Supporting a greener Scotland

Record funding to deliver a just transition to net zero.

Scotland’s Budget will deliver record levels of investment in tackling the climate emergency – helping to protect and restore the natural environment, and slash emissions from homes, industries and transport.

The 2022-23 budget provides more than £2 billion for measures that will accelerate a just transition to  a Scotland which leads the way in ending climate change.

That includes:

  • £53 million to protect and restore the natural environment, including peatlands, and a further £69.5 million to create and sustain woodlands;
  • £336 million invested in energy efficiency and low carbon and renewable heat to deliver warmer, greener homes. This includes £160 million to support those least able to pay for home energy improvements, helping to cut emissions while tackling a major driver of fuel poverty and creating jobs across the country;
  • Investment of £53 million for the energy transition and industrial decarbonisation projects;
  • The first £20 million allocation of the Just Transition Fund for the North East and Moray will be made – with impacted workers playing a key role in deciding how the funds are spent;
  • Almost £1.4 billion will be spent to maintain, improve and decarbonise Scotland’s rail network. Free bus travel for young people will receive £110 million, and £150 million will be invested in active travel, such as walking and cycling. This will support efforts to cut car kilometres by 20% by 2030.

Cabinet Secretary for Net Zero, Energy and Transport Michael Matheson said:

“We are playing our part in tackling the global climate emergency head on. This budget carries forward the momentum created by COP26, with record investment in transforming Scotland into a net zero, climate resilient nation.

“We are prioritising investment in the natural environment, including our vital woodlands and peatlands. This is not just good for the planet, it will also support local jobs in the rural economy.

“We are also taking action to make our homes warmer and greener to help reduce emissions, while tackling fuel poverty and creating green jobs.

“The transition to net zero has to be made in a way that is fair and just, with no one left behind. Our Just Transition Fund will give communities impacted by the transition a real say in their future, and create new economic opportunities in which they can thrive.

“We have set a challenge of reducing the number of kilometres travelled by car in Scotland by 20% by 2030. Achieving this will require a big modal shift in how people travel and a greener, decarbonised public transport network as an attractive alternative.

“That’s why we are prioritising transport spending on public transport and active travel. By investing almost £1.4 billion in 2022-23 to maintain, improve and decarbonise Scotland’s rail network and providing record investment for walking, wheeling and cycling of £150 million next year.

“Bus services and users will benefit from £414 million, which includes £110 million for free concessionary bus travel for young people aged under 22, helping to establish and embed positive sustainable travel habits among our younger generations.”


The Scottish Budget for 2022 to 2023 was published on 9 December 2021.


Media enquiries

Back to top