First Minister Humza Yousaf has announced £25m in funding for the Scottish National Investment Bank to be invested in the transition away from oil and gas.
On his first visit to Aberdeen since taking office last week, Yousaf that this sum from 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 £500m 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,” Yousaf said after the visit to the Port of Aberdeen expansion project.
“Scotland is an energy-rich nation and the oil and gas industry has made a vast contribution to our economy, while its workers are some of the most highly-skilled in the world.
“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: “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, chair of the bank, said it has already invested £225m in businesses dedicated to the move to net zero, and leveraged a further £475m 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.”
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