Just Transition Fund for the North East and Moray: final evaluation report

Executive summary

Introduction and context

In October 2024, the Scottish Government commissioned Blake Stevenson Ltd to undertake an evaluation of the first two years of the Just Transition Fund for the North East and Moray to gauge its impact and effectiveness.

The Just Transition Fund (JTF) is a £500 million ten-year commitment from Scottish Government to facilitate the North East and Moray regions' transition to a net-zero economy. The evaluation spans the initial two years of implementation (2022-2024).

Between that time a combined spend of over £43 million was disbursed across 24 diverse projects that ranged from large-scale capital investments to smaller experimental research addressing diverse initiatives, reflecting the Fund’s commitment to economic diversification, skills development, community-led action, and low-carbon innovation.

Evaluation Aims and Approach

The evaluation assessed the early outcomes of the JTF against national Just Transition priorities across four domains:

• Jobs, skills, and economic opportunities;
• Communities and place;
• People and equity; and
• Environment, biodiversity, and adaptation.

The evaluation also reviewed End-of-Year reports, carried out interviews and surveys with project leads and stakeholders, and developed showcase examples to illustrate the diversity and impact of JTF-funded activity.

Findings and Discussion

The JTF has enabled early-stage innovation, helped bridge funding gaps, and supported certain projects that would not have gone ahead. Key achievements across the first two years include:

• Creation of over 110 jobs and safeguarding of 120 roles;
• Training and skills development accessed by more than 750 individuals;
• £30 million of private sector investment and £4.7 million in additional public and third-sector funding leveraged;
• Support for community-led action, participatory budgeting with more than 19,000 people voting for local projects, and social enterprises; and
• Progress in nature-based solutions and low-carbon innovation, including woodland restoration, EV battery recycling, and hydrogen feasibility studies.

Many of the projects are still in their early phases, and long-term impacts—particularly around carbon reduction, employment retention, and supply chain transformation—will take time to materialise. Nonetheless, the Fund has provided the foundations for economic and environmental change.

Some challenges remain around short funding cycles, administrative processes, limited clarity around funding criteria, and the need for greater alignment with long-term strategic planning. Despite these issues, the evaluation finds that the JTF is well placed to continue supporting a fair and inclusive transition in the region.

Summary and recommendations

In its first two years, the JTF has demonstrated its value as an enabler of regional transformation. It has supported job creation and reskilling, empowered communities, catalysed private investment, and initiated innovation in green technologies and land restoration.

Refinements to JTF’s structure and delivery are covered in the 16 recommendations which fall under four main themes: strengthening JTF administration and disbursement, expanding community and social engagement, supporting workforce transition and skills development, advancing environmental and economic diversification. These include recommendations such as longer-term funding commitments, clearer application processes, and support for community-led and non-energy initiatives— which would strengthen the JTF’s impact further. With these improvements, the JTF can become a valuable supporter of the North East and Moray’s transition to a net-zero economy, ensuring that the benefits are shared fairly across sectors, places and people.