Carbon Neutral Islands: financing roadmap

Next Steps

The process of preparing the overall project for broader financial diversification will take several years, and future updates of this document will focus on maximising these opportunities.

As the ambitions of each island continue to grow, the project will consider how different forms of finance can best be utilised. We have already seen some diversification of financing (for example, properties to be retrofitted have been purchased using debt financing with the retrofit funding coming from multiple grant sources) however this will need to expand as the project develops and larger-scale emissions reductions are sought.

In the short term, work to develop the projects listed in this document will consider how to diversify funding as part of the planning process. The iterative nature of many of the projects means that, whilst early stages may require grant funding to conduct early-stage feasibility and design work, later stages, building on this work, may be open to more diverse investment. The Scottish Government will continue to support Community Development Officers to undertake further training to expand their understanding of this process.

Research will also be conducted to further clarify the project’s outcomes, primarily in terms of emissions reduction, but also considering other benefits that will strengthen the case for alternative funding.

Monitoring

Monitoring of this document will be undertaken by Scottish Government on a bi-annual basis on a continuous basis, and lessons learned incorporated into future iterations of the Roadmap. This will allow for updates on the progress of the project and initiatives whilst continuing to develop and refine appropriate financial mechanisms to support delivery.