Hansard

I start by referring to my entry in the register of interests, in relation to a smart-meter business that is based in England

This has been an important debate. It deals with one of the most pressing and critical challenges that face this generation and future ones: how to address climate change by transitioning to a carbon-neutral economy and society. As has been mentioned by a number of members, the backdrop to the debate are the challenges and goals that were set out in the Paris climate change agreement, which seeks to limit global temperature rises to well below 2°C and to pursue efforts to limit the increase to 1.5°C above pre-industrial levels.

Here in Scotland, we have seen significant progress over the past 30 years. Emissions have reduced by 49 per cent since 1990, and much progress has been made towards the goal of having a carbon-neutral economy. However, progress has varied considerably across sectors. Emissions cuts of 69 per cent from the energy sector and 73 per cent from waste contrast with lower reductions of only 28 per cent from agriculture, 21 per cent from the residential sector and just 3 per cent from transport.

In her opening speech, the cabinet secretary set out the steps that the Scottish Government is taking to deliver future reductions in emissions through the climate change plan, the just transition commission and other initiatives. The targets include our having a wholly decarbonised electricity system by 2030, a 96 per cent reduction in emissions from the services sector, and a 76 per cent reduction in residential emissions.

Those targets are ambitious and we can all support them, but significant challenges need to be addressed if we are to deliver the reductions, and do so in a way that is just and fair to all members of society. Some of those challenges have been raised during the debate. Jamie Halcro Johnston and other members highlighted the fact that the climate change plan needs to set out more detail on how the Scottish Government will deliver emissions reductions. That concern was raised during the committee inquiry into the climate change plan. The Existing Homes Alliance Scotland told the Economy, Jobs and Fair Work Committee:

“It is right to have such ambition, but it cannot be wishful thinking—it must be backed up by credible policies and resources to give us the confidence that the target will be met.”—[Official Report, Economy, Jobs and Fair Work Committee, 31 January 2017; c 3.]

The WWF agreed, and said:

“we are disappointed by the level of policy detail”

and called for a

“clear indication of the all the policies and proposals that will deliver the targets”—[Official Report, Economy, Jobs and Fair Work Committee, 31 January 2017; c 26.]

That evidence led the committee to recommend that additional details on budgets, targets, timelines and policies should be included in the climate change plan in order to deliver a just transition in a transparent manner. As we debate the Climate Change (Emissions Reduction Targets) (Scotland) Bill in the weeks and months to come, I look forward to the Government setting out the detail of how the targets will be delivered.

In addition to more clarity and detail on policy, a whole-of-Government approach needs to be taken to delivery of a carbon-neutral economy. The briefing from the Scottish carbon capture and storage group that was circulated yesterday called for a just transition to be part of an industrial strategy that identifies the industries that will emerge in a low-carbon economy, and the industries and sectors that will become less viable, as a result. It said that the strategy should take a co-ordinated approach in order to ensure that the jobs and skills from declining industries can be transferred to the new emerging sectors.

In his opening speech, Maurice Golden set out a number of constructive proposals on how the strategy could be delivered. He referred to an ambitious circular economy programme that would add more than 40,000 jobs if the Scottish Government were to embed such practice across all portfolio areas. That would include the creation of new institutions including a design academy, an institute of reuse, microplastic recycling facilities and waste hubs, in order to promote best practice across Scotland.

The Scottish Government talked about taking a co-ordinated and strategic approach. It can facilitate the delivery of a just transition by working closely with the UK Government under its industrial strategy, which includes clean growth as one of four grand challenges. The transition to a carbon-neutral economy will require investments of significant scale, and the UK’s industrial strategy will invest more than £2.5 billion in the next five years to support low-carbon innovation, including through transformation of construction techniques to improve efficiency, through making energy-intensive industries competitive and through making the UK the global leader for green finance to support clean growth.

The low-carbon economy in the UK is expected to grow by 11 per cent per annum in the next 10 years, which is faster than any other sector of the economy. Scotland can benefit significantly from the scale of the economic growth and investment under the UK’s industrial strategy, but only if the Scottish Government works more closely and collaborates further with the UK Government in order to capitalise on the opportunities.

A number of MSPs, including Claudia Beamish, Mark Ruskell and Donald Cameron, pointed to the need for increased investment in training, education and skills to ensure that Scotland’s workforce is ready for the challenges and opportunities that will arise from the low-carbon industries that are yet to emerge. If we are to equip Scotland’s workforce for a low-carbon future, we need to address the chronic underinvestment in training and lifelong retraining, which Jamie Halcro Johnston mentioned. Otherwise, the workforce of the future will not be prepared to capitalise on the opportunities: there is a danger that we will lose out on significant opportunities if our workforce is not ready. As Alex Rowley said, when we have previously not taken a strategic approach to new emerging industries, we have lost out in terms of jobs in manufacturing, with the vast majority of turbines in Scotland having been manufactured elsewhere.

In delivering a just transition, another priority for the Scottish Government will be to minimise economic disruption on the pathway towards a carbon-neutral economy. For example, the Federation of Small Businesses has warned that few Scottish firms are prepared for the new low-emissions schemes that are planned for four cities in Scotland, and it has expressed concerns about lack of consultation and consistency in implementation of the schemes. We agree with the FSB’s call for more consultation and for Scotland-wide standards to be established when the Scottish Government is introducing new regulations along the pathway to a low-carbon economy.

We also need a coherent approach across Scottish Government agencies, and not just in the just transition commission. We need Scottish Enterprise, the Scottish national investment bank and the Enterprise and Skills Strategic Board all to be aligned around the priorities and implementation of policy. Perhaps Derek Mackay, when he wraps up the debate, could explain how the Government agencies will work together and be aligned across the policy area.

Donald Cameron mentioned in his speech that this is an area in which the Scottish Government must follow an evidence-based approach in order to ensure that policies work in practice. Questions remain about the Scottish Government’s policy proposal to tackle energy costs through a publicly owned energy company, and about how and whether it will work in practice. Two years after the policy was announced, the viability of the publicly owned energy company is still open to question, as we heard from the Minister for Energy, Connectivity and the Islands at the Economy, Energy and Fair Work Committee just this morning. I was surprised to hear that we are still at the stage of stress testing the viability of that flagship policy, which the First Minister announced two years ago.

As Scotland moves towards a low-carbon future, it is inevitable that our economy will change significantly. Some industries will experience rising costs, others will experience falling demand and new sectors will emerge that do not exist at present. There will be a need to balance the needs of small businesses, unions, employees, large businesses, the fossil fuel sector, the renewables sector and new emerging sectors. To deal with all those challenges, we need the Scottish Government to adopt a whole-of-Government approach.

Above all, the Scottish Government needs to take steps to train and upskill our current and future workforce to be ready for the challenges and opportunities that lie ahead.

I support the amendment in Maurice Golden’s name.