Hansard

I am pleased to speak in this important debate on the Scottish Government’s draft climate change plan, the policies and proposals that it includes, the opportunities that it brings for the people of Scotland and the vision for our country’s future that it embodies.

I thank members and all the committees for their contributions to the draft plan. I have met members from across the Parliament during the past few months, and I appreciate the pace at which the committees acted in scrutinising the draft plan.

I put on record my thanks to my policy team and the policy teams of my Cabinet colleagues—particularly those in transport, housing and rural affairs—who have so much to add to the draft climate change plan, and who are working hard to respond to all of the committee reports and their recommendations.

I also put on record my thanks to everyone who has responded to the public consultation and who has taken part in public engagement events across the country. Almost 2,000 people have taken part in more than 100 events. I am particularly grateful to our partner organisations—trusted voices in their communities—which have delivered those events.

Although that engagement took place across the country, it focused on the north-east, the Forth Valley and Grangemouth and the greater Glasgow and Clyde area. Those are all areas with historical connections to fossil fuel industries. The Government is determined to ensure that our communities do not suffer the same fate as former industrial communities did as a result of Thatcher’s unjust transition in the 1980s.

I remind colleagues that the first job of Scotland’s climate change plan is to set out a credible pathway that will deliver on each of our first three carbon budgets and support net zero by 2045.

The Committee for Climate Change said that we are on an “achievable” pathway. Important to me is the Just Transition Commission’s description of the plan as a “real step forward”. We have tried very hard to weave just transition throughout every element of the plan.

I am confident that Scotland is on a credible, ambitious and achievable pathway to meet our carbon budgets and, at the same time, grow our economy and capture the benefits of climate action. It is estimated that the direct financial benefits of the plan will amount to £42.3 billion between 2026 and 2040.

The plan will proactively increase the nation’s climate resilience and reduce our dependence on international markets, which is as important now as it ever has been. The plan will also be reactive and agile to technological changes, new UK Governments, international policy moves and market shifts.

The Scottish Government believes deeply in a positive vision of the future and, at its heart, the draft plan sets out a future in which we are less exposed to fluctuations, particularly in imported fossil fuel prices, and instead benefit from more efficient green technologies, which bring with them many opportunities for skilled, low-carbon jobs across the country and a healthier environment for our people to live in.

Those jobs are not just speculative. Study after study shows that there is already an impact in Scotland and that it is growing. The PwC green jobs barometer shows that the number of green jobs continues to grow at a faster rate in Scotland than anywhere else in the UK.

An Energy and Climate Intelligence Unit report shows that Scotland’s net zero economy has grown by more than 21 per cent since 2022—again, that is faster than in any other part of the United Kingdom. That is a source of great encouragement, and it should be a source of great encouragement to everyone who is involved in the climate change plan and who cares about the positive benefits that are included in it with regard to economic growth.

Data that was recently published by the Office for National Statistics shows that Scotland had the largest percentage increase in turnover across our low-carbon and renewable energy sectors compared with anywhere else in the UK.

The economic opportunities of the transition to a green economy are already here for us to see, and their number is growing. However, the climate action that is set out in our draft plan also, crucially, brings substantial wider benefits for individuals and our communities.

The convener of the Health, Social Care and Sport Committee helpfully explained some of the health benefits that are associated with climate action. We have an opportunity to widen out what is in the final plan to explain more of them.

Increased physical activity from the move to active travel will obviously benefit people’s health and wellbeing, as will cleaner air from the switch to electric vehicles and more attractive sustainable public transport.

That is supported by the removal of peak fares on ScotRail, the freeze on rail fares and our £2 bus fare cap pilot, which has now been launched in Shetland and the Western Isles. Those changes mean better air quality, with positive impacts on preventing or stopping the exacerbation of lung health conditions. Those will all support reduced pressure on the health service and saving for public finances. That is an area of work that we are doing in Government, with academic partners, to better identify some of the co-benefits associated with health and what that could mean for future health spend and savings. That is all evidence that, in Scotland, emissions reductions, economic and social benefits and economic growth go hand in hand.

Despite those advances, we must recognise that our Parliament does not possess all the powers necessary to deliver the action that we need. We are, regrettably, still relying on Westminster in some critical areas. When taking evidence on the draft plan, committees have heard repeatedly about the most important issue that the UK Government must act on, which is reducing the price of electricity. That has come through in most of the evidence. There are not many things in this area of work that are a silver bullet, but if there is one, it would be bringing down the cost of electricity. For heat pumps to make our homes warmer, for fuel poverty to disappear and for our transport systems to work for everyone, we need cheaper electricity.