Funding for sustainable islands

Additional funding allocated to local island projects.

Projects delivering strong community climate themes across some of Scotland’s islands will receive a share of almost £600,000 to support sustainability and provide more green travel options.

The projects are delivered through the Scottish Government’s Island Communities Fund, which provides investment for community-led projects that support employment, community resilience and contribute to Scotland’s just transition to net zero and climate resilient living on islands.

This second payment tranche will see funding provided to six additional projects. A second instalment of funding will also be provided to one of the projects awarded money in the first tranche.

The Fund is managed by Inspiring Scotland on behalf of the Scottish Government and the 35 successful projects span across 55 islands.

Islands Secretary Mairi Gougeon said:

“Last summer, we received more than 180 applications for this fund which shows us that our islands are focussed on making Scotland a greener and fairer place. They will play an important role in helping us meet our ambitious climate change targets.

“The additional funding will enable even more projects to help people, businesses and communities on our islands thrive.”

Magnus Holbourn of Foula Wool has received two funding instalments through the fund. Speaking about the importance of the fund to his business, he said:

“This is a genuine transformational opportunity for our island business, we have worked extremely hard over a number of years building up a customer base and establishing our Foula Wool product range. To now be able to bring all of the physical processing work that goes into creating the product back to the island, retaining its full value in the local economy is simply a dream come true.

“The fact that all of the yarn processing machines will be running on low carbon renewable electricity generated by Foula's own off-grid network not only increases overall island resilience but also allows us to significantly lower our business carbon footprint. We are really passionate about the environment and it makes us so happy to know that we are going to be able to produce our product in a responsible way, supporting our community and our unique sheep at the same time.”

Inspiring Scotland CEO Celia Tennant said:

“Inspiring Scotland is delighted to work with the Scottish Government to deliver this increase in investment to the Island Communities Fund. Support for these seven organisations will help island communities from Foula to Arran thrive, retain and grow population, and move towards a net zero future more quickly.”


The total ICF grant commitment delivered by tranche 1 and 2 is £2,586,000.

The initial £2 million committed in tranche 1 has come from the £9.5 million committed to the Islands Programme for 2021/22 and the £586,000 of additional funds is made up of £526,000 transferred from the Sustainable Action Fund, which is delivered by the Domestic Climate Change Division and £60,000 in support of population focused projects to deliver on our National Islands Plan commitment to support the repopulation of rural and island communities.

Tranche 2 funding also includes £9,536.67 that has been reallocated from Tranche 1.

Projects should be completed by 31 March 2022.

Island Communities Fund

Creating resilient and sustainable islands

Allocations by local authority

Argyll and Bute - £224,873.00



Project name

Islands for delivery

Amount allocated


Mull & Iona Community Trust

Zero Emissions Community Transport for the Islands

Mull and Ulva



Tiree Community Development Trust

Tiree Electric Transport




Na h-Eileanan Siar – £162,448.00



Project name

Islands for delivery

Amount allocated


West Harris Trust

Seilebost School Refurbishment – Phase II




Tagsa Uibhist

(Uist Support)

Uist Social Connectivity through Green Community Transport

Eriskay, South Uist, Benbecula, Grimsay, North Uist, Berneray




North Ayrshire - £69,741.00



Project name

Islands for delivery

Amount allocated


Arran Eco Savvy Community

Eco Savvy Sustainable Food, Travel & Transport




Orkney - £45,045.88



Project name

Islands for delivery

Amount allocated


British Red Cross (BRC)

Orkney and Shetland Community Transport and Support

Mainland Orkney, South Ronaldsay, Westray, Sanday, Hoy, Burray, Stronsay, Shapinsay, Rousay, Eday, Papa Westray, Flotta,North Ronaldsay, Wyre, Graemsay, Egilsay, Auskerry, Holm of Grimbister, Gairsay, Inner Holm




Shetland - £93,428.79



Project name

Islands for delivery

Amount allocated


British Red Cross (BRC)

Orkney and Shetland Community Transport and Support

Mainland Shetland, Whalsay, Yell, West Burra, Unst, Bressay, Trondra, Muckle Roe, East Burra, Fair Isle, Fetlar, Housay, Foula, Bruray, Papa Stour, Vaila



Foula Wool

The Foula Wool Spinning Mill



(Total commitment through ICF £146,583.62)


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