Scotland's draft Climate Change Plan: 2026-2040: strategic environmental assessment - environmental report

Appendix A – Detailed assessment

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.

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.

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

Policies and proposals:

• Policy 1, Proposal 1 & Proposal 2 (Outcomes 1 & 3): 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 will also publish, by the end of 2026, 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). (Existing)
• Policy 2, (Outcome 1,2 & 3): 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. (Existing)
• Proposal 3 (Outcomes 2 & 3): Minimum Energy Efficiency Standards. We are considering options to introduce powers to set minimum energy efficiency standards for owner/occupier and non-domestic properties, subject to further consideration. (New)
• Policy 3 (Outcome 2 & 3): 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), which our consultation proposed could apply to new tenancies from 2028 and all tenancies from 2033. Further to decisions on the consultation outcome, we intend to progress regulations using existing powers to introduce this MEES within this parliamentary term.
• Policy 4 (Outcome 2 & 3): We will review and complete work on our Social Housing Net Zero Standard in line with progress on the areas above – taking into account and mirroring the standards and requirements established for other tenures through separate regulations. (New)
• Policy 5 (Outcome 1 & 2): Energy Performance Certificate (EPC) Reform. We will introduce new Energy Performance Certificate (EPC) regulations in 2025 which will bring an improved EPC rating system into force in autumn 2026. 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. (New)
• Policy 6 (Outcome 1, 2 & 3): 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. (Existing)
• Policy 7 (Outcome 1 & 3): Heat Networks – new Heat Network proposals. We will boost heat network development by requiring large, non-domestic premises to move away from fossil fuel heating systems when they have the opportunity to connect to a heat network. We are also planning 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. We will continue to support the development of these heat networks through funding and advice, such as our two existing schemes, Scotland’s Heat Network Fund and our Heat Networks Support Unit. (New)
• Policy 8 (Outcome 1 & 3): Heat Networks - Heat Networks Support Unit (HNSU). The Heat Network Support Unit 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. (Existing)
• Policy 9 (Outcome 1 & 3 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. (Existing)
• Policy 10 (Outcome 1,2 & 3): Heat in Buildings Strategy and Delivery Plan. (New)
• Policy 11 (Outcome 1 & 3): Future finance, including the Green Heat Finance Taskforce (GHFT). The independent Green Heat Finance Taskforce reports identified key barriers. As outlined in our response, we will take early action to raise understanding of the current clean heat financing landscape amongst advisors who interact directly with the public, as well as exploring the potential to create a market for innovative approaches like Property Linked Finance. (Existing)
• Policy 12 (Outcome 1 & 3): 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. (Existing)
• Policy 13 (Outcome 1, 2 & 3): 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. (Existing)

Effects identified:

Given that policies and proposals for this Sector aim to deliver across multiple outcomes, the assessment has considered these collectively in order to minimise possible duplication.

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, air quality, population and human health and material assets. However, potential negative effects were identified as having the potential to arise from the siting, installation and operation of different technologies such as district heat networks, heat pumps/ground source heat pumps, biomass and solar panels on soil, air quality, water quality and biodiversity. It was considered that many of the impacts may be localised, and these activities will be subject to existing mechanisms such as planning and consenting conditions prior to work being undertaken. Negative effects were identified in relation to landscape and the historic environment, particularly in relation to cumulative developments or changes to historic buildings from for example solar panels. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies and proposals seek to introduce powers to set minimum energy efficiency standards for owner/occupier and non-domestic properties additional positive impacts are anticipated for climatic factors and air quality as improved building fabric insultation (at construction or via retrofit) will require less heat generation, resulting in lower GHG emissions. Energy efficient homes are expected to retain heat, positively impacting human health. In order to meet new minimum standards existing buildings will require a degree of retrofit work. This could have potential negative impacts on historic buildings where visible retrofitting is required. Equally, poorly installed insulation can damage building fabric. There could be negative impacts on landscape and the historic environment, from cumulative developments or changes to a historic building’s appearance through installation of insulation materials or renewables including solar panels. There is the potential for negative impacts to arise from the siting, installation and operation of different technologies such as heat networks, heat pumps, biomass and solar panels. This could impact soil, water and biodiversity but it is assumed this is localised and planning consents will mitigate this.

Where new policies and proposals seek to complete work on Social Housing Net Zero Standards additional overall positive impacts are anticipated for climatic factors as encouraging energy efficiency in social housing is likely to lead to reduced energy use and a move towards clean energy and lower emissions. Positive impacts are anticipated for population and human health as energy efficient homes can reduce heating costs and lead to a reduction in fuel poverty. By eliminating the need for gas boilers and the burning of fossil fuels in residential areas, heat networks contribute significantly to cleaner air and a healthier environment. It is assumed that the majority of social housing will be existing stock requiring retrofit. Unless new materials are developed during the length of the plan, insulation materials are likely to be plastic-based such as extruded polystyrene and polyisocyanurate. This has a high carbon footprint in production.

Where new policies and proposals seek to bring forward new Energy Performance Certificate (EPC) regulations and an improved EPC rating system into force additional overall positive impacts are anticipated for climatic factors. New EPC standards will encourage the development of more energy efficient/better insulated homes which could reduce GHG emissions from heating. New standards should support retrofitting of traditional buildings in an appropriate way. This will encourage continued use and maintenance of these buildings having a positive impact on cultural heritage. Many commonly used insulation materials are plastic-based such as extruded polystyrene and polyisocyanurate. These materials create emissions during production.

Where new policies and proposals seek to boost heat network development by requiring large, non-domestic premises to move away from fossil fuel heating systems when they have the opportunity to connect to a heat network, additional positive impacts are anticipated for climatic factors and air quality as heat networks can make use of clean energy, reducing reliance on fossil fuels. By eliminating the need for gas boilers and the burning of fossil fuels in residential areas, heat networks contribute significantly to cleaner air and a healthier environment. A heat network typically requires only minor alterations to the fabric of a building; this may aid traditional and historic buildings to access a low carbon heat source having positive impacts on cultural heritage.

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. 

Policies and proposals:

• Policy 1: Work with Local Authorities and Regional Transport Partnerships to provide research, advice and guidance on reducing car use. (Existing)
• Policy 2: 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. (Existing)
• Policy 3: Successor Policy Car Use Reduction – Following a review of the car use reduction policy, a new draft target has been set out in alignment with the Climate Change Plan and supportive of our Net Zero targets. A draft 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) (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, air quality, population and human health and material assets. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies set out a new draft target to reduce emissions from cars, additional positive impacts are anticipated for climatic factors as reducing overall car use is likely to reduce emissions from petrol and diesel fuelled vehicles. There are also likely positive effects for air quality and human health as fewer cars lead to less particulate matter in the air, improving air quality.

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.

Policies and proposals:

• Policy 1: Provide free bus travel for those under 22 years of age and older and disabled persons through the National Travel Concessionary Schemes. (Existing)
• Policy 2: 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. (Existing)
• Policy 3: Progress development of smart and digital integrated ticketing and payment systems and technology across public transport in Scotland. (Existing)
• Policy 4: 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 (Existing)
• Policy 5: Retain the commitment to Active and Sustainable Travel investment. (Existing)
• Policy 6: Transport Scotland to develop and deliver trunk road bus priority and bus priority at trunk road signals. (New)
• Proposal 1: Guarantee of multi-year funding to provide confidence to the public sector to plan and invest in bus priority. (New)
• Proposal 2: Increases in funding alongside capacity and capability of Local Authorities/Regional Transport Partnerships/Transport Scotland and supporting consultancy. (New)
• Proposal 3: 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. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors and population and human health. Where policies seek to encourage a modal shift to more sustainable modes of travel, reduce traffic and congestion through reallocation of road space on key routes, and enhance the public transport network more generally, positive effects on greenhouse gas emissions and air quality are anticipated. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies seek to develop and deliver trunk road bus priority and bus priority at trunk road signals additional positive impacts are anticipated for climatic factors and air quality as prioritising buses may make bus travel faster and more reliable, helping to encourage people to make the switch from car to bus, reducing overall vehicle emissions. Trunk roads are often situated near highly populated areas, reducing the number of cars and improving the efficiency of bus journeys may lead to improved air quality for such nearby areas and the people that live/work there. Where proposals seek to increase capacity building and focus on multi year funding opportunities for bus priority additional positive impacts are anticipated for climatic factors and air quality as the focus on modal shift from cars to buses overall emissions may be reduced. Reducing car reliance and overall numbers is likely to support cleaner air and improved air quality.

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

Policies and proposals:

• Policy 1: Providing grant support for modal shift of freight from road to rail or water. (New)
• Policy 2: Specific rail freight investments. (New)

Effects identified:

Where new policies seek to provide grant support for modal shift of freight away from road use and invest in rail freight infrastructure additional positive impacts are anticipated for climatic factors, air and population and human health as rail and water freight emit a lot less carbon dioxide than road freight. Less trucks on roads using traditional fossil fuels may lead to less particulate matter and improved air quality. Where a shift away from road freight can be achieved this should result in less noise and congestion improving the local environment of those who live and work in these areas.

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

Policies and proposals:

• Policy 1: 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. VETS operates UK-wide and is currently the single most effective policy measure for reducing transport emissions in Scotland, mandating an annual escalation in the proportion of sales of new zero emission cars and vans from 22% of cars and 10% of vans in 2024 to 80% cars and 70% vans by 2030. VETS also sets targets for new emitting vehicles that prevents their CO2 emissions beyond 2021 levels. (Existing)
• Policy 2: Continue to invest in critical skills in the servicing and maintenance of Electric Vehicles (EVs) and charging infrastructure to support a just transition (Existing)
• Policy 3: EV Infrastructure Fund (public EV charging network). (Existing)
• Policy 4: 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. (Existing)
• Policy 5: Develop a range of new policy interventions that support consumers, sole traders and micro businesses to more rapidly transition to EVs. (New)
• Policy 6: 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. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, air quality and population and human health. Findings identified mixed effects on material assets as increased use of EVs has the potential to increase electricity demand and pressure on existing electricity generation networks if upgrades are not made to facilitate transition towards decarbonisation. Potential negative impacts were identified for soils and landscape as increased use of bio-fuel in the transport sector has the potential to put greater pressure on land use, soils and landscape through the production of bio-fuel crops. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies seek to provide additional support to enable the more rapid rollout of critical EV charging infrastructure and transition to EV additional positive impacts are anticipated for climatic factors, air quality and population and human health as enabling people to switch more easily to EVs can help to reduce greenhouse gases and particulate matter that would otherwise come from traditionally fuelled vehicles. Expanding access to EV charging reduces reliance on petrol and diesel fuelled vehicles, improving local air quality and human health. Mixed effects are likely for material assets as greater pressure may be put on the electricity grid, requiring upgrades to be made to facilitate this transition.

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.

Policies and Proposals:

• Policy 1: Providing Government support for bus decarbonisation (ScotZEB) (Existing)
• Policy 2: Providing Government support for decarbonisation of Community Transport (Plugged-in Communities) (Existing)
• Policy 3: Investment in replacement of HGV vehicles and deployment of charging infrastructure. (New)
• Proposal 1: Consider what regulatory options are available to encourage and ensure transition; implement as required. (New)
• Proposal 2: Support skills development and other aspects of economic development to support a Just Transition. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, air quality and population and human health. The continued development of lower emission bus services has the potential for a range of secondary effects depending on the technologies that are being introduced. For example, the introduction of hydrogen buses would require new infrastructure and new facilities, creating the potential for impacts to some topic areas during construction and operational periods (e.g. disturbance, impacts to soil, water and air quality). Findings identified mixed effects on material assets as increased use of EVs has the potential to increase electricity demand and pressure on existing electricity generation networks if upgrades are not made to facilitate transition towards decarbonisation. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies seek to invest in replacement of vehicles and deployment of charging infrastructure additional positive impacts are anticipated for climatic factors, air quality and population and human health as enabling people to switch more easily to EVs can help to reduce noise pollution, greenhouse gases and particulate matter. Expanding access to EV charging reduces reliance on petrol and diesel fuelled vehicles, improving local air quality and human health. Mixed effects are likely for material assets as greater pressure may be put on the electricity grid, requiring upgrades to be made to facilitate this transition. Where new proposals seek to encourage and ensure transition through regulatory options additional positive impacts are anticipated for climatic factors, air quality and population and human health as regulation is likely to increase the pace of the shift from traditional vehicles towards zero emission vehicles. Where new proposals seek to support skills development and other aspects of economic development to support a Just Transition additional positive impacts are anticipated for climatic factors, air quality and population and human health as upskilling workers is likely to lead to an accelerated shift to low/zero carbon vehicles.

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

Policies and Proposals:

• Policy 1: Developing the world’s first zero emission aviation region in partnership with Highlands and Islands Airports Limited (HIAL). (Existing)
• Policy 2: SAF & Project Willow. The development of new electric/alternative fuels and vehicles, 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. (Existing)
• Policy 3: Air Departure Tax. The Scottish Government is committed to introducing Air Departure Tax (ADT) as a devolved replacement for the UK-wide Air Passenger Duty. This will be in a manner that protects Highland and Island connectivity while complying with the UK Government’s subsidy control regime. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, air quality and population and human health. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies seek to develop alternative fuels, such as sustainable aviation fuel (SAF) additional positive impacts are anticipated for climatic factors and air quality as SAF may cut carbon emissions from aviation fuel significantly. SAF emits fewer particulates which may lead to cleaner air in and around airports. There is the potential for negative impacts on biodiversity and landscape depending on the source of biomass required to produce SAF and the harvesting practices utilised. Where new policies seek to introduce Air Departure Tax (ADT) as a devolved replacement for the UK-wide Air Passenger Duty additional positive impacts are anticipated for climatic factors and air quality. Air passenger duty is a tax levied on passengers departing from UK airports which was introduced to offset environmental impact of air travel therefore a Scottish devolved equivalent may discourage unnecessary flights, especially where alternative modes exist such as rail, leading to reduced emissions from aviation.

Waste

Outcome 1: Strengthen the circular economy

Policies and Proposals:

• Policy 1: Publish a Circular Economy Strategy in 2026. (New)
• Policy 2: Set new circular economy targets by 2027. (New)
• Policy 3: Develop public procurement opportunities to reduce the environmental impact of public spending. (New)
• Policy 4: Develop digital waste tracking service, in partnership with the UK government and other devolved governments. (Existing)

Effects identified:

Where policies were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors and material assets. Taking into account the updated baseline, we consider these findings to remain valid. In addition, many of the policies and proposals for inclusion in the waste sector package are also actions from Scotland’s Circular Economy and Waste Route Map to 2030, published in 2024, and have been subject to SEA during development^[161]. The findings from this process also remain valid, noting potential for positive effects across all environmental topics assessed.

The development of a Circular Economy Strategy and new circular economy targets may have positive effects on climatic factors and material assets by driving more efficient use of resources, reducing waste, and lowering emissions associated with production and disposal. A separate environmental report for the draft circular economy strategy was published in October 2025 and sets out further detail^[162].

Developing public procurement opportunities that reduce the environmental impact of public spending may also contribute positively to climatic factors and material assets. Public procurement has significant influence over supply chains, and prioritising low-carbon, circular products and services can reduce emissions and promote reuse and recycling.

Outcome 2: Reduce and Reuse

Policies and Proposals:

• Policy 1: Publish a product stewardship plan to set out our framework to prioritising products based on their environmental and economic impact, by 2026. (New)
• Policy 2: Packaging: Introducing reforms to extended producer responsibility (EPR) for packaging, working with the other UK governments. (Existing)
• Policy 3: Packaging: Implementation of the Deposit Return Scheme (DRS) for single-use drinks containers. (Existing)
• Policy 4: Develop action to tackle the environmental impact of single-use drinks cups. (Existing)
• Policy 5: Working with the fishing and aquaculture sectors to improve the collection and recycling of end-of-life gear. (New)
• Policy 6: Develop measures to address the disposal of unsold consumer goods. (New)
• Policy 7: Develop with stakeholders effective options to implement mandatory reporting for food waste and surplus by businesses. (New)
• Policy 8: Support the development of a model for regional Scottish hubs and networks for the reuse of construction materials and assets. (New)
• Policy 9: Consider how devolved taxes can incentivise the use of secondary aggregates and support circular economy practices. (New)
• Policy 10: Delivery of the National Litter and Flytipping Strategy. (Existing)
• Proposal 1: 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). (New)
• Proposal 2: WEEE: Reform extended producer responsibility for waste electrical and electronic equipment (WEEE), working with the other UK administrations. (New)
• Proposal 3: Batteries: Reform extended producer responsibility for batteries, working with the other UK governments. (New)
• Proposal 4: 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. (New)
• Proposal 5: Mainstreaming reuse and repair, including developing measures to improve the reuse experience for consumers and support alternative business models that prolong product lifespan. (New)
• Proposal 6: Develop an intervention plan to guide long-term work on household food waste reduction behaviour change. (New)
• Proposal 7: Support the development and implementation of an NHS Scotland national action plan on food waste. (Existing)
• Proposal 8: Investigate and promote options to incentivise and build capacity for the refurbishment of buildings. (New)
• Proposal 9: 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. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors and material assets. There could be requirements for a greater number of additional recycling and waste management facilities which could have negative impacts on soil from land take. Other negative effects may also arise from the construction and operation of such facilities through nuisance impacts such as noise, vibration and odour. The significance of the identified impacts will be dependent on the scale, nature and location of developments and likely to be experienced at a local level. Taking into account the updated baseline, we consider these findings to remain valid. In addition, many of the policies and proposals for inclusion in the waste sector package are also actions from Scotland’s Circular Economy and Waste Route Map to 2030, published in 2024, and have been subject to SEA during development. The findings from this process also remain valid, noting potential for positive effects across all environmental topics assessed.

Where new policies seek to develop further measures to tackle consumption of single-use items and promote uptake of reusable alternatives additional positive impacts are anticipated for climatic factors and biodiversity. Manufacturing single-use items often involves fossil fuels whereas reusable items generally have a lower carbon footprint. Single-use items are a major contributor to pollution (both land and sea) and reducing their use may help to lessen contamination in ecosystems and resulting negative effects on biodiversity. Proposals under this outcome which support reusable packaging and introduce reuse targets may also benefit climatic factors and biodiversity through similar means.

Policies and proposals which introduce or reform product stewardship and extended producer responsibility across a range of sectors (including priority products, textiles, packaging, batteries, WEEE, vehicles, fishing gear) are likely to have overall positive effects on climatic factors. Encouraging reuse, recycling, and more sustainable design as well as placing greater responsibility on producers can help to reduce emissions both directly and indirectly. Policies and proposals with a focus on reducing food waste through business support, mandatory reporting, and household behaviour change, are also expected to have positive effects on climatic factors. Food waste contributes significantly to greenhouse gas emissions, particularly methane from landfill, and reducing it can help mitigate climate impacts.

Where policies and proposals promote circular economy practices in the construction sector, positive effects are anticipated for both climatic factors and material assets. Encouraging reuse and low-carbon practices can help reduce demand for materials and extend the life of existing infrastructure. Indirect positive impacts are also anticipated for Landscape through reduced demand for unsightly disposal and extraction infrastructure, and potential to reduce litter and flytipping through more sustainable resource management practices. Circular practices in the construction and demolition sector should also encourage the retention, reuse and repair of historic environment assets and materials, leading to positive effects.

Outcome 3: Modernise Recycling

Policies and Proposals:

• Policy 1: Make our final investments from the Recycling Improvement Fund to improve local authority recycling collection infrastructure. (Existing)
• Policy 2: Develop a statutory Code of Practice for household waste and recycling services. (New)
• Policy 3: Recyclable plastic film and flexible packaging is to be collected for recycling from both households and businesses across the UK by 31 March 2027. (New)
• Policy 4: Review separate collections of textile waste from households, following recent consultation. (Existing)
• Policy 5: Review current practices with respect to separate collection of bio-waste (e.g. garden waste). (Existing)
• Policy 6: Undertake a review of waste and recycling service charging. (New)
• Policy 7: Review the rural exemption for food waste recycling, following recent consultation. (Existing)
• Policy 8: Setting statutory local recycling and reuse performance targets for household waste services from 2030 onwards. (New)
• Policy 9: Actions to strengthen household waste enforcement tools, as set out in Circular Economy and Waste Route Map. (New)
• Policy 10: Review of compliance with commercial recycling requirements. (New)
• Policy 11: Conduct a national compositional study of waste from commercial premises. (New)
• Policy 12: 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. (New)

Effects identified:

Where policies were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors and material assets. Taking into account the updated baseline, we consider these findings to remain valid. In addition, many of the policies and proposals for inclusion in the waste sector package are also actions from Scotland’s Circular Economy and Waste Route Map to 2030, published in 2024, and have been subject to SEA during development. The findings from this process also remain valid, noting potential for positive effects across all environmental topics assessed.

Policies aimed at improving household and commercial waste and recycling services, including the expansion of plastic packaging collections and the introduction of statutory targets, are likely to have positive effects on climatic factors and material assets. By increasing the consistency and scope of recycling services, these measures may help to reduce greenhouse gas and airborne pollutant emissions associated with landfill and material production. They also encourage better use of existing infrastructure and natural resources, which can help to reduce reliance on landfill.

Other policies such as reviewing service charging, strengthening enforcement tools, and improving commercial waste understanding and compliance may also contribute positive effects indirectly to climatic factors and material assets. Improved enforcement and data collection can help ensure that waste is managed appropriately, potentially reducing illegal dumping and associated contamination risks. Better targeting of services and communications may also support more efficient use of waste infrastructure and reduce pressure on landfill and treatment facilities.

Outcome 4: Decarbonise Disposal

Policies and Proposals:

• Policy 1: Introduce a ban on biodegradable municipal waste going to landfill (from December 2025). (Existing)
• Policy 2: Develop a Residual Waste Plan to 2045. (New)
• Policy 3: Increase the capture of landfill gas. (Existing)
• Proposal 1: 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. (Existing)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors and material assets. Taking into account the updated baseline, we consider these findings to remain valid. In addition, many of the policies and proposals for inclusion in the waste sector package are also actions from Scotland’s Circular Economy and Waste Route Map to 2030, published in 2024, and have been subject to SEA during development. The findings from this process also remain valid, noting potential for positive effects across all environmental topics assessed, through reducing the amount of waste landfilled and the emissions stemming from landfill sites. Measures under this outcome are designed to achieve the best environmental outcome with what is left in the waste stream at disposal (landfill), following as much diversion to other routes as possible (i.e. reducing waste, reuse, repair, recycling). There is potential for positive effects on several environmental topics - for example habitats in and around bodies of water such as streams, ponds, lakes, and surrounding soils nearby to landfill sites can become polluted by leachate. A reduction in levels of waste disposal in landfill will lead to lower impacts on habitats and their resident species at a local level.

Depending on the content of a new/developing Residual Waste Plan, positive (but uncertain) effects may be anticipated for climatic factors and material assets, and a range of other topics including Biodiversity, flora and fauna, Population and human health, Soil, Water, Air, and Landscape and visual impacts (as highlighted through the Route Map SEA process).

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

Policies and Proposals:

• Proposal 1: 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. (New)
• Proposal 2: 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. (New)

Effects identified:

Proposals under this outcome may lead to positive effects on climatic factors and material assets. Measures such as energy audits, energy recovery, and improved resource recovery can reduce emissions from wastewater treatment. Enhancing the efficiency of anaerobic digestion and composting for biodegradable materials like food and garden waste can help to reduce emissions associated with these materials.

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 alternative power means such as hydrogen.

Policies and proposals:

• Policy 1: Support the inclusion of energy from waste in the UK Emissions Trading Scheme (ETS). (New)
• Policy 2: 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). (New)
• Policy 3: 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. (New)
• Policy 4: 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. (New)
• Policy 5: 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. (New)
• Policy 6: 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. (New)
• Policy 7: 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. (New)
• Policy 8: 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 aim to decarbonise the power system across Great Britain and plan a strategic approach to its deployment. (New)

Effects identified:

The UK emissions trading scheme is based around “cap and trade” carbon pricing policies. Carbon pricing seeks to apply a cost to certain activities that reflects the cost to society of the emissions they produce. Where new policies and proposals seek to support the inclusion of energy from waste in the UK Emissions Trading Scheme, require new Energy from Waste facilities to have an acceptable decarbonisation strategy, encourage existing Energy from Waste plants to retrofit carbon capture and storage and incentivise advanced sorting and separating technologies for residual waste, positive impacts are anticipated for climatic factors and air quality as these are likely to encourage both new and existing energy from waste operators to invest in cleaner technologies and more sustainable waste management practices to reduce fossil based emissions and unnecessary incineration of plastics. Connecting Energy from Waste facilities to heat networks for example may also reduce reliance on fossil fuel-based heating systems and may improve energy efficiency contributing to a positive impact on material assets. Removing recyclable plastics from incineration may reduce emissions and toxic pollutants, improving air quality and human health.

Where new policies seek to work with Scottish Southern Electricity Networks (SSEN) to reduce reliance on island diesel power stations through supporting establishment of new connections between islands and the mainland and to explore the use of alternative, non-fossil-fuel based solutions positive impacts are anticipated for climatic factors and air quality: Reducing reliance on diesel and moving towards lower carbon alternatives including Hydrotreated Vegetable Oil (HVO) is likely to significantly lower emissions. Burning diesel releases harmful pollutants and particulate matter, therefore reducing and removing diesel from such power stations is likely to improve air quality on island communities.

The Acorn Project is a significant carbon capture and storage initiative in Scotland aimed at reducing carbon emissions and supporting the transition to a net-zero economy. Where new policies seek 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 additional positive impacts are therefore anticipated for climatic factors.

Where new policies seek to work to influence the UK Government to better design energy markets and incentives which support the building and use of both medium and long duration energy storage and grid flexibility assets helping balance the grid and reduce costs and emissions and seek to work with the UK Government and the National Energy Systems Operator on Clean Power 2030 and Strategic Spatial Energy Plan (SSEP) to represent Scotland’s interests in reducing power sector emissions additional positive impacts area anticipated for climatic factors.

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

Policies and proposals:

• Proposal 1: 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. (New)

Effects identified:

Where proposals seek to reduce emissions from non-road machinery there is the potential for positive impacts for climatic factors, air and population and human health. Promoting alternative fuels and more efficient machinery may directly reduce CO2 and other greenhouse gases. Reducing the use of diesel and particulate emissions may benefit both air quality and human health.

Business and Industrial Process

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

Policies and proposals:

• Policy 1: 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. (Existing)
• Policy 2: 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. (Existing)
• Policy 3: Explore a new industrial decarbonisation programme to incentivise further investment and accelerate the pace of transformation for industry (New)
• Policy 4: 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. (Existing)
• Policy 5: Work with the UK Government to develop a framework for demand-side measures to increase the market for low carbon industrial products. (New)
• Policy 6: Support the Scottish Environment Protection Agency (SEPA) in using existing regulatory powers to drive energy efficiency across priority sites. (New)
• Proposal 1: 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. (Existing)
• Proposal 2: 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. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, air quality, population and human health and material assets. Potential negative effects were identified for landscape and historic environment as a result of the greater use of renewable energy technologies such as solar panels and wind turbines. In addition, retrofitting of industrial buildings with energy efficiency measures may disturb biodiversity nesting in cavities, including species such as birds and bats. It was considered that many of these impacts may be localised. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies seek to increase the market for low carbon industrial products, additional positive impacts are anticipated for climatic factors as industries are incentivised to adopt cleaner technologies and reduce carbon emissions. Where new policies support SEPA in using existing regulatory powers to drive energy efficiency across priority sites, this may lead to additional positive impacts for climatic factors and air quality where energy efficient operations involve cleaner technologies and reduced fuel consumption, which lower the level of pollutants from these sites. In making this assessment it is assumed that SEPA will target priority sites with high energy use and high carbon emissions. Where new proposals seek to explore a new industrial decarbonisation programme and support the reduction of fossil fuels in chemicals and manufacturing, this has the potential to lead to positive impacts for climatic factors through reduced GHG emissions. Additional positive impacts at local level may also arise for air quality and water where reduced reliance on fossil fuels helps to improve the localised environment surrounding such manufacturing facilities.

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.

• Policy 1: Continue to support the delivery of the Acorn Transport and Storage (T&S) Project and the Scottish Cluster. (Existing)
• Policy 2: 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. (Existing)
• Policy 3: Support planning, permitting and consenting processes to ensure they work effectively for the development of carbon capture projects. (New)
• Proposal 1: 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. (New)
• Proposal 2: Support knowledge sharing across industry and academia to raise awareness and understanding of technical opportunities and innovations for decarbonisation. (New)
• Policy/Proposal 3: 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. (Existing)
• Policy/Proposal 4: Replicate and scale-up demonstration projects and the evidence base for hydrogen-based technologies. (Existing)
• Proposal 5: Undertake development work to increase our understanding of the viability of nearshore carbon storage in Scotland. (New)
• Proposal 6: Continue to explore and understand the potential of Negative Emissions Technologies (NETs) in Scotland to develop clear NETs ambitions. (Existing)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, air quality, population and human health and material assets. Potential negative effects were identified for biodiversity, landscape and the historic environment, associated with the upgrading or conversion of existing infrastructure and the installation of new infrastructure necessary to facilitate CCS. Some effects, such as those arising from activities such as storage and transportation, are expected to be neutral at this stage and can be considered through future assessment work. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies seek to facilitate quicker electricity grid connections for Scottish industrial electrification, to reduce the cost of electricity for industry and to increase our understanding of the viability of nearshore carbon capture storage in Scotland, this has the potential to lead to positive effects for climatic factors where this supports faster deployment of clean energy projects and reduces overall reliance on fossil fuels.

Proposals which support planning, permitting and consenting processes for the development of carbon capture projects have the potential to further support positive impacts for climatic factors where this helps pipelines and storage facilities become operational sooner.

Agriculture

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

Policies and proposals:

• Policy 1: Lay and publish the initial Rural Support Plan in Winter 2025 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. (Existing)
• Policy 2: 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. (Existing)
• Policy 3: By 1st 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 engage with farmers to improve storage management and investigate with industry representatives how compliance with the regulations may be monitored and enforced. (Existing)
• Policy 4: Support enhancing the delivery of climate change and nature outcomes by farmers and crofters through our Future Farming Investment Scheme, which provides funds to drive efficiency and support nature and climate friendly farming. (New)
• Proposal 1: 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). (New)
• Proposal 2: Monitor, support knowledge transfer for and, where necessary, support the commercialisation and uptake of emerging low carbon farming technologies and innovations. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, biodiversity, soil, population and human health and material assets. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies seek to drive efficiency and support nature and climate friendly farming additional positive effects are anticipated for climatic factors, soil, biodiversity, water, and human health. Methane and nitrous oxide are major contributors to greenhouse gas emissions, encouraging efficiency improvements from farming operations therefore has the potential to positively impact on climatic factors. Nature friendly farming may include practices such as growing organic produce and reduced tillage which has the potential to enhance soil structure and fertility. Supporting farmers to adopt nature positive methods may also lead to more diverse habitats, better networks for pollinators and healthier ecosystems. In addition, efficient nutrient and pesticide uses may reduce runoff, helping to protect water systems from pollution. Where proposals seek to reduce emissions from agricultural non-road machinery and support uptake of emerging low-carbon farming technologies there is the potential for additional positive impacts for climatic factors, air and population and human health. Promoting alternative fuels and more efficient machinery may directly reduce CO2 and other greenhouse gases. Reducing the use of diesel and particulate emissions may benefit both air quality and human health.

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

Policies and proposals:

• Policy 1: 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 will contribute to the suite of support provided under an Agricultural Knowledge and Innovation System coming into operation under tier 4 from 2027. This will disseminate learning on low emissions farming, through a range of communication methods. (Existing)
• Policy 2: 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. (New)
• Proposal 1: We will ensure that tenant farmers are able to capitalise on the benefits of measures in Part 2 of the Land Reform Bill, and once enacted, 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. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, biodiversity, soil, water population and material assets. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies seek to set out timescales for agricultural businesses to undertake assessments which will contribute to Whole Farm Plans, additional positive impacts may arise for climatic factors, biodiversity, water and soil. Whole Farm Plans^[163] are comprehensive strategies which allow farmers to take a holistic view of their performance and activities to identify opportunities for improvements in productivity, profitability and sustainability. Whole Farm Plans encourage environmental considerations to be embedded into everyday farming decisions; this may help to promote low carbon interventions and encourage habitat protection and restoration. Monitoring and managing runoff, erosion and chemical usage may help to safeguard water bodies and maintain soil health.

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

Policies and proposals:

• Policy 1: 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. (Existing)
• Proposal 1: 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. (New)
• Proposal 2: 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. (Existing)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, biodiversity, soil and water. Taking into account the updated baseline, we consider these findings to remain valid.

Where new proposals seek to investigate and encourage uptake of technologies for alternative, improved or more efficient fertilisers and increase the understanding of nitrification and urease inhibitors additional positive impacts are anticipated for climatic factors, air quality, biodiversity, water and soil. Nitrification and urease inhibitors slow the conversion of nitrogen in soil, which may reduce leaching into waterways and lower nitrous oxide emissions into the atmosphere. More efficient fertilisers and inhibitors may also help to prevent runoff, protecting water systems such as rivers, lochs and coastal areas. Alternative fertilisers may also improve soil structure and soil fertility. Reducing overall chemical usage on farms may also help to protect biodiversity including pollinators. Overall, these effects are considered to be uncertain as the level of uptake cannot yet be determined due to the early-stage of technological understanding.

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

Policies and proposals:

• Policy 1: 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. (New)
• Policy 2: 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. (Existing)
• Policy 3: 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. (New)
• Proposal 1: Launch a pilot scheme working with industry to identify the barriers to uptake of approved methane inhibitors and to identify a pathway, where appropriate, for the industry to adopt methane supressing feed products. (Existing)
• Proposal 2: 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. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, biodiversity, soil and water. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies and proposals support livestock producers to improve farm management practices related to herd fertility and animal mortality and link the voluntary coupled support (VCS) payments to calving interval performance, additional positive impacts are anticipated for climatic factors. Improved herd fertility may lead to more efficient meat and dairy production with lower greenhouse gas emissions linked to more productive animals. It is assumed that more productive herds require less space and food, lowering methane emissions overall for that farm. Furthering the understanding of selective breeding for low methane genetics is also anticipated to have positive impacts for climatic factors. Selective breeding for low emission traits may lower methane output from cattle.

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

Policies and proposals:

• Policy 1: 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. (New)
• Policy 2: 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. (New)
• Policy 3: We will continue to explore options for more integrated land use, including through the upcoming fourth iteration of Scotland’s 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. (New)
• Proposal 1: 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. (New)
• Proposal 2: 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. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, biodiversity, soil and water, material assets, population and human health, landscape and cultural heritage. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies seek to protect peatlands and wetlands on agricultural land additional positive impacts are anticipated for climatic factors as a reduction in damaging agricultural activities such as ploughing or the introduction of new tracks will reduce carbon emissions from degraded peatland. Additional positive impacts are also anticipated for water, soil and biodiversity as peatlands and wetlands can help to regulate water flow and reduce flood risk by absorbing water. Peatland and wetland habitats may support unique plant and animal species and help to maintain soil matter and prevent erosion.

Where new proposals aim to support the establishment and management of trees on farms additional positive impacts are anticipated for climatic factors and material assets as expanding tree cover on farmland ensures that such areas act as long term carbon sinks and continue to form part of Scotland’s natural material assets. Additional positive impacts may arise for biodiversity where trees act as important habitats for birds, insects and other wildlife. Tree roots may help to stabilise soils, reduce risk of erosion and slow water flow, reducing flood risk, leading to positive impacts for soil and water. Additional tree planting may also enhance landscapes, generally being considered to be visually appealing.

Land Use, Land Use Change and Forestry (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.

Policies and proposals:

• Policy 1: We will publish Scotland’s 4th Land Use Strategy by end of March 2026. (Existing)
• Policy 2: 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. (Existing)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020) findings identified the potential for positive effects on climatic factors, soil, water, biodiversity, material assets, population and human health, landscape, and cultural heritage. This assumes the Fourth land Use Strategy will guide regional land use decisions that will enhance ecosystem services to support wider landscape benefits. Taking into account the updated baseline, we consider these findings to remain valid.

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).

Policies and proposals:

• Policy 1: Forestry grants will provide funding via a grant scheme to support eligible landowners to establish appropriate woodlands. (Existing)
• Policy 2: 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. (Existing)
• Policy 3: 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. (Existing)
• Policy 4: 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. (Existing)
• Policy 5: 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. (Existing)
• Policy 6: 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. (Existing)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified potential positive effects on climatic factors, biodiversity, soil, water, population and human health, and cultural heritage. Potential negative effects were identified for landscape and material assets. There is also potential for negative effects due to land use conflicts that may arise, such as the potential loss of productive agricultural land to allow for woodland creation. Taking into account the updated baseline, we consider these findings to remain valid.

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.

Policies and proposals:

• Policy 1: 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. (Existing)
• Policy 2. To work closely with the sector through the Scottish Forestry and Wood Based Industries Industry Leadership group. (Existing)
• Policy 3. Making funding available to support the sustainability of forest nurseries. (Existing)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors. The effects of land use change on the wider environment including biodiversity, soil, water, population and human health, and cultural heritage could be mixed depending on the scale and nature of the changes. Taking into account the updated baseline, we consider these findings to remain valid.

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.

Policies and proposals:

• Policy 1: 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. (Existing)
• Policy 2: 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. (Existing)
• Proposal 1: 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. (New)
• Proposal 2: 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. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, biodiversity, soil, water, population and human health, and cultural heritage. Taking into account the updated baseline, we consider these findings to remain valid.

Where new proposals support improved design and construction of wind farms on peatland additional positive effects would be anticipated for soils and climatic factors with the potential for positive effects for biodiversity where approaches to protecting and restoring peatlands help ensure peatland habitats are healthy and in good condition. Where new proposals support measures to control deer numbers within areas identified for peatland restoration additional positive impacts would be anticipated for biodiversity as functional peatlands support many important species, habitats and ecosystems. Peatlands also store and clean water and as act as important natural flood plains, soaking up excess water and regulating run-off leading to additional positive effects for water. The ability of peatlands to filter water helps to reduce treatment costs for public supplies and also helps to sustain quality drinking water for private supplies, which may also lead to additional positive benefits for human health and material assets.

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

Policies and proposals:

• Policy 1: 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. (New)
• Policy 2: 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; (New)

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 (New)

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. (New)

• Proposal 1: We will continue our work with partners and stakeholders to develop incentives, guidance and advice on peatland stewardship within the new agricultural support framework for land-owners and managers looking to enhance peatland protection, management and restoration on their land. (Existing)
• Proposal 2 We will continue our work with Peatland ACTION to support crofters on the Scottish Ministers’ estate wishing to progress peatland restoration. 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. (New)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified the potential for positive effects on climatic factors, biodiversity, soil, water, landscape, and cultural heritage. Mixed effects were identified for material assets due to the possibility of land use conflicts that could arise due to restoration of peatland. For example, loss of productive agricultural land or forestry to allow for peatland restoration. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies and proposals seek to strengthen the monitoring of peatland condition within all designated sites and support peatland restoration and rewetting, additional positive effects are anticipated for soils and climatic factors. Where proposals support crofters wishing to progress peatland restoration and the management of land to support net zero, climate adaptation and biodiversity there is the potential for additional positive impacts for biodiversity as functional peatlands support many important species, habitats and ecosystems. Peatlands also store and clean water as well as act as important natural flood plains, soaking up excess water and regulating run-off leading to additional positive effects for climate adaptation and water. The ability of peatlands to filter water helps to reduce treatment costs for public supplies and also helps to sustain quality drinking water for private supplies, which may also lead to additional positive benefits for human health and material assets.

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.

Policies and proposals:

• Policy 1: 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. Along with other reductions in peatland emissions enabled by the package, this will reduce peatland emissions from 6.2 MtCO2e in 2023 to 3.2 MtCO2e in 2040. (Existing)
• Policy 2: To support peatland restoration targets, we will publish a Five-Year Peatland ACTION Plan. This will document realistic and achievable targets and activity to document what the peatland sector in Scotland has the capacity, skills, capabilities and finance to deliver. (New)
• Policy 3: 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. (Existing)
• Policy 4: 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. (New)
• Policy 5: Through our Private Investment in Natural Capital programme, we will continue our work to leverage and blend responsible private investment into peatland protection, management and restoration up to and beyond 2030. (Existing)
• Policy 6: 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. (New)
• Proposal 1: 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. (Existing)

Effects identified:

Where policies and proposals were previously assessed in the SEA for the CCPu (2020), findings identified positive effects on climatic factors, biodiversity, soil, water, population and human health, and cultural heritage. Taking into account the updated baseline, we consider these findings to remain valid.

Where new policies/proposals seek to document Scotland’s capacity, skills, capabilities and finance to deliver peatland restoration targets and attract and equip more people with the skills and knowledge needed to work in land-based and aquaculture sectors additional positive effects would be anticipated for soils and climatic factors. Where new policies/proposals seek to identify and assess options for a carbon land tax there is potential for positive effects on climate however this is uncertain taking into account the stage of proposals and uncertainty around the nature of any change to be delivered.

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

Policies and proposals:

• Policy 1: Through our forthcoming Strategic Research Programme and other routes, we will continue to invest in research, monitoring and mapping to: better understand the distribution and condition of Scotland’s peatland resource; better understand businesses in the supply-chain and any impacts arising from our actions, build the restoration pipeline and drive efficiencies; and understand the complex relationship between herbivore grazing and peatland condition and emissions. (New)
• Proposal 1: 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. (New)

Effects identified:

New policies/proposals which support the continuing identification, protection, management and restoration of peatland and how this is monitored may contribute to reducing CO2 emissions and increased carbon sequestration, with positive effects for climatic factors. For biodiversity, positive effects are anticipated as functional peatlands support many important species, habitats and ecosystems. Peatlands also store and clean water as well as act as important natural flood plains, soaking up excess water and regulating run-off leading to additional positive effects for water and flooding. The ability of peatlands to filter water helps to reduce treatment costs for public supplies and also helps to sustain quality drinking water for private supplies, which may also lead to additional positive benefits for human health and material assets.