National Islands Plan

Climate, Nature and Energy

Island communities are on the frontline of the climate and nature crises. Rising seas, flooding, and increasingly frequent storms are among the most visible effects of a changing climate, with growing risks for island infrastructure, supply chains and heritage. Rich island habitats are also under pressure, with implications for biodiversity, wellbeing and local economies. At the same time, islands are innovating and seizing opportunities in the transition to net zero. From renewable energy and nature-based solutions to community-led adaptation, islands are well placed to pioneer climate action and to secure long-term benefits from the shift to a greener economy.

Tackling climate change at its source is vital. But equally urgent is the need to support island communities to adapt to the realities already unfolding. Islanders bring deep local knowledge and a tradition of practical, place-based solutions – from peatland restoration and sustainable land use to circular economy initiatives. Supporting these efforts is essential to protect communities and strengthen their resilience.

The transition to net zero must be just and fair. Costs and benefits must be shared equitably, ensuring that the shift to clean energy addresses rather than deepens existing inequalities. Island communities are already showing leadership and, with the right investment, can continue to pursue innovation that benefits the whole of Scotland.

Our draft Climate Change Plan (CCP) sets out how we intend to meet Scotland’s carbon budgets up to 2040 and contribute to our legal commitment to reaching net zero by 2045. It includes a new five-year carbon budgeting framework and features targeted actions to support our island communities in recognition of their distinct needs, challenges and opportunities.

As well as cutting emissions, green energy projects can deliver transformational economic value for islands. Communities hosting this infrastructure must see tangible benefits in their daily lives and must be offered avenues to build local wealth. Community-owned renewables are becoming more common on our islands, producing clean power and revenues that can be reinvested locally to strengthen wealth and wellbeing.

This Plan seeks to ensure that the transition to net zero delivers clear benefits for island communities, with local ownership and fair returns at the heart of green, nature-based and circular solutions.

Climate Adaptation

Rapid adaptation is essential to safeguard the wellbeing of people, places and livelihoods across our islands.

The Scottish National Adaptation Plan 2024-2029 (SNAP3) emphasises local leadership, with a specific focus on communities facing the most immediate and severe impacts. A key mechanism in the delivery of SNAP3, “Climate Ready” regional partnerships enable place-based collaboration between public bodies, communities and businesses. In 2025-26, we committed an additional £550,000 to establish new partnerships, strengthen existing ones and deliver locally identified projects.

We will work with local government and a broad range of other partners to expand the network of “Climate Ready” partnerships in all island areas, with an initial focus on Na h-Eileanan Siar and Argyll and Bute in 2026.

Recognising islands’ and coastal communities’ increasing exposure to climate change hazards, we published Coastal Change Adaptation Guidance (2023) and allocated funding to support local initiatives including the development of a Coastal Change Adaptation Plan for Tiree and climate impact assessments for Laggan Bay on Islay. Scotland’s first Flood Resilience Strategy (2024) is informing efforts to create flood resilient communities. Our £38.8 million investment in the Millport Coastal Flood Protection Scheme demonstrates our commitment to working with island communities to deliver effective flood mitigation.

Case Study – Outer Hebrides Climate Hub

Since its launch in November 2023, the Outer Hebrides Climate Hub has brought together 237 members – including community groups, businesses and private individuals – to encourage a joint and place-based approach to climate action and adaptation. Funded by the Scottish Government, the Hub promotes climate awareness and offers training to accelerate decarbonisation and increase sustainability across Na h-Eileanan Siar, identifying solutions that are relevant to local businesses and communities.

Promoted by the Hub, Our Climate Story is a digital mapping tool allowing islanders to upload photos, stories and short films that capture the tangible impact of climate change on their local places. The portal is helping to shape climate policy on the islands by recording residents’ experiences and giving them agency while serving as a channel to share ideas for action. Through the Ideas into Action fund, the Hub supports community-led projects encouraging climate-friendly behaviours. This contributes to rooting solutions locally, empowering residents to drive forward actions that protect their islands’ wellbeing and resilience.

While there is a risk that individuals of all ages may feel powerless in the face of such vast challenges, young islanders have told us clearly that they feel anxious about the future of their communities.

Scotland’s Children’s Parliament found that lack of transparent communication on the climate emergency can intensify feelings of isolation and advocated increased literacy on the tangible steps that people can take to reduce their climate impact^[47]. There is an opportunity to test this approach in partnership with young islanders, developing lessons that can be shared with their peers elsewhere in Scotland to break down fears and help them feel a valued part of the solution.

We will pilot a “Climate Tips for Teachers” resource for island communities to foster open conversations about climate, reduce eco-distress and empower young islanders to act.

Biodiversity and Biosecurity

Islands play host to a unique blend of habitats and species. This natural wealth is much more than a simple backdrop to island life – it underpins climate resilience, food security and sustainable economies. Protecting and restoring nature is therefore central to island futures.

Our Scottish Biodiversity Strategy to 2045 (2024) reflects our longstanding commitment to protecting and effectively managing at least 30% of our land and seas for nature by 2030 (30 by 30). Current coverage varies across island regions, from 30% in Na h-Eileanan Siar to 13% in Shetland^[48]. On land, we are advancing the Nature30 approach – an opt-in model that recognises land managers and communities for stewarding nature-rich areas. We are also working with local authorities to build Nature Networks that connect protected and nature-rich areas enhancing the resilience of habitats, species and landscapes.

Marine Protected Areas already cover 37% of Scotland’s seas, supporting ecosystem health and the industries that depend on it. The designation of Scapa Flow (in Orkney) and the Queen of Sweden (in Shetland) as Historic Marine Protected Areas (MPAs) are among the latest additions to the network. We will launch a public consultation in relation to fisheries management measures for inshore MPAs and eleven priority marine features. Any potential impacts on islands identified as a result of proposed measures will be carefully considered through this process.

We will launch a programme of targeted engagements by NatureScot to identify and implement Nature30 opportunities that increase coverage of land managed for nature in a way that works for island landowners and communities. This work will have an initial focus on crofted land.

We will work with local authorities, regional partnerships and communities to encourage the development of Nature Networks that reflect the specific circumstances of each island community.

Our islands are also among the most important places for wildlife in Europe, including iconic marine species and world-renowned seabird populations. Due to a lack of natural competitors and predators, the impact of invasive non-native species (INNS) can be devastating for island ecosystems. INNS can also pose a threat to vulnerable livestock and damage crops, causing losses for farmers and crofters. Through increased funding, we support local wildlife management schemes and native species that are under threat. The Biosecurity for Scotland initiative, for instance, brings together communities, organisations and businesses to protect important seabird islands from predators such as mink and black rats.

Some communities have shared concerns about invasive plants such as rhododendron, Japanese knotweed and giant rhubarb which have caused harm to island ecosystems. Tangible actions are already underway to tackle these invasive species. On Raasay, for example, the Scottish Government’s Carbon Neutral Islands Project has supported activity to remove rhododendron from high priority areas.

We aim to publish our new INNS Action Plan in March 2026, this will build on existing approaches, encourage community cooperation and strengthen biosecurity through targeted actions.

We will commission research to develop a comprehensive understanding of current and future threats to island biosecurity. This will inform more targeted actions and engagements to protect island environments and communities.

Peatland

Many islands are home to extensive blanket bog and wetlands. Healthy peatlands can store carbon, support biodiversity and reduce flood risks. However, if they are not managed efficiently, these benefits are lost. With around 70% of our peatlands degraded, they currently account for around 15% of Scotland’s total emissions.

Through our world leading Peatland ACTION programme^[49], we have contributed to a total of around 90,000 hectares of restored peatland since 1990, including 4,498 hectares on islands. In the draft CCP. we included a proposal to expand and extend our programme to restore 400,000 hectares by 2040, reflecting an increase in our ambition. Protecting, managing and restoring degraded peatlands is a vital part of mitigating and adapting to the climate and nature emergencies.

Peat has been a source of energy security for some island communities for generations and we recognise its continuing importance for domestic heating. Through Scotland’s Peatland Standard, we will share best practice to minimise impacts where peat cutting continues for domestic use.

Peatland ACTION provides guidance, funding and technical support for community-led restoration, with island-based officers building local capacity. As well as creating environmental benefits and reducing emissions, peatland restoration can deliver economic benefits to land-based businesses – for instance, through carbon credits, improved resilience, and diversifying land use – as well as supporting the creation of skilled local jobs.

We will develop a public information campaign and deliver training for island communities to raise awareness of the environmental and economic benefits of peatland restoration, including for farming, crofting and other land-based businesses. Working with crofters and other stakeholders, we will also support restoration projects on Scottish Ministers’ Crofting Estates and develop solutions to encourage peatland restoration in other island crofting areas, with a particular focus on common grazings.

Forestry

Forestry cover is limited on most islands^[50], but interest is rising in managing existing woods and creating new woodlands to help combat the climate and nature crises, strengthen local economies and help improve people’s health and wellbeing.

The Scottish Government has taken tangible steps to enable communities, land managers and crofters to undertake woodland projects. We support the Community Woodlands Association to provide independent advice, and have updated the Woodland Carbon Code to help crofters benefit from carbon credits. We have also delivered grant funding for woodland creation in the Northern Isles and Na h-Eileanan Siar, where establishing trees can be more expensive. Through the Croft Woodland Project, which covers all Scottish islands, we have supported significant increases in woodland planting by crofters and smallholders.

We will foster investment in island woodland projects that support a just transition and build community wealth.

Circular Economy

A circular economy leads to a more efficient use of resources and reduced carbon emissions. It addresses reliance on off-island supply chains, provides local employment opportunities and lowers the cost of goods.

Our Circular Economy and Waste Route Map to 2030 (2024) and draft Circular Economy Strategy for Scotland recognise island challenges – including limited reuse/recycling infrastructure, higher transport costs, and inconsistencies in waste collection services. Close collaboration with island communities will be critical to maximise the impact of the Route Map and the Strategy. It is not a standing start: grassroots projects already include initiatives such as construction material reuse, tool libraries and community repair hubs^[51]. The Route Map includes an action to review the rural exemption for food-waste recycling and the co-design of a statutory code of practice for household recycling. This will reflect diverse geographies, housing stocks and recycling infrastructure across Scotland. A similar review process is planned for commercial recycling requirements and waste service provision.

Fly-tipping can have a disproportionate impact on islands. The National Litter and Flytipping Strategy (2023), commits to stronger enforcement measures and encourages collaborative working with landowners, local authorities and communities. Sitting alongside it, the Marine Litter Strategy for Scotland (2022) includes an action to improve monitoring of beach litter on islands.

We will work with island communities, local authorities and businesses to co-design local circular economy solutions that align with the aims of Scotland’s Circular Economy and Waste Route Map as well as the forthcoming Circular Economy Strategy.

Renewable Energy and Community Benefits

Islands are leading the way in renewable energy generation – from large-scale developments to community-led projects. The Regional Transformational Opportunities in the Highlands and Islands report (2025) highlighted a rich pipeline of green energy projects in island areas with potential to grow working-age populations.

We have invested in enabling port infrastructure, including £33.7 million for the now-completed deep-water terminal in Stornoway, with an additional £10 million from HIE. As part of our commitment to investing up to £500 million over five years to support the infrastructure and manufacturing facilities that are critical to growing the offshore wind sector, we have also provided £5 million for the Scapa Deep Water Quay and over £1.1 million for the Ultra Deep Water Quay at Lerwick Harbour, as well as £3.4 million to improve access to the Arnish Industrial Complex and £1.8 million for Stornoway Port’s proposed new Deep Water South project.

We know that limited grid capacity is restricting some islands from bringing new renewable electricity generation online, resulting in constraints for both local development and further decarbonisation of island infrastructure. While electricity is a reserved matter, the Scottish Government will continue to advocate for grid upgrades in support of island communities’ needs and ambitions.

With the National Energy System Operator (NESO), island local authorities, Ofgem, and SSEN, we are working to deliver essential transmission links. This includes the new 600 MW link from Shetland to mainland Scotland to enable Lerwick Power Station to move to standby mode.

Island diesel power stations remain critical for security of supply in the event of national grid faults or for grid support. We are working with network companies to reduce reliance on fossil back-up and remove unabated diesel/heavy-oil plants. These stations are temporarily exempt from air-quality rules, but Scottish Ministers will need to review the exemptions before they lapse in 2033 (planned outages) and 2039 (unplanned). Over time, diesel back-up will be replaced with stronger grid connections and renewable technologies. Islands are already trialling low carbon fuels. On Eday, for example, surplus tidal and community wind power is used to generate hydrogen, which is then stored and taken to Kirkwall to run a fuel cell capable of providing clean, dispatchable power.

Island communities have told us that benefits from renewable projects can be slow to materialise, while energy costs remain high and fuel poverty above Scotland’s average. This points to the need for earlier, more inclusive approaches to ensuring communities share in the value of the energy transition.

Community Benefits Schemes are a well-established and integral part of onshore renewable energy developments in Scotland. They are however voluntary arrangements that sit independent of our planning and consenting systems. Our consultation on Community Benefits from Net Zero Energy Development, alongside independent research and stakeholder engagement, is informing refreshed Good Practice Principles for Community Benefits, which are expected for publication in 2026 and will deliver long-term, meaningful outcomes for communities.

Case Study – The Dancing Ladies of Gigha

The Isle of Gigha was put on the market in 2001. With support from the Scottish Land Fund and HIE, the Isle of Gigha Heritage Trust (IGHT) completed a community buyout in March 2002. Gigha also hosts Scotland’s first community-owned grid connected wind turbine development. Known as the “Dancing Ladies” and operated by Gigha Renewable Energy Limited, a subsidiary company of IGHT, the three turbines’ output equates to the majority of the island’s electricity demand. The energy produced by the Dancing Ladies is exported and sold to the grid, generating significant net revenue for the island. Profits have been reinvested locally to support community wealth building projects spanning from housing improvements and tourism infrastructure to active travel initiatives and heritage conservation. Since the buyout, Gigha’s population has almost doubled and has seen an increased school roll that allows the community to look to the future with confidence.

While the power to mandate community benefits lies with the UK Government, we continue to press for a fairer deal for Scotland’s communities. We have called for mandatory community benefit schemes for mature onshore technologies, a robust voluntary framework for emerging technologies and a fair approach to offshore wind to ensure a level playing field across Great Britain.

We will refresh the Scottish Government’s Good Practice Principles for Community Benefits, so that these arrangements deliver sustainable, meaningful impacts and meet the needs of communities.

Community-owned renewables are increasingly common across the islands, reducing emissions and creating re-investable local revenue. Through our Community and Renewable Energy Scheme (CARES), we have invested around £10.8 million across 208 projects on Scotland’s islands. In 2023, for instance, Eigg Electric received funding to install three new wind turbines and upgrade its electricity microgrid. In 2025-26, through a combination of Scottish Government and GB Energy funding, the Community Energy Generation Growth Fund will provide up to £8 million to boost community energy.

Carbon Neutral Islands: More Than a Climate Project

Launched in 2022, the Carbon Neutral Islands (CNI) project is supporting six islands – Barra, Cumbrae, Hoy, Islay, Raasay and Yell – to reach carbon neutrality by 2040 and develop a community-led model for climate resilience and local wealth-building. A Community Development Officer is embedded within the local community on each island. This ensures that priorities are shaped by local voices and that delivery remains community focused.

What Changed

Islands have already made impressive progress. Energy efficiency and housing retrofit activity has accelerated, adaptation work has been scoped, skills and local capacity have grown, and community organisations are better placed to access funding. On Cumbrae, for example, rooftop solar capacity has increased fourfold; Raasay has driven nature restoration efforts whilst filling seasonal employment gaps; and on Islay work has been undertaken to improve the energy efficiency of community spaces and domestic housing.

Funding the Initiative

CNI is supported through competitive capital funding rounds complemented by more flexible direct allocations. This approach has allowed smaller, high-impact interventions (such as local food growing projects) to run alongside larger scale decarbonisation efforts (such as community-owned renewable energy arrays). In addition to continued resource funding for local anchor organisations and key partners, £3.9 million capital has been allocated to deliver community-led projects.

What We Have Learned

• Local leadership delivers faster – decisions taken on-island shorten the gap between ideas and delivery.
• A mixed model, including both capital and resource funding, enables community driven action and larger scale ambitions.
• Co-benefits matter – projects designed for net zero also support jobs, skills, health and community wealth.

Looking Ahead

The CNI project will support the delivery of key elements of this National Islands Plan, contributing to commitments across Strategic Objectives. We will continue to drive delivery of the project, sharing tools and knowledge with other islands across Scotland and supporting our CNI communities to access climate finance for long-term investment in decarbonisation.

Heating and Energy Efficiency

Decarbonising homes and buildings is essential to meeting climate and fuel-poverty goals. Island homes are disproportionately off the gas grid and have poorer energy efficiency profiles. Higher retrofit costs and limited heating options drive up bills and deepen fuel poverty. However, improvements are already underway. Almost half of respondents to the Scottish Islands Survey 2023 report installing additional insulation and 14% have fitted a heat pump.

Funding schemes supporting energy saving improvements across Scotland are designed to reflect the higher costs and fuel-poverty rates faced by island communities. The Warmer Homes Scotland (WHS) programme uses a National Customer Price so that eligible customers get the same level of improvement wherever they live. The supply chain of WHS installers includes nine island-based SMEs. Similarly, the Home Energy Scotland Grant and Loan scheme includes an island uplift and, through our Area Based Schemes (ABS), we have awarded over £110 million to island authorities since 2013.

We will work with island communities and local authorities to help homeowners and businesses reduce their building emissions.

Island consumers who rely on heating oil, LPG and solid fuels – markets not regulated by Ofgem – face extra barriers, including transport surcharges, minimum order quantities and upfront payment requirements.

We will undertake engagement with island communities, fuel suppliers and the UK Government to discuss means of mitigating the challenges facing island consumers who use alternative fuels for heating, including options to develop credit facilities.