Climate Change Plan: monitoring report 2025

7. Chapter 6: LULUCF

7.1 Part A - Overview of sector

The outturn emission statistics for 2022 (published in 2024) show a position of 0.2 MtCO2e.

The CCPu sets out the following three policy outcomes for the sector, the indicators for which are summarised below:

We will introduce a stepped increase in the annual woodland creation rates from 2020-2021 to enhance the contribution that trees make to reducing emissions through sequestering carbon.	On Track	Off Track	Too Early to Say
Hectares of woodland created per year	-	X	-
Woodland ecological condition	-	-	X
Woodland Carbon Code: Projected carbon sequestration (validated credits)	X	-	-

Increase the use of sustainably sourced wood fibre to reduce emissions by encouraging the construction industry to increase its use of wood products where appropriate.	On Track	Off Track	Too Early to Say
Annual volume (in millions of cubic metres) of Scottish produced sawn wood and panel boards used in construction	-	X	-

To enhance the contribution of peatland to carbon storage, we will support an increase in the annual rate of peatland restoration.	On Track	Off Track	Too Early to Say
Hectares of peatland restored per year	-	X	-
Peatland Code: Projected emissions reduction (validated units)	-	X	-

We will establish pilot Regional Land Use partnerships (RLUPs) over the course of 2021.

Just Transition and Cross Economy Impacts

We wish to understand and report on the broader just transition and cross-economy impacts of our emissions reduction activities in addition to these sector specific policy outcomes and indicators. To do this, in this report we use data from the Office of National Statistics (ONS): Low Carbon Renewable Energy Economy (LCREE) publication. The LCREE data presented in this report is based on survey data of businesses which perform economic activities that deliver goods and services that are likely to help generate lower emissions of greenhouse gases, for example low carbon electricity, low emission vehicles and low carbon services. The LCREE indicator is narrowly defined and, while useful within its limited scope, does not give us the full picture of the impacts on workforce, employers and communities and progress towards a just transition. Over the next year, we will work to develop a more meaningful set of success outcomes and indicators aimed at tracking the impacts of our policies on a just transition to net zero, which will inform our next CCP.

Sector commentary on progress

Forestry

There were 15,040 hectares of new planting in 2023-24. This was the highest level for 34 years and included 7,700 hectares of native woodland.

Following the forestry summit with leaders from across the forestry sector in December 2023, Scottish Forestry has released a woodland creation route map which brings together policies, actions, and improvements to deliver woodland creation in the period to 2030.

A 57% cut in the budget will significantly restrict woodland creation in 2024-25, and the 2024-25 PfG set out a revised commitment to 10,000 hectares this year. As of 31^st December 2024, approximately 9800 hectares of woodland creation applications have been approved for 2024/25. Scottish Forestry has taken steps to limit the attrition of approvals into claims (trees planted), including an extension to the closing window for claims which will facilitate some further planting by the end of March. It is expected that there will be 8-9,000 ha of actual woodland creation. In addition, Forestry and Land Scotland will create approximately 750 ha of new woodland on the national forest estate. This also counts towards the 2024-25 PFG commitment.

Scottish Forestry has increased the targeting of FGS funding and the leverage of carbon finance through the Woodland Carbon Code, including changes to FGS funding of larger productive schemes to reduce grant intervention rates. Interim statistics show that 10.4M woodland carbon credits had been validated in Scotland as of December 2024. This was a 9% increase from just under 9.6M in March 2024.

Peatland

The Scottish Government has committed £250 million over 10 years to restore 250,000 hectares of degraded peatlands by 2030. To date, we have achieved around 75,000 hectares of this. Recent years have seen strong increases including, in 2023-24, over 10,000 hectares restored in a single year for the first time.

In the 2024 Programme for Government, we committed to restoring over 10,000 hectares in 2024-25 and our ambition is to restore at least 14,000 hectares in 2025-26.

The £35.5 million 2025-26 budget allocation is a 32% increase on the 2024/25 budget and includes £8.6 million capital from ScotWind revenues which will be invested to maximise our delivery of restored hectares while also investing in our future restoration pipeline.

Increasing capital investment on its own will only take us so far in terms of realising the potential carbon savings from restoring our peatlands. It is therefore imperative that we continue to leverage additional resources and generate efficiencies in terms of carbon savings generated by managing our peatlands better.

The Natural Capital Markets Framework was launched 4 November 2024 and includes a commitment to explore approaches to integrating public and private funding for peatland restoration. Scottish Government is currently assessing blended finance mechanisms for peatland restoration to encourage greater responsible private investment while maximising the value of public spending.

To boost the development of this nascent sector, Peatland ACTION have provided training on peatland restoration across private, public and third sectors and Delivery Partners have established schemes to help facilitate new entrants to the sector. Focus will continue on these efforts, while also looking at how to more effectively use the resources currently available

Developments in Monitoring Arrangements Since Last Report

NatureScot-Peatland ACTION have developed a monitoring strategy – Peatland ACTION Monitoring Strategy 2023-2030 - which is now available through their site^[30] The Monitoring Strategy was first implemented in 2019 and has been revised to improve the structure in 2023

7.2 Part B - Progress to Policy Outcome Indicators

Policy Outcome: Cross-sectoral social and economic

Indicator: FTE employment in Low Carbon Renewable Energy Economy Indicator

On-Track Assessment (Milestones/Targets): Year-to-year change

Most Recent Data: 2022

Data Source(s): Low Carbon and Renewable Energy Estimates, Office for National Statistics (ONS)

Assessment: Too early to say

Commentary: Data for the year 2023 is due to be published later this year, following the release of this report.

In 2022, the Scottish low carbon renewable energy economy (LCREE) sectors were estimated to provide 25,700 FTE jobs. Estimates of LCREE are based on a relatively small sample of businesses and hence are subject to a wide confidence interval.

Scottish LCREE employment in 2022 is lower than in 2021 but the difference is not statistically significant, and caution should be exercised when interpreting year on year changes due to a high degree of uncertainty in estimates.

Source: Office of National Statistics (ONS) Low Carbon and Renewable Energy Economy Estimates

Policy Outcome: 1

Indicator: Hectares of woodland created per year

On-Track Assessment (Milestones/Targets): 2020/21 = 12,000 ha/yr, 2021/22=13,500 ha/yr, 2022/23 = 15,000 ha/yr, 2023/24 = 16,500 ha/yr, 2024/25 = 18,000 ha/yr

Most Recent Data: Forestry Statistics 2024

Data Source(s): Forestry Statistics

Assessment: Off Track

Commentary: There was a significant rise in woodland creation in 2023/24 to 15,040 hectares, an (84%) increase from 2022/23, a little below the target of 16,500 hectares for that year. This included 7,700 hectares of native woodland. Official data on woodland creation for 2024-25 will be released in June 2025.

Policy Outcome: 1

Indicator: Woodland ecological condition

On-Track Assessment (Milestones/Targets): Year-to-year change

Most Recent Data: Published February 2020

Data Source(s):

Assessment: Too early to say

Commentary: Published as official statistics by the National Forest Inventory (NFI), the study into Woodland Ecological Condition (WEC) is the largest and most in-depth assessment of the ecological condition of any habitat in Great Britain.

It reveals that in Scotland 442,611 hectares are now classified as native woodland and that the majority of this is Northeast and West Scotland. The statistics reveal that over 430,000 ha of these native woodlands are in overall ‘favourable’ or ‘intermediate’ condition.

They also show that Scotland’s non-native woodlands make a positive ecological contribution, with less than 6% in ‘unfavourable’ ecological condition.

Furthermore, the survey demonstrates that the active management of a forest for wood production delivers higher biodiversity as well as a renewable supply of wood to help sustain an industry that benefits climate change mitigation, jobs, and the economy - at minimal cost to the public purse.

The last WEC report was published in 2019 and was based on data collected in the first cycle of field survey 2010 to 2015, so the analysis has a time stamp of 2013 (the average age of the data). The plan is for the next report on WEC in 2024/25.

Policy Outcome: 1

Indicator: Woodland Carbon Code: Projected Progress to target carbon sequestration (validated credits).

On-Track Assessment (Milestones/Targets): Progress to target (increase 50% by 2025)

Most Recent Data: Forestry Statistics 2024, and Woodland Carbon website for latest unofficial data

Data Source(s): UK Land Carbon Registry, Forestry Statistics (Forest Research)

Assessment: On track

Commentary:

There was a 9% increase in the number carbon credits validated in Scotland under the Woodland Carbon Code between April 2024 and December 2024 Interim Statistics note that 10.4M carbon credits had been validated in Scotland in December 2024. Data for 2024-25 will be released in in the publication of Forestry Statistics in June 2025.

Policy Outcome: 1

Indicator: Annual volume (in millions of cubic metres) of Scottish produced sawn wood and panel boards used in construction.

On-Track Assessment (Milestones/Targets): Progress to Targets [2020/21 = 2.6 million m3, 2026/27 = 2.8 million m3, 2031/32 = 3.0 million m3]

Most Recent Data: 2.14 million m3 estimated in construction in 2023

Data Source(s): Forestry Statistics 2023

Assessment: Off Track

Commentary: Official Statistics on timber are published annually in September. These provide the best dataset to estimate volume of Scottish timber used in construction. The figure reported here, of 2.14 million cubic metres of timber used in construction in 2023, is based on these statistics. The decline in timber used in construction in 2023 compared to 2022 and 2021 reflects the general state of the UK economy. In this situation, where builders are not struggling to source timber, domestic suppliers of timber are finding it difficult to penetrate the house building sector against strong competition from imported timber.

Policy Outcome: 3

Indicator: Hectares of peatland restored per year

On-Track Assessment (Milestones/Targets): 20,000 ha/y^[31]

Most Recent Data: Final verified figures for the f/y 24/25 will be available from June 2025.

Data Source(s): NatureScot published annual restoration figures

Assessment: Off track

Commentary:

Scottish Government has committed £250 million over 10 years to restore 250,000 hectares of degraded peatlands by 2030. To date, we have restored around 75,000 hectares against a 1990 baseline.

The average rate of peatland restoration has more than doubled in the last two years and 2023-24 saw 10,360 hectares restored. However, despite these successes, restoration remains below the stated annual 20,000-hectare target.

The Scottish Budget 2025-26 proposes an investment of £35.5 million towards peatland restoration. With this funding the ambition of the Peatland ACTION partnership is to restore at least 14,000 hectares in 2025-26. The funding will also enable the Peatland Action partnership to invest in designing a large number of new projects for future years. This will ensure the sustainability of the sector, allowing us to be more responsive to funding and continue to accelerate the programme’s success.

Policy Outcome: 3

Indicator: Peatland Code: Projected emissions reduction (validated units)

On-Track Assessment (Milestones/Targets): Year-to-year change

Most Recent Data: 3,222,258 validated units from 99 Peatland Code projects in Scotland as of 21 January 2025.

Data Source(s): Peatland Code, IUCN Peatland Programme

Assessment: Off track

Commentary: Based on registration data, as of 21 January 2025, a total of 283 projects have registered under the Peatland Code in Scotland with a total of 9.2 million units (tCO2e) registered. This represents about 92% of all registrations in the UK. However, only 35% of the registered projects are so far validated which creates a risk for new project developers if they face significant waiting time for project validation.

7.3 Part C – Information on implementation of individual policies

Outcome 1: We will introduce a stepped increase in the annual woodland creation rates from 2020-2021 to enhance the contribution that trees make to reducing emissions through sequestering carbon.

Policy: Forestry grants: we will provide funding via a grant scheme, to support eligible land owners establish appropriate woodlands.

Date announced: 2020-21 PfG

Progress on implementation since time of last report / CCPu: This policy was boosted through an additional £100 million of funding (announced in the PfG in 2020) to support an increase in woodland creation up to 2025, although there has been a 57% reduction in FGS funding for woodland creation in 2024-25. This has significantly constrained the amount of woodland creation that can be delivered in 2024-25. Scottish Forestry released a woodland creation route map in February 2024 that outlines the policies and actions that are being taken to deliver woodland creation in the period to 2030.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: The indicator for woodland creation is hectares planted per year. Approvals by Scottish Forestry indicate a sustained high level of applications for woodland creation.

Timeframe and expected next steps: The targets for woodland creation have consisted of stepped increases until 2024-25 when the target reaches 18,000 hectares per year. SF is examining how FGS funding can best be used, alongside finance from the Woodland Carbon Code, to maximise woodland creation in future. In 2024, it introduced a new FGS category whereby projects over 50 hectares can claim a reduced rate of FGS grant in order to be eligible to receive carbon credits under the Woodland Carbon Code.

Policy: Woodland creation on Scotland’s national forests and land: Forestry and Land Scotland will deliver an annual contribution towards the overall woodland creation target by creating new sustainable woodland on Scotland’s national forests and land, including through partnerships with external organisations to scale carbon capture opportunities.

Date announced: CCP 2018

Progress on implementation since time of last report / CCPu: FLS continues to create woodlands and is developing partnerships with a range of potential partners to undertake woodland creation for carbon capture

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: In 2024-25 FLS will create around 750 ha of woodland

Timeframe and expected next steps: FLS will continue to create woodlands each year on an ongoing basis.

Policy: Awareness-raising: We will continue to deliver a programme of farm based events to demonstrate and support improved productivity through integration of farming and forestry enterprises.

Date announced: CCP 2018

Progress on implementation since time of last report / CCPu: This policy has been maintained, with a series of events to demonstrate the benefits of trees on farms. These aim to encourage more farmers and crofters to plant trees and to raise awareness of the multiple benefits that planting trees can bring to agricultural businesses. The benefits include but are not limited to: providing shelter for livestock; habitat for wildlife; increasing biodiversity; reducing carbon footprint; providing diversification opportunities for future income; and prevention of flooding

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: No hard indicators. But a series of events is underway associated with the establishment of a monitor farm network that includes farm forestry. Sharing first hand experiences and providing wide-ranging advice including on the practicalities of accessing funding, where to plant the trees, and the multiple business and environmental benefits

Timeframe and expected next steps Ongoing – annual series of events and developments to increase uptake of farm forestry e.g. through the Integrating Trees Network. Encouraging more trees to be planted, in the right place, for the right reason, and to give guidance on how this can be practically achieved.

Policy: Woodland standards: The Scottish Government will continue to lead on the work with the UK and other UK Governments to maintain a UK Forestry Standard that articulates the consistent UK wide approach to sustainable forestry. The Standard defines how woodland should be created and managed to meet sustainable forest management principles and provides a basis for monitoring.

Date announced: CCP 2018

Progress on implementation since time of last report / CCPu: The four administrations of the UK have revised the UK Forestry Standard (UKFS). The review takes place every five years. The revised version came into operation in October 2024 and ensures that the UKFS is up to date and continues to safeguard and promote sustainable forestry practice in the UK, whilst reflecting the international context in which forestry operates. The UKFS is the technical standard which underpins the delivery of the forestry policies of the four UK countries.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: No

Timeframe and expected next steps. The Scottish Government will continue to oversee the UK Forestry Standard and will decide with the other UK governments whether and when further changes are needed in future

Policy: Woodland carbon capture: The Scottish Government will further develop and promote the Woodland Carbon Code in partnership with the forestry sector, and will work with investors, carbon buyers, landowners, and market intermediaries to attract additional investment into woodland creation projects and increase the woodland carbon market by 50% by 2025.

Date announced:CCPu

Progress on implementation since time of last report / CCPu: Scottish Forestry is providing technical support to private sector investors, land managers and advisors, and intermediaries in the woodland carbon market. We are taking further measures to develop the Code to facilitate further expansion of the market.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: Quantity of validated carbon units under the Woodland Carbon Code

Timeframe and expected next steps: 50% increase in validated carbon units by 2025 (already met)

Policy: Forestry and woodland strategies: Forestry and woodland strategies continue to be prepared by planning authorities, with support from Scottish Forestry. They provide a framework for forestry expansion through identifying preferred areas where forestry can have a positive impact on the environment, landscape, economy, and local people.

Date announced: CCP 2018

Progress on implementation since time of last report / CCPu: A number of current strategies are being reviewed and updated. The Forestry Strategy Implementation Plan 2022-25 (now extended to 2026) has an action to review the Scottish Government Forestry and Woodland Strategy (FWS) guidance by 31 March 2025. A focused review is underway.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: Options for updating SG guidance will be considered during FY 2025-26.

Policy: Support forestry sector on plant and seed supply strategy to help meet the increased planting targets: A programme of technical innovation to develop and adapt modern horticultural practices will help improve seed preparation and handling, techniques to reduce environmental impacts, and increase nursery production. Funding to support increased production of young trees is available through the Harvesting and Processing grant.

Date announced: Scottish Forestry Implementation Plan

Progress on implementation since time of last report / CCPu: There has been good take up of the grant scheme. We are still working with the UK Confederation of Forest Industries (Confor) and other stakeholders to obtain better data on plant production. Defra has introduced its own grant support scheme for the forest nursery sector that will also support the forest nursery sector

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: No

Timeframe and expected next steps: N/A

Policy: Forestry and Land Scotland will begin development of a new approach to woodland investment with a view to acquiring more land to establish further woodland on Scotland’s national forests and land for the benefit of future generations and to optimise carbon sequestration. This includes partnering with private sector and other organisations to enhance scale and funding of carbon capture projects.

Date announced:CCPu

Progress on implementation since time of last report / CCPu: Acquisition Strategy has been prepared setting out FLS approach to investing in new woodland and is being applied. Disposal criteria are being reviewed to reflect FLS’ strategic asset management approach and sustainability objective.

Scottish Government funds from LCIF have been allocated against new land purchases along with left-over NWIP funds which FLS now holds in a Strategic Acquisition Fund for strategic land and asset purchases.

A number of carbon off-setting agreements and partnerships are being explored and are at various stages of discussion. Variations in market pricing along with a strong demand for land make this a challenging area of business

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: Key indicator for land acquisition is to fully invest the Scottish Government funds available. For FY 2022/23 this is projected to be £15.5 million. The largest acquisition in FY 2022/23 was the purchase of the 3434 hectare Glenprosen Estate in the Angus Glens. The immediate adjacency of Glenprosen to Scotland’s national forests and land, and that of other public bodies will result in Scottish Ministers owning a 10,400 hectare block of land, much within the Cairngorm National Park. Providing landscape scale land management / restoration opportunities. The estate has the potential for the creation of approximately 2000 hectares of woodland, making a significant contribution to the Scottish Government’s woodland creation target and/or the target for native woodland creation as set out in the Bute House Agreement. In addition, it has the potential for peatland restoration and/or significant habitat restoration opportunities

Timeframe and expected next steps: New Governance and business Rules have been set up and are now being implemented. Monitoring is undertaken by the Strategic Acquisition Board.

Outcome 2: Increase the use of sustainably sourced wood fibre to reduce emissions by encouraging the construction industry to increase its use of wood products where appropriate.

Policy: In collaboration with the private forest sector and other public sector bodies the Scottish Government will implement the Timber Development Programme through an annual programme of projects that support the promotion and development of wood products for use in construction.

Date announced: CCP 2018

Progress on implementation since time of last report / CCPu: SF have funded a number of projects this year arising from the Roots for Further Growth economic strategy produced by SFTT ILG, including:

• Research project by Edinburgh Napier University into domestic potential for Wood Fibre Insulation (£23.5k)
• Ongoing co-funding for 3 PhDs – 2 in biorefining and 1 around tree genetics (2 * £7k = £14k)

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: On-going

Outcome 3: To enhance the contribution of peatland to carbon storage, we will support an increase in the annual rate of peatland restoration

Policy: Restoration grants: We will provide grant funding to support eligible land managers to deliver peatland restoration. Levels of funding will enable at least 20,000 hectares of peatland restoration per year. We will undertake research to inform where restoration can deliver the greatest emission savings per hectare

Date announced: Budget 2020/21, Reinforced in 2020-2021 PfG

Progress on implementation since time of last report / CCPu:

In 2023-24, 10,360 hectares of peatland were restored through the Peatland ACTION Partnership and we are on track to restore over 10,000 hectares in 2024-25. The Scottish Budget 2025-26 proposes an investment of £35.5 million towards peatland restoration. With this funding the ambition of the Peatland ACTION partnership is to restore at least 14,000 hectares in 2025-26. However, despite recent increases in annual restoration rates, restoration remains below the stated annual 20,000 hectare target.

The 2025-26 funding package will enable the Peatland ACTION partnership to invest in designing a large number of new projects for future years. This will ensure the sustainability of the sector, allowing us to be more responsive to funding and continue to accelerate the programme’s success.We know that a blend of public and private investment in Scotland’s natural capital will be essential to meet our emissions reduction targets. The Scottish Government’s Natural Capital Markets Framework was launched 4 November 2024 and includes a commitment to explore approaches to integrating public and private funding for peatland restoration.

This includes consideration of ‘blended finance’ mechanisms where public funding is used in a more targeted way to support increased nature restoration activity by ‘crowding-in’ responsible private investment. Scottish Government is currently assessing blended finance mechanisms for peatland restoration to encourage greater responsible private investment while maximising the value of public spending.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: N/A

Policy: Awareness raising: Working through partnership, we will put in place tools and information to promote peatland restoration and develop the capacity, skills, and knowledge of land owners, land managers, contractors, and others to deliver peatland restoration.

Date announced:CCPu

Progress on implementation since time of last report / CCPu:

The skills package for peatland restoration is currently driven by the Peatland Skills Action Plan led by the NatureScot Peatland ACTION team on behalf of the Peatland ACTION partnership. This plan is focused on the development and strengthening of the peatland restoration sector as it has grown over the past few years. This work has enabled the peatland restoration sector to grow to a level capable of delivering between 10,000 to 15,000 hectares per year.

Peatland ACTION has provided training on peatland restoration across private, public and third sectors since 2020. It has also established a New Entrants Scheme since 2022 involving intensive on-site training, with mentoring being provided by experienced operators. These initiatives will increase the supply of skilled labour (designers, surveyors, contractors), reduce labour costs, and help relieve supply side constraints.

As a result of these ongoing efforts, previous concerns about contractor capacity as a barrier to delivery of restoration is much reduced. Designer capacity is felt to be sufficient to deliver adequate projects to meet current annual restoration levels. Focus will continue on these efforts, while also looking at how to more effectively use the resources currently available to the sector.

The NatureScot Peatland ACTION Skills team are currently undertaking a review across the existing Peatland ACTION contractor community to identify what would be required to upscale capacity to 2030 levels.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: N/A

Policy: With partners, refresh our vision for Scotland’s peatlands and review peatland restoration support mechanisms to overcome embedded barriers and improve how we fund and deliver this activity.

Date announced: 2020-21 PfG

Progress on implementation since time of last report / CCPu:

Protecting, managing, and restoring degraded peatlands restores the multiple benefits they can offer. It enhances the resilience of peatland ecosystems and their ability to adapt to the changing climate. It also supports our Just Transition to net zero by providing good green jobs in the rural economy across Scotland.

Alongside restoration we are aligning peatlands with a wide range of other strategies and policies. These include the Scottish Biodiversity Strategy and Delivery Plan, the Agriculture Reform Programme, National Planning Framework 4, the Flood Resilience Strategy, the Onshore Wind Policy Statement, and we continue work towards banning the sale of horticultural peat.

Alongside government’s significant investment, we also need increased responsible private investment in Scotland’s peatlands. The Natural Capital Markets Framework was launched 4 November 2024 and includes a commitment to explore approaches to integrating public and private funding for peatland restoration.

We are also investing in the science needed better to understand other ways we may be able to reduce peatland emissions, and are also working towards new tools to target restoration at sites that simultaneously deliver the most for carbon, nature, and other benefits.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: N/A

Policy: Phase out the use of peat in horticulture by increasing uptake of alternative materials, undertaking stakeholder engagement to understand transitional challenges, to improve the uptake of alternatives and develop a timescale plan.

Date announced: 2019-20 PfG

Progress on implementation since time of last report / CCPu:

In the latter half of 2024, policy officials undertook a series of stakeholder workshops with various parts of the horticulture industry (retail, growing media, fruit and vegetables, potatoes, ornamentals, garden centres) to build upon evidence gathered through public consultation and understand transitional challenges and needs.

In addition, research was commissioned, via ClimateXChange, to examine the supply, suitability and sustainability of peat alternatives and the readiness of industry for transition.

Work continued on Impact Assessments, with a Business and Regulatory Impact Assessment undertaken by the James Hutton Institute.

The Scottish Government engages regularly with UK Government and the other devolved governments at both Ministerial and Official levels through the Inter-Ministerial Group for Environment, Food and Rural Affairs, a four nations horticultural peat group and ad hoc correspondence. Through these channels, all legislative options for sales restrictions on peat are currently being explored.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: N/A

Policy: Develop opportunities for private sector investment in peat restoration, engaging with sectors to establish investment pathways, enabling both public and private sector to invest in a range of measures to help mitigate effects of climate change.

Date announced:CCPu

Progress on implementation since time of last report / CCPu:

As of 21 January 2025, a total of 283 projects have registered under the Peatland Code in Scotland with a total of 9.2 million units (tCO2e) registered. Uptake of the Peatland Code is increasing with 92% of current UK projects registered to the Peatland Code located in Scotland.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: The Scottish Government’s Natural Capital Markets Framework was launched 4 November 2024 and includes a commitment to explore approaches to integrating public and private funding for peatland restoration.

Timeframe and expected next steps: Scottish Government is currently assessing blended finance mechanisms for peatland restoration to encourage greater responsible private investment while maximising the value of public spending.

Policy: Explore how best to restore all degraded peat in the public estate and also within formally designated nature conservation sites, including through statutory mandate.

Date announced:CCPu

Progress on implementation since time of last report / CCPu:

Scottish Government is working with the six^[32] main landowning public bodies in Scotland to explore how activity on public land and the Scottish Crown Estate can be scaled up to maximise benefits for communities, climate change and biodiversity.

This includes consideration of how strategic nature restoration activity can be delivered at the landscape scale, by different public landowners coming together to work collaboratively across ownership boundaries.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: N/A

Policy: Explore the development of a Peatland Restoration Standard to ensure best practice and continuous development in the success and effectiveness of peatland restoration.

Date announced:CCPu

Progress on implementation since time of last report / CCPu:

The Peatland ACTION Technical Advice Working Group continue to progress the development of a Peatland Restoration Standard in collaboration with the Peatland ACTION Delivery Partners, IUCN, and others.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps N/A

Outcome 4: We will establish pilot Regional Land Use partnerships (RLUPs) over the course of 2021.

Policy: Establishment of pilot Regional Land Use Partnerships to help ensure that we maximise the potential of Scotland’s land to help achieve net zero.

Date announced:CCPu

Progress on implementation since time of last report / CCPu: The three-year Regional Land Use Pilot (RLUP) programme ended in March 2024. Following on from the successes of this, the Scottish Government have committed to transition four of the pilot RLUPs to a formal initiative:

• Northwest 2045 region (Highland)
• Cairngorms National Park
• Loch Lomond and the Trossachs National Park
• South of Scotland (Dumfries and Galloway and Scottish Borders Councils).

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: This transitional period means that the partnerships can continue to develop organically whilst allowing the Scottish Government to further develop our understanding of how partnership working can help to optimise land use in a fair and inclusive way, meeting local and national objectives and supporting Scotland’s just transition to net-zero. The Scottish Government also announced plans in April 2024 to support a wider national roll-out of RLUPs. Given wider financial pressures, this will begin in a phased roll-out once we have learned the lessons from the next stage of partnership delivery (and not before 2026).

Policy: Publication of Scotland’s third Land Use Strategy (LUS3) by statutory deadline of 31 March 2021

Date announced:CCPu

Progress on implementation since time of last report / CCPu: Scotland’s third land use strategy was published in March 2021 and sets out our vision, objectives, and policies to achieve sustainable land use.

Have any implementation indicators / milestones been set: N/A

Timeframe and expected next steps: Scotland’s fourth Land Use Strategy is due for publication in 2026, and initial development of this began in late 2024