August 28, 2026
Fund

Scottish Government questioned over climate fund allocation


Public consultation closed in May 2023 but more than three years later it has never been published, and fresh calls have been made for its publication due to uncertainty over funding for an already-established fund.

The Scottish Government launched the Just Transition Fund for the North East and Moray in 2022.


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The fund is a £500million 10-year commitment and is designed to help the region move to a net zero economy by creating new jobs and opportunities outside of carbon-intensive industries.

Including allocations for the current financial year, around 21% (£105m) of that budget has been allocated so far, and the Scottish Government’s own spending plans budget just £15.9m per year going forward from 2026-27 to 2029-30.

At that pace ministers would need to spend roughly £174m on average in the final two years (2030-32) in order to meet the £500m target. 

Daniel Jones, head of research and policy at Uplift, said: “No one understands the need for a rapid just transition better than people in the North East and Moray and these figures will leave them wondering why there seems to be a lack of urgency within the Scottish Government.

“While oil and gas jobs have continued to dwindle despite new licences being issued over the past decade, workers have been left with vague promises and nowhere near enough funding to deliver them.

“Ministers have had years to deliver a plan that gives communities the certainty and opportunities they need; unless they plan a spending surge at the eleventh hour, this looks less like a budget delay and more like backtracking on their commitments to the North East.

“The upcoming programme for the government must finally deliver the long awaited Energy Strategy and Just Transition Plan, set out a proper delivery timetable for the Just Transition Fund and finally give communities the security they’ve been waiting far too long for.”

Connor Watt, worker organiser at Platform, added: “These figures clearly underline the risk of setting out on a path of just transition without a solid plan detailing how we achieve that. 

“While the desire to support community groups, small businesses, and target spending locally is honourable, without an overarching direction set by government we risk a rudderless future amid increasing anxiety in the region.

“This is of particular importance at a moment when key energy and industrial policies are being developed; without a strong steer from government workers and communities will feel let down and unsupported.

“The Scottish Government must be bold and set out a strong plan of action to which the fund can be linked – workers and communities are crying out for this.”

Responding, Business minister Tom Arthur said: “More than £120 million has already been invested by the Scottish Government in the North East through the Just Transition Fund and the Energy Transition Fund to support the region’s transition to net zero.

“The Just Transition Fund has supported hundreds of jobs with more than £85 million investment into 28 projects across the North East and Moray. The fund is also supporting reskilling opportunities and investing in the domestic supply chain.

“Applications are being considered for the latest funding round, with grants of up to £17 million due to be announced shortly.”





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