First Minister Humza Yousaf has announced £25 million in funding for the Scottish National Investment Bank (SNIB) to be invested in the transition away from oil and gas.
On his first visit to Aberdeen – the country’s energy hub – since taking office last week, Mr Yousaf announced £25 million of the Just Transition Fund will be handed to the bank in order to “leverage further private investment” in the north east.
The fund was set up by Nicola Sturgeon’s administration, which pledged £500 million over a decade to shift away from fossil fuels.
“Delivering on our climate obligations is an absolute priority for this Government – but so too is our unwavering commitment to ensuring the journey to net zero is fair and just for everyone,” the First Minister said after the visit to the Port of Aberdeen expansion project.
“But Scotland’s oil and gas basin is now a mature resource and, as a responsible Government, we must take action to ensure the sector, and the communities it supports, are supported in a transition to cleaner, greener energy system.
“The North East has long been known as the oil and gas capital of Europe. It can now become the net-zero capital of the world.”
He added: “Our draft energy strategy and just transition plan sets out a very clear vision to capitalise on the enormous opportunities that a net-zero energy system offers the industry, our economy and our climate.
“By using a portion of the fund to support the Scottish National Investment Bank, we can leverage further investment in the region to ensure a fair and just transition for the energy sector, and for the people of Scotland.”
Willie Watt, the chairman of the SNIB, said the bank has already invested £225 million in businesses dedicated to the move to net zero, and leveraged a further £475 million from other investors.
He added: “We welcome this additional capital which, like the funds we have invested so far, we will invest on commercial terms and look to leverage additional private sector capital to support of the north east economy.”