Meeting of the Parliament (Hybrid) 15 December 2021
Liam Kerr is aware that the Scottish Cluster came through that assessment process very well. The decision not to progress with the project was made by the UK Government despite the fact that it had a good rating in the assessment. That is why—in the term that was used to me—the sector representatives were “flabbergasted” by the UK Government’s decision on that issue.
Over the course of the next four years, the emerging energy technologies fund, which we have set up, will invest £180 million in the development of projects that are based on hydrogen and carbon capture, utilisation and storage—CCUS—industries, to support the development of negative emissions technologies, which is an important role that they can play.
Next year, we will also commit the first £20 million of our £500 million just transition fund, to support Moray and the north-east of Scotland to become a centre of excellence for the transition to a net zero economy. We have repeatedly asked the UK Government to match that investment over the next 10 years to ensure that we deliver a just transition in the north-east.
Scotland also has some of the best offshore wind resources anywhere in Europe. Crown Estate Scotland’s current leasing round—the ScotWind process—is an opportunity for us to get first-mover advantage on floating wind projects anywhere in the world. The Scottish Government is determined to build on that strength, maximise our country’s offshore potential, reduce emissions and create good, green jobs. In 2020, Scotland generated some 940MW from offshore wind alone, and the recent announcement of a new manufacturing facility in Nigg is a great example of that. A location that is long associated with the oil and gas industry will now be home to the UK’s largest factory for steel towers for offshore wind turbines. That will create some 400 new jobs and more than 1,000 jobs across the supply chain. That is the type of transition that we want to happen across Scotland, including in the north-east.
The North Sea will continue to provide Scotland with an important level of domestic energy and, crucially, the infrastructure, skills and expertise of the sector can be a huge asset in helping us to achieve net zero. We believe that that will help Scotland to become a world leader in emerging technologies, such as CCUS, offshore wind and hydrogen.
The pact that was recently agreed in Glasgow at COP26 reaffirmed our commitment to achieving the Paris agreement to limit global warming to 1.5°C. That means that it cannot be business as usual. We need to take bold and courageous decisions in order to do things differently.
In the spring, we will also deliver our first just transition plan as part of a refreshed energy strategy, and that will set out how the economic and social impacts of the transition will be managed. Work to engage and collaborate with those who stand to be most impacted by the transition will begin early in the new year.
I believe that, by working in partnership with our oil and gas sector and the wider energy sector in Scotland, we can ensure a prosperous and sustainable future for this and future generations—in the north-east of Scotland and beyond.
I move amendment S6M-02552.3, to leave out from “prematurely” to end and insert:
“the global climate emergency and the aims set out in the Glasgow Climate Pact require all countries to achieve the fastest possible Just Transition for the oil and gas sector; reaffirms that, for such a transition to be just, it must support the 70,000 workers whose employment depends on the sector in Scotland; understands that the growing domestic and global renewable industry provides a major employment opportunity for Scotland; welcomes the Scottish Budget for 2022-23, which will see almost £2 billion invested in tackling the climate emergency, including the first £20 million of the £500 million Just Transition Fund for the north east and Moray, and calls on the UK Government to match this investment in the industries and jobs of the future.”
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