‘Green’ Freeport for Leith?

Scottish and UK Governments reach agreement

A partnership agreement to establish two ‘Green’ Freeports in Scotland has been reached between Scottish and UK Ministers.

Following ‘robust’ discussions in recent months, both governments have agreed:

• to establish a joint applicant prospectus, with Ministers and officials from both the Scottish and UK Government having an equal say throughout the assessment and selection process
• that applicants in Scotland are required to contribute towards a just transition to net-zero emissions by 2045, delivering net-zero benefits and creating new green jobs
• that applicants in Scotland are required to set out how they will support high-quality employment opportunities that offer good salaries and conditions, and how fair work practices will be embedded in the green freeport area

Ministers have agreed that a joint offer set out in a prospectus offers the maximum benefits for the Scottish economy as both governments will be able to deliver tax reliefs and other incentives through a combination of devolved and reserved powers.

As a result of the recent negotiations, UK Ministers are expected to provide up to £52 million in seed funding to help establish Green Freeports in Scotland which is in line with funding offered to Freeports across England.

Economy Secretary Kate Forbes said: “I am pleased we have been able to reach an agreement on a joint approach that recognises the distinct needs of Scotland’s economy and enshrines the Scottish Government’s commitment to achieving net-zero and embedding fair work practices through public investment.  

“The Scottish Government will have an equal say on all bids, and will expect bidders to adhere to fair work practices including payment of the Real Living Wage.

“Scotland has a rich history of innovative manufacturers and so as we look to grasp the many opportunities of achieving net-zero, the establishment of internationally competitive clusters of excellence will help us create new green jobs, deliver a just transition and support our economic transformation.

“We can only seize Scotland’s economic potential if we create secure, sustainable and satisfying jobs that also help build a fairer, more prosperous economy for everyone. That is my absolute priority and establishing Green Freeports will be integral to achieving this.”

Secretary of State Michael Gove said:  “This is a truly exciting moment for Scotland, and I am delighted we will be working together with the Scottish Government to set up two new Green Freeports.

“Green Freeports help inject billions into the local economy, while levelling-up by creating jobs for local people, and opportunities for people all over the UK to flourish.  

“By collaborating using opportunities like Green Freeports we can work to level-up the whole of the UK and bring benefits and opportunities to communities that need it most.” 

The term ‘Green Freeports’ reflects the Scottish Government’s distinctive net zero aspirations. The UK Government will continue to use the term ‘Freeports’ for its programme in the rest of the UK.

Forth Ports – which owns and operates seven ports on Scotland’s East coast and the Port of Tilbury, which is part of the recently-announced Thames Freeport  – has issued a statement following the announcement.

Stuart Wallace, Chief Operating Officer at Forth Ports, said: “We welcome the announcement by the UK and Scottish governments of the forthcoming bid process for two Green Freeports in Scotland and confirm that we plan to participate in this process. 

“A Firth of Forth Green Freeport will catalyse the decarbonisation of Scotland’s major industrial cluster, creating 50,000 new, high-quality jobs in renewable energy, manufacturing, sustainable fuels and construction.

“Building on our first-hand experience of freeports, we plan to create an ambitious set of programmes to harness the regeneration benefits of this economic policy. 

“The legacy of our green freeport will be the creation of large-scale green manufacturing industries with significant export potential and a sustainable fuel cluster, alongside major upgrades to infrastructure and skills development among young adults to ensure a Team Scotland approach as the UK transitions to a decarbonised future.”