Grangemouth Industrial Just Transition Plan: Business and Regulatory Impact Assessment

Section 4: Additional implementation considerations

Enforcement/ compliance

There is currently no plan to develop compliance or enforcement frameworks, nor non-compliance penalties associated with deployment of the JTP given the early level of maturity of the JTP. It is important to note that GFIB will be responsible for developing the actions stated in the plan; however, the designated stakeholder for conducting compliance checks and enforcement actions has yet to be determined.

The Just Transition Commission has been established as an independent scrutiny body to ensure accountability for delivery on Just Transition commitments.

Throughout the process of finalising the JTP, the Scottish Government would look to review, develop and refine the enforcement and compliance approach whilst considering how monitoring and reporting can be aligned with existing mechanisms and activity, and businesses and regulators would be involved in that development process This may help reduce the burdens on businesses and regulators and make it easier for businesses to comply with the requirements, so that the desired outcomes of the plan can be achieved. The Scottish Government should also collaborate with the community to determine how the planned approach would be implemented in practice, i.e. gathering evidence and views to identify: any potential barriers for businesses to comply; the level of additional resources needed to deliver the enforcement and compliance approach; and whether there should be exemptions to specific requirements in place.

We shall continue to review this as the JTP is published and GFIB enters into a programme of delivery.

UK, EU and International Regulatory Alignment and Obligations

Internal Market/ Intra-UK Trade

At time of publication there has not been any consideration nor discussion regarding the impact of the JTP on intra-UK trade, as the plan is still in its early stages. The Scottish Government will seek to review and assess its implications on internal markets across UK nations. This review should concentrate specifically on whether the JTP might result in policy or regulatory divergence and assess the potential impacts that such divergence could have on the UK market. It is also essential to evaluate the plan's alignment with the market access principles established in the United Kingdom Internal Market Act 2020 and the Common Frameworks.

International Trade Implications

The JTP indicates that a significant portion of business turnover originates from international sales, demonstrating that current businesses in Grangemouth compete on a global scale. This coupled with the considerable scope of the JTP suggests it has the potential to influence sectors and businesses locally, nationally, and internationally through new and existing trade activities within the Cluster. For an in-depth exploration of potential impacts on international trade, please consult the section entitled 'Scottish Firms' International Competitiveness' above.

Given the early stage of delivery, as the JTP progresses, the Scottish Government is committed to ensuring that the plan adheres to World Trade Organization (WTO) law and other international agreements, such as Free Trade Agreements, as it is developed. Some of the key WTO agreements relevant to the JTP's development and finalisation include:

• The Technical Barriers to Trade (TBT) Agreement, which necessitates advance notification for alterations to technical regulations, procedures and standards. This agreement is pertinent to the JTP as it aims to foster the development and application of innovative technologies and processes.
• The Agreement on Subsidies and Countervailing Measures (SCM), which regulates government use of subsidies potentially affecting trade. Should subsidies be required for the JTP initiatives, their financial mechanisms must be evaluated in accordance with the SCM.
• The Government Procurement Agreement (GPA), which outlines the framework for government procurement among WTO members. It ensures non-discriminatory treatment of foreign suppliers in government procurement processes. Relevant actions that will be well defined within the JTP must be scrutinised against the GPA, particularly concerning technical requirements for goods and the treatment in requirements between domestic and foreign businesses.

As the United Kingdom's independent trade policy develops, international obligations will naturally evolve. Therefore, the Scottish Government must continuously assess the JTP's development considering these obligations, monitor its impacts, seek appropriate advice, and notify relevant WTO members when necessary.

EU Alignment consideration

There has not yet been any consideration nor discussion on the potential implications of the plan for EU alignment associated with the United Kingdom Internal Market Act 2020 or Common Framework agreements. Throughout the delivery of the JTP, the Scottish Government will consider how the JTP would affect: a) the Scottish Government’s commitment to maintain and advance the high standards that Scotland shares with the EU; and b) access to EU markets for people, goods, and services.

Legal Aid

The JTP does not anticipate creating a new procedure or right of appeal to a court or tribunal, any changes in such procedure or right of appeal, or any change of policy or practice which may lead people to consult a solicitor.

Digital impact

The actions within the JTP apply to both offline and online environments. The potential digital impact of the JTP is varied, which would look to influence various sectors and aspects of the economy and society. Broadly, the JTP seeks to leverage technology to advance sustainability efforts, stimulate economic growth, reduce environmental impact, and ensure workforce readiness for the digital demands of a transforming economy. It is recommended that further exploration and assessment of the digital impact are necessary as actions within the JTP evolve.

As such this assessment will be undertaken if and when associated activity or regulations are being developed in the future.

Business forms

Further reporting to the GFIB will be necessary which may require new forms to be completed. It is anticipated that the forms would be tested with the GFIB and businesses before the commission starts to ensure they are suitable and easy to use. At present, there is no detailed plan specifying what the content or trial processes for the new forms would entail for the JTP. However, the Scottish Government intends to trial newly introduced forms at the earliest opportunity with relevant businesses and stakeholders. Stakeholders would also be involved in the development process to ensure the forms are clear, straightforward, and user-friendly.