Low carbon Scotland - Spending Review

20th September 2011

Funding included in today's draft budget and Spending Review will help to tackle fuel poverty and energy inefficiency, as well as develop the low carbon economy and bring jobs and investment to Scotland.

The Review, announced by Finance Secretary John Swinney, will help Scotland achieve its targets for renewable energy.

The Spending Review includes overall energy related spending of £300 million.

It also includes £327 million to tackle fuel poverty and home energy efficiency head on as well as to support housing quality by maintaining the successful Energy Assistance Package and Universal Home Insulation Scheme, and in meeting our contractual commitments to housing stock transfer landlords. There is also money to help communities benefit from renewables and develop district heating schemes, and to reduce congestion and improve public transport, as well as investment in infrastructure and Scottish Government buildings to make them greener.

Energy, Enterprise and Tourism Minister Fergus Ewing said:"Scotland has an opportunity to secure further investment and jobs from the growing low carbon sector and ensure the benefits of this transformational change are shared across the economy and our communities.

"Despite the difficult choices that have had to be taken in this Spending Review, we remain committed to tackling the challenge of emission reductions.

"But of equal importance to the global agenda is the need to ensure that the actions we take to cut emissions also deliver benefits to the people of Scotland.

"Energy and resource efficiency will be a priority - assisting people and businesses to use less energy will help to save them money and be vital in tackling fuel poverty."

The Spending Review builds on the progress which has already been made towards this target and helps fund the policies which were set out in Low Carbon Scotland: Meeting the Emissions Reductions Targets 2010 - 2022.

Scotland's woodland will be expanded, as the Forestry Commission Scotland receives a budget of £48 million to plant 10,000 hectares per year, supplemented by European funding.

There will be work to improve the efficiency of existing infrastructure. For example, Scottish Water's work to reduce leakage will also save around 10,000 tonnes of CO2, and the organisation is working to increase the amount of energy it generates by installing small-scale hydro generation turbines within its existing water assets.

In a pilot project to deliver energy savings in school estate supported by the Scottish Futures Trust, Eastwood High School and Lasswade High School will be replaced with sustainable designs which exceed the current Building Insulation Standards and air tightness specifications. Construction will start in early October 2011 and the schools will open by August 2013.

Scotland has a target of generating the equivalent of all our electricity needs from renewables by 2020.

The "Transition to a Low Carbon Economy" chapter of the Spending Review outlines that over the next three years the Scottish Government will:

Enhance our commitment to energy efficiency - helping people use less energy will help to save them money and will be vital in tackling fuel poverty. We will invest £327 million to support Sustainable Housing and address Housing Quality including through our Fuel Poverty and Domestic Energy Efficiency programmes over the next three years. These funds will meet our Housing Energy Efficiency commitments in full and we will also aim to maximise leverage of additional funding from energy companies and other sources
Use the Scottish Futures Fund to provide additional support for emissions reduction measures, with £100 million for Warmer Homes and Future Transport over the course of this Parliament

Expand Scotland's woodland - building to a planting rate of 10,000 hectares per year, supporting Forestry Commission Scotland with a budget of over £48 million for this purpose, supplemented by European funding

Enhance our commitment to district heating - we will back innovative district heating projects as part of a new £5 million Loan Fund. Our expert commission on the delivery of district heating will advise on the steps needed to ensure a major move to district heating in Scotland

Transform the scale of community ownership of renewable energy developments, by enhancing our Community Renewable Energy Scheme to aim to reach a target of 500 megawatts of community and locally-owned renewable energy by 2020

Deliver energy savings in school estate - in an innovative pilot project supported by the Scottish Futures Trust, Eastwood High School and Lasswade High School will be replaced with high quality, sustainable designs which exceed the current Building Insulation Standards by 30 per cent and the air tightness specifications by 60 per cent. Construction will commence in early October 2011, and both schools will open by August 2013

Improve the efficiency of existing infrastructure - for example, Scottish Water has identified the potential to save around 10,000 tonnes of CO2 per year as a consequence of its continued programme to reduce leakage. Scottish Water is also working to increase significantly the amount of energy it generates by installing small-scale hydro generation turbines within existing water assets

Reduce waste and using materials more efficiently - we will work towards a 70 per cent target for recycled waste and a maximum of 5 per cent to be sent to be landfill by 2025. We will support businesses to use resources more efficiently, waste less and, as a result, reduce their costs and emissions while boosting profitability and productivity