Scotland can lead the net zero revolution, using its natural resources, world-class universities and entrepreneurial spirit to build the industries of the future, according to Cabinet Secretary for Wellbeing Economy, Net Zero and Energy Màiri McAllan.
Ms McAllan said the announcement of a £24.5 million grant to secure Japanese company Sumitomo Electric Industries’ investment in a new cable factory for the offshore wind sector at Nigg highlighted how net zero went hand-in-hand with economic growth. The plant will create around 330 jobs and bring £350 million inward investment to Scotland.
In her first speech since taking over the new portfolio, the Cabinet Secretary outlined her vision for delivering on the economic opportunities of Scotland’s transition to net zero. And she expressed a commitment to ensuring the key sectors on which Scotland’s economy is currently built continue to grow and thrive.
Cabinet Secretary for Wellbeing Economy, Net Zero & Energy @MairiMcAllan set out her vision for delivering on the economic opportunities of a just transition to net zero.
She announced a £24 million grant to secure investment in a new offshore wind cable factory at Nigg. pic.twitter.com/tUCFGIanKq
Addressing business leaders in Edinburgh, Ms McAllan said: “The future of the global economy is green – and I think it’s my job and our job collectively to make sure that Scotland can derive the greatest possible benefit from that future. Our Green Industrial Strategy will be a key tool in helping business and investors realise the enormous opportunities ahead.
“While the economic opportunities of net zero are huge, they are far from the only game in town. Today I am announcing a pilot Techscaler hub in Silicon Valley to help promising start ups from Scotland in areas from health technology to space, build contacts with international investors and customers.
“My commitment is to take an approach across the whole of government to actively listen, engage and communicate – to help achieve business success and in turn Scotland’s economic success.”
New powers will reduce waste and grow green economy
New legislation will create the tools to tackle waste and increase reuse and recycling rates.
The Circular Economy Bill will give Ministers powers to:
Set local recycling targets, building on the experience of Wales, which has the best recycling rate in the UK
Set statutory targets for delivery of a circular economy to measure progress in reducing waste and the nation’s carbon footprint
Ban the disposal of unsold consumer goods, to prevent good products ending up in landfill
Place charges on single-use items like coffee cups to encourage the move to reusable alternatives
Local authorities will be given additional enforcement powers, allowing them to crack down on flytipping and littering from cars.
The Scottish Government will also work with local authorities to co-design an updated national Code of Practice for household waste recycling, to improve consistency of services and increase the quality and quantity of recycling collected.
Circular Economy Minister Lorna Slater said: “I want everyone in the country to experience a modern, easy to use waste service that makes it easy for people to do the right thing for the planet.
“The Circular Economy Bill with give local Councils and the Scottish Government the powers they need to transform our economy and tackle throwaway culture.
“Of course, the best way of tackling waste is to not create it in the first place. There are huge economic opportunities in the circular economy and we have already seen businesses in Scotland creating jobs by turning what we might otherwise throw away into valuable new products and services.
“This legislation will support the growth of more green businesses and community organisations while cutting waste and climate emissions.”
Campaigners say that the new circular economy bill, which has been introduced to the Scottish Parliament yesterday could significantly reduce Scotland’s global climate impact by changing the way we use materials, but must be strengthened to do so.
A circular economy is when materials are reused and recycled as much as possible before new resources are taken from nature, as opposed to our current linear ‘take, make, dispose’ model. It is a vital step in creating the transformation needed to reduce Scotland’s impact on the climate.
Scotland consumed 72 million tonnes of material in 2018, which is 19 tonnes of material per person on average. Experts have stated that it is possible to live sustainable, high-quality lives on a material footprint of eight tonnes of materials per person per year.
84% of Scotland’s carbon footprint comes from the products and services we buy. If the law is passed, ministers will be able to introduce targets to reduce our overall consumption, and the impact of the goods we do need to use.
The environmental and social damage caused overseas by demand for goods in Scotland is not addressed in Scotland’s existing climate targets, which focus on reducing domestic emissions.
This means that around half of Scotland’s emissions, and wider environmental impacts of our consumption, are effectively “offshored” to other countries. This would change if consumption targets were brought in under the new circular economy law.
This measure has significant public support, with 86% of respondents to the Scottish Government’s consultation on the circular economy bill calling for the introduction of consumption targets.
The circular economy law will also: – Establish a circular economy strategy – Ban the disposal of unsold consumer goods – Bring in new fines for households failing to recycle – Place charges on single-use items
Kim Pratt, circular economy campaigner at Friends of the Earth Scotland, said: “This new law has the potential to make a big difference to Scotland’s impact on the planet.
“The climate crisis is a global problem, so we need to take responsibility for the impact which happens outside of our borders due to our consumption of materials. It’s encouraging that the draft bill allows for consumption reduction targets to be set, and we urge the Scottish Parliament to go further and ensure that strong targets are brought in on the face of the bill.
“Moving to a circular economy is about much more than just improving our recycling. Strong consumption targets would mean policies to encourage producers to make products last for longer, ensure they are easy to repair, choose lower carbon materials, and to shift consumption patterns away from carbon intensive goods and services goods and services. With the right policies, circular economy measures will also create thousands of decent green jobs in Scotland.
“The Scottish Parliament must be bold and decisive to create the change the threat of climate breakdown demands. We need to see MSPs from all parties working together to ensure the Circular Economy Bill is a strong as possible.
“We can reduce our climate emissions and tackle the global ecological crisis by extracting fewer resources; shifting to a circular economy by properly valuing materials, and reusing and recycling is central to this.”
On the introduction of a new fixed penalty regime for households, Ms Pratt continued: “Measures to make products more sustainable and improved recycling systems available to everyone in Scotland must be prioritised over penalties for households.
“Responsibility lies first with producers to reduce the impact of the products on our shelves and make it possible for people to do the right thing.”
• Scotland is in pole position to lead the green economic revolution as the UK seeks to recover from the pandemic
• Scotland has the highest concentration of green jobs in the UK and the highest density of students studying green-related subjects
• The UK Green Growth Index, developed by Oxford Economics for Lloyds Banking Group, analyses the UK’s readiness to drive a greener economy
Scotland is in the strongest position to drive the growth of the green economy in the UK, according to the UK Green Growth Index, which has been developed by Oxford Economics and Lloyds Banking Group.
The nation leads the Growth Index (80.6) by a significant margin and is best-positioned to support the UK’s green economy based on its existing green infrastructure and future potential.
Scotland has a strong base of 21,000 existing green economy jobs in sectors such as onshore and offshore wind and hydroelectric power. Based on the size of its labour market, Scotland has the highest concentration of green jobs in the UK.
Relative to its population, Scotland also benefits from the largest number of higher education students studying green-related subjects such as engineering and technology, building and planning, and agriculture. The density of students in green-related subjects is more than 27% greater than in second placed Wales.
Philip Grant, chair of Lloyds Banking Group’s Scottish Executive Committee said: “Scotland’s long been at the forefront of energy technology and this research shows how it’s now best-placed to build on that experience and create a more sustainable future.
“Every part of the UK has opportunities to capitalise on green growth, but Scotland’s rich talent pool and skilled workforce give it an edge.
“The report shows a promising start to the transition, but we must accelerate progress towards a greener economy. There couldn’t be a better time for the United Nations Climate Change Conference (COP26) to take place, here in Scotland, in just a few months’ time.
“All eyes will be on the UK, and on Scotland in particular, when it comes to adopting greener ways of living and doing business. As well as being a moment of international cooperation, COP26 is a prompt for us to consider how our domestic economy can thrive in the future.
“We’ll be working with businesses and communities across the country, and throughout the UK, to ensure no nation or region is left behind in the transition to a greener future.”
UK GREEN GROWTH INDEX
The UK Green Growth Index explores how well placed the nations and regions across the UK are to capitalise on the opportunities of the green economy – defined as low carbon, resource efficient and socially inclusive.
Currently it is estimated the UK would need to invest £1.4 trillion between 2020 and 2050 with the potential for up to 2.5 million green jobs needed before 2050 to meet its net zero objective by 2050.**
The Index considers each region’s existing base of green industry; innovation activity; take-up of relevant skills and training; and renewable energy infrastructure and use, to determine a ‘Green Growth Opportunity’ score for each part of the UK.
UK Green Growth Index
Rank
Nations and Regions
Green Growth Opportunity score
1
Scotland
80.6
2
Wales
63.5
3
South West England
54.6
4
South East England
52.0
5
Midlands
48.7
6
North of England
48.3
7
East of England
45.6
8
Yorkshire and the Humber
45.1
9
Northern Ireland
42.7
10
London
36.5
Companies across the UK are actively participating in the green economy, according to additional Lloyds Banking Group research provided by YouGov.
More than one-third of UK businesses (36%) say engaging in the green economy is a high or very high priority for their company, rising to more than half (55%) of large organisations.***
A quarter of those in North East England (26%), London (25%) and South West England (25%) say participating in the green economy is something they’re already exploring or operating in.***
