Cost of failure to invest in net zero "sky high" warns Just Transition report
The commission said getting the transition right is "critical"
The Scottish Government is being called on to "urgently" increase investment for the just transition to green energy.
A report by the Just Transition Commission (JTC) warned the “cost of failure is sky high”, stressing Scotland cannot afford the lose out on opportunities from net zero.
It’s as four cities – Aberdeen, Edinburgh, Glasgow, and Dundee – bid to become home to the UK Government’s Great British Energy project headquarters.
JTC Commissioner Lang Banks has highlighted how important it is for jobs and the economy for the transition to be smooth.
"The cost of failure is sky high"
He said: “Getting this right for places like Aberdeen and the north east of Scotland is absolutely critical.
“There’s no doubt about it, we need to find a way that allows us to transition sustainably away and fairly away from north sea oil and gas in the coming years, but to transition in a fair way that creates jobs, and new opportunities for people from Aberdeen and the north east, from the new industries.”
The report added the current approach is not enough, urging ministers to introduce a new model to achieve long-term economic value in the sector.
It said: "If investment provision is left to the market alone, we will see an unjust and ineffective transition."
"Getting this right for places like Aberdeen...is absolutely critical"
But it also warned ministers to factor in the "cost of failure" in areas like job losses and loss of ecosystem services if investment is not managed.
"Short-term 'savings' will be hugely costly to Scotland if these ultimately stymie fair economic development at this critical juncture.”
It also called for a "clear, high-quality prospectus for just transition investment" with the aim of generating "significant long-term value".
Satwat Rehman, co-chairman of the commission, said: "Our report leaves no room for doubt that if investment in Scotland's journey to net zero is left to the market alone, we will see an unjust and ineffective transition.
"Short-term 'savings' will be hugely costly"
"We need government at all levels to pay a proactive role in making sure the costs and benefits associated with these major but foreseeable changes are shared equitably.
"This will involve new ways of working collaboratively and building up capacity where required to meet this challenge head-on, demonstrate responsible economic stewardship, and make the most of the tremendous opportunities net zero brings for economic and social renewal."
Professor Dave Reay, co-chairman, said: "The communities and businesses we speak to around the country keep telling us they want to see Scotland's commitment to a just transition come to life through a new set of measurable policies and investments.
"I hope the commission's report establishes a shared understanding of where we are on this national mission, and what now needs to happen if we are to finance a truly just transition to a low-carbon economy."
Scottish Government response
A Scottish Government spokesperson said: "The Scottish Government will carefully consider this report as it continues the drive to reach net zero emissions by 2045.
"With emissions in Scotland already nearly cut in half, we are well positioned to continue leading on climate action that is fair, ambitious and capable of rising to the emergency before us.
"Our upcoming energy strategy and just transition plan will set out how we will take advantage of the enormous opportunities offered by becoming a net zero economy.
"Based on analysis from EY, low carbon and renewable energy could support nearly 80,000 jobs in Scotland by 2050.
"The Scottish Government is working with the UK Government, local authorities, trade unions and the private sector to ensure that a just transition is delivered across our sectors, sites and regions to secure a sustainable future for our economy, workforce and environment."