Scottish Industrial Energy Transformation Fund (SIETF)
In October 2018, UK Government announced plans, as part of the Industrial Strategy, to establish an Industrial Energy Transformation Fund providing up to £315 million until at least 2024. This is part of a package of support for decarbonising energy-intensive industries (EII) alongside the Industrial Clusters Mission, and Climate Change Agreements.
In Spring 2020, Scottish Ministers opted to deliver a separate IETF in Scotland over a similar timeframe. In September 2020, the Programme for Government announced that £34 million would be made available for capital projects over the next 5 years, an additional £8 million to the anticipated budget transfer from UK Government.
The importance of shared objectives to meet climate change targets will ensure that we work closely with other UK administrations on the SIETF. Yet a distinct fund allows flexibility towards the specific characteristics of Scotland’s industrial manufacturing base, supporting industry to go further and faster in the transition to a low carbon future.
About the SIETF
As well as an environmental necessity, industrial decarbonisation is an economic opportunity – to grow our existing energy intensive sectors and to attract the manufacturing industries of the future. However, engagement with industry leaders has shown that there are significant barriers to attracting the necessary investment – particularly long payback periods – whilst sites must remain internationally competitive.
Via match-funding, the SIETF will incentivise investment in existing sectors, building on their considerable strengths. SIETF-supported projects will demonstrate government and industry are taking steps together to deliver against climate change plan targets by co-investing to decarbonise the industrial sites that local jobs and communities depend upon. Technological investment will also support inclusive growth, aligned to the global Sustainable Development Goals.
Read more about the SIETF.
Scottish Industrial Energy Transformation Fund 2020 competitions:
- competition 1 - energy efficiency deployment
- competition 2 - feasibility and front-end engineering design (FEED) studies
Please email enquiries to IETF@gov.scot