Oil and Gas Transition Training Fund - Island Communities Impact Assessment

1. Background, objectives and context.

The pilot of the Oil and Gas Transition Training Fund was launched by the Scottish and UK Governments in July 2025. The aim of the fund is to offer financial support to skilled workers in Scotland’s Oil and Gas (O&G) industry, so that they may re-skill into the renewable energy sector, or other potential destination sectors.

The financial year of 2025-26 represented the pilot phase for the TTF, (‘the Pilot’), delivered by Skills Development Scotland (SDS) and supported by Scottish and UK Government funding. It has been geographically focused on workers who live in Aberdeen City and Aberdeenshire (or work for a company with an office in those areas) with defined eligibility and timelines and until February 2026. It has seen approximately 400 workers supported in training.

Following a Ministerial decision, this fund is to be extended until 2029, and the geographical scope of the Transition Training Fund from 2026-27 shall be increased from its initial remit, to cover workers who could reside or be employed anywhere in Scotland. Therefore, it may impact on people within Scottish island communities.

Based on the available budget and costs associated with The Pilot, it is estimated that TTF 2026-27 could support up to 1300 - 1800 individuals, dependant on levels of interest.

On 23 February 2026 the Scottish Government published its second National Islands Plan which provides a programme of actions to address challenges and opportunities facing Scotland's islands

In addressing economy, education and skills, the Plan notes that in the transition to a low-carbon economy to harness the unique potential of our islands (i.e. access to island’s significant renewable energy resources) the development and attraction of a skilled workforce will be a defining factor of our success. Retraining and upskilling is essential for island communities to remain adaptable.