Carbon Neutral Islands: financing roadmap

Executive Summary

In the years since the Carbon Neutral Islands (CNI) Project was established in 2021/2022, Barra, Great Cumbrae, Hoy, Islay, Raasay and Yell have received significant support to build community capacity and enable them to lead their own decarbonisation journeys. The project has been driven by three key principles.

Alignment: The project aims to align with existing island-based climate change efforts.

Justice and fairness: The project supports islands to become carbon neutral in a just and fair way taking into account the recommendations of the Just Transition Commission.

Replicability: All Scottish islands stand to benefit from the project through the sharing of good practice.

The aim of this Carbon Neutral Islands Financing Roadmap, produced alongside our island partners and Highlands and Islands Enterprise, is to capture the future aspirations of the islands and explore funding avenues for achieving these goals. It is worth recognising that the journey to net zero is not linear and this document will continue to evolve in line with each island’s priorities and ambitions. We know that the fiscal landscape is challenging and reaching net zero by 2040 will not be achievable through the use of public funding in isolation. The Roadmap therefore aims to support each island in making best use of funding sources and opportunities to engage in the wider net zero agenda.

The Roadmap provides a means by which the islands’ local anchor organisations can articulate their ambitions for projects over the coming years. This provides a better understanding of each island’s capital and resource requirements so that the project can maximise appropriate and available funding to support the realisation of the islands’ decarbonisation goals.

The Carbon Neutral Islands project has the potential to serve as a replicable model for all Scottish islands. However, its success depends on addressing complex risks and barriers. By leveraging local strengths, fostering innovation, and securing investment, islands can embrace and lead the green transition.