Scotland's Climate Change Plan – 2026-2040 - CRWIA

Annex 1: List Of Policies And Proposals For Inclusion In The Climate Change Plan

1.1 Buildings (Residential and Public)

Buildings (Residential and Public) Outcome 1: The heat supply to our homes and non-domestic buildings is very substantially decarbonised, with high penetration rates of renewable and zero emissions heating.

Buildings (Residential and Public) Outcome 2: Our homes and buildings are highly energy efficient, with all buildings upgraded where it is appropriate to do so, and new buildings achieving ultra-high levels of fabric efficiency.

Buildings (Residential and Public) Outcome 3: The heat transition is fair, leaving no-one behind and stimulates employment opportunities as part of the green recovery.

Buildings (Residential and Public) Outcome 1 & 3 Policy 1, Proposal 1 and Proposal 2 (Existing): A target for decarbonising heating systems. We are setting a target to decarbonise buildings by 2045. By establishing and confirming a target for decarbonising heating systems by 2045, where reasonable and practicable to do so, we are sending a strong signal to homeowners, landlords and other building owners on the need to prepare for change. We published the Draft Buildings (Heating and Energy Performance) and Heat Networks (Scotland) Bill, by the end of 2026, and will also publish a Heat in Buildings Strategy and Delivery Plan which sets out the actions on the part of the Scottish Government and others which will be designed to enable and achieve this target (see below).

Buildings (Residential and Public) Outcome 1,2 & 3 Enabling Policy 2 (Existing): Financial support for energy efficiency. We will enable progress towards our goal of decarbonisation, while reducing fuel poverty, by continuing to provide targeted advice and financial support for energy efficiency measures in homes through schemes such as Warmer Homes Scotland, our Area Based Schemes, the Social Housing Net Zero Heat Fund and our Home Energy Scotland Grant and Loan Scheme (see above). This will support the transition while targeting measures at those most at risk of fuel poverty. These measures will help reduce the cost of living pressures still being faced by too many.

Buildings (Residential and Public) Outcome 2 & 3 Enabling Proposal 3 (New): Minimum Energy Efficiency Standards for owner/occupier and non-domestic properties. We have published plans to give Scottish Ministers a regulation-making power to set minimum energy performance standards for buildings with direct emission heating systems.

Buildings (Residential and Public) Outcome 2 & 3 Enabling Proposal 3 (Existing): Minimum energy efficiency standards for the Private Rented Sector (PRS). We are analysing the responses to our consultation on a minimum energy efficiency standard (MEES) in the domestic private rented sector (PRS). The consultation proposed that the standard would apply to new tenancies from 2028 and all tenancies from 2033. Further to decisions on the consultation outcome, we intend to progress regulations to introduce this MEES early in the next parliamentary term subject to the views of the next Scottish Government. Analysis has suggested that all PRS homes installing certain measures could reduce emissions in PRS dwellings, across the sector as a whole, by around 5% (although this is dependent on behaviour, as some tenants may choose a warmer home for the same cost, rather than the same temperature at lower cost).

Buildings (Residential and Public) Outcome 2 & 3 Enabling Proposal 4 (New): Social Housing Net Zero Standard. We will review and complete work on our Social Housing Net Zero Standard in line with progress on the areas above – taking into account the standards and requirements established for other tenures through separate regulations.

Buildings (Residential and Public) Outcome 1 & 2 Enabling Proposal 5 (New): Energy Performance Certificate (EPC) Reform. We laid revised Energy Performance of Buildings Regulations in October 2025 which were approved by the Scottish Parliament in December 2025. These were due to come into force in October 2026, but are now likely to be delayed, subject to the agreement of Parliament. The delay is due to the UK Government slowing down its timeline for EPC reform from October 2026 to the second half of 2027 – meaning that technical infrastructure (including the Home Energy Model and assessor training) will not be ready to support reformed EPCs as planned. That new rating system will accompany the introduction of the new Home Energy Model across the UK, and the establishment of a new EPC Register and operational governance framework in Scotland. EPCs are a modelled, standardised assessment process; so we are consulting on the development of a more detailed, bespoke Heat & Energy Efficiency Technical Suitability Assessment (‘HEETSA’) to make sure that the right measures are being installed – particularly for more challenging buildings like tenements or historic buildings.

Buildings (Residential and Public) Outcome 1,2 & 3 Enabling Policy 6 (Existing): Delivery schemes. We will continue to deliver a programme of support schemes and advice services which are designed to support a wide range of groups to decarbonise heat in our buildings. We are committed to ensuring that support continues to be prioritised for those who need it most. We also recognise that the significant cost of moving to clean heating cannot be funded by the public purse alone. These support mechanisms will provide a platform for future progress and will evolve alongside the role of private investment and finance.

Buildings (Residential and Public) Outcome 1 & 3 Enabling Policy 7 (New): Heat Networks – new Heat Network proposals. The Draft Buildings (Heating and Energy Performance) and Heat Networks (Scotland) Bill^[1] sets out plans to boost heat network development. These include potentially requiring large, non-domestic premises to move away from fossil fuel heating systems when they have the opportunity to connect to a heat network. The draft Bill also includes plans to introduce powers to create a new licensing system for heat network operators across Scotland which, if an application is approved, will provide new rights and powers like access to the roads which will reduce the time and cost associated with constructing and maintaining heat network projects.

Buildings (Residential and Public) Outcome 1 & 3 Enabling Policy 8 (Existing): Heat Networks -Heat Networks Support Unit (HNSU). The HNSU supports the development of heat network projects in Scotland. It does this by offering grant funding and expert advice throughout the pre-capital stages of development. We are working on building a project pipeline to meet our targets and to build capacity within the public sector to lead on, invest in and deliver heat network projects

Buildings (Residential and Public) Outcome 1 & 3 Enabling Policy 9 (Existing): Heat Networks - Scotland’s Heat Network Fund (SHNF). SHNF offers capital grants to businesses and organisations in the public, private and third sectors to develop heat network projects. It aims to support the roll-out of zero emission district heat networks and communal heating systems.

Buildings (Residential and Public) Outcome 1,2 & 3 Enabling Policy 10 (New): Heat in Buildings Strategy and Delivery Plan. A Heat in Buildings Strategy and Delivery Plan will be published outlining Scottish Government actions, key delivery dependencies (including UK Government), and priorities such as skills and supply chain development. The Plan will be co-developed with stakeholders and set out how all levels of government, the private sector and individuals will work together. It will summarise future training provision and address climate adaptation, including passive cooling measures, integration of adaptation into energy efficiency engagement, and the role of clean heat systems that can also provide cooling, such as reversible heat pumps.

Buildings (Residential and Public) Outcome 1 & 3 Enabling Policy 11 (Existing): Future finance, including the Green Heat Finance Taskforce (GHFT). The independent Green Heat Finance Taskforce reports identified key barriers to the scale up of private finance provision as a lack of consumer demand and a shortage of a delivery ready project pipeline for initiatives to upgrade groups of properties collectively. However, it expressed confidence that the supply of private lending would increase to match consumer and project demand. We responded to the Taskforce last year , setting out the early actions that we have already progressed to raise understanding of the current clean heat financing landscape amongst mortgage advisors who engage directly with consumers, as well as steps that we will take to explore the potential to create a market for innovative financing approaches. As we do this we will work with lenders and the UK Government given the UK-wide nature of financing markets and regulation

Buildings (Residential and Public) Outcome 1 & 3 Enabling Policy 12 (Existing): Local Heat and Energy Efficiency Strategies (LHEES). Our aim is to build on the existing LHEES, standardise where possible and create a streamlined and investible delivery route to underpin our Heat in Buildings Programme.

Buildings (Residential and Public) Outcome 1,2 & 3 Enabling Policy 13 (Existing): Community And Renewable Energy Scheme (CARES). Community And Renewable Energy Scheme (CARES) provides advice and funding to communities across Scotland looking to develop renewable energy, heat decarbonisation and energy efficiency projects.

1.2 Transport

Transport Outcome 1: To address our overreliance on cars, we will create the enabling environment for reducing car use, incentivising behaviour change towards sustainable travel modes and disincentivising private car use, where these align with a just transition.

Transport Outcome 1 Enabling Policy 1 (Existing): Work with Local Authorities and Regional Transport Partnerships to provide research, advice and guidance on reducing car use.

Transport Outcome 1 Policy 2 (Existing): Through the sustainable travel element of the People and Place behaviour change programme for the financial year 2025/26, encourage promotion of car and bike share schemes, Mobility as a Service, demand responsive transport and multi-modal mobility hubs to encourage the use of integrated public transport and reduce car use.

Transport Outcome 1 Policy 3 (New): Successor Policy Car Use Reduction – Following a review of the car use reduction policy, a new target has been set out in alignment with the Climate Change Plan and supportive of our Net Zero targets. A target has been set to reduce emissions from cars in the first carbon budget (2026-2030) by at least 16% from today’s levels (2023).

Transport Outcome 2: To support modal shift through more sustainable forms of travel, including incentivising public transport use and supporting more people to walk, wheel and cycle for everyday journeys.

Transport Outcome 2 Policy 1 (Existing): Provide free bus travel for those under 22 years of age and older and disabled persons through the National Travel Concessionary Schemes.

Transport Outcome 2 Policy 2 (Existing): Bus Infrastructure Fund: Provides funding to Local Authorities and Regional Transport Partnerships to work together with bus operators to develop and deliver local bus infrastructure improvements. These will improve the quality of bus infrastructure and perceived safety; make it easier to access bus services; improve integration between bus and other modes of transport; and make bus journeys shorter and more reliable. This will provide benefits for existing bus passengers as well as encouraging people to leave their cars at home and take the bus.

Transport Outcome 2 Enabling Policy 3 (Existing): Progress development of smart and digital integrated ticketing and payment systems and technology across public transport in Scotland.

Transport Outcome 2 Enabling Policy 4 (Existing): We will deliver improvements to the national concessionary schemes, enhance the digital travel data services that sit behind Traveline Scotland and other journey planner providers, and will develop the Open Data provisions in the Transport (Scotland) Act 2019.

Transport Outcome 2 Policy 5 (Existing): Retain the commitment to Active and Sustainable Travel investment.

Transport Outcome 2 Enabling Proposal 1 (New): Guarantee of multi-year funding to provide confidence to the public sector to plan and invest in bus priority.

Transport Outcome 2 Proposal 2 (New): Increases in funding alongside capacity and capability of Local Authorities/ Regional Transport Partnerships/Transport Scotland and supporting consultancy.

Transport Outcome 2 Policy 6 (New): Transport Scotland to develop and deliver trunk road bus priority and bus priority at trunk road signals.

Transport Outcome 2 Enabling Proposal 3 (New): Multi-year funding commitments required to enable build-up of capacity and capability in the active and sustainable sector and confidence for planning and delivery of long-term, large-scale ambitious infrastructure programmes.

Transport Outcome 3: To support modal shift through encouraging more freight to move by rail or water instead of road.

Transport Outcome 3 Policy 1 (New): Providing grant support for modal shift of freight from road to rail or water.

Transport Outcome 3 Policy 2 (New): Specific rail freight investments.

Transport Outcome 4: We will phase out the need for new petrol and diesel cars and vans by 2030.

Transport Outcome 4 Policy 1 (Existing): Vehicle Emissions Trading Schemes (VETS) legislation/ Zero emission vehicle (ZEV) mandate. The four-nation Vehicle Emissions Trading Schemes (VETS) Order 2023 is the main policy instrument for phasing out the sale of new petrol and diesel cars and vans in Scotland. Due to the CO2 trading schemes and flexibilities inherent in the design, manufacturers can comply with VETS without meeting the headline ZEV sales percentages providing their remaining non-ZEV sales are of sufficiently efficient vehicles and by trading with other manufacturers with excess credits.

Transport Outcome 4 Enabling Policy 2 (Existing): Continue to invest in critical skills in the servicing and maintenance of Electric Vehicles (EVs) and charging infrastructure to support a just transition.

Transport Outcome 4 Enabling Policy 3 (Existing): EV Infrastructure Fund (public EV charging network).

Transport Outcome 4 Policy 4 (Existing): Develop a Public Sector Fleet Decarbonisation Action Plan, developed in partnership with public sector fleet operators, including identifying new delivery models that crowd in private investment and for the sharing of vehicles and infrastructure with fleet decarbonisation costs incorporated into business-as-usual fleet operations.

Transport Outcome 4 Enabling Policy 5 (New): Develop a range of new policy interventions that support consumers, sole traders and micro businesses to more rapidly transition to EVs.

Transport Outcome 4 Key Enabling Policy 6 (New): Additional support to rapid rollout of critical EV charging infrastructure including public EV charging in rural communities and home charging at domestic properties, including cross-pavement charging.

Transport Outcome 5: We will work with the energy, finance and road transport sectors and related businesses to ensure all road vehicles are zero emission by 2040.

Transport Outcome 5 Policy 1 (Existing): Providing Government support for bus decarbonisation (ScotZEB).

Transport Outcome 5 Policy 2 (Existing): Providing Government support for decarbonisation of Community Transport (Plugged-in Communities).

Transport Outcome 5 Policy 3 (New): Investment in replacement of HGV vehicles and deployment of charging infrastructure.

Transport Outcome 5 Proposal 1 (New): Consider what regulatory options are available to encourage and ensure transition; implement as required.

Transport Outcome 5 Proposal 2 (New): Support skills development and other aspects of economic development to support a Just Transition.

Transport Outcome 6: We will work to decarbonise scheduled flights within Scotland by 2040.

Transport Outcome 6 Supporting Policy 1 (Existing): Developing the world’s first zero emission aviation region in partnership with Highlands and Islands Airports Limited (HIAL).

Transport Outcome 6 Policy 2 (Existing): Policy 2: SAF & Project Willow. The development of alternative fuels, such as sustainable aviation fuel (SAF). SAF will play a crucial role in reducing emissions over the short and medium term. SAF as a potential opportunity area for Scotland and the work of Project Willow demonstrated that a long term, new industrial future is achievable at Grangemouth, and the report includes two potential SAF projects that could be developed at Grangemouth. The Grangemouth Just Transition Fund is available to support new low carbon propositions, in particular a SAF proposition at Grangemouth.

Transport Outcome 6 Policy 3 (New): Air Departure Tax. The Scottish Government will introduce Air Departure Tax (ADT) as a devolved replacement for the UK-wide Air Passenger Duty (APD) from April 2027. This is possible due to the development of a new Highland and Island exemption that protects crucial connectivity in the region while complying with the UK Government’s subsidy control regime.

1.3 Agriculture

Agriculture Outcome 1: A more sustainable and regenerative Scottish agriculture sector that contributes to delivering Scotland's climate change targets and wider environmental outcomes while continuing to produce high quality, nutritious food.

Agriculture Outcome 1 Enabling Policy 1 (Existing): Lay and publish the initial Rural Support Plan in Spring 2026 to set out how support, over the initial five-year period (2026-2030), will deliver on the Agriculture and Rural Communities (Scotland) Act 2024 objectives, the Vision for Scottish Agriculture, the Agricultural Reform Route Map and wider Scottish Government priorities. We will continue to publish Rural Support Plans every five years.

Agriculture Outcome 1 Policy 2 (Existing): Continue the delivery of the Agricultural Reform Route Map that outlines the phased transition from legacy EU Common Agricultural Policy (CAP) schemes to the new Four-Tier Framework, with new conditions from 2025, and ensures that future support will deliver high-quality food production, climate mitigation and adaptation, and nature restoration, informed by the co-development process within the Agricultural Reform Programme.

Agriculture Outcome 1 Proposal 1 (New): Working with industry and policy sectors, reduce emissions from agriculture non-road mobile machinery by investigating and promoting efficiencies, alternative fuels and technological developments and providing knowledge exchange, guidance and advice. (See also Energy Supply, Outcome 2, Proposal 1)

Agriculture Outcome 1 Policy 3 (Existing): By 1^st January 2027, as per The Water Environment (Controlled Activities) (Scotland) Amendment Regulations 2021, all Scottish livestock farmers producing slurry must use precision equipment for the application of slurry. We will encourage use of best practice and investigate with industry representatives how compliance with the regulations are monitored and enforced.

Agriculture Outcome 1 Enabling Policy 4 (New): Support enhancing the delivery of climate change and nature outcomes by farmers and crofters through our Agricultural Modernisation Fund, which provides funds to drive efficiency and support nature and climate friendly farming.

Agriculture Outcome 1 Proposal 2 (New): Monitor, support knowledge transfer for and, where necessary, support the commercialisation and uptake of emerging low carbon farming technologies and innovations.

Agriculture Outcome 2: More farmers and crofters have the skills, knowledge and opportunity to implement climate change measures, continuing to produce high quality, nutritious food.

Agriculture Outcome 2 Enabling Policy 1 (Existing): Since July 2024 the Farm Advisory Service has delivered an updated programme including a minimum of 70% content on climate change, sustainable agriculture and biodiversity support. This contributes to the suite of support provided under the current Agricultural Knowledge and Innovation System framework and will continue to evolve and respond to user needs as we continue to develop AKIS in the coming years to further disseminate learning on low emissions farming, through a range of communication methods.

Agriculture Outcome 2 Enabling Proposal 1 (New): We will ensure that tenant farmers are able to capitalise on the benefits of measures in Part 2 of the Land Reform (Scotland) Act 2025, and, will continue to work with the Tenant Farming Advisory Forum/Tenant Farming Commissioner towards promoting the uptake of sustainable and regenerative practices and environmentally beneficial activities going forward.

Agriculture Outcome 2 Enabling Policy 2 (New): From 2025, agricultural businesses receiving Basic Payment Scheme support payments will be required to undertake 2 of 5 relevant assessments contributing to a Whole Farm Plan, while by 2028 agricultural businesses will need to have all relevant plans and audits in place for all assessments under the Whole Farm Plan.

Agriculture Outcome 3: Soil health is improved and nitrogen emissions, including from nitrogen fertiliser, have fallen.

Agriculture Outcome 3 Enabling Policy 1 (Existing): Support farmers and crofters to improve their soil health including through soil analysis as part of the Whole Farm Plan and the provision of guidance and advice. From 2028, agricultural businesses will all be required to complete soil analysis and produce a nutrient management plan.

Agriculture Outcome 3 Proposal 1 (New): Investigate technologies for alternative, improved or more efficient fertilisers, including organic and organo-mineral fertilisers and fertilising products, and encourage uptake where appropriate. Also increase understanding of nitrification and urease inhibitors and the opportunities for their use including through use of the Strategic Research Programme and the development of a new regulatory regime for non-mineral fertilising products.

Agriculture Outcome 3 Enabling Proposal 2 (Existing): Improve nitrogen-use efficiency through supporting research into crop varieties with increased nitrogen-use efficiency, or crops which increase levels of available nitrogen in the soil, while exploring ways of supporting the uptake and development of these crops.

Agriculture Outcome 4: Reduced emissions from red meat and dairy through the implementation of measures, including improved efficiencies, new technologies and improved animal health.

Agriculture Outcome 4 Policy 1 (New): Work with industry bodies and livestock producers to develop the MyHerdStats dashboard to provide all cattle keepers with information on herd fertility and animal mortality to support them to improve farm management practices.

Agriculture Outcome 4 Enabling Policy 2 (Existing): Working with the Scottish livestock sectors, co-design and realise the potential of a range of animal health and welfare initiatives and projects at farm, regional and national level. Use research, development and veterinary expertise to underpin a programme of continuous animal health and welfare improvement including dynamic health planning; promotion of best practice; health-driven improvements in efficiency.

Agriculture Outcome 4 Enabling Proposal 1 (Existing): Engage with academics and stakeholders to identify barriers and develop policy interventions to support appropriate uptake of methane suppressing feed products.

Agriculture Outcome 4 Enabling Proposal 2 (New): Work with the livestock sector to develop understanding of selective breeding for low methane genetics in reducing overall emissions from Scottish livestock production as well as the current infrastructure gaps in order to identify activity to accelerate livestock genetic improvement.

Agriculture Outcome 4 Policy 3 (New): As part of proposals to reform the Scottish Suckler Beef Support Scheme, voluntary coupled support (VCS) payments will be linked to calving interval performance from 2025. The threshold for calving interval performance will start at 410 days for both the 2025 and 2026 scheme years.

Agriculture Outcome 5: Carbon sequestration on agricultural land is increased, and carbon stores are maintained or increased.

Agriculture Outcome 5 Policy 1 (New): Protecting Peatlands and Wetlands through the introduction of new measures under existing Good Agricultural and Environmental Condition (GAEC 6 – maintenance of soil organic matter) which came into effect in 2025.

Agriculture Outcome 5 Enabling Policy 2 (New): Support knowledge transfer and skills development on planting and managing trees as part of a farm business throughout the lifetime of the CCP to increase tree planting and improve management of trees on farmland.

Agriculture Outcome 5 Enabling Proposal 1 (New): Review, update and develop mechanisms, as appropriate, to better support the establishment and management of trees on farms including future agricultural support and the Forestry Grant Scheme.

Agriculture Outcome 5 Enabling Policy 3 (New): We will continue to explore options for more integrated land use, including through the delivery of Scotland’s fourth Land Use Strategy so that food production is reflected as part of a multi-faceted land use, including forestry, peatland restoration and management, energy and biomass production, aligning with policies in the Land Use, Land Use Change and Forestry chapter.

Agriculture Outcome 5 Enabling Proposal 2 (New): Work with the Tenant Farming Commissioner to develop a Land Management Tenancy following the completion of the Land Reform Bill. This will enable individuals to undertake a range of land use activities in a way that supports: Sustainable and regenerative agriculture, the achievement of net zero targets, Adaption to climate change, and increasing or sustaining biodiversity.

1.4 Business and Industrial Process/NETs

Business and Industrial Process/NETs Outcome 1: Scotland’s industrial sector will be on a managed pathway to decarbonisation, whilst remaining highly competitive and on a sustainable growth trajectory.

Business and Industrial Process/NETs Outcome 1 Policy 1 (Existing): Continue to engage with UKG on the UK ETS: The UK Emissions Trading Scheme (ETS) is a carbon pricing system that caps emissions from energy-intensive industries, aviation, and power generation. Companies must hold allowances for every tonne of CO2 they emit, which they can buy, sell, or trade. Over time, the cap tightens, indirectly driving down emissions. The ETS is key for supporting net zero goals. The scheme is developed and managed by the UK ETS Authority, comprised of the four governments of the UK.The ETS Authority published its intention to include engineered greenhouse gas removals into the ETS from 2029. This aims to support net zero targets and incentivise the uptake of carbon removal technologies—such as direct air capture with geological storage—by providing an UK ETS allowances for each tonne of CO2 successfully stored. However, without proper investment in carbon capture and storage sites, the ETS will not promote by itself uptake in these technologies.

Business and Industrial Process/NETs Outcome 1 Policy 2 (Existing): Continue to deliver a Scottish Industrial Energy Transformation Fund (SIETF) to support the decarbonisation of industrial manufacturing through matching private funding for specific energy efficiency projects.

Business and Industrial Process/NETs Outcome 1 Policy 3 (New): Explore a new industrial decarbonisation programme to incentivise further investment and accelerate the pace of transformation for industry.

Business and Industrial Process/NETs Outcome 1 Proposal 1 (Existing): Continue to support the Renewable Heat Incentive (RHI), a scheme created by UK Government: The Renewable Heat Incentive (RHI) is a Great Britain-wide scheme created by the UK Government (with the agreement of the Scottish Government) which will continue to support the decarbonisation of public buildings by providing existing installations already accredited and meeting obligations with payments.

Business and Industrial Process/NETs Outcome 1 Policy 4 (Existing): Continue to deliver the Grangemouth Future Industry Board (GFIB) to coordinate public sector initiatives on growing economic activity at the Grangemouth industrial cluster, whilst supporting its transition to our low carbon future.

Business and Industrial Process/NETs Outcome 1 Policy 5 (New): Work with the UK Government to develop a framework for demand-side measures to increase the market for low carbon industrial products.

Business and Industrial Process/NETs Outcome 1 Policy 6 (New): Support the Scottish Environment Protection Agency (SEPA) in using existing regulatory powers to drive energy efficiency across priority sites.

Business and Industrial Process/NETs Outcome 1 Proposal 2 (New): Support the reduction of fossil fuels in chemicals and manufacturing through research and innovation, providing support for certain infrastructure and considering how to grow the market.

Business and Industrial Process/NETs Outcome 2: Technologies critical to further industrial emissions reduction (such as carbon capture and storage and storage and the production and use of hydrogen) are operating at commercial scale in the 2030s.

Business and Industrial Process/NETs Outcome 2 Policy 1 (Existing): Continue to support the delivery of the Acorn Transport and Storage (T&S) Project and the Scottish Cluster.

Business and Industrial Process/NETs Outcome 2 Policy 2 (Existing): Continue to support and develop Carbon Capture Utilisation and Storage (CCUS) in Scotland through continued collaboration with the UK Government to create the policy and regulatory frameworks required to support CCUS at scale.

Business and Industrial Process/NETs Outcome 2 Enabling Policy 3 (New): Support planning, permitting and consenting processes to ensure they work effectively for the development of carbon capture projects.

Business and Industrial Process/NETs Outcome 2 Enabling Proposal 1 (New): Engage with the UK Government, Ofgem and the National Energy System Operator (NESO) on actions to help facilitate quicker electricity grid connections for Scottish industrial electrification and to reduce the cost of electricity for industry.

Business and Industrial Process/NETs Outcome 2 Enabling Proposal 2 (New): Support knowledge sharing across industry and academia to raise awareness and understanding of technical opportunities and innovations for decarbonisation.

Business and Industrial Process/NETs Outcome 2 Policy/Proposal 3 (Existing): Support the development of the emerging hydrogen sector in Scotland to maximise the ‘new industry’ benefits that the production of hydrogen could bring to Scotland.

Business and Industrial Process/NETs Outcome 2 Enabling Policy/Proposal 4 (Existing): Replicate and scale-up demonstration projects and the evidence base for hydrogen-based technologies.

Business and Industrial Process/NETs Outcome 2 Proposal 5 (New): Undertake development work to increase our understanding of the viability of nearshore carbon storage in Scotland.

Business and Industrial Process/NETs Outcome 2 Proposal 6 (Existing): Continue to explore and understand the potential of Negative Emissions Technologies (NETs) in Scotland to develop clear NETs ambitions.

1.5 LULUCF

Land use Outcome 1: To set and promote the national strategic approach to the integrated nature of land use and support and empower rural communities and stakeholders to co-develop natural capital led solutions that help address the climate and nature crises while delivering environmental, social, and economic benefits.

Land use Outcome 1 Enabling Policy 1 (Existing): We will publish Scotland’s 4th Land Use Strategy by end of March 2026.

Land use Outcome 1 Enabling Policy 2 (Existing): We will support the four successful Regional Land Use Partnerships to transition from pilots to Scottish Government-backed initiatives, and using the learning from these Partnerships, seek opportunities to expand land use partnership working over the longer term.

Forestry Outcome 1: An increase in annual woodland creation rates, with the consequent benefits of more carbon sequestration, rural employment and community benefits, enhancements to biodiversity, landscape and tourism, and support for agricultural business (e.g. shelter for livestock, wind and flood management).

Forestry Outcome 1 Enabling Policy 1 (Existing): Forestry grants will provide funding via a grant scheme to support eligible landowners to establish appropriate woodlands.

Forestry Outcome 1 Policy 2 (Existing): Woodland creation on Scotland's national forests and land. Forestry and Land Scotland will deliver an annual contribution towards the overall woodland creation target by creating new sustainable woodland on Scotland's national forests and land, including through partnerships with external organisations to scale carbon capture opportunities.

Forestry Outcome 1 Enabling Policy 3 (Existing): Awareness-raising. We will continue to deliver a programme of farm-based events to demonstrate and support improved productivity through integration of farming and forestry enterprises.

Forestry Outcome 1 Enabling Policy 4 (Existing): Woodland Standards. The Scottish Government will lead on the work with the UK and other UK Governments to maintain and develop a UK Forestry Standard that articulates the consistent UK wide approach to sustainable forestry. The Standard defines how woodland should be created and managed to meet sustainable forest management principles and provides a basis for monitoring.

Forestry Outcome 1 Enabling Policy 5 (Existing): Under the National Strategy Economic Transformation commitment to develop a values-led, high integrity market for responsible investment in natural capital - we will increase private investment in land management for climate change by March 2026 through enhanced uptake of existing mechanisms (Peatland Code, Woodland Carbon Code) and implementation of new mechanisms.

Forestry Outcome 1 Enabling Policy 6 (Existing): Woodland carbon capture. The Scottish Government will further develop and promote the Woodland Carbon Code in partnership with the forestry sector, and will work with investors, carbon buyers, landowners and market intermediaries to attract additional investment into woodland creation projects and further increase the woodland carbon market.

Forestry Outcome 2: Increase the use of sustainably sourced wood fibre to reduce emissions by encouraging the construction industry to increase its use of wood products where appropriate.

Forestry Outcome 2 Enabling Policy 1 (Existing): Collaboration with the private forest sector and other public sector bodies, we continue to implement the timber development programme through an annual programme of projects that support the promotion and development of wood products for use in construction.

Forestry Outcome 2 Enabling Policy 2 (Existing): To work closely with the sector through the Scottish Forestry and Wood Based Industries Industry Leadership group.

Forestry Outcome 2 Enabling Policy 3 (Existing): Making funding available to support the sustainability of forest nurseries.

Peatlands Outcome 1: Protect. Protect and support the natural function of areas of peatland that are already in good condition, and prevent areas already degraded from deteriorating further.

Peatlands Outcome 1 Policy 1 (Existing): We will continue our work alongside other UK nations to ban the sale of peat for horticulture in Scotland. We will draw on the outputs of our consultation, stakeholder engagement and commissioned research to ensure that the timing and scope of the ban are right for Scotland.

Peatlands Outcome 1 Enabling Proposal 1 (New): We will continue work started by the Peatland Expert Advisory Group to improve the tools, guidance and monitoring relating to the design and construction of windfarms on peat.

Peatlands Outcome 1 Proposal 2 (New): Informed by the local pilot projects announced in our 2025-26 Programme for Government, we will ensure that future deer management arrangements in Scotland support our peatland and wider soils ambitions to 2040. This will include requiring and, where appropriate, incentivising activity to control deer numbers in areas where priority work to improve nature is underway, such as peatland restoration.

Peatlands Outcome 1 Enabling Policy 2 (Existing): In 2026, we will commence the new measures introduced in the Wildlife Management and Muirburn (Scotland) Act 2024 that increase protection for peatlands by establishing a licensing scheme which only permits muirburn on peatland for certain purposes such as for the creation of firebreaks to help prevent wildfires.

Peatlands Outcome 2: Manage. Support positive measures by landowners and managers to manage and improve degraded peatlands.

Peatlands Outcome 2 Enabling Proposal 1 (Existing): We will continue our work with partners and stakeholders to develop incentives, guidance, advice and support on peatlands within the new agricultural support framework for land-owners and managers looking to integrate peatland protection, management and restoration with existing land use on their farm or croft.

Peatlands Outcome 2 Proposal 2 (New): We will continue our work with Peatland ACTION to support crofters wishing to progress peatland protection, management and restoration, and ensure we learn from the experience of initiatives working to bring private finance into this sector. The new Crofting and Scottish Land Court Bill aims to bolster and strengthen the role of these committees, giving them, and individual shareholders, more options for proposing a range of environmental initiatives on common grazings.

Peatlands Outcome 2 Enabling Policy 1 (New): NatureScot will progress a holistic ‘Developing Healthy Ecosystems’ approach to strengthen monitoring of peatland condition within all designated sites even where it is not a listed feature.

Peatlands Outcome 2 Enabling Policy 2 (New): Through the Land Reform (Scotland) Bill we will:

a. legislate to adjust tenancy arrangements allowing tenant farmers, small landholders and others to deliver multiple eligible land use activities including peatland restoration and rewetting,

b. propose a new model lease for environmental purposes to assist individuals, communities and landlords to undertake hybrid land management actions including peatland restoration and rewetting, and

c. introduce Ministerial powers to make regulations for Land Management Plans; these will require landowners who own land over a certain threshold to set out how they are managing or intend to manage the land in a way that contributes towards achieving Net Zero emissions targets, adapting to climate change and increasing or sustaining biodiversity.

Peatlands Outcome 3: Restore. Support focused interventions to return degraded peat to a more natural condition and reinstate the natural ecosystem functions and benefits they can provide.

Peatlands Outcome 3 Policy 1 (Existing): We will increase peatland restoration by 10% each year to 2030 and maintain levels after that leading to the restoration of more than 400,000 hectares by 2040. Within this, we will look to increase the proportion of the most highly degraded and emitting peat that is restored.

Peatlands Outcome 3 Enabling Policy 2 (New): To bring focus, stability and certainty to the sector going forward, and to take us towards our 2040 ambitions, we published our first Peatland ACTION Partnership Plan on 15 December 2025. This details the realistic and achievable actions needed over the next five years reflecting the current capacity, skills and capabilities of the sector. It also seeks to ensure that our investment maximises the multiple benefits of peatlands for climate, nature and people.

Peatlands Outcome 3 Enabling Policy 3 (Existing): In 2026, we will consult on and launch Scotland’s Peatland Standard which will ensure quality and consistent peatland restoration standards and bring efficiencies to the sector for training, project development, delivery techniques and monitoring and verification.

Peatlands Outcome 3 Enabling Policy 4 (New): We will continue to deliver the Scottish Government’s Implementation Plan in response to the recommendations of the Land-Based Learning Review to contribute to attracting and equipping more people with the skills and knowledge needed to work in land-based and aquaculture sectors.

Peatlands Outcome 3 Enabling Policy 5 (Existing): In addition to our multi-year investment plans for peatland restoration set out in our 2026 spending review over the next four years, we will also continue our work to leverage and blend responsible private investment into peatland protection, management and restoration through our Private Investment in Natural Capital Programme.

Peatlands Outcome 3 Proposal 1 (Existing): Informed by new approaches to monitoring, we will continue work to restore and improve the condition of degraded peat on land that is publicly owned, managed by Crown Estate Scotland and within formally designated nature conservation sites.

Peatlands Outcome 3 Enabling Policy 6 (New): As announced in the budget 2025-26 we will continue working with the Scottish Land Commission to develop the evidence necessary to identify and assess options for a carbon land tax.

Peatlands Outcome 4: Research and evidence. Continue to invest in world-class peatland research to inform the development of policy and practice.

Peatlands Outcome 4 Enabling Policy 1 (New): Through our forthcoming Strategic Research Programme and other routes, we will continue to invest in research on the distribution and condition of Scotland’s peatland resource businesses in the supply-chain and any impacts arising from our actions; building the restoration pipeline and driving efficiencies; and understanding the complex relationship between herbivore grazing and peatland condition and emissions.

Peatlands Outcome 4 Enabling Proposal 1 (New): Scotland’s new LiDAR data will contribute to the identification and monitoring of peatland restoration sites and contribute to transparency and cost effectiveness of some surveys.

1.6 Waste

Waste Outcome 1: Strengthen the Circular Economy

Waste Outcome 1 Enabling Policy 1 (New): Publish a Circular Economy Strategy in 2026.

Waste Outcome 1 Enabling Policy 2 (New): Set new circular economy targets by 2027.

Waste Outcome 1 Enabling Policy 3 (New): Work to embed circularity into public sector procurement processes, helping to reduce the environmental impact of public spending.

Waste Outcome 1 Supporting/ Enabling Policy 4 (Existing): Develop digital waste tracking service, in partnership with the UK government and other devolved governments.

Waste Outcome 2: Reduce and Reuse

Waste Outcome 2 Enabling Policy 1 (New): Publish a product stewardship plan to set out our framework to prioritising products based on their environmental and economic impact, by 2026.

Waste Outcome 2 Policy 2 (Existing): Packaging: Introducing reforms to extended producer responsibility (EPR) for packaging, working with the other UK governments.

Waste Outcome 2 Policy 3 (Existing): Policy 3: Packaging: Implementation of the Deposit Return Scheme (DRS) for single-use drinks containers.

Waste Outcome 2 Policy 4 (Existing): Develop action to tackle the environmental impact of single-use drinks cups.

Waste Outcome 2 Enabling Proposal 1 (New): Develop further measures to tackle consumption of problematic single-use items and promote and enable the uptake of reusable alternatives (including consideration of environmental charging where appropriate and working with other UK nations and industry on reusable and refillable packaging targets and wider support).

Waste Outcome 2 Proposal 2 (New): WEEE: Reform extended producer responsibility for waste electrical and electronic equipment (WEEE), working with the other UK administrations.

Waste Outcome 2 Proposal 3 (New): Batteries: Reform extended producer responsibility for batteries, working with the other UK governments.

Waste Outcome 2 Proposal 4 (New): End of Life Vehicles: As part of UK-wide Extended Producer Responsibility (EPR) reform, seek to place greater financial responsibility on vehicle producers for the environmental impact of their products at end-of-life.

Waste Outcome 2 Enabling Narrative Policy 5 (New): Working with the fishing and aquaculture sectors to improve the collection and recycling of end-of-life gear.

Waste Outcome 2 Enabling Proposal 5 (New): Mainstreaming reuse and repair, including developing measures to improve the reuse experience for consumers and support alternative business models that prolong product lifespan.

Waste Outcome 2 Enabling Policy 6 (New): Develop measures to address the disposal of unsold consumer goods.

Waste Outcome 2 Enabling Proposal 6 (New): Develop an intervention plan to guide long-term work on household food waste reduction behaviour change.

Waste Outcome 2 Policy 7 (New): Develop with stakeholders effective options to implement mandatory reporting for food waste and surplus by businesses.

Waste Outcome 2 Enabling Proposal 7 (Existing): Support the development and implementation of NHS Scotland actions to tackle food waste, to be reflected in NHS Scotland’s forthcoming revision to its Climate Emergency and Sustainability Strategy.

Waste Outcome 2 Enabling Policy 8 (New): Support the development of a model for regional Scottish hubs and networks for the reuse of construction materials and assets.

Waste Outcome 2 Enabling Proposal 8 (New): Investigate and promote options to incentivise and build capacity for the refurbishment of buildings.

Waste Outcome 2 Enabling Proposal 9 (New): Develop new and promote existing best practice standards in circular practices within the construction sector, and assess the options for both voluntary and mandatory compliance.

Waste Outcome 2 Enabling Narrative Policy 9 (New): Consider how devolved taxes can incentivise the use of secondary aggregates and support circular economy practices.

Waste Outcome 2 Enabling Narrative Policy 10 (Existing): Delivery of the National Litter and Flytipping Strategy.

Waste Outcome 3: Modernise Recycling

Waste Outcome 3 Policy 1 (Existing): Make our final investments from the Recycling Improvement Fund to improve local authority recycling collection infrastructure.

Waste Outcome 3 Enabling Policy 2 (New): Develop a statutory Code of Practice for household waste and recycling services.

Waste Outcome 3 Policy 3 (New): Recyclable plastic film and flexible packaging is to be collected for recycling from both households and businesses across the UK by 31 March 2027.

Waste Outcome 3 Enabling Policy 4 (Existing): Review separate collections of textile waste from households, following recent consultation.

Waste Outcome 3 Enabling Policy 5 (Existing): Review current practices with respect to separate collection of bio-waste (e.g. garden waste).

Waste Outcome 3 Enabling Policy 6 (New): Undertake a review of waste and recycling service charging.

Waste Outcome 3 Enabling Policy 7 (Existing): Review the rural exemption for food waste recycling, following recent consultation.

Waste Outcome 3 Enabling Policy 8 (New): Setting statutory local recycling and reuse performance targets for household waste services from 2030 onwards.

Waste Outcome 3 Enabling Narrative Policy 9 (New): Actions to strengthen household waste enforcement tools, as set out in Circular Economy and Waste Route Map.

Waste Outcome 3 Enabling Policy 10 (New): Review of compliance with commercial recycling requirements.

Waste Outcome 3 Enabling Policy 11 (New): Conduct a national compositional study of waste from commercial premises.

Waste Outcome 3 Enabling Policy 12 (New): Co-design measures, including targeted communications, to improve commercial waste service provisions that drive waste prevention and reuse, with a particular focus on food waste recycling.

Waste Outcome 4: Decarbonise Disposal

Waste Outcome 4 Policy 1 (Existing): Introduce a ban on biodegradable municipal waste going to landfill.

Waste Outcome 4 Enabling Proposal 1 (Existing): Review and target materials currently landfilled to identify and drive alternative management routes, including the potential to extend the BMW landfill ban to include biodegradable non-municipal wastes.

Waste Outcome 4 Enabling Policy 2 (New): Develop a Residual Waste Plan to 2045.

Waste Outcome 4 Policy 3 (Existing): Increase the capture of landfill gas.

Waste Outcome 5: Other Sources (anaerobic digestion and composting and wastewater).

Waste Outcome 5 Enabling Proposal 1 (New): Broadly align with Energy Neutrality and Resource Recovery requirements in the EU's Urban Waste Water Treatment Directive (Art 11 and 20). Likely to include Energy audits, energy recovery and resource recovery. Scottish Water is currently mandated to achieve net zero by 2040 across all of its water and wastewater operations.

Waste Outcome 5 Enabling Proposal 2 (New): Continue to work with the Scottish Environment Protection Agency (SEPA) and the sector to ensure there is appropriate capacity in Scotland to manage these biodegradable materials and optimise the efficiency of both anaerobic digestion and composting.

1.7 Energy Supply

Energy Supply Outcome 1: By 2035, emissions will have reduced from thermal power generation to 0.4MtCO2e through the use of CCS, renewable power and altrnative power means such as hydrogen.

Energy Supply Outcome 1 Narrative Proposal 1 (New): Support the inclusion of energy from waste in the UK Emissions Trading Scheme (ETS).

Energy Supply Outcome 1 Key Proposal 2 (New): Require new Energy from Waste (EfW) facilities to have an acceptable decarbonisation strategy aligned with Scottish Government decarbonisation goals, e.g. installation of carbon capture and storage (CCS) technology, or connection to Heat Network (National Planning Framework 4 (NPF4) Policy 12).

Energy Supply Outcome 1 Key Proposal 3 (New): Encourage existing Energy from Waste (EfW) plants to retrofit CCS, working with the UK Government to develop a policy and funding framework to incentivise this, e.g. expanding the UK Government's existing Industrial Carbon Capture Waste Business Model to include new projects.

Energy Supply Outcome 1 Key Proposal 4 (New): Incentivise advanced sorting and separating technologies for residual waste (e.g. to separate key recyclable material streams before incineration) where feasible, to be explored through the 2045 residual waste plan, and sector-led plan for Energy from Waste (EfW) decarbonisation, as part of wider efforts to end the unnecessary incineration of plastics.

Energy Supply Outcome 1 Enabling Proposal 5 (New): Work with Scottish Southern Electricity Networks (SSEN) to reduce reliance on island diesel power stations through supporting establishment of new connections between islands and mainland; and explore the use of alternative, non-fossil-fuel based solutions to diesel for back-up supply, including the use of Hydrotreated Vegetable Oil (HVO) as a transition fuel and flexibility contracts.

Energy Supply Outcome 1 Enabling Proposal 6 (New): We will continue to work constructively with the UK Government to ensure the Acorn Project and Scottish Cluster secure the fastest possible deployment, so that a just transition for our energy workforce can be secured, while delivering on net zero targets.

Energy Supply Outcome 1 Narrative/ Enabling Proposal 7 (New): Work to influence the UK Government (e.g. through development of its Reformed National Pricing Delivery Plan) so that energy markets incentivise the building and use of both medium and long duration energy storage and grid flexibility assets (such as battery storage, pumped hydro and hydrogen production), as well as demand side including hydrogen production, Electric Vehicle (EV) smart charging and other smart appliances to use electricity during off-peak hours, helping balance the grid and reduce costs and emissions which in turn can reduce the need for energy from unabated fossil fuels.

Energy Supply Outcome 1 Narrative/ Enabling Proposal 8 (New): Work with the UK Government and the National Energy Systems Operator (NESO) on the Clean Power 2030 Action Plan (CP2030) and the Strategic Spatial Energy Plan (SSEP) to represent Scotland’s interests in reducing power sector emissions. Both of these aims to decarbonise the power system across Great Britain and plan a strategic approach to its deployment.

Energy Supply Outcome 2: Support the decarbonisation of Non-Road Mobile industrial and Construction Machinery.

Energy Supply Outcome 2 Proposal 1 (New): In addition, to Agriculture Outcome 2 Proposal 1, we will also work with industry and policy sectors to reduce emissions from non-road mobile industrial and construction machinery by investigating and promoting efficiencies, alternative fuels and technological developments and providing knowledge exchange, guidance and advice.