IDRIC Policy Synthesis Report for Scotland 2024

This report was commissioned to support the Scottish Government in the development of an enhanced policy package to accelerate the decarbonisation of Scottish industry.

Strategic insights were collated from IDRIC’s UK-wide academic research and ongoing stakeholder engagement and contextualised for Scotland, identifying critical components of an integrated policy approach to industrial decarbonisation, synthesise common challenges and outline key policy recommendations.

The report identifies several financial and non-financial barriers for adopting low-carbon alternatives in Scottish industry. In addition, systemic barriers to the roll-out and scaling of green technologies include electricity grid constraints, planning and permitting bottlenecks, as well as skills shortages.

The report recommends an integrated policy approach to industrial decarbonisation, including:

• Strategic investment in industrial fuel-switching and investment in energy and resource efficiency, coupled with addressing non-financial barriers to unlock private investment.
• Engaging with UK Government to ensure reserved policy levers for CCUS and hydrogen infrastructure, low-carbon market creation and other incentives for decarbonisation are used to accelerate industrial decarbonisation in Scotland
  
• Focusing on enabling measures, making full use of devolved powers to drive change through enhanced planning, permitting processes, skills and supply chain development, place-based investments and support for research and innovation,
• Supporting cross-sector dialogue, including through multi-stakeholder forums bringing together public sector, industry and academia, and supporting meaningful engagement with local communities to unlock wider benefits of industrial decarbonisation.
• Taking a strong role in public engagement and working with other stakeholders to communicate a clear narrative of a sustainable future of industry in Scotland.

The report outlines key challenges, opportunities and recommendations in the following areas:

1. Industrial energy and resource efficiency
2. Industrial electrification
3. Hydrogen and alternative fuels
4. CCUS and negative emissions technologies
5. Carbon pricing and carbon leakage
6. Demand-side measures for low-carbon products
7. Planning, consenting and permitting
8. Workforce and skills
9. Just transition and place-based investment
10. Research and innovation