Decarbonising Scotland's industrial sectors and sites: discussion paper

This paper outlines our engagement with industry to date.




3. Energy Productivity – the ratio of output relative to energy consumption, expressed in £million GVA per GWh of energy consumed.

4. Emissions Intensity – the ratio of GHG emissions produced relative to the level of output, expressed in Tonnes of CO2e per £million GVA.


6. In 2017, the Scottish Assessment of the Industrial Decarbonisation and Energy Efficiency Roadmaps examined potential for decarbonisation within subsectors under Business as Usual (BAU) and 'Max Tech' (maximum technical potential for decarbonisation) pathways. EII, as a whole, contribution to Scottish emissions could be reduced by up to 76% by 2050 via 'Max Tech'.

7. Inclusive Growth: Scotland's Economic Strategy (2015) set a mission to grow to deliver Inclusive Growth through mutually supportive ambitions: boosting our competitiveness whilst tackling inequalities.

8. – This work contributes most closely to 'Affordable and Clean Energy', 'Decent Work and Economic Growth', 'Industry, Innovation and Infrastructure', Responsible Consumption and Production' and 'Climate Action'.

9. – Advising on a carbon-neutral economy that is fair for all. JTC is committed to look at wider impacts and opportunities of a paradigm shift to a carbon neutral economy through the lens of EII.

10. – 'Climate Change Plan Sectors' Annex.

11. Based on medium petrol internal combustion engine cars averaging 7,800 miles per year.

12. Based on total emissions in Scottish 'residential' sector in the CCP, divided by total number of Scottish households.

13. Based on estimated fuel cost savings from a 1% reduction in coal, gas, electricity and petroleum products consumption across industry.


15. Industrial Decarbonisation and energy efficiency plans

16. No ceramics sites in Scotland large enough to be part of the EU ETS.

17. Includes emissions from all manufacturing sites within SEPA's SPRI database.

18. (Export Statistics Scotland 2017).

19. Manufacturing GVA from Scottish Annual Business Survey (2016) – more detailed breakdown of the sub-sector components.

20. 2016 UK Business Register and Employment Survey.

21. Industrial Heat Recovery (IHR): recovering waste heat generated in, or for, a process to be reused in a number of ways, including within same facility for heat/cool, or by another end-user. Process has capacity to improve energy efficiency, by reducing fuel requirements/avoiding waste.









30. The revenues for the Fund come from the auctioning of 450 million EU ETS allowances from 2021 to 2030, as well as any unspent funds coming from the New Entrant Reserve 300 programme (NER 300). The EU estimates the total value of the Fund to be between €6bn and €11bn (£5.2bn and £9.4bn) throughout Phase IV (2021-2030), depending on the carbon price (estimates are from carbon prices of €15/tCO2 and €25/tCO2 respectively.


32. who overlap with Scottish Enterprise and other Scottish agencies can advise

33. Public sector consumption can influence demand for low carbon commodities. Incentivizing industrial decarbonisation through procurement aligns with generating value for local communities from procurement. Sustainable Procurement Duty outlined in Procurement Reform (Scotland) Act 2014 requires consideration of Social, Environmental and Economic wellbeing. Guidance supports organisations to place a proportionate requirement on suppliers to evidence minimizing energy/emissions. The Scottish Government aims to see this embedded in procurements and understand how lower-carbon footprint commodities can gain international competitive advantage.


35. Strategic priorities within Energy Strategy are system security and flexibility. Support for new and innovative storage solutions has been provided through the Low Carbon Infrastructure Transition Programme.

36. For example, Ofgem's network price controls.

37. Electrification of Heat (EoH) is when processes shift power from fossil fuel to electricity. As long as the grid gradually decarbonises and thus generates lower net emissions, carbon benefits accrue. Investment viability is highly sensitive to relative price changes in grid electricity or alternatives such as gas. On-site, or dedicated off-site renewables can help to protect from supply or cost uncertainty.



40. One of three identified barriers in the Scottish Assessment of the Industry Sector Roadmaps was a shortage of technical or managerial resource. Others were payback periods that are longer than company defined thresholds; and competition with other projects for corporate funding.

41. In late 2017, we drafted a partnership agreement for Scottish Government and key representatives to work together

42. To target support more directly to the profile of Scottish industry we have begun to engage with specific sub-sectors in more detail, starting with the Scotch Whisky industry.

43. These would usually be reserved, due to capacity, be most suitable for large or complex projects that, if realised, would provide significant energy productivity or emissions intensity benefits.

44. Distinctions due to size (or location, sub-sector, technology) can be arbitrary but may be pragmatic for programmes to distinguish for regulatory purposes. SME can be advantaged to promote opportunities, with large users more likely to negotiate lower tariffs.



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