Hansard

The investments and the choices that we have had to make in the budget are a direct consequence of the choices and underinvestment that have come from UK Government policy making and that we are debating today. The reduction in our resource budget and our capital budget have an impact. It is therefore a bit rich for a Tory MSP to come here and moan about the impact of the austerity that his party is delivering at Westminster, which is having a direct impact on our budget in Scotland.

Alongside our commitment to realising economic growth, the Scottish Government is committed to a just and fair transition to net zero for Scotland’s economy. We stand behind our ambition to make Scotland more prosperous, and that goes hand in hand with making Scotland fairer. We will make sure that the transition is planned and fair so that we can meet our ambitious climate obligations and secure economic growth in a way that leaves no one behind.

The publication of our upcoming energy strategy and just transition plan will respond to feedback from the consultation last year. It will set a clear direction for the future of Scotland’s energy sector and the actions that will be taken to maximise the economic and social benefits from our just transition to net zero.

We are fully committed to the delivery of a credible plan that provides policy certainty for consumers, workers, businesses and investors. We have strengths and potential in sectors ranging from offshore and onshore wind to financial and professional services and advanced manufacturing. It was a pleasure for me to see that work in hand at the National Manufacturing Institute Scotland this morning. It is driving the manufacturing innovation that will help us with our green economy ambitions.

There is a vital role for public sector investment in supporting the transition to net zero, especially in important parts of the green economy that are emerging but are not yet established and which need our support to become commercially viable investment opportunities. However, investment on the scale that is required to achieve our ambitions will require funding from both the public and private sectors. We are working hard to attract private sector investment where commercial opportunities arise, and we are targeting our investment in a way that aims to unlock that private investment. We are working collaboratively with industry to address the challenges that can sometimes hold private investment back. Together, we are supporting Scotland’s companies, equipping workers with the skills and opportunities to access good green jobs, and exploring opportunities to boost international exports in sectors where we have a competitive advantage.

This summer, our green industrial strategy will set out our approach to working with business, investors and workers to realise the economic opportunities of the global transition to net zero. The strategy will offer a clear view of the economic sectors and industries in which we have the greatest strength and potential and what the Government will do to support those and help to give the private sector confidence to make decisions and invest in Scotland. The strategy will signal that we are serious about capturing for Scotland the economic benefits of the global transition to net zero.

I will give one example of our approach to investment in the green economy in action. The First Minister’s investor panel identified offshore wind as the single most important opportunity for attracting capital to Scotland and raising Scotland’s wider investment profile. It has become clear that the next two to three years are critical to anchoring core parts of the global sector in Scotland, with further investment required beyond that.

We have already had significant investment in Scotland’s offshore energy potential through the leasing rounds of ScotWind, which is a fantastic example of a team Scotland approach to delivering significant projects. To underpin delivery of that, we have worked with public sector partners to develop a framework that will achieve strategic alignment of public sector investment in offshore renewable supply chain and infrastructure development to ensure maximum impact. That very much aligns with the approach that has been taken in developing the strategic investment model to move from project to sector-level investment that better supports growth in port and supply chain capacity and capability. A strong pipeline of port infrastructure and supply chain projects is now emerging through the strategic investment model process.

That example highlights the huge opportunity for collaboration and demonstrates that there is a strong appetite from partners to take a strategic approach to the delivery of infrastructure and port investment. We are backing up that collaborative approach with funding, which will be targeted to achieve the maximum impact. In the face of challenging budget decisions, we chose to focus the limited resources that we have in 2024-25 on the huge opportunity that offshore wind presents for Scotland. That includes investing £67 million to kick-start our commitment of up to £500 million to anchor the new offshore wind supply chain in Scotland.