Carbon Neutral Islands: financing roadmap

Island Annex – Islay

This section outlines the proposed developments in Islay, coordinated by Local Anchor Organisations and Community Development Officers who are responsible for leading the implementation of the CNI project at the local level.

Island Context

Greenhouse Gas Emissions: 208,074 tCO2e

Agriculture: 27,247 tCO2e

Agricultural activity on Islay mainly consist of arable and grassland management with reduced stocks of beef and sheep due to transport and abattoir costs.

Energy: 68,288 tCO2e

Energy usage makes up a significant percentage of overall emission for the island. A key contributor to this is oil usage in distilleries which equates to 48,355 tCO2e.

Domestically, oil boilers are a major contributor.

LULUCF: 81,244tCO2e

A recent survey highlighted that a large percentage of the community placed significant importance on local food production and sustainable farming. On the island, there are also commercial sitka spruce plantations nearing maturity – approximately 10,000 acres. Replanting of these forests and reforesting once tree covered areas of land are a focus for the island moving forward.

Projects

Community Buildings Phase 1. Additional Carbon Saving Measures

Location: Islay – various community buildings

Capital cost: £250,000

Financial year: 2025/2026

Context: This project looks to build on ongoing work to decarbonise a number of community buildings on the island.

In 2025/2026 we will continue to improve on previous works in solar energy and explore additional improvements – i.e. glazing, draught proofing, insulation etc.

Local stakeholders: Carbon Neutral Islands – Islay Energy Trust – Community groups – Island Community Council.

Key risks: Inability to secure local tradesmen for work.

Off-island trades leads to inflated costs – i.e. London rates plus accommodation.

Increased EV Capacity

Location: Islay – various

Capital cost: £35,000

Financial year: 2025/2026

Context: This project aims to develop infrastructure on the island to improve the capacity for electric vehicle charging on the island whilst making chargers more accessible. Alongside this we will develop an EV charger map for visitors.

Local stakeholders: Carbon Neutral Islands – Islay Energy Trust – Community groups – Island Community Council – Island visitors.

Key risks: Grid capacity limitations.

Failure to receive permissions from Scottish and Southern Energy Networks.

Community Food Forest Project – Phase 2

Location: Cornabus, Islay

Capital cost: £150,000

Financial year: 2025/2026

Context: This project aims to move towards a circular economy by encouraging the production of food on the island.

This will build on Phase 1 which previously received funding (critical infrastructure) to move to planting phase.

Local stakeholders: Community and various community groups – Island Visitors.

Key risks: Inability to secure local tradesmen for ground works etc.

New Build Eco Cluster – Phase 1 District Heating Demo

Location: Cornabus, Islay

Capital cost: £1,200,000

Financial year: 2025/2026

Context: This will develop a biomass district heating system for five affordable houses for local young people using on-site timber resources.

Local stakeholders: Argyll and Bute Council – local residents seeking housing.

Key risks: Rural and Islands Housing Fund application. Inability to secure local tradesmen for work. Timescales

Community Buildings – Phase 2 – Small Scale Wind Turbine

Location: Various

Capital cost: £160,000

Financial year: 2025/2026

Context: Work to explore the potential for small scale wind energy generation at the following sites. ICCI (Gaelic College), South Islay development – playing fields.

Local stakeholders: Community – Islay Gaelic Centre – South Islay Development.

Key risks: Inability to secure local tradesmen for work – Planning.

Community Food Forest Project – Phase 3

Location: Cornabus

Capital cost: £150,000

Financial year: 2025/2026

Context: This project will build on Phase 2 of this work to accommodate the planting of beneficial trees and shrubs to encourage further growth.

Local stakeholders: Community – Visitors – Island Development Initiative.

Key risks: Inclement weather – Shelter required until project fully established.

Domestic Solar Expansion

Location: Various

Capital cost: £250,000

Financial year: 2026/2027

Context: Following a model set out through the CNI project by Cumbrae, this would involve the expansion of domestic solar energy installations on the island.

Local stakeholders: Householders/businesses.

Key risks: Lack of local tradesmen with appropriate qualification.

Decarbonisation of Large-Scale Road Vehicles

Location: Island-wide

Capital cost: £120,000

Financial year: 2025/2026

Context: Project aims to decarbonise the Islay fleet of lorries and buses by replacing them with EVs.

Local stakeholders: Transport operators – Businesses.

Key risks: Limited uptake.

Biochar Trial – Phase 1 – Agricultural/Peatland/Clear Fell Land

Location: Various

Capital cost: £600,000

Financial year: 2026/2027

Context : This project will to support the production of local biochar using local waste wood it will then lock in carbon using this biochar.

It will explore also options for linking into Tier 3 of the Scottish Government’s Agricultural Support Scheme.

Potential benefits include:

• Assisting local farmers to lock in emissions in the long term and monetise local resources
• Improvements to soil quality
• Reduction in fertiliser use

Local stakeholders: Landowners – Farmers – Scotch Whisky Association – Scottish Government

Key risks: Caution in uptake of project by landowners/farmers

Reforestation Project

Location: Various

Capital cost: £90,000

Financial year: 2026/2027

Context : A reforestation project aiming to create opportunities for long-term carbon lock in on the island through reforestation. This work will be supported by work to develop an island carbon budget.

Local stakeholders: Landowners – Farmers.

Key risks: Quantity of local grown trees – Securing enough local seed.

Replacement of Non-Native Sitka

Location: Island-wide

Capital cost: £880,000

Financial year: 2026/2027

Context : This project aims to remove and replace non-native sitka plantations. As part of this work the potential for a local sawmill to convert the timber into biomass for local use is being explored.

Local stakeholders: Forest landowners – builders/fencers.

Key risks: Landowner buy-in.

Peatland Restoration – Carbon Lock in using Biochar

Location: Island-wide

Capital cost: £46,000

Financial year: 2026/2027

Context: This project aims to use biochar in peatland restoration. Through this it could significantly increase the amount of carbon already stored in peatland.

Local stakeholders: Distilleries – farmers/landowners.

Key risks: Caution in uptake of project by landowners/farmers.

New Build Eco House Cluster – District Heating Phase 2

Location: Cornabus. The Oa.

Capital cost: £1,400,000

Financial year: 2026/2027

Context : This would build on phase 1 of this project expanding district heating to a further five homes.

Local stakeholders: Argyll and Bute Council – Young people/families.

Key risks: Financial risk – Lack of local contractors.

Expansion of Solar Array

Location: Castlehill

Capital cost: £400,000

Financial year: 2027/2028

Context: This project would expand an on-island solar array and increase the renewable energy offering on Islay.

Local stakeholders: Islay Community Benefit Society – community.

Key risks: Lack of local contractors.

Large-Scale Biochar – Phase 2

Location: Island-wide

Capital cost: £250,000

Financial year: 2027/2028

Context : This would build on the phase 1 demonstrator for the project spreading biochar further on agricultural/barley cropping land/set aside

Local stakeholders: Farmers/landowners – Distilleries – Scotch Whisky Association – Local Authority – Scottish Government.

Key risks: Caution in uptake of project by landowners/farmers.

Vertical Farming Project

Location: Various

Capital cost: £1,600,000

Financial year: 2027/2028

Context: This project would, by promoting vertical farming, reduce food miles and boost island food security

Local stakeholders: Islay community – local businesses.

Key risks: Large capital and resource project. Difficulty in establishing market. Exporting surplus.

Large-Scale District Heating Systems – Biomass

Location: Glenegedale

Capital cost: £840,000

Financial year: 2027/2028

Context : This project would further expand district heating on the island using sustainable timber to heat local homes.

Local stakeholders: Argyll Community Housing Association – Argyll and Bute Council – Local families

Key risks: Community buy-in – Lack of skilled workers to undertake project.