a view to acquiring more land o (£20 million) and expansion support a diverse forest estate of Scotland’s national forests including continuous cover and (£30 million). native woodlands on Scotland’s national forests and land for the Woodland Carbon Capture benefit of future generations and Investment Programme to optimise carbon sequestration.

3.6.31 Scottish Forestry and Forest and Land Scotland will implement Plant and seed supply strategy a new work programme with 3.6.34 We have a new policy to support investors, carbon buyers, the forestry sector to develop a landowners and market plant and seed supply strategy to intermediaries to increase private help meet the increased planting investment in new woodlands in targets. A programme of technical order to increase the woodland innovation to develop and adapt carbon market by at least 50% by modern horticultural practices will 2025. Building on almost 4 million help improve seed preparation validated credits (each equivalent and handling, techniques to to one tonne CO2) in the reduce environmental impacts, Woodland Carbon Code registry and increase nursery production. in March 2020, this will require Funding to support increased the validation of approximately production of young trees is 400,000 credits a year between available through the Harvesting 2020 and 2025. and Processing grant which is now open to forest nurseries across GB with support from Defra. 142 Boosted in the 2020/2021 Programme for Government. 176   Update to the Climate Change Plan | Land Use, Land Use Change and Forestry Agro-forestry simple as possible. By delivering

3.6.35 Working with the farming sector, an efficient and customer-focused we will boost our work on forestry service, we will make it easy for and farming and develop models those who wish to engage in land to increase woodland creation on use change to do so. both tenanted and owner-occupied farms, increasing the scale and 3.6.40 We will identify opportunities scope of agro-forestry. to expand the Forestry and Land Scotland land acquisition Capacity building and awareness programme, investing in new raising: forestry state-owned forestry and peatland

3.6.36 We have maintained our policy on assets, underpinning greater capacity building in the forestry growth in both areas. sector, working closely with Capacity building and awareness the sector through the Scottish raising – peatland Forestry and Timber Technologies Industry Leadership group. We 3.6.41 We have boosted our commitment have supported the development to significantly increasing the pace of a skills action plan to encourage and extent of peatland restoration. new entrants into forestry and In 2019-20 we increased funding to increase the skill sets of those by £11 million to a total of £14 already working in the sector. million and in February 2020 we announced a commitment to invest

3.6.37 We are carrying out a series of more than £250 million over 10 training and awareness events, years to support the restoration including through the Institute of at least 20,000 ha of Scottish of Chartered Foresters, to build peatland annually, towards a total knowledge and capacity in the of 250,000 hectares by 2030. This sector and develop opportunities will support at least 200 new skilled in the woodland carbon market. green jobs across rural Scotland.

3.6.38 We are building our staff resources, 3.6.42 Going beyond this level of creating employment opportunities peatland restoration to meet in rural and remote areas. the new targets will increase Scottish Forestry is doubling its opportunities and challenges. We recruitment of assistant woodland will undertake new research to officers and Forestry and Land inform our understanding of these Scotland is doubling the number and will boost work to develop of opportunities for young people opportunities to attract private (including modern apprenticeships, finance into peatland restoration, student placements, etc.), both of including through supporting which provide an important entry increased use of the Peatland Code. route for future careers in the forestry sector. 3.6.43 To support our ambitions, we have launched with our key delivery

3.6.39 Through the Scottish Forestry partners a new review of peatland Improvement Programme, we will restoration support mechanisms continue to invest in streamlining to improve and streamline how and digitising our grant application we organise, fund and deliver and regulatory processes, ensuring increased restoration in the coming that they are as efficient and years, and to identify and develop Update to the Climate Change Plan | Land Use, Land Use Change and Forestry  177 solutions to barriers. A virtual 3.6.46 We will explore how to involve peatland summit with stakeholders Scotland’s crofters and crofting across the public, private and communities more in our mission third sectors held in December to deliver more restored peatland. will inform this review and help There is over 550,000 ha of raise awareness of opportunities, Common Grazing land in Scotland, characterise barriers to peatland some of which is degraded peat restoration and identify solutions, and part of which is owned by the particularly around multi-year Scottish Ministers. We will also funding and contractor capacity. explore how best to restore all degraded peat in the public estate

3.6.44 In our 2019-20 Programme for and also within formally designated Government we made a new nature conservation sites, including commitment to seek to phase out through statutory mandate. the use of peat in horticulture by increasing uptake of alternative 3.6.47 We intend to undertake research materials and undertaking into the scale of the wider stakeholder engagement to environmental, social and understand transitional challenges, economic benefits across society improving the uptake of alternatives derived from peatland restoration, and developing a time-scaled and how such considerations can plan143. We will consider approaches be embedded in wider public to raising public awareness of investment decisions. these issues, and work with the UK Government as necessary where 3.6.48 We will also explore the potential levers exist at that level. to enhance Forestry and Land Scotland’s existing peatland

3.6.45 We are strengthening the role of restoration programme, ensuring the planning system: our Position that any forest removals on Statement on National Planning peatlands are replaced with new Framework 4 confirmed our forest planting on suitable land. current thinking that through This would be an additional the planning system we will not programme of land acquisition to support applications for planning directly replace hectare for hectare permission for new commercial land restored to peatland from peat extraction for horticultural forestry. purposes, that we are looking at strengthening controls on 3.6.49 How best to incentivise and development on peatland, and reward high value nature farming, also that we will help facilitate including peatland restoration and restoration through permitted agro-forestry will be considered development rights (which will and included in our policy and provide clarity that planning approach to future rural support, permission is not required to which will also include sustainable undertake peatland restoration and food production, emissions thus help streamline the approval reduction, production of biofuel and implementation of new crops and appropriate land use peatland restoration projects)144. change. 143 Commitment made in 2019-2020 Programme for Government, and restated in this Climate Change Plan update. 144 Fourth National Planning Framework: Position Statement - https://www.gov.scot/publications/scotlands-fourth-national-planning-framework-position-statement/ 178   Update to the Climate Change Plan | Land Use, Land Use Change and Forestry

3.6.50 The above areas where our policy Regional land use partnerships and approach will be developed 3.6.52 We have reaffirmed our will help enable us to achieve our commitment to make use of current emissions reduction targets Regional Land Use Partnerships and they have the potential, in from 2021. We continue to time, to help deliver the expanded develop our approach to LULUCF envelope. Partnerships which enable national and local government, land Spatial Planning owners, stakeholders and local

3.6.51 In developing the fourth National communities to work together to Planning Framework (NPF4) meet regional priorities, whilst also we recognise that nature-based supporting our national endeavour solutions to climate change, to end Scotland’s contribution to including tree planting and peatland climate change from land use. By restoration, and tackling emissions the end of 2021, we will have related to soil disturbance and established pilot Regional Land Use agricultural land use, will be Partnerships to test our approach, essential to reduce emissions and by 2023 each Partnership will from our land and increase carbon have developed a Regional Land sequestration. We expect that our Use Framework that strategically spatial strategy will explore how we identifies where resource can have can promote nature-based solutions the most positive climate impact. to climate change, which also protect and restore biodiversity and deliver wider benefits. Update to the Climate Change Plan | Land Use, Land Use Change and Forestry  179 Our Call to Others Scottish public sector organisations The UK Government 3.6.55 We will take forward the statutory

3.6.53 We require urgent clarity from the duty, established by the Forestry UK Government on what funding and Land Management Act it will provide after EU Exit to (Scotland) 2018, for all public replace the EU funding element authorities to promote sustainable in the Forestry Grant Scheme. forest management in exercising We also need to understand how their functions. In particular, we and where the UK Government need and will support public proposes to deliver the ambitious sector organisations to develop woodland creation and peatland opportunities for woodland restoration targets it has adopted creation, and to improve at a UK level; and we will continue sustainable management of to look to UK Government funding existing woodlands on publicly to help support our expanded owned land. We will look to forestry and peatland restoration relevant public sector bodies to activity as a contribution to adopt a ‘team Scotland’ approach delivery of UK climate change to supporting our enhanced tree targets. planting commitments, including ensuring an optimum approach is

3.6.54 To ensure a coordinated approach adopted to applying any advisory to the phasing out of horticultural or regulatory roles. peat where levers and risks exist at the UK level, we will continue 3.6.56 Key public sector delivery partners to engage where relevant with will work collaboratively with the the UK Government and the other Scottish Government to identify devolved administrations. innovative solutions to the barriers currently limiting the pace and extent of peatland restoration. Scottish businesses and industry

3.6.57 In the forestry sector, supply chain businesses, including nurseries, contractors and land managers, need to scale up to ensure that enough capacity exists to deliver woodland creation at increased scale and pace. In the construction sector, we will encourage businesses to recognise the advantages of using sustainably sourced wood fibre and make more use of wood products. 180   Update to the Climate Change Plan | Land Use, Land Use Change and Forestry

3.6.58 We will also work to encourage International engagement private investment in woodland 3.6.62 Many countries, including but not creation, peatland restoration and only in the EU, have established long-term management through significant afforestation mechanisms such as the Woodland programmes. The Scottish Carbon Code and the Peatland Code Government seeks opportunities which provides the quality and to share experience with these reliability assurances that investors countries including through considering this emerging and exchange visits. Scotland has also innovative opportunity will need. made international commitments for example through the Bonn Individuals/households Challenge to contribute, through

3.6.59 Scottish Forestry and Forestry its own programme of woodland and Land Scotland are developing creation, to wider global goals to and enhancing opportunities restore degraded land. for individuals, families and communities to: 3.6.63 We will engage internationally on peatland restoration with Ħ make use of woodlands on nations with similar interests public and private land, leading and ambitions before, during and to benefits in health, recreation after COP26 in order to showcase and wellbeing; and our achievements and expertise, Ħ engage with proposals for exchanging understanding and woodland creation and learning. management of existing forests.

3.6.60 The policies within this Climate Change Plan update will lead to a wider choice of sustainably sourced wood products via construction and other sectors. Consumer recognition of the benefits of this in their purchasing decisions will allow a greater and faster development of sustainable woodland businesses.

3.6.61 We will also develop a greater understanding of the benefits that peatland restoration can make to mitigate climate change and support significant biodiversity across areas of international importance, as well as delivering further benefits to members of the public though assisting with flood risk management and improved drinking water quality. Dumfries and Galloway Update to the Climate Change Plan | Land Use, Land Use Change and Forestry  181 Blue Economy Action Plan A clear opportunity for recovery and renewal in Scotland lies in our massive marine zone - six times the size of Scotland’s land mass. Our rich marine natural capital has the potential to help drive Scotland’s green recovery from COVID-19. The Organisation for Economic Cooperation and Development forecast the global blue economy to double from 2010 to 2030145. The ocean absorbs over a quarter of the CO2 produced by humans, and produces over half of our oxygen. Scotland’s marine carbon stores are vast – research indicates that our marine sediments may contain eleven times the amount of carbon stored in Scotland’s peatlands given the vast marine area we’re responsible for146. In recognition of the importance of the marine environment for naturally storing carbon, we have committed over £570,000 to our Blue Carbon Research Programme. We are also developing Scotland’s Blue Economy Action Plan, which will provide leadership through collaboration and innovation, maximising the impact of public investment and developing better regulation to help manage the shared use of the seas by Scotland’s marine sectors, communities and ecosystems. We will optimise opportunities in order to unlock the significant inclusive growth potential of Scotland’s marine space whilst supporting a transition to net zero. This will take sustained joint working across government bodies, industry and NGOs, stimulated, stimulated by government leadership, throughout which we will draw on international learning and experience, maintain pace and momentum, and secure engagement with a well-supported robust whole-systems approach. Near term initiatives which we expect to deliver very soon include the key building blocks for the development of our Blue Economy Action Plan, such as our strategy on future fisheries management, our sectoral offshore wind plan and the Scottish Marine Assessment 2020. Over the next 6-9 months we will engage widely across government and the wider public sector to develop a strategic approach to marine-related policies and actions. We will also undertake engagement with key marine industry and environmental sectors to ensure that they can meaningfully input into the development of an Action Plan that adds value and gains traction. Longer-term, we will work to further develop and improve the Action Plan, and embed the approaches and mechanisms needed to benefit emissions reductions, as well as broader interests in years to come. We expect the outcome of the national marine plan review next spring to help inform that longer-term vision. 145 http://www.oecd.org/environment/the-ocean-economy-in-2030-9789264251724-en.htm 146 https://data.marine.gov.scot/dataset/compendium-marine-related-carbon-stores-sequestrations-and-emissions 182   Update to the Climate Change Plan | Agriculture Chapter 7 Agriculture Update to the Climate Change Plan | Agriculture  183

3.7. Agriculture world most suited to producing high quality meat, but with our farming approach altered so that this is done Introduction in accordance with best practice in

3.7.1 In 2019 Scotland’s agriculture emissions reduction. Moreover, were industry contributed around £1.3 Scotland to cease to produce high billion worth of GVA towards to quality food, and in particular meat, the Scottish economy, employed then that production would simply 67,000 people (making it a key take place elsewhere, effectively employer in rural Scotland) and resulting in no change to global generated a gross output of emissions and with the potential around £3.3 billion. The Scottish that our carbon foot print would be Government supports Scotland’s higher. food and drink Ambition 2030 3.7.4 The majority of the emissions targets of doubling the value of in the agriculture sector come the food and drink sector by 2030 from livestock, however, it is to £30 billion. This ambitious important that all farmers and target has encouraged growth in crofters, not just those with the sector amongst small, medium livestock, continue to adopt the and large businesses. That positive low carbon technologies that messaging on Scotland as a land of currently exist, as well as those food and drink must be maintained that become available in the future but increasingly combined with an through technological advances. added narrative that we also have These can also support our wider ambitious climate change targets. environmental goals: for example,

3.7.2 Agriculture and food production the use of precision farming rely on natural processes, and techniques can reduce the need for will therefore always cause fertilisers and pesticides which has some degree of greenhouse a positive impact on biodiversity. gas emissions; in particular, 3.7.5 Farmers, crofters and land livestock will always emit some managers, through their greenhouse gases. Therefore, a stewardship, have created the fine balance must be found to magnificent scenery which we ensure greenhouse gas reductions tend to take for granted and which can take place while Scotland underpins our tourism success. In continues to produce high quality fact the scenery is the factor most and sustainable food. Brexit also commonly mentioned when people presents key challenges around describe why they decided to visit trade, potential tariffs and the loss Scotland. That scenery rests on of the security of EU support. their active management of the

3.7.3 However, we do believe that with its land and for that they deserve our temperate climate, reliable rainfall, thanks and credit. and permanent grassland, Scotland 3.7.6 We know that these landscapes will has a climate ideally suited to evolve as we respond to climate livestock farming. We also believe change with more woodland and that, with changes in farming through the restoration of our practices, we have a sustainable peatlands as well as an increase in future as one of the places in the land for growing biomass. We see 184   Update to the Climate Change Plan | Agriculture this as an approach founded not a thriving Scottish food and drink only on nature based solutions but sector, and indeed we wish to one with people at its heart. Our repopulate parts of rural Scotland farmers crofters and land managers where the local population has must have access to the benefits, dwindled and fallen and revitalise both economic and social, that our communities by encouraging these changes will bring. We also and enabling more people to live recognise the need to maintain there. Encouraging more localised support for existing activities such and regionalised supply chains can as mixed livestock production, build resilience to disruption and which promotes managed provide market support to high permanent grassland which can quality sustainable food production. benefit biodiversity. Without that land use, land tends to revert to 3.7.9 We have taken forward a range of scrub, bracken, thistles, rushes and actions in the agriculture sector wasteland with negative visual since the Climate Change Plan appeal. was published in 2018. We have increased the provision of advice,

3.7.7 It is also important that our with a corresponding increase soils and grassland are managed in uptake and support through appropriately, and Scotland’s the Farm Advisory Service and farmers and crofters play a key Farming for a Better Climate; role in this. For example, poorly we have undertaken a range of managed soils can become degraded research and knowledge transfer and release carbon, while under projects to inform low carbon good management the use of farming and to help develop our clover can help reduce the need understanding of low carbon for fertilisers and soils can actively technologies and the opportunities sequester carbon. It is important they present for Scotland; we have that farmers and crofters are supported farmers to improve supported in positive management efficiencies and therefore reduce of soil as an asset, for food emissions; we have encouraged production, as a carbon store and the integration of trees on farms to support biodiversity restoration, and crofts; and we have secured particularly in high nature value improvements on how agriculture areas. emissions are recorded in the Greenhouse Gas Inventory. We

3.7.8 There are multiple pressures have also seen the good work on agricultural land use. Food that is already being undertaken production, forestry, peatland by farmers and crofters to reduce restoration, bio-energy, feedstock emissions, and have encouraged production and habitat restoration peer to peer support through our are all competing, meaning it is Climate Change Champions and important to consider optimal land Monitor Farms. With support from use, as discussed in the LULUCF the Forestry Grant Scheme and chapter (Part 3, Chapter 6). There local forestry advisory initiatives, is no doubt, however, that we will over 200 farmers and crofters want to continue to support rural each year are already creating new population growth, including by farm woodlands and diversifying keeping people on suitable land their farming businesses to include to produce food as the basis for forestry. Update to the Climate Change Plan | Agriculture  185 Farming for a Better Climate helps farmers and land managers identify low or no-cost greenhouse gas mitigation measures for everyday activities on the farm. Delivered by SAC Consulting and funded by Scottish Government, the Farming for a Better Climate initiative has worked with 12 volunteer climate change focus farmers and their discussion groups, showcasing practical measures and sharing ideas as they work towards improving farm efficiency and reducing the farm carbon footprint. Farming for a Better Climate is currently exploring soil regenerative agriculture techniques with the help of five arable farmers in the North East of Scotland, charting their experiences and activities to protect and enhance farm soils, and the accompanying benefits for the business. The Farming for a Better Climate webpage and social media accounts help to promote and share ideas, highlight what other farmers are doing and provide a hub of information for farmers and land managers looking to reduce their farm carbon footprint and respond to the climate challenge. More info at www.farmingforabetterclimate.org

3.7.10 We have directly supported is reflected in the new policy farmers, crofters and land outcome and policies outlined managers to play their part in below. We are already working in cutting emissions, addressing partnership to develop new rural climate change as well as support measures that will result delivering wider bio-diversity in a rapid and widespread uptake, and environmental benefits, with to transition to a sustainable a third of Common Agricultural sector that more directly and Policy (CAP) schemes providing explicitly supports our climate and funding in this area. environmental ambitions. We will build on this.

3.7.11 This work has laid the foundations, but the introduction of the 3.7.12 The multi-dimensional nature of emissions reduction targets farming, crofting and land use set out in the Climate Change means that this is complex and (Emissions Reduction) (Scotland) challenging. We will work with and Act 2019 means that the urgency support farmers, crofters and land has increased. There is now an managers through this transition, opportunity, as we support farmers recognising that the existing work and crofters alongside wider land underway to consider wider future managers through the impacts rural policy must be allowed to and recovery from COVID-19 conclude. and Brexit, towards agricultural transformation. This ambition and support for transformation 186   Update to the Climate Change Plan | Agriculture New context Green recovery and

3.7.13 The COVID-19 crisis has created just transition significant challenges for

3.7.15 We must build a sustainable the agriculture and food and food production sector for future drink sectors. Yet it has also generations whilst reducing demonstrated the power of greenhouse gas emissions and localism and connecting people increasing carbon sequestration, with nature, reminding us why we as well as helping to improve must tackle the climate emergency biodiversity, air and water quality and biodiversity loss, while and allowing households access to reconnecting people with their food fresh and affordable local Scottish producers. Consumers increasingly produce. value sustainability and resilience in food production, including 3.7.16 There is an opportunity to work high animal welfare standards, alongside agriculture and land environmental credentials and based industries to develop transparency in the food supply new policies aimed at delivering chain. The crisis has also reminded on climate change and wider us about the need for food security environmental outcomes, such and producing our own food given as: restoring biodiversity; the fragility of international food improving water, soils and air chain supply arrangements, and quality; and encouraging natural tariff imposition. flood management as well as climate adaptation to facilitate

3.7.14 The agricultural sector, as part of a sustainable future for farming. the critical national infrastructure The COVID-19 pandemic has for food, has played its part in allowed people to rediscover ensuring food supply chains nature and, where appropriate, continued to operate throughout the countryside, and to value the COVID-19 crisis, particularly the important role that farmers, in rural and remote areas. It is crofters and land managers play as too early to formally assess the custodians of our rural landscapes. overall impacts of COVID-19 on We must build upon this. agricultural businesses but the recognition of food production as 3.7.17 Partnership is key to achieving being critical, alongside continued a fair transition. The proposals EU funding, has maintained the set out in this Climate Change sector. The pandemic highlighted Plan update are founded on a the vital importance for co-development approach. We agricultural businesses to have live have committed to farmer-led contingency plans in place, so that groups, working with farmers and in emergency situations animal crofters and other stakeholders welfare needs can be met and in the food and drink sector. The food production can continue. The aim is to support farmers, crofters Scottish Government is committed and agricultural businesses to cut to delivering a green recovery their emissions to the lowest level from the pandemic, with farming possible and to commit to low and food production and the wider carbon, sustainable farming. We agricultural supply chain playing a will achieve this by progressing key part. Update to the Climate Change Plan | Agriculture  187 appropriate policies, developing food production. These can all new support mechanisms, and offer opportunities for upskilling providing appropriate advice and and diversification, which will support to secure further positive need investment and support behavioural change within the mechanisms in place to ensure industry. such opportunities are maximised. The Scottish Government is

3.7.18 This will also allow us to build committed to developing the further on the levels of innovation natural economy and creating we have already seen across the clean, green jobs and skills. sector, with farmers, crofters and land managers presently using 3.7.21 The scale of the change necessary a range of approaches to reduce will also present opportunities for greenhouse gas emissions from some farmers, crofters and land their businesses, as well as the managers to access new income potential to maintain and enhance streams either through established carbon storage from our land. industries such as tree planting or from more novel approaches

3.7.19 At the same time, we must optimise such as growing bioenergy crops. land use: we want farmers and We will work with the sector to crofters to produce food for people ensure farmers crofters and land and livestock more sustainably, managers as well as the wider but we also want them to use rural and island communities share appropriate land to support carbon the benefits that come from these sequestration and storage through opportunities. planting trees and restoring peatland. We will also encourage them to farm products which can Positive vision for contribute to renewable energy 2032 and 2045 ambitions, and to take a whole- farm approach to their emissions. 3.7.22 By 2032, the agriculture sector in We will work with the industry Scotland will have adopted and to consider the complex issues be competently using all available around multi-faceted land use and low emission technologies decisions that impact on them, throughout the whole sector, while we identify the best way to such as maximising efficiencies, ensure delivery of these outcomes. minimising inputs and maximising As reflected in the LULUCF chapter, outputs, precision farming, we need to take people with us optimal slurry and manure usage as our land use changes and we and storage. There will also be will initiate a conversation with increased innovation in areas such communities, particularly those as feedstuffs and use of fertilisers, likely to be most impacted, to making a significant contribution to ensure people understand what we meeting our climate change targets are doing and why. as well as wider environmental and biodiversity impacts for the

3.7.20 We must also recognise the role whole of Scotland. that farmers, crofters and land managers play in supporting our thriving natural capital, landscapes and green tourism, along with 188   Update to the Climate Change Plan | Agriculture

3.7.23 Through partnership working sustainable investment from between government and industry, retailers. In addition, there will agricultural businesses will have have been significant changes the skills and access to training in use of appropriate land to that they need to shift to low accommodate a large increase emissions and sustainable farming. in afforestation and peatland Through Scottish Government restoration/management, along support to the industry, farmers with further integration of and crofters across Scotland will woodland and hedges on farms benefit from increased climate- and crofts across Scotland. conscious consumption and CASE STUDY: JAMES HOPKINSON, CLOUD FARMING to soils and keeping soils covered under permanent cropping, stubbles or suitable cover crops where possible. James knows that he must first have healthy soil to support the farm to move away from the use of chemicals and synthetic fertilisers. James said “I believe that it is becoming rapidly unviable to consider only treating the symptoms of poor soil health, such as James Hopkinson is one of five farmers pests & diseases, and that we need to working together as part of the Soil be addressing the root causes which Regenerative Agriculture Group under are poor soil structure, restore chemical Farming for a Better Climate. James is balance and improve biological activity. I a partner and founder of Cloud Farming hope that this project will help us gain a and Arable Ventures, combining the clearer understanding on how to change family farm Lindertis and Walker- and improve soils on our farms and Munro Farms, growing winter wheat, work towards reducing our farm carbon spring barley, winter barley, oats, peas, footprint”. linseed and beans. This is just one example of an To protect and improve farm soils, innovative use of technology James and his team have moved away in agriculture. More info about from conventional ploughing across to this and other best practice direct drilling, non-inversion & shallow examples can be found at scratch tillage, causing less disturbance www.farmingforabetterclimate.org Update to the Climate Change Plan | Agriculture  189

3.7.24 In 2045, our agriculture industry 3.7.27 The trees planted in the years will have been transformed into since 2011 will have matured and a low emissions, holistic and be sequestering carbon at scale. integrated food production system Productive timber harvesting that has a low environmental will be followed by restocking to impact as well as benefitting begin repeating the process, where nature, restoring biodiversity and appropriate. Farmers and crofters contributing to our economy. will have facilitated peatland restoration and management

3.7.25 This will have been achieved along with the growth of crops for through widespread adoption of biomass at scale. all applicable low emission farming practices, with these existing as usual practice, rather than good practice. New innovative technologies will have emerged, to reduce the greenhouse emissions associated with food production, and these will be readily taken up by farmers and crofters. A whole- farm, low carbon approach will be the standard, and farmers will grow more biomass crops for both their own and industry use.

3.7.26 Farmers and crofters will have sustainable businesses, recognised for not just high quality, sustainable food, but also the delivery of natural capital outcomes, including on climate, soils, air, water and biodiversity. Continued professional development will be 3.7.28 As outlined in the LULUCF the norm so that farming practices chapter, land use will provide continue to evolve to embrace green economic and employment new technologies as they emerge. opportunities, offer public Consumers will recognise the health benefits, help to address value of high quality, sustainably rural depopulation and provide produced local produce, and social benefits to communities producers will be much more across Scotland. We will have responsive to market demand. ensured that farmers and crofters Supply chains will be stronger and are benefitting from these more localised, and value will be opportunities with new, additional more fairly distributed. sources of income and investment in these land use changes. 190   Update to the Climate Change Plan | Agriculture Emissions Reduction Pathway to 2032 Agriculture 8 Emissions (MtCO2e) 6 4 2 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Route Map to 2032 Update to the Climate Change Plan | Agriculture  191 2020 2021 New schemes and Agricultural approaches developed Transformation to support low carbon, Programme scaled up. sustainable farming, informed by Environmental farmer-led groups. Conditionality introduced. New on farm and New and expanded Management Advice provided croft tree integration peer to peer knowledge of storage and for farmers and demonstrator transfer initiative application of organic crofters who wish network launched launched, based on materials such as to step back from and other the success of our silage, slurry and agricultural businesses opportunities to Young Climate Change liquid digestate by providing an support increase Champions work. reviewed. opportunity to planting of trees, consider alternative hedgerows and Established advisory land-uses or agroforestry and knowledge transfer alternative agricultural developed, boosting programmes and uses. existing support. initiatives realigned and enhanced. 2022 Work undertaken Work undertaken with Options explored for New policy on rural with stakeholders on Scottish Forestry to land-use change to support developed, options to increase help remove barriers optimise uses beyond including: emissions peatland restoration for those on agriculture traditional farming reduction, sustainable food on suitable holdings, particularly and food production production, improving agricultural and in the tenanted sector, to multi-faceted land biodiversity, biomass crofting land. who want to engage in use including forestry, crops and appropriate land woodland creation. peatland restoration use change in line with just and management and transition principles. biomass production. 192   Update to the Climate Change Plan | Agriculture The actions we a new deal based on a clear vision of a Scottish farming sector which are taking produces high quality food for itself and for export; but which does so in

3.7.29 The agriculture policies outlined a way which seeks to make emission in this Plan update provide reductions and thus tackling climate a route map for agricultural change a key objective. These shall transformation, starting in be the two twin imperatives that 2020 as we begin piloting and drive our policy and will guide us introducing new mechanisms of in devising new programmes of support for farmers, crofters and financial support. land managers to meet Scotland’s climate ambitions, as well as 3.7.31 For that vision to be able to delivering wider biodiversity become a practical reality, it is and environmental benefits and essential that we continue to continuing food production. We will provide regular reliable income take a co-development approach, support for our farmers and working with stakeholders and crofters; but in exchange for that farmer-led groups to secure income we will expect them to increased uptake of low emission farm in different ways in order to farming measures through new reduce emissions. We see this as schemes and approaches, the a social contract with our farmers development of environmental and crofters and through provision conditionality and enhanced of fair and reasonable income advisory support. Assistance will levels we will recognise their hard also be provided for farmers and work and effort in food production crofters who wish to retire or and environmental stewardship. leave the industry with dignity by providing an opportunity to 3.7.32 In delivery of this vision, the consider alternative land uses or input of advice, expertise and alternative agricultural uses. We experience of farmers and crofters recently consulted on a package (alongside scientists and others) of new agricultural permitted will help us secure the support development rights, including of the broader farming and for the conversion of agricultural crofting communities. In order buildings to new homes. This to transform this vision into a measure will help to encourage the series of pragmatic programmes, re-use of surplus buildings and the we are asking farmers and provision of much-needed housing crofters to accept conditionality, in rural areas, including in support requiring them to deliver on of farm succession. environmental standards, principally in emissions reduction

3.7.30 We believe that the best way but also in biodiversity. We will to deliver our climate change work with farmers and crofters ambitions in agriculture is to and their representative bodies to persuade farmers, crofters and implement these programmes in a land managers to change the way way that provides the time, advice, they produce food and farm the and capacity to be effective, and countryside. The work of the farmer over a reasonable transitional led group is aimed as the objective period move towards making such of devising a new deal for them and conditionality mandatory. Update to the Climate Change Plan | Agriculture  193

3.7.33 Alongside initiating transformation positive land stewardship that of the agriculture sector, we will contributes to tackling climate continue to develop an altered change. We have introduced a approach to rural policy, having new policy proposal to develop left the EU Common Agricultural rural support to enable, encourage Policy (CAP). Our approach will and, where appropriate, build on the programmes brought require the shift to low carbon, by the work of farmer led groups, sustainable farming through to include and combine this with emissions reduction, sustainable forestry, peatland restoration food production, improving and other methods of reducing biodiversity, planting biomass emissions. We will also open a crops and appropriate land use discussion on optimum land uses change, developed in line with beyond just farming and food just transition principles. This will production to multi-faceted land consider how a policy specifically use including forestry, peatland designed to deliver outcomes restoration and management and for Scotland can be introduced biomass production. to replace the existing EU CAP regime.

3.7.34 In recognition of the need for agricultural transformation, we New agricultural support measures have introduced a new outcome 3.7.37 A new commitment to develop (detailed in Annex A) for a more new schemes and approaches to productive, sustainable agriculture support low carbon, sustainable sector that significantly contributes farming, including through the towards delivering Scotland’s Programme Board for the Beef climate change, and wider Suckler Climate Group147 and other environmental outcomes, through farmer-led groups on arable, dairy an increased uptake of climate and high value, nature farming mitigation measures by farmers, and crofting which will report in crofters, land managers and other 2021148. primary food producers. Agricultural Transformation

3.7.35 Under this outcome there will be Programme a number of new policies that 3.7.38 A new commitment to scale up will help transition and begin the the Agricultural Transformation transformation of farming and Programme149 across all the food production. These are listed policies, including monitoring to below, along with new and boosted assess the effectiveness of the policies under the existing five pilot Sustainable Agricultural outcomes in the Climate Change Capital Grant Scheme that will Plan (shown in context in Annex A). enable farmers and crofters to Future Rural Support purchase equipment that should assist in reducing their greenhouse

3.7.36 In the future farmers and land gas emissions, and support practice managers shall be able to access change150. advice in order to encourage 147 Announced at Agriscot, November 2020 148 Announced in 2020-2021 Programme for Government 149 Announced in 2019-2020 Programme for Government 150 £10 million pilot Sustainable Agricultural Capital Grant Scheme announced in 2020-2021 Programme for Government 194   Update to the Climate Change Plan | Agriculture Environmental Conditionality Advice and knowledge transfer

3.7.39 A new policy proposal to introduce 3.7.42 Since the 2018 Climate Change environmental conditionality in Plan, we have supported the the agriculture sector from 2021 dissemination of information via implementation of the Beef and advice on climate change Suckler Climate Report and more mitigation measures in agriculture widely from 2022 through the through a range of communication review of existing CAP Greening, methods, utilising technology and which will extend the requirements all media to best effect. This advice to all farmers and crofters to and knowledge transfer is essential undertake environmental actions. and we will develop this through a new policy to realign and enhance Further provision of advice for our established programmes farmers and crofters who wish and initiatives such as the Farm to retire Advisory Service, the Knowledge

3.7.40 A new commitment to work with Transfer and Innovation Fund stakeholders to provide advice, and Monitor Farm Programme to including further extending create a more cohesive approach the Land Matching Service to ensure advice and support is and guidance for farmers and focussed on helping the industry crofters who wish to step back to professionalise and support from agricultural businesses sustainable farming. This will also by providing an opportunity to boost a range of existing policies in consider alternative land-uses or this Plan update. alternative agricultural uses. We also consider that transition of Nitrogen Use use and succession of outgoing 3.7.43 Policies on nitrogen use have been farmers will be a process that can boosted though the development be facilitated by a more relaxed of a whole economy Nitrogen approach to planning and the Balance Sheet. provision of housing on farm. Reduced emissions from the use Agriculture, Biodiversity and and storage of manure and slurry Climate Change Network 3.7.44 A new policy proposal to review

3.7.41 A new and expanded peer to peer management of storage and knowledge transfer initiative application of organic materials based on the success of our Young such as silage, slurry and liquid Climate Change Champions work, digestate, including what support whilst also incorporating wider may be required to ensure best environmental interests. This will practice. It is also boosted through allow peers to raise awareness of funding slurry equipment and the issues, opportunities and best slurry store covers under the pilot practice for low carbon farming capital grant scheme that was along with wider environmental available in 2020151. and land use considerations. 151 Boosted in 2020-2021 Programme for Government Update to the Climate Change Plan | Agriculture  195 Livestock emissions Woodland creation

3.7.45 We have boosted our policies 3.7.47 Boosted existing support and on livestock emissions intensity agro forestry scheme through through finalising research into the launch of a new on farm the practicalities and feasibility and croft tree integration based of using feed additive methane demonstrator network and an inhibitors at scale in Scotland; additional £1.5 million to further and supporting research and support the integration of small development into livestock woodlands on farmers and crofts greenhouse gas emissions across Scotland152. A new policy reduction including in areas such proposal, building on the successful as methane capture and breeding work integrating woodland with for low emitting livestock. This farming businesses, to help research will allow consideration, remove barriers for those on including by the farmer-led agricultural holdings, particularly groups, of how we can support in the tenanted sector who want further development and uptake of to engage in woodland creation, emerging technologies in Scotland. including exploring the potential to reform legislation where Land use change appropriate.

3.7.46 A new policy proposal to explore options for land-use change to Peatland optimise uses beyond traditional 3.7.48 A new policy proposal to work farming and food production to with stakeholders on options to multi-faceted land use including increase peatland restoration on forestry, peatland restoration suitable agricultural and crofting and management and biomass land, to support delivery of production. policies in the LULUCF chapter. We will map peatland against this land which will allow modelling options for land-use change and inform opportunities for targeted support of peatland restoration and management. 152 Demonstrator network announced in this Climate Change Plan update, £1.5 million announced in Summer 2020 196   Update to the Climate Change Plan | Agriculture Our call to others also engage farmers, crofters and land managers and owners in the The UK Government formulation and delivery of new

3.7.49 The Scottish Government has policies and programmes. called upon the UK Government

3.7.52 We will therefore continue for funding to support this work to share knowledge and best as a contribution to delivery of UK practice, for example through our climate change targets. The level of collaborative work with public that support must reflect the large sector organisations such as contribution Scotland’s land mass NatureScot and Forestry and Land has to offer in sequestering and Scotland, particularly on land use storing carbon, not only to meet change and delivery of outcomes our climate change targets, but at a landscape scale. One example to help the whole of the UK meet is our work with NatureScot theirs. The Scottish Government on Piloting an Outcome Based also expects the UK Government Approach in Scotland. Another is to uphold commitments to provide the work that FLS are doing on replacement EU funding to ensure the restoration of the damaged that farmers, crofters, land industrial landscapes of the Central managers and rural businesses can Belt. Restoring the damaged continue to receive support. landscape, a legacy of heavy

3.7.50 We have also asked that the UK and the extractive industries, Government ensures that future with the aim of returning to a trade deals do not undercut more natural but nonetheless the high agricultural and productive countryside that people environmental standards delivered can enjoy. This is an exciting by Scottish farmers. The Scottish and transformational, landscape Government published clear scale set of interventions truly proposals for the next 5 years in aimed at community payback and its stability and simplicity paper environmental improvement. aimed at providing farmers with

3.7.53 Regional Land Use Partnerships financial certainty in the face of will involve government, land Brexit. We are working to ensure owners, stakeholders and local that sustainability and inclusion lie communities working together to at the core of future trade policy meet regional priorities, whilst also and we want the emission intensity supporting our national endeavour of agricultural goods, and livestock to end Scotland’s contribution to in particular, to be a consideration climate change. when assessing future trade deals. Scottish businesses and industry Scottish public sector organisations 3.7.54 Scottish businesses and industry have a key role to play as we

3.7.51 The support and expertise of decarbonise the agriculture sector. public sector partner organisations The Scottish Government will will be vital as we take forward continue to work in partnership the policies and proposals included with stakeholders and farmers in this Plan update and a new rural to highlight solutions, as well support policy. It is important as taking forward actions in that we work in collaboration this Plan update and through and public sector partners must Update to the Climate Change Plan | Agriculture  197 the development of future rural in the consumption in fruits and support required to create a vegetables within the average sustainable Scottish agriculture Scottish diet. sector. For example, we encourage businesses to support farmers, 3.7.57 The Scottish Government crofters and land managers by encourages this healthy diet, investing in high quality Scottish and would further encourage the produce, promoting sustainability people of Scotland to consider within the agriculture sector. the positive impacts of eating The wider agricultural supply locally sourced food and, crucially, chain also has a role to reduce minimising food waste. Through their emissions and enable the buying high quality local Scottish quick adoption of new methods, produce, including red meat and equipment, tools and products. dairy products, we can work with our food production sector to

3.7.55 The private sector also has a role ensure it is produced in a truly in supporting investment in nature sustainable manner and avoid based solutions, bringing forward simply off-shoring emissions to novel approaches for natural other countries. Creating greater accounting investment vehicles security and resilience in our food that farmers and land managers supply chains will also create can access. opportunities for innovation, skills and jobs in the wider food and Individuals/households drink sector.

3.7.56 The Scottish Government has long supported the need for a 3.7.58 As has been highlighted within healthy diet, and Food Standards the waste chapter (Part 3, Chapter Scotland have a well-established 5) of this update, reduction of set of guidelines on how to achieve food waste also has an important this. This guidance includes role to play in driving emissions the need for a healthy level of reductions within Scotland, and can consumption of red meat and dairy result in significant cost saving for products and a marked increase households. 198   Update to the Climate Change Plan | Negative Emissions Technologies Chapter 8 Negative Emissions Technologies Update to the Climate Change Plan | Negative Emissions Technologies  199

3.8. Negative Emissions 3.8.3 NETs pathways with the potential to contributed to net zero in Technologies Scotland include: Ħ Bioenergy with Carbon Capture Introduction and Storage (BECCS) for electricity: this involves the use

3.8.1 Our pathway to net zero is of biomass to generate electricity focused on reducing emissions coupled with Carbon Capture from across Scotland’s economy. and Storage (CCS) to prevent the However, we also need to bring emitted carbon from entering forward key technologies which the atmosphere. As well as will compensate for residual generating electricity, the process emissions. In other words, we results in negative emissions, need technologies which will not as the carbon sequestered by just store emissions resulting from bioenergy crops when they grow energy or industrial processes, is captured and stored. but deliver a net reduction in emissions. The Climate Change Ħ Biomass/Waste Gasification and Committee (CCC) has highlighted Carbon Capture and Storage for the importance of Negative hydrogen: Biomass or waste Emissions Technologies (NETs) in gasification is a technology meeting net zero across the UK, pathway which uses heat, and the relatively greater potential steam and oxygen to convert we have in Scotland to remove and biomass or waste to hydrogen, store emissions. without combustion. The biomass or waste is heated to

3.8.2 The use of NETs can remove high temperatures to produce a carbon from the atmosphere syngas rich in hydrogen, which on a permanent basis. This is also contains carbon monoxide achieved in two stages: firstly, (CO) and CO2. This syngas can its sequestration (for example then be upgraded and separated the natural capture of carbon to sequester the carbon via CCS, emissions by plants and trees); and and produce negative carbon secondly, its capture and long term hydrogen, which can then be storage. The two primary options used for energy applications for sequestering carbon discussed across a number of sectors. in the chapter are through the Ħ BECCS in industry: in addition growth of biomass and through the to the use of negative carbon direct (technological) capture of hydrogen or electricity, there carbon from the atmosphere. There are opportunities to develop are also other ways of removing BECCS applications linked to the carbon from the atmosphere, production of industrial heat or such as through the expansion other industrial processes. of forestry, which are covered in the LULUCF Chapter of this Plan Ħ Biofuel production with Carbon update (Part 3, Chapter 6). This Capture and Storage: the chapter focuses on the removal conversion of biomass resources of carbon via technologies, rather into biofuels represents a than through land use. further pathway for the use of bioenergy, which in combination with CCS can deliver negative emissions. 200   Update to the Climate Change Plan | Negative Emissions Technologies Ħ Direct Air Carbon Capture and opportunities for decarbonisation, Storage (DACCS): this is not an including Hydrogen production and energy producing technology; fuel switching, and how the Acorn it is a process that is run for project will enable emissions to the purpose of capturing CO2 be captured in the wider Scottish from the atmosphere in order to industrial cluster. safely and permanently store it. Bioenergy Carbon Capture and Storage 3.8.7 With the exception of DACCS,

3.8.4 As this list shows, CCS is an NETs pathways depend on the essential part of any NETs project. use of bioenergy. A key part Our strategy for delivering NETs of developing NETs will be to will be built around our support for understand the implications, scale a flexible and adaptable CCS system and pace with which bioenergy in Scotland, capable of transporting resources should be focused on carbon from industrial or electricity each of the possible pathways, and generation sites in Scotland to how this interacts with other uses storage in the North Sea. for bioenergy.

3.8.5 We have already made substantial 3.8.8 For example, where we use progress in supporting the biomass grown or produced development of CCS in Scotland. in Scotland we need to fully The Acorn project in North East understand and consider the Scotland, supported by the Scottish impacts on our agriculture and Government, has developed a land use sectors. Where we import detailed delivery plan for major biomass, it will be important CCS infrastructure based at St. to do so in a way that supports Fergus. It aims to commission efforts to tackle the global climate and begin capturing and storing emergency, which means adopting emissions in 2024 and has the a sustainable way of using potential to capture and store bioenergy resources produced 10 MtCO2e per year by 2030. elsewhere, and considering the This will involve the development growing importance of bioenergy of a carbon storage site in the as a pathway to decarbonisation in North Sea capable of storing over other countries. 20 Gt of carbon in total and the repurposing of a North Sea gas Markets, regulation and revenues pipeline to deliver carbon to the 3.8.9 Developing market structures site. Further storage sites mean and support mechanisms which the total storage opportunities in can support innovative and Scottish waters is estimated at novel technologies will be 46 Gt. vitally important to growing NETs capacity. This will

3.8.6 This technology is supported require substantial changes in by the work of North East CCUS reserved policy areas by the (NECCUS), the industry body UK Government, working in bringing together action on cooperation with the Scottish decarbonisation. NECCUS will lead Government, including future the development of the Scottish carbon pricing arrangements and Net Zero Roadmap (SNZR). The the development of appropriate SNZR will identify pathways and support mechanisms. Update to the Climate Change Plan | Negative Emissions Technologies  201

3.8.10 These developments can build on The opportunities for NETs existing success stories such as 3.8.12 The potential for developing NETs Contracts for Difference, which have in Scotland, and the role that they driven the continued growth and will need to play in meeting our development of renewable electricity targets, represents a substantial generation while dramatically change from our 2018 Climate reducing the cost of energy. It is also Change Plan. This Plan update important that market structures sets out that we expect to begin recognise and reward the real value, removing emissions from the in captured carbon, and build this atmosphere through NETs by 2030, into mechanisms that value and as an important part of meeting price carbon. our climate change targets.

3.8.11 As discussed in the Industry chapter, 3.8.13 There are significant opportunities we support the implementation of in both electricity generation and a UK ETS once the UK leaves the industrial processes that can be EU, to maintain the carbon price brought forward during the 2020s, signal provided by the EU ETS. together with wider opportunities Through this we will work with to support the decarbonisation the UK Government to explore of heat and transport in the ways to value and reward negative 2030s and 2040s. Our first step emissions as well as pricing positive will therefore be to identify the emissions. Support for NETs most efficient and effective NETs needs to recognise the variety of pathways for Scotland and map technologies that will need to come these opportunities. together, and the composite and innovative nature of NETs. St Fergus Gas Plant, site of future Direct Air Capture project. Credit: North Sea Midstream Partners (NSMP) Limited. 202   Update to the Climate Change Plan | Negative Emissions Technologies

3.8.14 This will mean identifying which 3.8.17 BECCS also has deployment locations and sectors are best potential in industrial settings, suited to NETs, and how these where there are fewer alternatives can be brought together with a for decarbonisation. Bringing coordinated CCS system. We will forward projects which can take forward work urgently to produce negative carbon industrial gather this information, starting heat and hydrogen alongside with commissioning a detailed electricity has the potential to feasibility study next year. This make substantial inroads into what will give us the strongest platform is currently our highest emitting and body of knowledge possible sector. for accelerating the delivery of NETs projects during the rest of Making decisions this decade. 3.8.18 Making early decisions on where to use NETs means increasing

3.8.15 A strong and urgent focus on our understanding of both the NETs provides an opportunity for technology options and the place Scotland to be at the forefront of based options. Our initial focus will developing new technologies to be on looking across Scotland at tackle climate change, one that which sites provide opportunities can build on existing strengths: for either electricity generation or our natural resources, expertise, as industrial applications of NETs and, well as the developing pipeline of working with industrial partners, CCS projects. carrying out high level feasibility studies which link closely to the

3.8.16 The use of BECCS for electricity development of CCS. generation has the potential to deliver substantial negative 3.8.19 This work to identify feasible sites emissions across the UK. The will be carried out in parallel with CCC highlights this as the biggest our review of bioenergy so that by contributing application in 2050 in 2023 we will have the evidence its net zero report. A major retrofit to focus our resources on bringing of CCS to an existing bioenergy forward and developing specific power station at Drax in Yorkshire NETs projects. has the potential to deliver substantial negative emissions by Research and development, trial 2030. The development of BECCS and demonstration in Scotland, building on the work 3.8.20 Many of the technologies needed described in this chapter, which to deliver NETs already exist. A key will enable us to better understand challenge will be how to integrate the best uses and wider each component into an efficient implications, has real potential and commercially viable process. to turn electricity generation in Alongside our focus on developing Scotland from an emitting sector the knowledge and measures to one that delivers negative needed to bring forward large emissions overall. scale NETs projects, we will also focus innovation and industrial Update to the Climate Change Plan | Negative Emissions Technologies  203 support onto projects which raise 3.8.24 Whilst DACCS is an emerging the technological readiness of technology, there are fifteen each of the NETs pathways. This trial and demonstration direct will leverage our existing support air capture plants operating in for CCS, along with the substantial Europe, the USA and Canada. For investment in this technology example, the CarbFix project in expected from the UK Government Iceland is currently capturing over the coming decade. CO2 from the atmosphere and dissolving it in water for injection

3.8.21 We have provided £300,000 of and underground storage. There start-up and support funding to are already opportunities to scale the industrial decarbonisation up this technology. The Canadian membership body NECCUS. company Carbon Engineering is NECCUS has secured industry developing a large-scale direct air funding to develop Scotland’s capture plant in the USA that could Net-Zero Roadmap (SNZR); capture up to 1 MtCO2e each year. this will identify and highlight opportunities for carbon reduction, 3.8.25 We believe that the potential including NETs, and will form a exists to bring forward a DACCS key part of our initial feasibility demonstration plant in Scotland work. We have directly supported during the 2020s, subject to the CCS planning to date at St. Fergus appropriate consultation and through the Acorn project with planning processes. The recent £425,000. memorandum of understanding between Carbon Engineering

3.8.22 We have announced a major and Acorn CCS is consistent with fund to decarbonise industry this goal. The UK Government and manufacturing opening up launched a competition during opportunities to develop NETs 2020 to support Direct Air technologies across industry. Capture and other Greenhouse The Scottish Industrial Energy Gas removal technologies, and has Transformation Fund (SIETF) also confirmed plans to open a commits £34 million for call for evidence on these issues. projects at industrial sites for Successful projects will need energy efficiency or deeper to have access to substantial decarbonisation, including working offshore transport and storage with the industrial sector on infrastructure of the kind being feasibility and conceptual studies developed in North East Scotland. into the role of NETs.

3.8.23 We are also announcing a £100 Green recovery and million funding commitment for just transition hydrogen, as part of a wider new Emerging Energy Technologies 3.8.26 NETs have the potential to secure Fund of £180 million to support existing jobs as well as delivering the development of hydrogen new ones. If successful, existing and CCS, and which will add new industries, which are currently impetus to the development of some of Scotland’s largest carbon NETs. emitter will be able to move to a sustainable business model 204   Update to the Climate Change Plan | Negative Emissions Technologies actively supporting and reducing potential across industrial and Scotland’s emissions with every electricity sectors. By 2032, unit they produce, taking us CCS infrastructure in north east closer to net zero as their output Scotland will be able to capture increases. As outlined in the and store over 10 MtCO2e per Industry chapter, jobs in the CO2 year, facilitating low carbon management industry, a core facet technologies as well as NETs. Roll- of the Carbon Capture Utilisation out will have been enabled by and Storage(CCUS) sector, are demonstration and trial projects estimated to reach between 7,600- developed during the first half of 45,000 by 2030, and 22,000- the 2020s, and operational for 105,000 by 2050, if Scotland is several years. successful at securing 40% of the European CO2 market. 3.8.30 By 2045, we expect Scotland to benefit from a substantial

3.8.27 The criticality of CCS to NETs and mature NETs sector with means that there will be growing deployment across multiple opportunities to repurpose and applications and pathways. help transition the skills and Deployment will have been expertise currently deployed informed and guided by a detailed across the Oil and Gas sector. This evidence base, taking place in will help secure work, jobs and a way that is compatible with income for a major sector of the sustainable land use within Scottish economy, which currently Scotland. It will also support supports approximately 100,000 sustainable international trade, jobs. ensuring that the necessary bioenergy resources are available

3.8.28 The need to develop NETs research to countries around the world. and development projects, demonstration and trials, and 3.8.31 There will also be potential for to move quickly to larger scale technologies which are currently roll out, will represent a major less well developed or understood investment in our green economy, to make an impact. For example, supporting our recovery and the use of gasification and/or continued economic growth the production of biofuels may, throughout the 2020s. if the evidence shows that this is an efficient use of bioenergy, Positive vision for form part of the NETs systems in Scotland. This could create 2032 and 2045 the opportunity for negative- carbon hydrogen to support

3.8.29 By 2032, there will be major NETs decarbonisation of domestic projects operating in Scotland: buildings, services and transport, world leading developments as well as industry and electricity. capable of generating clean energy while removing greenhouse gas 3.8.32 DACCS is likely to have been emissions from our atmosphere. deployed in Scotland in a focused The demonstration and early roll- and specific way, to ensure that out of CCS achieved during the it can counterbalance any further 2020s will build the foundation residual emissions. for unlocking negative emission Update to the Climate Change Plan | Negative Emissions Technologies  205 CASE STUDY: DIRECT AIR CAPTURE Pale Blue Dot Energy, the developers significant volumes of CO2 from the behind Acorn CCS and Acorn Hydrogen air and then safely and permanently Project located at St Fergus Gas storing it deep below the seabed in terminal in North East Scotland have an offshore geological storage site. entered into a partnership with Carbon Pale Blue Dot Energy are currently Engineering, a leading provider of developing the offshore Acorn CO2 Direct Air Capture (DAC) technology storage site, which was awarded the that captures carbon dioxide out of the first UK CO2 appraisal and storage atmosphere. licence by the Oil and Gas Authority. The companies have announced their From a pilot plant in British Columbia intentions to work together to deploy Canada, Carbon Engineering has been commercial DAC projects in the UK removing CO2 from the atmosphere and have signed a Memorandum of since 2015 and converting it into fuels Understanding to collaborate on the since 2017 and is now engineering development of facilities that will its first large-scale commercial plant contribute towards the removal of in the United States that will capture millions of tonnes of CO2 from the one million tonnes of atmospheric CO2 atmosphere each year. This agreement annually – equivalent to the work of 40 marks the first partnership between million trees. a DAC technology company and a UK development partner and signifies the Acorn is aiming to be operational from next step towards establishing a UK late 2024 and the first DAC project DAC industry that will create significant could be operational approximately environmental and economic benefits. two years later. These types of greenhouse gas removal projects One of the locations being considered can help accelerate Scottish and UK by the partnership for their first UK efforts to reach net zero emissions DAC plant is close to the Acorn CCS by compensating for sectors of the project at St Fergus. The proposed economy that are challenging to DAC facility would deliver permanent decarbonise directly, such as aviation, carbon dioxide removal by capturing shipping and agriculture. 206   Update to the Climate Change Plan | Negative Emissions Technologies St Fergus Gas Plant, site of CCS Project. Credit: Shell Emissions Reduction Pathway to 2032 Negative Emissions Technologies (NETS) 0 -1 Emissions (MtCO2e) -2 -3 -4 -5 -6 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Route MapUpdate to 2032 to the Climate Change Plan | Negative Emissions Technologies  207 2020 2021 Hydrogen Policy Expert Bioenergy BEIS provides greater clarity Statement published. Working Group set up. on CCS and Hydrogen business models, and responds to Scottish Industrial Energy Detailed review of key consultation on greenhouse Transformation Fund NETs technologies and gas removal technologies. (SIETF) launched, including opportunities in Scotland £34 million over 5 years carried out. BEIS expected to publish its (2021-2026) for projects Hydrogen Strategy. at industrial sites for Scottish Government energy efficiency or Hydrogen Action First tranche of funding available deeper decarbonisation. Plan published. from the £180 million Emerging Energy Technologies Fund. 2022 Feasibility studies Demonstration projects Cross-governmental for most promising funded, exploring review of NETs NETs locations and potential roles for and bioenergy for applications in proposed Scottish Scotland to inform Scotland. Energy Technology the 2024 Climate Innovation Plan and Change Plan. Scottish Industrial Energy Transformation Fund, as well as wider UK net zero innovation funding. 2024 2030 Acorn Project Development: First delivery-scale NETs installations Ħ 2024 – CCS Demonstration begin operation. and commercialisation at St Fergus Gas Terminal; Ħ 2025 – Acorn Hydrogen, hydrogen production with CCS; Ħ 2026 – Shipped imports of CO2 for storage in the Acorn store; Ħ 2026 – Direct Air Capture and Storage operating from St Fergus. 208   Update to the Climate Change Plan | Negative Emissions Technologies The actions we 3.8.36 By 2023, in time to inform the next Climate Change Plan, we are taking will publish a Bioenergy Action Plan, incorporating the learning

3.8.33 We are announcing a new developed by the expert working Emerging Energy Technologies group and our understanding of Fund of £180 million that will the options to use Bioenergy in support the development of both NETs and other applications. hydrogen and CCS, and which will add new impetus to the CCS development of NETs. We will 3.8.37 The Industry chapter of this make £100 million available to Plan update (Part 3, Chapter 4) support hydrogen projects in provides more detail and outlines line with our Hydrogen Policy our support for achieving the Statement, and a further £80 commercialisation of CCUS within million of this funding will be the timeframe of this plan. directed to projects supporting Building on this, our funding and the development of CCS and NETs support for the development in Scotland. This funding will help of CCS, which is the keystone to deliver negative emissions, technology for delivering NETs, and complements our ambitious will ensure that the development energy transition programme, of carbon transport and storage including innovative marine energy infrastructure is designed and solutions. developed to support the delivery Bioenergy of NETs.

3.8.34 We will publish a Bioenergy 3.8.38 We will ensure that Scotland’s Update in early 2021, laying net zero roadmap developed by out our current position and NECCUS and our support for the understanding of the role of Acorn CCS based at St. Fergus bioenergy in the energy system focus on developing a flexible and setting out in more detail how CCS system in Scotland capable we will move forward. of accepting carbon from NETs projects across north east and

3.8.35 In 2021 building on the Bioenergy central belt of Scotland. This Update we will establish a will be complemented by our Bioenergy Expert Working Group £5 million Carbon Capture and to consider and identify the most Utilisation challenge fund that will appropriate and sustainable use operate between 2022 and 2024. for bioenergy resources across Scotland. It will also assess the volume of bioenergy resources that we can grow or produce within Scotland, and confirm the level of import that we believe is compatible with a sustainable global trade in bioenergy. Update to the Climate Change Plan | Negative Emissions Technologies  209 NETs Studies Our call to others

3.8.39 In 2021/22, we will carry out a detailed feasibility study of The UK Government opportunities for developing 3.8.43 The UK Government needs NETs in Scotland, ready for the to create the stable policy early 2030s. This will identify environment and incentives, specific sites and applications of including business model and NETs, including developing work financial frameworks, required to to support policy on Direct Air build confidence and enable the Capture and its role within NETs in development and commissioning our future energy system. of the first CCS facilities in the UK from the mid-2020s.

3.8.40 From 2022, based on the outcomes of this feasibility work, we will 3.8.44 This will require urgent clarity on provide support for commercial the steps that the UK Government partners to develop NETs will take to support and deploy proposals, including initial design negative emissions technologies and business cases. and capacity within the electricity generating and industrial Keeping NETs under review sectors. As part of that, the UK

3.8.41 We will put in place a continual Government must consider a process to review NETs number of characteristics of NETs development and progress against technologies: its envelope. Where progress is strong and there is clear Ħ Innovative, ground breaking indication of which technologies world firsts: The pioneering and applications are being taken nature of these projects will forward, we will be able to re- provide substantial risks to allocate the negative emissions to commercial investors. It will be specific individual sectors in the important that mechanisms are next Climate Change Plan. developed which fairly share the risks and rewards between

3.8.42 If new evidence indicates that government, industry and NETs are not developing at an consumers. Mechanisms such as appropriate rate to meet the Contract for Differences (CfDs) envelope from 2030, we will which provide support based reassess the scale and role of NETs on the output (e.g. electricity) in the next Climate Change Plan, of a NETs installations provide including any need to re-allocate one way of doing this, and emissions reductions across other Regulatory Asset Base (RAB) sectors. models where allowed rates of return on investment are agreed up front is another. 210   Update to the Climate Change Plan | Negative Emissions Technologies Ħ Use of bioenergy: a UK-wide 3.8.46 The UK government must also set framework will need to take out its view, advice and plans for account of the environmental the role of bioenergy in the energy and land use impacts of system. bioenergy production across the country as well as the Scottish businesses and industry implications for sustainable 3.8.47 The development of NETs international trade. It will in Scotland will provide an be important that support opportunity for industry in mechanisms put in place to Scotland to pioneer ways which develop NETs don’t lead to can deliver their long term unintended and negative sustainability. To deliver this, we consequences for land use or need Scottish business to commit global sustainability. to helping us understand and Ħ Complex, multi-component deliver NETs. By doing so they projects: NETs projects will will be developing world-leading need to link many large scale technologies and processes, giving processes in a coordinated way. them a global edge. For example BECCS in industry

3.8.48 We need business to work with or electricity generation means us to help understand where adapting existing and already and when NETs can be used complex processes, for example in their processes, and what converting from fossil fuel to support is needed to bring NETs bioenergy and combining these investment forward. Through our with new systems to capture, Emerging Energy Technologies transport and store the carbon Fund and Scottish Industrial emissions. Energy Transformation Fund we Ħ Negative emissions: unlike will provide substantial financial existing industries with support to developing projects. In positive emissions, the role of return we need business to engage mechanisms which price carbon constructively, helping us identify will be to reward NETs for the potential projects, and showing carbon it removes from the how these can fit within the wider atmosphere. It is important that development of CCS infrastructure, the UK Government explores and our overall whole system options for valuing and pricing approach to developing the negative as well as positive energy system. emissions.

3.8.45 In December 2020 the UK Government published a consultation and call for evidence on greenhouse gas removal153. The Scottish Government will take this opportunity to engage with stakeholders on the issues raised, and to submit a measured response. 153 https://www.gov.uk/government/consultations/greenhouse-gas-removals-call-for-evidence Update to the Climate Change Plan | Annexes  211 ANNEXES Annexes 212   Update to the Climate Change Plan | Annexes Annex A – Policies and Proposals in the Climate Change Plan Electricity Outcome 1: The electricity system will be powered by a high penetration of renewables, aided by a range of flexible and responsive technologies. Policy: Support the development of a wide range of renewable technologies by addressing current and future challenges, Maintained including market and policy barriers. Support improvements to electricity generation and network asset management, including network charging and access Maintained arrangements that encourage the deployment and viability of renewables projects in Scotland. Publish a revised and updated Energy Strategy, reflecting our Boosted commitment to net zero and key decisions on the pathways to [March 2020] take us there. Develop and publish a Hydrogen Policy Statement by the end Boosted of 2020, followed by a Hydrogen Action Plan during 2021. [2020-2021 PfG] A new renewable, all energy consumption target of 50% by Maintained 2030, covering electricity, heat and transport. Proposals: Introduce a new framework of support for energy technology innovation, delivering a step change in emerging technologies New funding to support the innovation and commercialisation of [CCPu 2020] renewable energy generation, storage and supply. Renewed focus on developing local energy projects and models, including through CARES, supporting the achievement Maintained of 1GW and 2GW of renewable energy being in Local Community ownership by 2020 and 2030. We will carry out detailed research, development and analysis New during 2021 to improve our understanding of the potential to [CCPu 2020] deliver negative emissions from the electricity sector. Update to the Climate Change Plan | Annexes  213 We will continue to review our energy consenting processes, making further improvements and efficiencies where possible, New and seeking to reduce determination timescales for complex [CCPu 2020] electricity generation and network infrastructure applications. We will deliver the actions from our Offshore Wind Policy Statement, published in October. These actions, ranging from New support for supply chain, planning, innovation and skills, will [CCPu 2020] support the development of between 8 and 11 GW off offshore wind capacity by 2030. Accelerate our work with aviation, energy and other Boosted stakeholders to ensure that all radars are wind turbine [CCPu 2020] tolerant/neutral during the coming decade. Review and publish an updated Electricity Generation Policy New Statement ahead of the next Climate Change Plan. [CCPu 2020] Outcome 2: Scotland’s electricity supply is secure and flexible, with a system robust against fluctuations and interruptions to supply. Policy: Support the development of technologies which can deliver sustainable security of supply to the electricity sector in New Scotland and ensure that Scottish generators and flexibility [CCPu 2020] providers can access revenue streams to support investments. Proposals: Press the UK Government for market mechanisms and incentives which recognise locational value, both for energy Maintained and for security of supply, and which do not create undue barriers for investment in Scotland. Collaborate on actions to support investment in new pumped Maintained storage hydro capacity. Work with all parties to secure maximum benefits from the move towards smarter and more flexible electricity systems Maintained and networks, as set out in the UK Smart Systems and Flexibility Plan (2017). Encourage and support increased interconnection which can enhance Scottish system security while considering effects on Maintained domestic capacity and investment. 214   Update to the Climate Change Plan | Annexes Launch a call in 2021 for evidence and views on technologies that can transform our electricity system, including energy storage, smart grid technologies, and technologies to deliver New sustainable security of supply. This will help ensure that our [CCPu 2020] funding and interventions support world leading activity in Scottish based companies. Develop a series of whole system energy scenarios to guide New infrastructure investment decisions for Scotland. [CCPu 2020] Ensure that sustainable security of electricity supply is New included as a priority within future Scottish Government [CCPu 2020] energy innovation funding programmes. Outcome 3: Scotland secures maximum economic benefit from the continued investment and growth in electricity generation capacity and support for the new and innovative technologies which will deliver our decarbonisation goals. Proposals: Press the UK Government to further reform and maintain the CfD mechanism in a manner which better captures the New economic benefits and total value added for the Scottish and [CCPu 2020] UK supply chains. Introduce new requirements for developers to include supply New chain commitments when applying to the ScotWind leasing [CCPu 2020] process run by Crown Estate Scotland. Identify and support major infrastructure improvements to New ensure that Scotland’s supply chain companies and facilities [CCPu 2020] can benefit from the continued growth of renewable energy. Update to the Climate Change Plan | Annexes  215 Buildings Outcome 1: The heat supply to our homes and non-domestic buildings is very substantially decarbonised, with high penetration rates of renewable and zero emissions heating Outcome 2: Our homes and buildings are highly energy efficient, with all buildings upgraded where it is appropriate to do so, and new buildings achieving ultra-high levels of fabric efficiency Policy: Energy Company Obligation (ECO) requires obligated energy supply companies to deliver energy efficiency measures Maintained in homes – mainly insulation-based measures and boiler replacements. Energy Efficient Scotland Delivery Schemes: Ħ Area Based Schemes and Warmer Homes Scotland. Ħ Home Energy Scotland Advice Service and Loans. Boosted Ħ Home Energy Scotland cashback scheme for zero emissions [2020-2021 PfG] heating technologies and energy efficiency measures - boosted. Ħ SME Advice Service and Loans. Ħ SME cashback scheme for zero emissions heating technologies and energy efficiency measures - boosted. Review support programmes We will review existing Scottish Government funding schemes Boosted to ensure that they support the deployment of low and zero [2020-2021 PfG] emissions heat. We will expand the provision of loans to the SME sector, and enhance the wider energy efficiency and heat advice service and provision of tailored start-to-end support. Procure a new national delivery scheme, to replace the existing Boosted Warmer Homes Scotland contract, to open in 2022. [CCPu 2020] Energy Efficiency Standard for Social Housing: will be met by Maintained social landlords by 2020. 2024 New Build Zero Emissions from Heat Standard: requiring Boosted new buildings to have zero emissions heating systems. [2020-2021 PfG + CCPu] 216   Update to the Climate Change Plan | Annexes Review of energy standards within building regulations. The review investigates the potential for further, significant improvement on 2015 standards and how building standards Maintained can support other carbon and energy policy outcomes, including our decarbonisation of heat agenda. Heat in Buildings regulation: Put in place regulation to increase uptake of zero emissions heating systems and improve energy efficiency standards across all tenures, prioritising the raising of standards for households living in fuel poverty. Boosted [2020-2021 PfG] Re-introduce revised regulations to the Scottish Parliament requiring mandatory minimum energy efficiency standards for the Private Rented Sector, to come into force from 2022. Low Carbon Infrastructure Transition Programme (LCITP) - Boosted supports investment in decarbonisation of business and the [2020-2021 PfG] public sector. Expanded £1.6bn Heat in Buildings capital funding over the next parliament Building on the Low Carbon Infrastructure Boosted Transition Programme (LCITP) and existing energy efficiency [2020-2021 PfG] and zero emissions heat support programmes. Non Domestic Public Sector Energy Efficiency (NDEE) Framework: A four year framework launched in March 2016, designed to support public and third sector organisations to procure Energy Efficiency retrofit work. The Framework will continue for a Maintained further four years commencing in 2020. NDEE Support Unit accelerates the number of projects and delivery timescales of public sector energy efficiency projects using the NDEE Framework and supports our wider ambitions around energy demand reduction. The Renewable Heat Incentive (RHI) - a GB-wide scheme created by the UK Government (with the agreement of the Boosted Scottish Government). UK Government is extending both the [August 2020] domestic and non-domestic RHI out to 2022. UK Green Gas Support Scheme - a GB-wide Green Gas Scheme New is planned to come into force in 2022, stimulating biomethane [UK Government injection into the gas grid. announcement] UK Clean Heat Grant - a GB-wide Clean Heat Grant is planned New to come into force in 2022, supporting uptake of heat pumps [UK Government (and limited biomass boilers) via up-front grants. announcement] Support for Heat Networks: the District Heating Loan Fund helps address the financial and technical barriers to district Maintained heating projects by offering low interest loans. Update to the Climate Change Plan | Annexes  217 Implement the provisions of the Heat Networks (Scotland) Bill Boosted to create a strong regulatory framework to support delivery by [2020-2021 PfG] 2023. Continue to support the Heat Network Partnership - a collaboration of agencies focused on the promotion and Maintained support of district heating schemes in Scotland. Net Zero Carbon Public Sector Buildings Standard will be Boosted introduced in 2021 and progressively rolled out across the [2020-2021 public sector, as announced in the Programme for Government PfG + CCPu] 2019. Local Heat and Energy Efficiency Strategies (LHEES) will be in place by the end of 2023, setting out preferred heat Boosted solutions zones, guiding building owner decision making about [2020-2021 replacement heating systems, and forming the basis for local PfG + CCPu] delivery plans targeting heat and energy efficiency investment. Assessment of Energy Performance and Emissions Regulations (Non-Domestic Buildings) - The Assessment of Energy Performance of Non-domestic Buildings (Scotland) Regulations 2016 require assessment of the energy performance and emissions of larger non-domestic buildings (those over Maintained 1,000 m²). A review programmed for 2021 will investigate and consult upon amended scope of standards and more challenging improvement targets to create a viable pathway for all existing non-domestic buildings to deliver the level of energy demand and emissions reductions needed. Support for community low and zero emissions heat projects Boosted through CARES. [2020] Salix financing facility to support investment in non-domestic buildings retrofit. Maintained Work with social landlords to bring forward the review of the existing Energy Efficiency Standard for Social Housing Boosted (EESSH2) with a view to strengthening and realigning the [CCPu 2020] standard with net-zero requirements. Work with our partners, including the UK Government, local authorities and utility providers to determine the best Boosted approach to heat decarbonisation for buildings currently [CCPu 2020] heated by natural gas. Review the system of building assessments and reports on energy performance and heat to ensure a system that is fit for Boosted purpose in meeting net zero emissions objectives for heat in [CCPu 2020] buildings. 218   Update to the Climate Change Plan | Annexes Work with stakeholders to further understand and support the application and use of low and zero emissions heating within New designated historic environment assets and hard to treat [CCPu 2020] buildings. Develop and introduce future regulation for non-domestic Boosted buildings and launch a consultation on these proposals. [CCPu 2020] Undertake work to identify the capacity and output of New renewable electricity generation required in Scotland to [CCPu 2020] support the projected roll-out of heat pumps. Consider whether to extend Permitted Development Rights New for zero-emission heat networks and micro-renewable [CCPu 2020] technologies. Undertake work to better understand the impact on electricity networks of projected heat pump deployment. Work with the Distribution Network Operators through the Heat Electrification Partnership to build an evidence base to inform business planning. New [CCPu 2020] Work with industry and networks to understand need for heat pumps systems to be smart enabled, and identify options to integrate smart systems into our delivery programmes; and to explore how innovation can help to improve the consumer experience. Support heat networks through: Introducing a Non-Domestic Rates Relief for renewable and low carbon heat networks until 2023/24. Working to identify how new buildings in Heat Network Zones could be made ready to connect to heat networks. New [CCPu 2020] Including district heating within the Permitted Development Rights review. Through National Planning Framework 4, ensuring that local development plans take account of where a Heat Network Zone has been identified. Explore how local tax powers could be used to incentivise or New encourage the retrofit of buildings, and commission further [CCPu 2020] analysis to identify potential options. Design future delivery programmes to ensure significantly New accelerated retrofit of buildings, with new programmes to be in [CCPu 2020] place from 2025. Update to the Climate Change Plan | Annexes  219 Outcome 3: Our gas network supplies an increasing proportion of green gas (hydrogen and biomethane) and is made ready for a fully decarbonised gas future Policy: Hydrogen for heat demonstrator – providing £6.9m support for Boosted SGN’s H100 hydrogen for domestic heat demonstrator. [2020-2021 PfG] Work with UK Government on product standards, with a view New to making new gas boilers hydrogen-ready. [CCPu 2020] Outcome 4: The heat transition is fair, leaving no-one behind and stimulates employment opportunities as part of the green recovery Policy: Develop a long-term public engagement strategy in 2021 and New begin implementation of early actions. [CCPu 2020] Smart Meter installation: All homes and businesses will be offered a smart meter by 2020 under a UK Government Maintained initiative, providing the opportunity for a greater understanding of final energy consumption. Work with the Scottish Cities’ Alliance and the seven cities on New the opportunities to accelerate activity on heat and energy [CCPu 2020] efficiency. Provide capital investment for Scottish colleges for equipment New to deliver training for energy efficiency and heat. [CCPu 2020] Respond to the recommendations of the Expert Advisory Group New on a heat pump sector deal for Scotland, by Q1 2022. [CCPu 2020] Bring forward and support demonstrator projects, such as: hybrids and high temperature heat pumps; the use of hydrogen New for space and water heating; projects to understand the impact [CCPu 2020] of heat transition on existing energy networks. Publish a ‘Heat Network Investment prospectus’ in 2021/22 New - a first-cut of HN Zones across Scotland, combined with [CCPu 2020] information on decarbonisation needs of existing networks. Establish a short life working group on finance for the heat New transition. [CCPu 2020] 220   Update to the Climate Change Plan | Annexes Establish principles to underpin our commitment to ‘no-one being left behind’ in the heat transition, ensuring our approach neither increases the fuel poverty rate nor increases the New depth of existing fuel poverty. This will include the effective [CCPu 2020] design and targeting of our fuel poverty and heat in buildings programmes. Ensure Local Heat and Energy Efficiency Strategies are New developed through extensive engagement with local [CCPu 2020] communities. Continue delivery of energy efficiency investment to support fuel poor households and conduct further modelling and New analysis to better understand the potential impact of the [CCPu 2020] heat transition on fuel poor households and the scale of, and options for, mitigation that may be required. Urge the UK Government to rebalance levy costs on energy New bills to make gas and electric systems relatively more cost [CCPu 2020] comparable. Update to the Climate Change Plan | Annexes  221 Transport Outcome 1: To address our overreliance on cars, we will reduce car kilometres by 20% by 2030 Policy: If the health pandemic has moved to a phase to allow more certainty on future transport trends and people’s behaviours New – and work and lifestyle choices future forecasting – we will [CCPu 2020] publish a route-map to meet the 20% reduction by 2030 in 2021. Commit to exploring options around remote working, in New connection with our work on 20-minute neighbourhoods and [2020-2021 PfG] work local programme. COVID-19 has impacted on how we work. We launched a Work Local Challenge to drive innovation in work place choices and New remote working to support flexible working and our net zero [2020-2021 PfG objectives. We will work with the UK Government on options to review fuel duty proposals, in the context of the need to reduce New demand for unsustainable travel and the potential for revenue [CCPu 2020] generation. We will work with local authorities to continue to ensure New that their parking and local transport strategies have proper [For CCPu 2020 appreciation of climate change, as well as the impact on all – although road users, including public transport operators, disabled continuation of motorists, cyclists and pedestrians. work already underway To support the monitoring requirement for the National Transport Strategy set out in the Transport (Scotland) Act 2019, New and to further our understanding of how and why people [CCPu 2020] travel, we will develop a data strategy and invest in data. Continue to support the Smarter Choices, Smarter Places (SCSP) programme to encourage behaviour change. Continue to support the provision of child and adult cycle training, and Maintained safety programmes including driver cycling awareness training through Bikeability. 222   Update to the Climate Change Plan | Annexes Support transformational active travel projects with a £500 million investment, over five years, for active travel infrastructure, access to bikes and behaviour change schemes. Enabling the delivery of high quality, safe walking, wheeling Boosted and cycling infrastructure alongside behaviour change, [2020-2021 PfG] education and advocacy to encourage more people to choose active and sustainable travel. Support the use of E-bikes and adapted bikes through interest free loans, grants and trials. We have re-purposed almost £39 million of active travel funding for the Spaces for People; this is enabling local authorities to put in place the temporary measures such as New pop-up cycle lanes and widening walkways that are needed to [2020-2021 PfG] allow people to physically distance during transition out of the COVID-19 lockdown. Support increased access to bikes for all including the New provision of public bike and e-bike share. Throughout 2019-2020 Mobility as a Service and increased use of peer to peer car sharing which will help reduce the number journeys made by car. To do this we are harnessing innovation within our transport system through investing up to £2 million over three years to develop ‘Mobility as a Service’ (MaaS) in Scotland. We will grant funding CoMoUK to increase awareness of the role New and benefits of shared transport and looking at the barriers to [PfG 2018] uptake of car clubs. We will provide support for travel planning through Travelknowhow Scotland, which is an online resource which offers employers access to sustainable travel planning tools to develop and implement workplace Travel Plans and encourage ride-sharing in order to start changing travel behaviour within organisations. We will work to improve road safety, ensuring people feel safe with appropriate measures in place to enable that. We will publish Scotland’s Road Safety Framework to 2030, following New consultation on an ambitious and compelling long‑term vision [2020-2021 PfG] for road safety where there are zero fatalities or serious injuries on Scotland’s roads by 2050. We are committed to taking forward policy consultation in New advance of drafting supporting regulations and guidance to Throughout enable local authorities to implement workplace parking levy 2019-2020 schemes that suit their local circumstances. We will bring forward a step change in investment with over £500 million to improve bus priority infrastructure to tackle the impacts of congestion on bus services and raise bus New usage. We will launch the Bus Partnership Fund in the coming [2020-2021 PfG] months to support local authorities’ ambitions around tackling congestion. Update to the Climate Change Plan | Annexes  223 We remain committed to delivering a national concessionary New travel scheme for free bus travel for under 19s, and have [2020-2021 PfG begun the necessary preparations including planning, research, & Budget 2020] legal review and due diligence. We are also carrying out a review of discounts available on public transport to those under the age of 26 – due for New completion end of December 2020 (with consultation planned [2020-2021 PfG] on young people’s views on the impacts of COVID 19 and post lockdown measures on public transport usage and behaviour). Delivery of our first Active Freeways - segregated active travel New routes on main travel corridors connecting communities and [CCPu 2020] major trip attractors. Outcome 2: We will phase out the need for new petrol and diesel cars and vans by 2030 Policy: We will consider and develop new financing and delivery Boosted models for electric vehicle charging infrastructure in Scotland [2019-2020 PfG] and working with the Scottish Future Trust to do so. We have invested over £30m to grow and develop the ChargePlace Scotland network which is now the 4th largest in Maintained the UK. We will continue to develop the capacity of the electric vehicle charging network. Our Low Carbon Transport Loan has provided over £80m of funding to date to support the switch to low carbon vehicles. We will continue to support the demand for ultra-low emission Maintained vehicles (ULEVs) through our Low Carbon Transport Loan scheme, which is now being expanded to include used electric vehicles. We will continue to promote the uptake of ULEVs in the taxi Maintained and private hire sector. Continue to promote the benefits of EVs to individuals and fleet operators (exact nature of promotion to be decided Maintained annually). We will work with public bodies to phase out the need for any Boosted new petrol and diesel light commercial vehicles by 2025. [2019-2020 PfG] We will support the public sector to lead the way in transitioning to EVs, putting in place procurement practices that encourage EVs. In the Programme for Government we Boosted committed to work with public bodies to phase out the need [2019-2020 PfG] for any new petrol and diesel light commercial vehicles by 2025. 224   Update to the Climate Change Plan | Annexes Create the conditions to phase out the need for all new petrol New and diesel vehicles in Scotland’s public sector fleet by 2030. [2019-2020 PfG] We will continue to invest in innovation to support the Maintained development of ULEV technologies and their adoption. Take forward the initiatives in respect of connected and Maintained autonomous vehicles set out in A CAV Roadmap for Scotland. With local authorities and others, evaluate the scope for incentivising more rapid uptake of electric and ultra-low Maintained emission cars and vans. Outcome 3: To reduce emissions in the freight sector, we will work with the industry to understand the most efficient methods and remove the need for new petrol and diesel heavy vehicles by 2035. Policy: To support businesses we will establish a Zero Emission New heavy duty vehicle programme and will invest in a new zero [2020-2021 PfG] drivetrain testing facility in 2021. Explore the development of green finance models to help New business and industry to invest in new road transport [CCPu 2020] technologies. We will engage with industry to understand how changing technologies and innovations in logistics (including New consolidation centres) can help to reduce carbon emissions, [CCPu 2020] particularly in response to the increase in e-commerce. Continue to investigate the role that other alternative fuels, such as hydrogen, and biofuel can play in the transition to a decarbonised road transport sector. Consider the scope for Maintained testing approaches to alternative fuels infrastructure and supply. Launched the new Hydrogen Accelerator Programme to attract New technical experts to help scale up and quicken the deployment [July 2020] of hydrogen technologies across Scotland. Update to the Climate Change Plan | Annexes  225 Outcome 4: We will work with the newly formed Bus Decarbonisation Taskforce, comprised of leaders from the bus, energy and finance sectors, to ensure that the majority of new buses purchased from 2024 are zero-emission, and to bring this date forward if possible. Policy: We have introduced a revised green incentive of the Bus New Service Operators Grant. [April 2019] We launched a £9 million Scottish Ultra Low Emission Bus New Scheme (SULEBS). [August 2020] In the context of the National Transport Strategy Delivery Plan and Transport Act, we will examine the scope for climate Maintained change policies, in relation to buses, across the public sector in high-level transport legislation strategies and policies. We will work to align government financial support of £120 New million over the next 5 years with private sector investment to [CCPu 2020] decarbonise the bus sector. Outcome 5: We will work to decarbonise scheduled flights within Scotland by 2040. Policy: We will aim to create the world’s first zero emission aviation New region in partnership with Highlands and Islands Airports [New Green Deal Limited (HIAL). This will include taking action to decarbonise 2019] airport operations in the HIAL region. We will begin trialling low or zero emission planes in 2021. New [2020-2021 PfG] The Scottish Government will continue to engage with Aviation New sector to encourage sustainable growth post COVID-19. [CCPu 2020] Explore the potential for the purchase of zero/low emission aircraft by the Scottish Government, for lease back to New operators, with more detailed assessment in the forthcoming [CCPu 2020] Aviation Strategy. Explore options for incentivising the use of more sustainable New aviation fuel as we develop our Aviation Strategy, recognising [CCPu 2020] that significant levers in this area are reserved. 226   Update to the Climate Change Plan | Annexes Outcome 6: Proportion of ferries in Scottish Government ownership which are low emission has increased to 30% by 2032. Policy: Continue to examine the scope for utilising hybrid and low carbon energy sources in the public sector marine fleet as part Maintained of our vessel replacement programme. Working with the UK Government to support proposals at the International Maritime Organisation (IMO) to significantly New lower shipping carbon emissions in the global sector, including [2020-2021 PfG] the option of introducing a global levy on marine fuel to fund research in cleaner technologies and fuels. Outcome 7: By 2032 low emission solutions have been widely adopted at Scottish ports Policy: Working with individual ports and the British Ports Association New to consider a process for encouraging shared best practice [CCPU 2020] initiatives for reducing emissions across the sector. Working with the ports sector and with its statutory consultees New through the Harbour Order process to ensure future port [CCPU 2020] developments are environmentally underpinned. Outcome 8: Scotland’s passenger rail services will be decarbonised by 2035. Policy: Our commitment to decarbonise (the traction element of) Scotland’s railways by 2035 will be delivered through investment in electrification and complementary alternative New traction systems. Transport Scotland has published the Rail [2020-2021 PfG] Services Decarbonisation Action Plan (July 2020) which will be updated as appropriate. Work is ongoing by industry partners to develop the initial schemes. We will establish an international rail cluster in Scotland New to unlock supply chain opportunities using the interest at [Part of Rail Longannet as a catalyst. This will be built around existing Services strengths in rail in Scotland and will seek to enhance the Decarbonisation innovation and supply chain in the decarbonisation of our Action Plan, rolling stock and wider network. July 2020] Continue to deliver our Rail Freight Strategy. Maintained Update to the Climate Change Plan | Annexes  227 Industry Outcome 1: Scotland’s Industrial sector will be on a managed pathway to decarbonisation, whilst remaining highly competitive and on a sustainable growth trajectory. Policy: Emissions Trading Scheme (ETS): following EU Exit we will work with UK Government and other devolved administrations on maintaining carbon pricing that is at least as ambitious as the Boosted EU ETS. The Scottish Government’s preference is to establish a [June 2020] UK ETS will have an interim cap 5% tighter than the EU ETS, and will be reviewed for consistency with Net Zero in 2021. Deliver an Energy Transition Fund (ETF) to provide support New for a sustainable, secure and inclusive energy transition in the [June 2020] North-East. Establish and deliver a Scottish Industrial Energy Transformation Fund (SIETF) – to support the decarbonisation New of industrial manufacturing through a green economic [2020-2021 PfG] recovery. Making Scotland’s Future: multi-faceted programme will boost manufacturing productivity, innovation, and competitiveness, New supporting manufacturing businesses to make the transition [December to net zero and realise the opportunities of a low carbon 2020] economy. Low Carbon Manufacturing Challenge Fund: to support innovation in low carbon technology, processes and New infrastructure. Will be based on successful delivery of ERDF [2020-2021 PfG] funded Advancing Manufacturing Challenge Fund. The Renewable Heat Incentive (RHI) is a GB-wide scheme created by the UK Government (with the agreement of the Boosted Scottish Government). UK Government is extending both the [August 2020] domestic and non-domestic RHI out to 2022. Proposals: Scottish Industrial Decarbonisation Partnership (SIDP): Scottish Government -convened cross-sector energy-intensive- industrial (EII) stakeholder forum with representatives from New manufacturing sites. Initial objectives: bring together other [CCPu 2020] initiatives; build a shared narrative between government/ industry on decarbonisation; and disseminate best-practice. 228   Update to the Climate Change Plan | Annexes Deliver a Net Zero Transition Managers Programme to embed Managers in organisations tasked with identifying, quantifying New and recommending decarbonisation opportunities for the [CCPu 2020] business. Establish a Grangemouth Future Industry Board (GFIB) – forum to coordinate public sector initiatives on growing New economic activity at the Grangemouth industrial cluster, whilst [2020-2021 PfG] supporting its transition to our low-carbon future. Develop policy on providing market-benefit for Scottish New industries that invest to decarbonise production. [CCPu 2020] Green Jobs Fund, to help businesses create new, green jobs, working with enterprise agencies to fund businesses that provide sustainable or low carbon products and services to help New them develop, grow and create jobs. Further funding will help [2020-2021 PfG] to ensure that businesses and supply chains across Scotland can capitalise on our investment in low carbon infrastructure such as the decarbonisation of heating and green transport. Seizing the economic opportunity, we will work across government, enterprise agencies and the innovation system to identify strengths that can be built on as part of the New decarbonisation journey, for example on The Clyde Mission and [CCPu 2020] continued support for the Michelin Scotland Innovation Parc (MSIP). Outcome 2: Technologies critical to further industrial emissions reduction (such as carbon capture and storage and production and injection of hydrogen into the gas grid) are operating at commercial scale by 2030 Policy: ACORN CCS Project: support the delivery of the CCS and Hydrogen capability at St. Fergus Gas Processing complex by Maintained 2025. Establish and deliver a Carbon Capture and Utilisation (CCU) New Challenge Fund. [2020-2021 PfG] Proposals: Emerging Energy Technologies Fund – to support the New development of Hydrogen, CCUS and Negative emissions [CCPu 2020] technologies. Carbon Capture Utilisation and Storage (CCUS): work closely with Boosted the UK Government to get commercial, policy and regulatory [2020-2021 PfG] frameworks required to support CCUS at scale in the UK.” Update to the Climate Change Plan | Annexes  229 Forums for CCUS and Blue (low-carbon) Hydrogen: to bring Boosted together industry, academics and membership organisations to [NECCUS 2019] promote and attract investment in CCUS and Blue Hydrogen. Evidence for CCUS and Blue Hydrogen: building the evidence Boosted base on impact of technology, regulatory and market barriers. [PfG 2020/21] Strategic development of Scotland’s hydrogen economy - This Boosted is a cross-portfolio proposal that will impact on the delivery of [Hydrogen Assessment multiple outcomes. and Policy Statement 2020] Hydrogen Demonstration: to replicate and scale-up Boosted demonstration projects and the evidence base for hydrogen- [Hydrogen Assessment based technologies. and Policy Statement 2020] 230   Update to the Climate Change Plan | Annexes Waste and the Circular Economy Outcome 1: Reduction in waste sent to landfill Policy: End landfilling of biodegradable municipal waste by 2025, reduce the percentage of all waste sent to landfill to 5% by 2025 and recycle 70% of all waste by 2025 by: Ħ Developing a new route map to reduce waste and meet our waste and recycling targets for 2025 in a way that maximises their carbon savings potential. Ħ Developing a post-2025 route map for the waste and resources sector, identifying how the sector will contribute towards Scotland’s journey towards net zero in the period to 2030 and beyond. Ħ Establishing a £70m fund to improve local authority Boosted recycling collection infrastructure. [2020-2021 PfG] Ħ In line with EU requirements, further promoting reuse and recycling ensure separate collection of textiles by 2025; and ensuring that bio-waste (e.g. garden waste), is either separated and recycled at source, or is collected separately and is not mixed with other types of waste by 2023. Ħ In response to the Committee on Climate Change’s (CCC’s) latest recommendations, it is our intention to extend the forthcoming ban on biodegradable municipal waste to landfill to include biodegradable non-municipal wastes, subject to appropriate consultation and work to provide assurance around some specific waste streams. Work with COSLA in the coming year to evaluate the Boosted Household Recycling Charter and review its Code of Practice as [2020-2021 PfG] a key step in developing a future model of recycling collection. Underpinning this we will take steps to improve waste data, continuing to work with UK Government, other devolved governments and agencies to develop electronic waste Boosted tracking, which will help deliver a step change in the quality [Low Carbon and usefulness of waste data for decision making. This will Fund 2020] include taking the necessary steps alongside SEPA to drive implementation of the system in Scotland. Electronic waste tracking fund Improved waste data system New will help drive further progress to deliver on existing waste [Low Carbon and recycling targets. Fund 2020] Update to the Climate Change Plan | Annexes  231 Outcome 2: Reduction in emissions from closed landfill sites. Policy: Accelerate Landfill Gas Capture and Landfill Legacy Management: we will work with SEPA and key industry Boosted partners to scale up the existing landfill gas capture [Low Carbon programme to mitigate effects of landfill and environmental Fund 2020] impact of closed landfill sites. Proposals: Landfill gas capture on closed sites: in association with SEPA and the waste industry, double the number of landfill gas capture sites that undertake investigative or development Boosted work (from 12 to 24 sites) by 2025, in order to harness energy [Low Carbon generated from landfill gas capture and maximise other circular Fund 2020] economy opportunities. SEPA has already identified 12 sites for potential investigative work. Outcome 3: A reduction in food waste Policy: We will lead collaborative efforts to deliver Scotland’s landmark Food Waste Reduction Action Plan. To reduce food waste by 33% from the 2013 baseline by 2025. Actions include: Ħ Improving monitoring and infrastructure by considering a mandatory national food waste reduction target and mandatory reporting of Scotland’s food surplus and waste by food businesses. Ħ Consulting on the current rural exemption and food separation requirements for food waste collections, to help break down barriers to food waste reuse and recycling. Boosted Ħ Supporting leadership, innovation, effectiveness and [FWRAP efficiency in Scotland’s public, private and hospitality published 2019; sectors by expanding pilot programmes across the 2020-2021 PfG] education sector and public sector buildings; Ħ Support the development and implementation of an NHS Scotland national action plan on food waste; Ħ Develop best practice guidance for public sector procurement teams to drive new ways of working and more transparent supply chains. Ħ A sustained approach to public engagement and communications to enable the public to make changes in their choices and behaviours around food and food waste, in partnership with Zero Waste Scotland. 232   Update to the Climate Change Plan | Annexes Outcome 4: Reduce waste and establish a more circular economy, where goods and materials are kept in use for longer. Proposals: We will work with local authorities and the future DRS scheme administrator(s) to explore options that will unlock reprocessing New investments, including pricing and incentive schemes, to create [2020-2021 PfG] jobs and a ready supply of recycled material for new packaging. Measures to encourage more sustainable consumer purchasing, including plans to take further steps to consult on a charge on Boosted single use disposable beverage cups and to increase the carrier bag [2020-2021 PfG] minimum charge from 5p to 10p in this parliamentary session. Banning priority single use items: We will consult on banning a number of problematic plastic items identified in the EU’s Single Use Plastics Directive (with a view to introducing legislation New in 2021) and outline how we will give effect to the wider [2020-2021 PfG] requirements of the Directive before the end of 2020. Implementation of our Deposit Return Scheme (DRS) for single use drinks containers. Maintained We will also work collaboratively across the public sector developing tools and guidance and a practical approach to influence and empower buyer, supplier and key stakeholder communities to use public New procurement to support a green recovery and our wider climate and [2020-2021 PfG] circular economy ambitions through procurement, embedding climate considerations in organisational procurement strategies by 2021 and reporting progress in annual procurement reports. Reforming extended producer responsibility schemes: We will continue to work with the UK Government and other devolved New administrations on reforms to the packaging extended producer [2020-2021 PfG] responsibility regime, which we expect will deliver improved funding for local authorities in the future. We are boosting our commitment to building a circular economy, where goods and materials are kept in use for longer. We will deliver this by embedding circular recovery principles in the wider green recovery. Through Zero Waste Scotland and Scottish Boosted Environment Protection Agency (SEPA), we will intensify our work [CCPu 2020] with industry and businesses to address emissions associated with production, consumption and waste of products/resources; and to promote resource efficiency. In the context of the latest CCC recommendations and building on progress already made by the sector, we will consider measures New to ensure new energy from waste plants are more efficient, and [CCPu 2020] ‘future-proofed’ for Carbon Capture and Storage technology. As part of our work on developing a route map to 2025, we will undertake a specific and focused piece of work to examine the range New of fiscal measures used by other countries to incentivise positive [CCPu 2020] behaviours and to develop proposals to go further in this area. Update to the Climate Change Plan | Annexes  233 Land Use, Land Use Change and Forestry Outcome 1: We will introduce a stepped increase in the annual woodland creation rates from 2020-2021 to enhance the contribution that trees make to reducing emissions through sequestering carbon. Policy: Forestry grants: we will provide funding via a grant scheme, to Boosted support eligible land owners establish appropriate woodlands. [2020-2021 PfG] Woodland creation on Scotland’s national forests and land. Forestry and Land Scotland will deliver an annual contribution towards the overall woodland creation target by creating new Maintained sustainable woodland on Scotland’s national forests and land, including through partnerships with external organisations to scale carbon capture opportunities. Awareness-raising. We will continue to deliver a programme of farm-based events to demonstrate and support improved Maintained productivity through integration of farming and forestry enterprises. Woodland standards. The Scottish Government will lead on the work with the UK and other UK Governments to maintain and develop a UK Forestry Standard that articulates the consistent UK wide approach to sustainable forestry. The Standard Maintained defines how woodland should be created and managed to meet sustainable forest management principles and provides a basis for monitoring. Woodland carbon capture. The Scottish Government will further develop and promote the Woodland Carbon Code in partnership with the forestry sector, and will work New with investors, carbon buyers, landowners and market [CCPu 2020] intermediaries to attract additional investment into woodland creation projects and increase the woodland carbon market by 50% by 2025. 234   Update to the Climate Change Plan | Annexes Forestry and woodland strategies. Forestry and woodland strategies continue to be prepared by planning authorities, with support from Scottish Forestry. They provide a framework Maintained for forestry expansion through identifying preferred areas where forestry can have a positive impact on the environment, landscape, economy and local people. Proposals: Support forestry sector on plant and seed supply strategy to help meet the increased planting targets. A programme of technical innovation to develop and adapt modern horticultural New practices will help improve seed preparation and handling, [Scottish techniques to reduce environmental impacts, and increase Forestry nursery production. Funding to support increased production of Implementation young trees is available through the Harvesting and Processing Plan] grant which is now open to forest nurseries across GB with support from Defra. Forestry and Land Scotland will begin development of a new approach to woodland investment with a view to acquiring more land to establish further woodland on Scotland’s national New forests and land for the benefit of future generations and to [CCPu 2020] optimise carbon sequestration. This includes partnering with private sector and other organisations to enhance scale and funding of carbon capture projects. Outcome 2: Increase the use of sustainably sourced wood fibre to reduce emissions by encouraging the construction industry to increase its use of wood products where appropriate. Policy: In collaboration with the private forest sector and other public sector bodies the Scottish Government will implement the Timber Development Programme through an annual Maintained programme of projects that support the promotion and development of wood products for use in construction. Outcome 3: To enhance the contribution of peatland to carbon storage, we will support an increase in the annual rate of peatland restoration. Policy: Restoration grants: We will provide grant funding to support Boosted eligible land managers to deliver peatland restoration. Levels [Budget of funding will enable at least 20,000 hectares of peatland 2020/21, restoration per year. We will undertake research to inform reinforced in where restoration can deliver the greatest emission savings 2020-2021 PfG] per hectare. Update to the Climate Change Plan | Annexes  235 Awareness raising: Working through partnership, we will put in place tools and information to promote peatland restoration New and develop the capacity, skills and knowledge of land owners, [CCPu 2020] land managers, contractors and others to deliver peatland restoration. With partners, refresh our vision for Scotland’s peatlands and review peatland restoration support mechanisms to overcome New embedded barriers and improve how we fund and deliver this [CCPu 2020] activity. Phase out the use of peat in horticulture by increasing uptake of alternative materials, undertaking stakeholder engagement New to understand transitional challenges, to improve the uptake of [2019-2020 PfG] alternatives and develop a time-scaled plan. Our Position Statement on National Planning Framework 4 confirmed our current thinking that through the planning system we will not support applications for planning New permission for new commercial peat extraction for horticultural [CCPu 2020] purposes, we are looking at strengthening controls on development on peatland and we will help facilitate restoration through permitted development rights. Proposals: Develop opportunities for private sector investment in peat restoration, engaging with sectors to establish investment New pathways, enabling both public and private sector to invest in [CCPu 2020] a range of measures to help mitigate effects of climate change. Explore how best to restore all degraded peat in the public New estate and also within formally designated nature conservation [CCPu 2020] sites, including through statutory mandate. Explore the development of a Peatland Restoration Standard New to ensure best practice and continuous development in the [CCPu 2020] success and effectiveness of peatland restoration. Outcome 4: We will establish pilot Regional Land Use partnerships (RLUPs) over the course of 2021. Establishment of pilot Regional Land Use Partnerships to help ensure that we maximise the potential of Scotland’s land to New help achieve net zero. Publication of Scotland’s third Land Use [CCPu 2020] Strategy. 236   Update to the Climate Change Plan | Annexes Agriculture Outcome 1: A more productive, sustainable agriculture sector that significantly contributes towards delivering Scotland’s climate change, and wider environmental, outcomes through an increased uptake of climate mitigation measures by farmers, crofters, land managers and other primary food producers Policy: Scale up the Agricultural Transformation Programme across all the policies, including monitoring to assess the effectiveness of the pilot Sustainable Agricultural Capital Grant Scheme that will New enable farmers and crofters to purchase equipment that should [2019-2020 PfG] assist in reducing their greenhouse gas emissions, and support practice change. Proposals: Develop rural support policy to enable, encourage and where appropriate, require the shift to low carbon, sustainable farming through emissions reduction, sustainable food New production, improving biodiversity, planting biomass crops [CCPu 2020] and appropriate land use change developed in line with just transition principles. Develop new schemes and approaches to support low carbon, sustainable farming, including through the Programme Board New for the Beef Suckler Climate Group, other farmer-led groups on [2020-2021 PfG & arable, dairy and high value, nature farming and crofting which Agriscot 2020] will report in 2021. Introduce Environmental Conditionality, from 2021 via implementation of the Beef Suckler Climate Report and more New widely from 2022 through the review of existing CAP Greening [CCPu 2020] which will extend the requirements to all farmers and crofters to undertake environmental actions. Further provision of advice for farmers and crofters who wish to retire: A new commitment to work with stakeholders to New provide advice, including further extending the Land Matching [CCPu 2020] Service and guidance for farmers and crofters who wish to step back from agricultural businesses by providing an opportunity to consider alternative land-uses or alternative agricultural uses. Update to the Climate Change Plan | Annexes  237 Outcome 2: More farmers, crofters, land managers and other primary food producers are aware of the benefits and practicalities of cost effective climate mitigation measures Policy: The dissemination of information and advice on climate Boosted change mitigation measures in agriculture through a range of [Through new communication methods utilising technology and all media to policy to realign best effect. and enhance advice] An agri-tech group will be established to share, disseminate and encourage adoption of advances in agricultural science and Maintained technology as widely as possible. Launch a new and expanded peer to peer knowledge transfer New initiative based on the success of our Young Climate Change [CCPu 2020] Champions work. Realign and enhance our established programmes and initiatives such as the Farm Advisory Service, the Knowledge Transfer and Innovation Fund and Monitor Farm Programme to New create a more cohesive approach to ensure advice and support [CCPu 2020] is focussed on helping industry to professionalise to support sustainable farming. Proposals: Carbon Audits: in 2018, we will consult on how best to ensure maximum take up of carbon audits and how to enable tenant Maintained farmers and crofters in particular to benefit. We will explore with stakeholders, including the Scottish Tenant Farmers Association and the Tenant Farming Commissioner, how best to engage tenant farmers to increase Maintained understanding of the environmental and economic benefits of low carbon farming. Marketing scheme: Determine the feasibility of a Low Carbon Maintained Farming marketing scheme. 238   Update to the Climate Change Plan | Annexes Outcome 3: Nitrogen emissions, including from nitrogen fertiliser, will have fallen through a combination of improved understanding, efficiencies and improved soil condition Policy: Communicate and demonstrate the benefits of precision Boosted farming and nitrogen use efficiency in order to achieve a [Through new reduction in GHG emissions. policy to realign and enhance advice] Work with the agriculture and science sectors regarding the Boosted feasibility and development of a SMART (specific, measurable, [Through achievable, relevant and time bound) target for reducing Scotland’s Scotland’s emissions from nitrogen fertiliser. National Nitrogen Balance Sheet] From 2018 we expect farmers to test the soil on all improved Boosted land every five or six years, and we will work with them to [Through establish how best to achieve this. new policy to introduce conditionality] Proposals: Investigate the benefits and barriers of leguminous crops in Maintained rotation. Crop varieties with improved nitrogen-use efficiency. Maintained Update to the Climate Change Plan | Annexes  239 Outcome 4: Reduced emissions from red meat and dairy through improved emissions intensity Policy: Commission and publish a report into the establishment of Maintained emissions intensity figures for beef, lamb and milk. Work with Quality Meat Scotland, ScotEID and livestock producers to encourage improved emissions intensity through Boosted genotyping, improving fertility, reducing animal mortality and [CCPu 2020] improving on farm management practices. Proposals: Determine the practicality of establishing a SMART target for Maintained reduction in the intensity of emissions for beef, sheep and dairy sectors. Consult in 2018 to determine the nature of livestock health Maintained measures that the sector will adopt from 2019. Determine the practicalities and feasibility of using livestock feed Maintained additives as a means of reducing emissions. Outcome 5: Reduced emissions from the use and storage of manure and slurry Proposals: Engaging with farmers to explore their support requirements, Boosted establish how they can improve the use and storage of manure [Dec 2020, and slurry, including the potential for cooperatively owned and before CCPu managed anaerobic digesters. 2020] Investigate the practicalities of livestock grazing in rotation on Maintained current arable land. Conduct a feasibility study for the establishment of manure/ Maintained slurry exchange. Determine how to consistently minimise emissions from slurry Maintained storage. Review management of storage and application of organic New materials such as silage, slurry and liquid digestate, including [CCPu 2020] what support may be required to ensure best practice. 240   Update to the Climate Change Plan | Annexes Outcome 6: Carbon sequestration and existing carbon stores on agricultural land have helped to increase and maintain our carbon sink Policy: Explore with the farming and forestry sectors how best to Boosted increase planting of trees and hedgerows which optimise [Two actions, carbon sequestration, including the role of agroforestry. 1st announced summer 2020, 2nd CCPu 2020] Proposals: Investigate the feasibility of payment for carbon sequestration taking into account any existing schemes such as the woodland Maintained carbon code as a means of encouraging the uptake of carbon sequestration on farms. Increase woodland cover on suitable agricultural land. Maintained Building on the successful work integrating woodland with farming businesses, help remove barriers for those on New agriculture holdings, particularly in the tenanted sector who [CCPu 2020] want to engage in woodland creation, including exploring the potential to reform legislation where appropriate. Work with stakeholders on options to increase peatland restoration on suitable agricultural and crofting land, to support delivery of policies in the LULUCF chapter. We will New map peatland against this land which will allow modelling [CCPu 2020] options for land-use change and inform opportunities for targeted support of peatland restoration and management. Explore options for land-use change to optimise uses beyond traditional farming and food production to multi-faceted land New use including forestry, peatland restoration and management [CCPu 2020] and biomass production. Update to the Climate Change Plan | Annexes  241 Negative Emissions Technologies Outcome 1: Detailed feasibility studies on NETS will assess the opportunities for negative emissions in Scotland, and identify applications with the greatest potential, including specific sites where possible. Proposals: In 2021/22 carry out a detailed feasibility study of opportunities for developing NETs in Scotland ready for the New early 2030s. This will identify specific sites and applications of [CCPu2020] NETs, including developing work to support policy on Direct Air Capture and its role within NETS in our future energy system. From 2022, based on the outcomes of the feasibility work, we New will provide support for commercial partners to develop NETs [CCPu 2020] proposals including initial design and business cases. Put in place a continual process to review the development of New NETs and progress against its envelope. [CCPu2020] We will work with UK Government to ensure that they bring New forward suitable mechanisms to support the development of [CCPu2020] NETs business cases in relevant sectors. Outcome 2: CCUS: the continued development of CCUS technologies and systems is prioritised to ensure these can be rolled out commercially and at scale by the late 2020s. Policies: Support the development of NETS technologies within Scotland. New [CCPu 2020] Proposals: Support the inclusion of NETS in the development of strategic, New industry lead pathways for CCUS infrastructure in Scotland. [CCPu 2020] Funding through the Scottish Industrial Energy Transformation New Fund to consider the development of NETs demonstrators. [CCPu 2020] Provide a focus on integrating NETS projects with CCS New infrastructure through the Emerging Energy Technologies Fund. [CCPu 2020] 242   Update to the Climate Change Plan | Annexes Outcome 3: Bioenergy: a cross-sectoral approach for the appropriate and sustainable use of biomass in energy applications is agreed and implemented (taking into account competing land and feedstock uses). Policy: We will publish a Bioenergy Update in early 2021, laying out our current position and understanding of the role of New bioenergy in the energy system and setting out in more detail [CCPu 2020] how we will move forward. In 2021, building on the Bioenergy Update, we will establishing a cross sectoral Bioenergy Expert Working Group to consider and identify the most appropriate and sustainable use for bioenergy resources across Scotland. It will also assess the New volume of bioenergy resources that we can grow or produce [CCPu 2020] within Scotland, and confirm the level of import that we believe is compatible with a sustainable global trade in bioenergy. By 2023, in time to inform the next Climate Change Plan, we will publish a Bioenergy Action Plan, incorporating the learning Boosted developed by the expert working group and our understanding [CCPu 2020] of the options to use Bioenergy in both NETs and other applications. Update to the Climate Change Plan | Annexes  243 Annex B: Monitoring Framework This element of the Plan update The Committee on Climate Change will represents an important step in the also continue to produce independent, ongoing improvement of the Monitoring annual reports on Scotland’s progress Framework set out in the 2018 Plan towards meeting emissions reduction for tracking progress to delivery of the targets (the most recent such report was policies. It includes: published in October 2020156). Ħ an adjustment to the definitions of different types of indicators from those The structure of the used in the 2018 Plan, to more clearly Monitoring Framework: distinguish their purpose; and Ħ a revised set of policy outcome The updated Monitoring Framework for indicators that reflect the content the Climate Change Plan for sectors is of the updated Plan. structured on three levels: greenhouse gas emissions statistics provide the highest- level measure of progress at an economy- Introduction wide and sectoral level; a suite of policy outcome indicators measure the success Monitoring implementation is vital to of policies in achieving the changes ensure that the policies in the Climate that are needed; and a policy tracker Change Plan are making progress towards monitoring implementation of specific meeting Scotland’s emissions reduction policies and proposals. targets in a way that is delivering a just transition to net zero. The updated Framework also includes cross-sectoral monitoring of social The Climate Change Plan 2018-32 and economic indicators to focus on included a monitoring framework for the impacts on workforce, employers and first time and embedded indicators for communities. This will enable us to policies for each sector. This framework monitor progress towards our just has been the basis of two published transition objectives. Climate Change Plan Monitoring Reports, in October 2018154 and December 2019155. Greenhouse Gas Emissions Statistics Section 35B of the Climate Change (Scotland) Official Statistics on Scottish greenhouse Act 2009 (as amended by the Climate gas emissions determine progress towards Change (Emissions Reduction Targets) national emissions reduction targets and (Scotland) Act 2019) places annual progress also provide information on total annual reporting on a statutory footing, with reports emissions at a sectoral level. Statistics for each sector to be produced and laid in are published annually, typically in June, Parliament from May 2021 onwards. The and two years in arrears. For example, updated monitoring framework, as set out the most recent figures, published in June below, will underpin the assessments of 2020, cover emissions during 2018157. progress made in these reports. 154 https://www.gov.scot/publications/climate-change-plan-monitoring-report-2018/ 155 https://www.gov.scot/publications/climate-change-plan-monitoring-report-2019/ 156 https://www.theccc.org.uk/publication/reducing-emissions-in-scotland-2020-progress-report-to-parliament/ 157 244   Update to the Climate Change Plan | Annexes Policy Outcome Indicators Policy Tracker The Plan includes key policy outcomes The Plan includes a set of specific policies for each sector, defined as a measurable and proposals for each sector to achieve change on the ground resulting from a the policy outcomes. The Framework will policy or combination of related policies. monitor progress towards implementing The Framework will measure progress policies and developing proposals with a towards achieving these with a set of policy tracker, which will be set out for policy outcome indicators158. annual progress reporting, from May 2021. This will consistently record progress and A policy outcome indicator is a specific, next steps for policies, and where possible objective measure closely aligned to it will include implementation indicators achieving the outcome. It will underpin for specific policies. monitoring of long-term progress towards the outcome, but should also be Policy implementation indicators will help responsive to change in the near-term, so us to measure whether a policy’s course that it can be used to evaluate whether of actions is delivering the intended the Plan is on track. Specific milestones outputs. This can be used to identify (or targets) are set, where appropriate, for whether policies are being implemented the level of the indicator to be achieved at as expected, and to focus attention a given time. on potential issues. Implementation indicators will be updated as part of In this update, the set of outcome annual progress reporting. indicators from the 2018 Plan were reviewed to ensure that they reflect the updated policy commitments and Policy implementation indicators help to improve the quality and clarity of to answer the question: are we doing indicators. This has led to new outcome what we said we would do? indicators being identified, others being revised, and a few being removed where they were no longer appropriate or there Cross-Sectoral Social and Economic were significant issues with robustness. Indicators The overall set of outcome indicators is The actions needed to become net zero now 39, up from 29 previously used for by 2045 will transform all sectors of the 2018 Plan. our economy and society. We recognise the need to further develop appropriate A revised set of outcome indicators for monitoring at both cross-cutting and the updated Plan is out below. sector level to better track progress in these areas. However, for the near-term we will use the existing Office of National Policy outcome indicators help to Statistics: Low Carbon Renewable Energy answer the question: are we seeing Economy (LCREE) data set, including the results – the change on the business turnover and jobs, to begin ground – that we expected? annual monitoring of the impacts on the wider economy and livelihoods as we transition to net zero. 158 This is an update of terminology from the 2018 version of the Monitoring Framework, which referred to these as policy output indicators. Update to the Climate Change Plan | Annexes  245 Principles of the Monitoring Framework The monitoring framework is guided by a set of principles that inform both its design and its ongoing use in assessment of progress. These are: 1. It will assess both the efficiency of policy implementation (are we doing what we said we’d do?) and whether this is effective in achieving policy outcomes (are we getting the results we expected?). 2. It will underpin annual progress reports assessment of whether we are ‘on track’ in the short-term, as well as providing an on-going basis for consistent monitoring of progress to long-term outcomes. 3. Our policy objectives will be SMART159 (Specific, Measurable, Achievable, Realistic and Time-limited) so that they are suitable for monitoring and evaluation. 4. It will gather the data needed to give reliable and consistent measurement, while being proportionate to policies and varying data availability. 5. We will learn from the monitoring framework, using it to support improvement in policy design and delivery. Alignment with the National Next steps Performance Framework Annual progress reports on delivery of the updated Plan, on a sector by sector basis, The National Performance Framework will be published and laid in Parliament (NPF) sets the overall purpose and vision from May 2021 onwards. The content for Scotland and tracks progress using of those reports will be underpinned a set of National Indicators. The Climate by the Monitoring Framework structure Change Plan sets out Scotland’s plan set out above, including the most up-to- to reduce greenhouse gas emissions in date available information on sectoral line with Scotland’s statutory targets, emissions, the current set of policy progress to which also directly underpins outcome indicators, and relevant policy a National Indicator. The Monitoring tracker information. Framework for the Plan allows more detailed tracking of progress to policy The Monitoring Framework itself will outcomes and implementation of specific continue to develop as we learn from policies across sectors. As the Plan aims experience and as new sources of to reduce emissions while achieving the monitoring information become available. broader purpose set by the NPF, there Cross-portfolio governance arrangements are also synergies across a wider range of for the Framework, which will include other economic, social and environmental oversight of the process for making any National Indicators. future adjustments to the set of indicators, remain under review and a further update on this will be provided to the Parliament in due course. 159 HMT Green Book 246   Update to the Climate Change Plan | Annexes Sector Policy Outcome Indicators Electricity On-Track Assessment Outcome Indicator (Milestones/ Targets) Maintain below 1 Electricity grid intensity (CO2e per kilowatt hour) a 50 g CO2e per kilowatt hour Year-to-year 1 Installed capacity of renewable generation (GW) a change Year-to-year 1 Renewable capacity at planning stages (GW: 3 categories) a change Maintain GB 2 Loss of Load Expectation (hours per year) b standard below 3 hours per year Data Source: (a) Scottish Government Scottish Energy Statistics Hub; (b) National Grid Winter Outlook. Buildings On-Track Assessment Outcome Indicator (Milestones/ Targets) 1 % heat in buildings from low greenhouse gas Progress emission sources a to target [TBC in 2021]i 1 % of buildings using low greenhouse gas emission Year-to-year heating systems a change 2 Energy intensity of residential buildings Progress to target (MWh per household) b [at least 30% by 2032] 2 Energy intensity of non-domestic buildings (GVA in the services Year-to-year sector per GWh) b change 2 % of homes with an EPC (EER, or equivalent) of at least C c Progress to 2035 target [all homes to have EPC C or higher where technically feasible and cost effective] 2 % new homes built with a calculated space heating demand of not Year-to-year more than 20 kWh/m²/yrT d change Update to the Climate Change Plan | Annexes  247 On-Track Assessment Outcome Indicator (Milestones/ Targets) 3 % of Scottish gas demand accounted for by biomethane and Year-to-year hydrogen blended into the gas network a change 4 Percentage of households in fuel poverty e Progress to 2040 target [no more than 5%] interim 2030 [no more than 15%] 2035 [no more than 10%] targetsii Notes: Where targets have not been set, we will aim to do so as we develop the indicators. (i) Target to be set in the Heat in Buildings Strategy expected summer 2021; (ii) set out in the Fuel Poverty Act with consideration of associated indicators on extreme fuel poverty and the fuel poverty gap. Data Source: (a) Indicator in development; (b) Scottish Government Scottish Energy Statistics Hub; (c) Scottish Government Scottish House Condition Survey National Statistics; (d) EPC data provided on completion of each new home; (e) Scottish Government Scottish House Condition Survey National Statistics. Transport On-Track Assessment Outcome Indicator (Milestones/ Targets) 1 % reduction in car kilometres a Progress to target [20% reduction by 2030]i 2 % of new car registrations that are ULEV b Year-to-year change 2 % of new van registrations that are ULEV b Year-to-year change 3 % of new HGV registrations that are ULEV b Year-to-year change 4 % of new bus registrations that are ULEV b Progress to target [>50% by 2024] 5 % reduction in emissions from scheduled flights within Scotland c Year-to-year change 6 % of ferries that are low emissions d Progress to target [30% by 2032] 8 % of single track kilometres electrified e Progress to target [70% by 2034] 8 % of trains powered by alternative traction e Year-to-year change Notes: Where we have been unable to set targets, Transport Scotland will aim to do so when the necessary data becomes available. Also: (i) from 2019 baseline. Data Source: (a) Scottish Transport Statistics (Chapter 5); (b) Scottish Transport Statistics (Chapter 13); (c) Airline(s) operating scheduled flights within Scotland; (d) ad hoc Transport Scotland; (e) ad hoc Network Rail (Scotland) 248   Update to the Climate Change Plan | Annexes Industry On-Track Assessment Outcome Indicator (Milestones/ Targets) 1 Industrial energy productivity (£GVAm per GWh) a Progress to target [Increase 30% by 2032]i 1 Industrial emissions intensity (tCO2e per £GVAm) a Progress to target [Reduce 30% by 2032]i 2 % of Scottish gas demand accounted for by biomethane and Based on trend hydrogen blended into the gas network b Notes: (i) from 2015 baseline. Data Source: (a) Scottish Government Scottish Energy Statistics Hub; (b) Indicator in development Waste and the Circular Economy On-Track Assessment Outcome Indicator (Milestones/ Targets) 1 Total amount of landfilled waste (tonnes) a Progress to target [no more than 5% of all waste to landfill by 2025] 1 Total amount of biodegradable landfilled waste (tonnes) b Year-to-year change + Progress to interim target [0 tonnes of biodegradable municipal waste landfilled by 2026] 2 Number of closed landfill sites with exploratory landfill gas capture/ Progress to target flaring c [12 by 2025] 3 Household and non-household food waste reduced (tonnes) a Progress to target [reduce all food waste by 33% by 2025]i 4 Total waste generated (tonnes) a Progress to target [reduce total waste by 15% by 2025]ii Notes: (i) Reduce all food waste arising in Scotland on a per capita basis by 33% by 2025, based on 2013 baseline; (ii) By 2025 reduce total waste arising in Scotland by 15% against 2011 levels; Data Source: (a) Waste from all sources – summary data 2018: SEPA; (b) Waste landfilled in Scotland 2019: SEPA; (c) ad hoc SEPA; Update to the Climate Change Plan | Annexes  249 LULUCF On-Track Assessment Outcome Indicator (Milestones/ Targets) 1 Hectares of woodland created per year a 2020/21 = 12,000 ha/yr 2021/22 = 13,500 ha/yr 2022/23 = 15,000 ha/yr 2023/24 = 16,500 ha/yr 2024/25 = 18,000 ha/yr 1 Woodland Ecological Condition a Year-to-year change 1 Woodland Carbon Code: Projected carbon sequestration Progress to target (validated credits) a (increase 50% by 2025)i 2 Annual volume (in millions of cubic metres) of Scottish produced Progress to sawn wood and panel boards used in construction a Targets [2020/21 = 2.6 million m3 2026/27 = 2.8 million m3 2031/32 = 3.0 million m3] 3 Hectares of peatland restored per year b 20,000 ha/yr ii 3 Peatland Carbon Code: Projected emissions reduction (validated units)c Year-to-year change Notes: (i) carbon sequestration baseline March 2020; (ii) area of peatland restored is a proxy measure which doesn’t directly represent the reduction in emissions, an emissions reduction indicator may be adopted in the future. Also, the current per annum area restoration target figure is under review and may be increased, updates will be reflected in future annual reporting. Data Source: (a) Forestry Statistics; (b) NatureScot will compile from Peatland Action, FLS, National Parks, Scottish Water and other sources; (c) IUCN Peatland Carbon Code Registry for the UK. 250   Update to the Climate Change Plan | Annexes Agriculture On-Track Assessment Outcome Indicator (Milestones/ Targets) 2 Increased engagement with Farm Advisory Services on Based on trend environmental issues and climate change a 3 Use of Nitrogen fertilisers i, b Based on trend 3 Spreading precision of Nitrogen fertilisers b Based on trend 4 Time taken from birth to slaughter and increased efficiency through Based on trend improved health and reduced losses c 5 Improvement in covered slurry storage d Based on trend 5 Precision application of manure and slurry b Based on trend 6 Hectares of peatland restored per year ii, e Year-to-year change 6 Area of woodland on agricultural land f Based on trend Notes: We will be improving baseline data for this new set of indicators alongside ongoing policy development. Also: (i) Potential to use Scottish Nitrogen Balance Sheet: sectoral nitrogen use efficiency when developed; (ii) This replicates the LULUCF indicator for outcome 3, efforts will be made to monitor the % of restored peatland on agricultural land. Data Source: (a) Farm Advisory Service: calls to advisory service about CC, use of Agrecalc tool, awareness of environmental issues; (b) British Survey of Fertiliser Practice; (c) Cattle Tracing Scheme (CTS); (d) The Survey of Agricultural Production Methods (SAPM); (e) NatureScot will compile from Peatland Action, FLS, National Parks, Scottish Water and other sources; (f) Agricultural Census/SAF. Additional Notes: 1. It is intended that an `on track’ assessment (i.e. “on track”, “off track” or “too early to say”) will be made periodically for each outcome indicator – and will inform annual progress reporting. This assessment can be made by: (i) where appropriate, using annual milestones/targets that have been set for the indicator; (ii) using expert judgement to assess progress to a set target (e.g. 2025 or 2030); or (iii) where a target is either not possible or appropriate at present, using expert judgement to assess trends or level of change. 2. A set of criteria was used as a guide when reviewing outcome indicators to be included in this update. These were as follows: • Relevance: Is there is a clear relationship between the indicator(s) and the Climate Change Plan outcome? • Validity: Does the indicator measure what it purports to measure? • Credibility: Is the indicator based upon impartial, reliable sources? • Practicality: Can the data for the indicator be obtained with reasonable, feasible and affordable effort (for Scottish Government and for those providing the data)? • Clarity: Is the indicator easily understood? Is it clear what constitutes an improvement and a deterioration? • Sensitivity: Is the indicator precise enough to detect important changes over short to medium (1 to 5 year) time periods that are amenable to policy intervention? • Distinctiveness: Does the indicator measure something that is not already captured under other indicators? • Coverage: Does the indicator (or set of indicators) provide sufficient information to usefully assess progress on the outcome in question? Is anything missing? Update to the Climate Change Plan | Annexes  251 ANNEX C: Derivation of Sector Emissions Envelopes A key element of this Climate Change Plan An initial TIMES model run, using this update is the presentation of emissions updated evidence base and taking into envelopes for each sector over the period account constraints around technical 2020 to 2032. These envelopes have feasibility, was undertaken to demonstrate been developed through an iterative the potential distribution of emissions- process which combines evidence, reduction effort across sectors. After analytical modelling and the application reviewing initial model results, Scottish of judgement in the face of considerable Government sector analysts advised uncertainty. on further technical refinements to the model, based on sector modelling, TIMES modelling latest externally-commissioned research and expert judgement. This, alongside As with the previous Climate Change Plan, a quality assurance process by TIMES the TIMES model was used to provide the analysts, as well as an Assurance Group initial basis for the development of the chaired by the Chief Economist, resulted sector emissions envelopes160. in a revised model run and set of sector envelopes. The model was updated in 2019 to a 2015 base year and the key assumptions were reviewed and aligned with the Uncertainty latest evidence. In particular, the current The TIMES modelling provides an modelling makes use of the most integrated and consistent approach, but recently published Scottish greenhouse significant uncertainty is present across gas inventory data and best current all sectors and all key domains (cost; expectations for known upcoming technology availability; emissions factors; technical changes to the UK inventory in energy demand) and this uncertainty relation to the implementation of new/ increases over time (but is not accounted updated IPCC guidelines on the inclusion for in the modelling). As with all of emissions from peatlands, and revisions modelling, the Assurance Group advised to the global warming potentials of some that the limitations of the model should greenhouse gases. Decisions on the exact be set out and that the results from the nature of these technical revisions remain model should be deployed alongside other to be made by the UK Government and evidence. these aspects of the evidence base will need to be kept under review for the next full Climate Change Plan. 160 TIMES is a high-level strategic model, covering the Scottish energy system, as well as non-energy sectors, including Agriculture, Waste, Land Use, Land Use Change and Forestry (LULUCF). It identifies the least-cost pathway for deployment of technologies, fuels and other carbon abatement measures to meet our final demands and emissions targets. See Climate Change Plan: third report on proposals and policies 2018-2032 – technical annex for further information on the TIMES model 252   Update to the Climate Change Plan | Annexes Final Envelopes In order to ensure the envelopes met the cross-economy statutory targets, a Building on the initial rounds of TIMES further decision was taken to allocate the modelling, a further scenario was necessary additional emissions-reduction introduced to provide evidence on the effort, outwith the TIMES framework, potential implications of allowing the across the sectors on a pro-rata basis. industrial sector higher emissions than Two exceptions were made to this: in the previous run described above, to help protect against carbon leakage161. Ħ no additional emissions were The emissions envelope for the industrial allocated to the Industry sector, sector was constrained in the TIMES consistent with the approach to model to the current European Union avoid carbon leakage; and Emissions Trading System (EU ETS) cap to Ħ the emissions envelope of the 2020 and then to the assumed rate of a Agriculture sector was constrained projected EU/UK cap to 2025 (effectively to the level of the ‘core technical’ the current EU ETS Cap less 5%). Post- TIMES run and the additional annual 2025, the industrial sector envelope quantity of emissions reductions which followed a linear path to a 90% reduction would have been allocated pro rata in 2050, based on the CCC’s advice for to the Agriculture sector were instead that specific sector in a UK-wide net zero assigned to Land Use, Land Use Change scenario162. and Forestry (LULUCF). The envelopes produced by the TIMES A final series of ‘off-model’ adjustments model for this scenario resulted in total were made in order to ensure that the emissions which exceeded the statutory resultant annual emissions envelopes targets during the period of the Plan (ie were consistent with expectations around the TIMES model was unable to identify a deliverability and did not result in any set of sector pathways consistent with the increase in a particular sectors’ emissions statutory targets). following a period of decarbonisation. These adjustments acted to: 1. delay the roll-out of carbon capture and storage process as far as possible; and 2. ensure that no sector shows a temporary increase in emissions. 161 whereby tight emissions reduction targets in one country could cause business to relocate to other countries with more lax climate regulation, potentially resulting in higher global greenhouse gas emissions overall. 162 Net Zero Exhibits – Industry, available to download here: https://www.theccc.org.uk/publication/net-zero-technical-report/ Update to the Climate Change Plan | Annexes  253 The resulting set of envelopes are below. Table of emissions by sector MtCO2e 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Agriculture 7.0 6.8 6.5 6.3 6.0 5.8 5.7 5.6 5.6 5.5 5.5 5.4 5.3 Electricity 1.7 1.6 1.6 1.5 1.4 1.3 1.0 0.8 0.5 - 0.5 - 3.7 - 4.2 - 4.7 Industry 11.5 11.3 11.1 11.0 10.8 10.7 9.8 9.4 8.4 7.7 7.2 6.3 5.5 Waste 1.6 1.5 1.3 1.2 1.0 0.9 0.7 0.7 0.7 0.7 0.7 0.7 0.7 Transport 11.0 10.2 9.4 8.7 7.9 7.1 6.9 6.6 6.5 6.5 6.5 6.5 6.5 Buildings 8.0 7.6 7.1 6.7 6.2 5.6 5.0 3.9 3.1 2.6 2.6 2.6 2.6 LULUCF 0.6 0.5 0.4 0.2 0.1 - 0.1 0.3 0.3 0.4 0.5 1.8 2.1 2.3 Targets/total 41.6 39.5 37.5 35.4 33.4 31.3 29.4 27.3 25.1 23.0 20.6 19.4 18.3 As mentioned in Part 3, Negative Emissions Technologies (NETs) are being presented separately for this Plan update only. The final set of envelopes below removes NETs from Industry and Electricity envelopes and creates a NETs envelope. Table of emissions by sector (with separate NETs category) MtCO2e 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Agriculture 7.0 6.8 6.5 6.3 6.0 5.8 5.7 5.6 5.6 5.5 5.5 5.4 5.3 Electricity 1.7 1.6 1.6 1.5 1.4 1.3 1.0 0.8 0.5 - - - - Industry 11.5 11.3 11.1 11.0 10.8 10.7 9.8 9.4 8.4 7.7 7.3 6.9 6.5 Waste 1.6 1.5 1.3 1.2 1.0 0.9 0.7 0.7 0.7 0.7 0.7 0.7 0.7 Transport 11.0 10.2 9.4 8.7 7.9 7.1 6.9 6.6 6.5 6.5 6.5 6.5 6.5 Buildings 8.0 7.6 7.1 6.7 6.2 5.6 5.0 3.9 3.1 2.6 2.6 2.6 2.6 LULUCF 0.6 0.5 0.4 0.2 0.1 - 0.1 0.3 0.3 0.4 0.5 1.8 2.1 2.3 NETs - - - - - - - - - - 0.5 - 3.8 - 4.7 - 5.7 Targets/total 41.6 39.5 37.5 35.4 33.4 31.3 29.4 27.3 25.1 23.0 20.6 19.4 18.3 254   Update to the Climate Change Plan | Annexes © Crown copyright 2020 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open- government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.gov.scot Any enquiries regarding this publication should be sent to us at The Scottish Government St Andrew’s House Edinburgh EH1 3DG ISBN: 978-1-80004-430-2 Published by The Scottish Government, December 2020 Produced for The Scottish Government by APS Group Scotland, 21 Tennant Street, Edinburgh EH6 5NA PPDAS786167 (12/20) w w w . g o v . s c o t