Scottish ministers accused of 'taking a wrecking ball' to North Sea oil and gas
Opposition parties say the Scottish Government has ‘squandered’ its just transition fund.
Scottish ministers have been accused of “taking a wrecking ball” to the North Sea oil and gas industry after a new report revealed the government’s energy fund has only saved 120 jobs.
The just transition fund, created by former first minister Nicola Sturgeon, has spent £43 million in its first two years on 24 projects. However, this has only saved 120 jobs and created a further 110.
The Scottish Conservatives said the “paltry” return on investment will not allay fears within the sector and shows the Scottish Government has “squandered” the fund.
The report, published by the Scottish Government, said: “[The fund] had supported job creation and reskilling, empowered communities, catalysed private investment, and initiated innovation in green technologies and land restoration.”
It added: “Many of the projects are still in their early phases, and long-term impacts - particularly around carbon reduction, employment retention and supply chain transformation - will take time to materialise.
“Nonetheless, the fund has provided the foundations for economic and environmental change.”
The report also notes the fund has helped to leverage £30m in private sector investment and £4.7m from the public sector and charities.
The fund aims to spend £500m over 10 years to help Scotland move away from fossil fuels to green renewable energy.
The government report added: “In its first two years, the just transition fund has demonstrated its value as an enabler of regional transformation.
“It has supported job creation and reskilling, empowered communities, catalysed private investment, and initiated innovation in green technologies and land restoration.”
A total of 16 recommendations are then made for improving the fund “which would strengthen the just transition fund’s impact further”.
It added: “With these improvements, the just transition fund can become a valuable support of the north east and Moray’s transition to a net-zero economy, ensuring that the benefits are shared fairly across sectors, places and people.”
The report, which was carried out by Blake Stevenson Ltd, also said the fund had resulted in “support for community-led action” and “progress in nature-based solutions and low-carbon innovation, including woodland restoration, EV battery recycling, and hydrogen feasibility studies”.
However, Douglas Lumsden MSP, the Scottish Conservatives’ net zero spokesman, said: “This paltry return will do nothing to allay the fears of tens of thousands of highly-skilled workers in Scotland’s oil and gas sector.
“They know the SNP and Labour are taking a wrecking ball to their industry and this report confirms they have not got a clue how to properly protect jobs for the future.
“Taxpayers will be rightly thinking their money has typically been squandered by the SNP who must urgently shift from their current reckless approach if we are to achieve an affordable transition.”
This comes just a month after a stark report by Robert Gordon University, warning the North Sea oil and gas workforce could shrink by 400 jobs every two weeks. This is the equivalent to the closure of the Grangemouth oil refinery being repeated every fortnight, unless urgent action is taken.
Professor Paul de Leeuw, director of the energy transition institute at the university, warned the “window of opportunity for delivering a just transition is closing”.
The oil and gas workforce is forecast to fall from 115,000 in 2024 to between 57,000 and 71,000 by the early 2030s. The RGU report also suggests the UK offshore energy workforce, including oil, gas and renewables, will be between 125,000 and 163,000. Currently the workforce is 154,000.
The Scottish Government’s Climate Action Secretary Gillian Martin said: “This independent report demonstrates our Just Transition Fund is a catalyst for economic growth. With £75 million allocated to the fund since 2022, the expert report makes clear it has supported job creation and re-skilling, empowered communities, catalysed private investment and initiated innovation in green technologies.
“Thanks to the Just Transition Fund, more than 230 jobs have been created and safeguarded, 750 training places opened up and over £34 million in additional investment secured in its first two years. These are the initial impacts of the Fund and we are confident that job numbers, investment leveraged and other key outputs will increase as projects continue.
“This is just one example of how this government is supporting Scotland’s valued and highly skilled oil and gas workers, who are at the very heart of the just transition to net zero – despite the fact that decisions on offshore oil and gas licensing, consenting and the associated fiscal regime, are all matters that are currently reserved to the UK government.”
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