Just Transition Fund: application form and guidance

What you can apply for

Project focus

The project/programme must:

• contribute to the transition to net zero in Aberdeen, Aberdeen City or Moray
• help to diversify the regional economy away from carbon-intensive industries
• capitalise on the opportunities, including jobs and prosperity, that the transition to net zero will bring
• demonstrate delivery against the mandatory Just Transition Outcome on Jobs, Skills and Economic Opportunities.

Whilst not mandatory, you may wish to outline other just transition outcomes that your project will deliver impact against within your application. The four themes of our National Just Transition Outcomes are included below:

1. Jobs, skills and economic opportunities [mandatory outcome]

Scotland has a thriving net zero economy, enabling businesses to set up and grow sustainably. People are equipped with the skills and opportunities to access good, green jobs in a net zero economy. This economy delivers a liveable world for people and planet, ensuring a thriving, biodiverse environment and fair work and full lives for people.

2. Communities and place

Communities and places should be accessible for people to grow, investing in their environment and economy. Communities should be empowered to reach net zero in a way that meets their needs, and builds on their unique local strengths, in an equitable fashion as part of a just transition.

3. People and equity

People are able to enjoy basic rights, freedoms and quality of life, and have access to necessities such as heat, food, housing, employment, childcare and wider wellbeing. They are healthier, happier and treated with respect and have access to full, varied opportunities that add value to their lives. Opportunities, wealth and power are spread more equally. Costs primarily fall to those who can bear them.

4. Environment, biodiversity and adaptation

Our environment must meet the needs of those living in and depending on it – this includes both our natural and built environments. Our spaces must be resilient to the impacts of climate change and restore our biodiversity. Spaces must provide those living in or dependent on them with everything they need to live full and healthy lives as they support the transition.

Capital fund definition

This is a capital fund. Capital grants are unrequited transfer payments, which the recipient must use to either:

• buy fixed assets (land, buildings, machinery etc.)
• buy inventory
• acquire long-term financial assets, or financial assets used to generate a long-term return
• undertake R&D activities which meet the criteria for capitalisation in budgets, where the recipient is a private sector body (refer to HMT guidance, Annex C for guidance on the criteria)

Projects that have previously received funding through the Just Transition Fund are eligible to apply for further funding. These projects would need to demonstrate how additional funds would add to the continuity of projects and demonstrate adherence to the definition of capital spend.

Delivery

Bids need to demonstrate that projects are able to receive, and spend the total amount of the funding bid in the 2025 to 2026 financial year. Multi-year bids can be made, and may be considered, if capital funding for the Fund becomes available beyond 2025 to 2026.

Grant payments will be provided in arrears with sufficient cash flow expected from organisations to meet initial costs.

Value

Bids received should carry a minimum value of £500, 000 and maximum value of £5 million. The percentage of intervention rate required from the Fund towards the project should be stated in the application.

Bids should also evidence additionality i.e. why support from the Fund is required in order to progress the project. They must be able to demonstrate their plans to meet delivery and staff costs without government support e.g. via funds committed by projects partners.

Any capital contribution requested from the Scottish Government will be assessed for compliance with the Subsidy Control Act 2022, and subsequent statutory guidance. 

Additional weighting will be given to bids that would be delivered on a co-funded basis. The percentage of funding awarded will be based on the financial model of each project but would typically be considered at an intervention rate of 50%-70% of eligible capital costs. 

Measuring progress

All project bids should specify relevant indicators that the progress of their project will be measured against from the list provided below:

Innovation and enterprise indicators:

• no. of enterprises supported (financial and non-financial)  
• no. and value of new products/services to market  
• no. demonstration projects supported   

Employment and skills indicators  

• no. jobs created (full-time, part time, fixed term or permanent)

• no. jobs safeguarded  (full-time, part-time, fixed term or permanent)

• no. of job transitions from oil & gas/ high carbon industries to low carbon industries and renewables 

• no. apprenticeships created  

• no. of training courses created/delivered/undertaken  

• no. people completing skills training 

• no. women completing skills training 
• no. of people from an ethnic minority background completing skills training

• no. of people with a disability completing skills training
• no. of people from a lower socioeconomic background completing skills

Training

• no. of training hours delivered 

Investment indicators  

• value of private investment leveraged (overall fig.)  
• no. of investors

In addition to these core indicators, projects are also encouraged to develop bespoke supplementary indicators in line with their specific aims and outline these within their application.