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Identifying opportunities for Scotland’s green economy
Why it is important
A just transition to a net zero, climate resilient economy presents opportunities for businesses to develop in new areas.
To understand what those areas are, the Scottish Government asked ClimateXChange to commission an analysis of the strengths, weaknesses, opportunities and threats (SWOT) of Scotland’s existing and emerging net zero and adaptation economy.
The study developed a framework for assessing different sectors. It then identified 12 priority sectors where Scotland might have a competitive advantage in producing goods and services that would grow the nation’s net zero economy.
While the study was underway, the Scottish Government started work on a green industrial strategy. Evidence on priority sectors would also be relevant for these new areas of work.
How ClimateXChange supported policymakers
Researchers reviewed over 60 sectors and sub-sectors. From those, they identified 12 offering the greatest potential to deliver economic benefits and conducted a comprehensive SWOT analysis for each.
The work provided a range of metrics and insights. This enabled policymakers to make informed and strategic decisions on where the Scottish Government might focus in its Green Industrial Strategy.
Furthermore, the report included visuals that ensured findings were easy to interpret.
Impact
Green industrial strategy
The report has strengthened the evidence underpinning the Green Industrial Strategy’s focus on specific opportunity areas. It supports Ministers’ overarching aim of helping Scotland realise the full benefits arising from the global transition to net zero. Outputs from the study were the basis of strategic discussions on prioritisation in different sectors.
Action across sectors: just transition plans and the Climate Change Plan
The Scottish Government also used the report in other related work. For example, the section on heavy duty vehicles informed the development of the draft Just Transition Plan for transport.
The report will continue to be useful as government develops further Just Transition Plans and continues to consider the economic impacts and implications of work on the Climate Change Plan.
Furthermore, the lead policy team for the report found this work to be a useful basis for conversations with a diverse range of sector teams across government. Cross-government connections were vital to assess the validity of data being produced, such as on workforce and economic impact.
Enhanced evidence and collaboration
The report also prompted collaboration between the Scottish Government and Scottish Enterprise, an agency that supports business development and growth. The work provided a useful foundation for policy teams to engage more closely with Scottish Enterprise’s projects developing scenario-based projections of jobs and economic impact.
Further afield, the National Economic and Social Council of Ireland recognised the work as a very useful template for data gathering.
“The report has significantly improved the quality of our evidence base, helping us make informed choices on a range of projects such as the Green Industrial Strategy and just transition plans across sectors. It also fostered a collaborative effort with Scottish Enterprise by drawing on and shaping their work and approaches.”
– Jayne Winter, Net Zero Economy Team Lead
Scottish Government
Overall, the study provided a consistent framework for appraising different sectors, even where it is difficult to obtain comparable data. It had an impact in Scotland and provides an effective analytical template that could be applied elsewhere in the UK or in other countries.
Related reports
Economic opportunities in Scotland’s net zero and climate adaptation economy
Image credit: Julia Schwab from Pixabay