Commissioned for the Scottish Government to support ongoing policy development, the report is now available.

The report highlights the urgent need for action for industry—Scotland’s second-largest emissions source.

• To meet Scotland’s climate targets, industrial emissions must be reduced by 43% by 2032 whilst ensuring a just transition.
• Decarbonising existing industries also holds the potential for further economic and employment opportunities, attract new green industries and provide the tools to unlock wider decarbonisation across the economy
• Scotland’s assets position it uniquely to lead in industrial decarbonisation.

Challenges and Recommendations:

The report identifies several financial and non-financial barriers for adopting low-carbon alternatives in Scottish industry, as well as systemic barriers including grid constraints, planning and permitting bottlenecks, as well as skills shortages.

To overcome these barriers, the report recommends an integrated policy approach to industrial decarbonisation, including:

• Strategic Investment: The Scottish Government should provide consistent support for industrial fuel-switching and investment in energy and resource efficiency, coupled with addressing non-financial barriers to unlock private investment.
• UK Policy Engagement: Active engagement with UK government is crucial, given Westminster’s control over key policy levers needed for the deeper decarbonisation of industry such as for supporting CCUS and hydrogen infrastructure, creating markets for low-carbon products and other incentives for decarbonisation.
• Use of Devolved Powers: Enhanced planning, consenting and permitting processes, skills and supply chain development, and support for research and innovation are essential. Coordinated action across government departments is critical for effective policy design and implementation.
• Coordination across stakeholders including industry, regulators, local governments, training providers and local communities, and empowering them to play an active part, is vital for driving sustained action on the ground and ensuring a just transition.

IDRIC’s report calls on the Scottish Government to use the upcoming Green Industrial Strategy and the development of an updated Climate Change Plan for early 2025 to develop a comprehensive delivery plan for industrial decarbonisation.

Dr Alasdair Allan, Acting Minister for Climate Action said:

“The Scottish Government is committed to ensuring a just transition to net zero by 2045 which will require Scotland’s industrial sector to play its part. I welcome the publication of IDRIC’s independent Policy Synthesis Report for Scotland, which will strengthen the evidence base guiding our future policy interventions in supporting industrial decarbonisation across Scotland.

“We recognise that delivering industrial decarbonisation must be a collective endeavour between government, industry and academia. This report showcases IDRIC’s vital role in driving the innovative research which will help us achieve net zero and grow the economy.”

Prof. Mercedes Maroto-Valer, IDRIC Director said:

“We welcome the Scottish Government’s commitment to achieving a just transition to net zero by 2045. Now is a critical opportunity to ensure a strong policy focus on industrial decarbonisation. This will not only attract new industry but will also be essential to decarbonise Scotland’s existing industrial base in an integrated manner to maximise economic opportunities, safeguard jobs and support local communities.”

“By working with industrial clusters and leading academics across the UK, as well as with the Government in Westminster and the devolved nations, IDRIC pools expertise and shared learning to accelerate progress in the transition to net zero.”

DOWNLOAD THE REPORT

For further info please contact the IDRIC Policy Team, policy@idric.org