Scotland’s £3 Billion Green Investment Portfolio hopes to “help transition the country to a net-zero economy”

As part of its ambitious public promise to reach a total sum of zero carbon emissions in 25 years’ time, the Scottish Government has launched an initiative to fund renewable, low carbon, eco-friendly and recycling-based business opportunities.

What is the Scottish Green Investment Portfolio?

Initially announced in October 2019, the release of the Scottish Green Investment Portfolio is set to inject over £3 billion into accepted business proposals to help the country achieve its environmental goals.

The eleven current “market-ready” projects being backed include projects from a modern £250 million hydrogen infrastructure development project in Aberdeen, to a £3 million plastic recycling project in Perthshire, to a network of public charge-points for electric vehicles across Scotland.

The Scottish Government plans that the Green Investment Portfolio will provide investors from within Scotland and from all over the world to fund credible projects.

Importance has been placed on the natural assets of the country’s environment in the possibility for innovation, and to attract the investment that the projects involved require. The Economy Secretary, Fiona Hyslop, stated at launch that:

“The range of opportunities within this portfolio will expand over time to include £3 billion of projects ready for green finance investment, covering sectors from environmentally sustainable commercial real estate to low emission transportation and green energy.”

Despite delays, launching in Autumn 2020 rather than the initially scheduled Spring 2020 date, it is planned that the remaining investment will be provided to even more environmentally friendly projects over the next three years.

The Scottish Government hope that this investment will not only assist in achieving their 2045 net-zero target, but in improving the opportunities and wellbeing of Scotland’s people.

Who will benefit from the opportunities?

The Green Investment Portfolio aims to utilise both public and private sector funding, to provide benefit to both investors and the projects themselves.

For investors, they state this will be in the form of generating higher cash flows and reducing risk. On the side of the projects, if they meet relevant criteria, the Scottish Government hopes the benefits available will include:

• free international marketing via Scottish Development International’s website and their overseas field offices;
• profiling at key events to potential investors by public sector partners including on ministerial visits and through Scottish Development International’s network;
• advice and support on developing projects and sourcing investment;
• advice from a panel of experts on a project’s alignment with EU Sustainable Finance criteria;
• potential access to capital through the Scottish National Investment Bank; and
• potential also to be featured in the UK Department for International Trade’s investment portfolios and marketed internationally.

The initiative may be a unique opportunity for projects ready to launch in the energy sector, such as wind farms, solar parks, battery storage, or heat and distribution.

Provided that the project is one that can demonstrate carbon reduction, support the decarbonisation of Scotland, or demonstrate a clear link with Scotland’s climate or environmental policy, it may be an ideal addition to the Green Investment Portfolio and approved to reap the rewards of this investment opportunity.

Investors, project developers, or those interested in this new scheme to support low-carbon business can pitch their interest or innovation to the Scottish Government.

If you’d like to discuss a project you're considering putting forward please get in touch with our Renewables experts.