Chapter 9 Net Zero, Energy & Transport
Portfolio Responsibilities
The Net Zero, Energy and Transport (NZET) portfolio is responsible for the co-ordination of cross-government policy necessary to deliver a just transition to Net Zero and climate resilience in line with the Scottish Government's statutory climate change commitments. The portfolio's capital and resource expenditure supports the government's key priorities of transforming the economy to deliver our Net Zero commitments, eradicating child poverty and delivering sustainable public services. The portfolio is charged with protecting and enhancing our natural environment and resources, supporting Scotland's transport network and delivering significant investment to tackle the twin challenges of climate change and biodiversity loss.
The overarching aim is to protect and promote Scotland's environment, provide the public with a resilient and accessible transport network, and build a strong and sustainable Net Zero economy through:
- tackling climate change domestically and internationally and driving forward Scotland's just transition to a low carbon economy;
- providing significant investment in Scotland's strategic transport network including investing in transport decarbonisation and ensuring resilience across all modes;
- supporting the provision of accessible and affordable public transport services across transport modes including bus, ferries and rail including ScotRail, which we took into public ownership in April 2022;
- investing in active travel to deliver a transformational shift from car travel to walking, wheeling and cycling;
- developing and investing in a strengthened policy and delivery framework for green homes and buildings including delivering the Heat in Buildings strategy that will see a million homes and buildings decarbonised by 2030;
- maximising offshore wind supply including through investing in planning and consenting for offshore, renewable energy;
- accelerating our transition to a circular economy and modernising Scotland's waste and recycling services;
- protecting and restoring Scotland's wildlife, biodiversity and landscapes, and delivering Scotland's Biodiversity Strategy to be Nature Positive;
- taking forward ambitious plans on peatland restoration;
- leading delivery of Scotland's Forestry Strategy including managing forests and land in a way that supports and enables economically sustainable forestry including and accelerating the Woodland creation programme; and
- empowering communities and improving the way land is owned, used and managed.
The responsibilities of the portfolio are delivered by core Scottish Government directorates along with a range of public bodies and agencies across transport, energy, climate, forestry and environmental specialist areas.
Table 9.01: Spending Plans (Level 2)
| Level 2 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Energy |
413.4 |
413.9 |
479.6 |
| Rail Services |
1,339.9 |
1,396.9 |
1,420.8 |
| Concessionary Fares and Bus Services |
321.8 |
413.9 |
425.7 |
| Active Travel, Low Carbon and Other Transport |
327.0 |
354.5 |
349.0 |
| Motorways and Trunk Roads |
830.2 |
876.4 |
801.2 |
| Ferry Services |
287.6 |
296.0 |
440.0 |
| Air Services |
107.6 |
88.5 |
83.5 |
| Scottish Forestry |
83.7 |
90.9 |
102.4 |
| Forestry and Land Scotland |
37.5 |
27.2 |
23.8 |
| Research, Analysis and Other |
90.7 |
88.3 |
91.6 |
| Environmental Services |
207.2 |
220.9 |
248.9 |
| Environmental Standards Scotland |
– |
2.2 |
2.9 |
| Land Reform |
16.4 |
13.9 |
15.4 |
| Climate Change |
31.6 |
51.3 |
81.4 |
| Scottish Water |
84.1 |
77.7 |
75.9 |
| Offshore Wind |
– |
– |
6.2 |
| COVID-19 Funding |
235.1 |
– |
– |
| Total NZET |
4,413.6 |
4,412.6 |
4,648.2 |
| of which: |
| Total Fiscal Resource |
1,731.1 |
1,672.3 |
1,794.9 |
| of which Operating Costs |
33.5 |
42.9 |
48.6 |
| Non-cash |
159.8 |
195.0 |
196.5 |
| Capital |
2,432.3 |
2,485.0 |
2,595.8 |
| Financial Transactions (FTs) |
90.5 |
60.3 |
61.0 |
| UK Funded AME |
– |
– |
– |
| Presentational Adjustments for Scottish Parliament Approval |
| Highlands and Islands Airports Limited (NDPB non-cash) |
(9.5) |
(9.5) |
(9.5) |
| Scottish Canals (NDPB non-cash) |
(2.7) |
(2.7) |
(2.7) |
| Scottish Rail Holdings (NDPB non-cash) |
– |
(1.5) |
(2.5) |
| Public Private Partnerships Adjustments |
(20.9) |
(23.3) |
(25.4) |
| Central Government Grants to Local Authorities |
58.4 |
58.4 |
58.4 |
| Royal Botanical Gardens (NDPB non-cash) |
(2.5) |
(2.5) |
(3.4) |
| National Park Authorities (NDPB non-cash) |
(1.1) |
(1.1) |
(1.1) |
| SEPA (NDPB non-cash) |
(5.3) |
(5.3) |
(3.7) |
| NatureScot (NDPB non-cash) |
(2.2) |
(2.2) |
(2.2) |
| Scottish Water loan repayments not included in Scottish Parliamentary budgets |
58.4 |
42.8 |
42.8 |
| Environmental Standards Scotland |
– |
(2.2) |
(2.9) |
| Total NZET |
4,486.4 |
4,463.5 |
4,696.0 |
| Total Limit on Income (accruing resources) |
600.0 |
|
|
Table 9.02: Energy Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Energy |
226.8 |
221.6 |
248.5 |
| Fuel Poverty/Energy Efficiency |
186.6 |
192.3 |
231.1 |
| Total Energy |
413.4 |
413.9 |
479.6 |
| of which: |
| Fiscal Resource |
51.2 |
64.5 |
90.7 |
| Non-cash |
– |
– |
– |
| Capital |
304.4 |
310.1 |
352.9 |
| FTs |
57.8 |
39.3 |
36.0 |
| UK Funded AME |
– |
– |
– |
Table 9.03: Rail Services Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
|
£m |
£m |
£m |
| Major Public Transport Projects |
173.0 |
247.0 |
155.8 |
| Rail Development |
2.0 |
2.0 |
– |
| Rail Franchise |
663.9 |
720.9 |
822.9 |
| Rail Infrastructure |
501.0 |
427.0 |
442.0 |
| Total Rail Services |
1,339.9 |
1,396.9 |
1,420.8 |
| of which: |
| Fiscal Resource |
371.9 |
409.4 |
458.4 |
| Non-cash |
– |
1.5 |
2.5 |
| Capital |
968.0 |
986.0 |
959.8 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.04: Concessionary Fares and Bus Services Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Concessionary Fares |
262.8 |
310.6 |
359.3 |
| Smartcard Programme |
4.9 |
3.9 |
3.9 |
| Support for Bus Services |
54.2 |
99.4 |
62.5 |
| Total Concessionary Fares and Bus Services |
321.8 |
413.9 |
425.7 |
| of which: |
| Fiscal Resource |
319.0 |
411.9 |
418.7 |
| Non-cash |
– |
– |
– |
| Capital |
2.8 |
2.0 |
7.0 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.05: Active Travel, Low Carbon and Other Transport Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Agency Administration Costs |
19.2 |
30.0 |
27.0 |
| Scottish Canals |
24.6 |
25.4 |
26.2 |
| Strategic Transport Projects Review |
3.5 |
3.0 |
1.5 |
| Support for Active Travel |
91.6 |
126.0 |
165.3 |
| Support for Sustainable Travel |
39.6 |
17.3 |
7.3 |
| Support for Freight Industry |
0.7 |
0.7 |
0.7 |
| Future Transport Fund – Low Carbon |
107.4 |
130.0 |
99.4 |
| Edinburgh Tram Inquiry |
0.5 |
0.5 |
0.3 |
| Travel Strategy and Innovation |
39.9 |
21.6 |
21.4 |
| Total Active Travel, Low Carbon and Other Transport |
327.0 |
354.5 |
349.0 |
| of which: |
| Fiscal Resource |
51.3 |
62.6 |
65.8 |
| Non-cash |
3.5 |
4.5 |
4.7 |
| Capital |
239.9 |
277.4 |
278.5 |
| FTs |
32.3 |
10.0 |
– |
| UK Funded AME |
– |
– |
– |
Table 9.06: Motorways and Trunk Roads Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Capital Land and Works |
155.7 |
136.9 |
121.9 |
| Tay Bridge Authority |
2.5 |
2.6 |
8.1 |
| Queensferry Crossing |
2.1 |
1.8 |
– |
| M&TR Other Current Expenditure |
20.5 |
25.4 |
23.9 |
| Network Strengthening |
104.4 |
116.0 |
80.0 |
| Roads Depreciation |
135.4 |
167.5 |
168.6 |
| Roads Improvements |
46.3 |
36.5 |
29.4 |
| Routine and Winter Maintenance |
106.9 |
117.7 |
115.0 |
| Structural Repairs |
100.0 |
119.0 |
98.7 |
| Motorways and Trunk Roads PPP Payments |
152.1 |
132.5 |
130.0 |
| Road Safety |
3.5 |
20.0 |
25.0 |
| Transport Information |
0.8 |
0.6 |
0.6 |
| Total Motorways and Trunk Roads |
830.2 |
876.4 |
801.2 |
| of which: |
| Fiscal Resource |
285.4 |
282.9 |
277.1 |
| Non-cash |
135.4 |
167.5 |
168.6 |
| Capital |
409.4 |
426.0 |
355.5 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.07: Ferry Services Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Support for Ferry Services |
231.6 |
228.5 |
251.0 |
| Vessels and Piers |
56.0 |
67.5 |
189.0 |
| Total Ferry Services |
287.6 |
296.0 |
440.0 |
| of which: |
| Fiscal Resource |
209.8 |
206.7 |
229.2 |
| Non-cash |
– |
– |
– |
| Capital |
77.8 |
89.3 |
210.8 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.08: Air Services Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Highlands and Islands Airports Limited |
91.4 |
71.3 |
69.0 |
| Support for Air Services |
16.2 |
17.2 |
14.5 |
| Total Air Services |
107.6 |
88.5 |
83.5 |
| of which: |
| Fiscal Resource |
40.4 |
58.6 |
56.4 |
| Non-cash |
9.5 |
9.5 |
9.5 |
| Capital |
57.7 |
20.4 |
17.6 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.09: Scottish Forestry Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Programme and Running Costs |
18.1 |
19.6 |
20.3 |
| Depreciation |
0.1 |
0.5 |
0.4 |
| Woodland Grants |
62.8 |
69.5 |
77.2 |
| EC Receipts |
– |
(3.2) |
– |
| Forest Research (Cross Border Services) |
2.7 |
4.5 |
4.5 |
| Total Scottish Forestry |
83.7 |
90.9 |
102.4 |
| of which: |
| Fiscal Resource |
37.6 |
39.2 |
46.2 |
| Non-cash |
0.1 |
0.5 |
0.4 |
| Capital |
45.0 |
50.2 |
55.7 |
| FTs |
1.0 |
1.0 |
– |
| UK Funded AME |
– |
– |
– |
Table 9.10: Forestry and Land Scotland Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| FLS Resource |
15.4 |
16.7 |
12.2 |
| FLS Capital |
22.1 |
10.5 |
11.6 |
| Total Forestry and Land Scotland |
37.5 |
27.2 |
23.8 |
| of which: |
| Fiscal Resource |
15.4 |
16.7 |
12.2 |
| Non-cash |
– |
– |
– |
| Capital |
22.1 |
10.5 |
11.6 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.11: Research, Analysis and Other Services Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Strategic Policy, Research and Sponsorship |
5.8 |
4.2 |
4.8 |
| Economic and Other Surveys |
4.5 |
5.0 |
4.3 |
| Programmes of Research |
50.0 |
50.4 |
48.8 |
| Royal Botanic Garden Edinburgh |
30.5 |
28.7 |
33.8 |
| Total Research, Analysis and Other |
90.7 |
88.3 |
91.6 |
| of which: |
| Fiscal Resource |
37.2 |
36.9 |
36.7 |
| Non-cash |
2.9 |
2.9 |
3.8 |
| Capital |
50.6 |
48.5 |
51.1 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.12: Environmental Services Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| National Parks |
17.5 |
18.5 |
20.9 |
| Environmental Quality |
13.8 |
13.8 |
9.9 |
| Natural Resources and Peatland |
41.2 |
53.5 |
60.7 |
| Scottish Environmental Protection Agency |
43.5 |
41.4 |
49.0 |
| NatureScot |
51.0 |
50.3 |
61.1 |
| Zero Waste |
40.2 |
43.4 |
47.4 |
| Total Environmental Services |
207.2 |
220.9 |
248.9 |
| of which: |
| Fiscal Resource |
139.4 |
144.7 |
154.1 |
| Non-cash |
8.5 |
8.6 |
7.0 |
| Capital |
60.0 |
67.6 |
87.8 |
| FTs |
(0.6) |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.13: Environmental Standards Scotland Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Environmental Standards Scotland |
– |
2.2 |
2.9 |
| Total Environmental Standards Scotland |
– |
2.2 |
2.9 |
| of which: |
| Fiscal Resource |
– |
2.2 |
2.9 |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.14: Land Reform Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Land Reform |
14.8 |
12.3 |
13.9 |
| Scottish Land Commission |
1.5 |
1.6 |
1.5 |
| Total Land Reform |
16.4 |
13.9 |
15.4 |
| of which: |
| Fiscal Resource |
5.8 |
5.9 |
8.0 |
| Non-cash |
– |
– |
– |
| Capital |
10.6 |
8.0 |
7.4 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.15: Climate Change Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Climate Change Policy |
1.6 |
1.8 |
1.7 |
| Land Managers Renewables Fund |
0.5 |
0.5 |
0.2 |
| Climate Action and Just Transition Fund |
29.6 |
49.1 |
79.5 |
| Total Climate Change |
31.6 |
51.3 |
81.4 |
| of which: |
| Fiscal Resource |
27.6 |
27.3 |
31.4 |
| Non-cash |
– |
– |
– |
| Capital |
4.0 |
14.0 |
25.0 |
| FTs |
– |
10.0 |
25.0 |
| UK Funded AME |
– |
– |
– |
Table 9.16: Scottish Water Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Interest on Voted Loans |
(103.0) |
(105.0) |
(105.0) |
| Voted Loans |
180.2 |
170.0 |
170.0 |
| Hydro Nation |
4.7 |
4.9 |
3.7 |
| Drinking Water Quality Regulator |
0.5 |
1.0 |
0.4 |
| Private Water |
1.7 |
6.8 |
6.8 |
| Total Scottish Water |
84.1 |
77.7 |
75.9 |
| of which: |
| Fiscal Resource |
(96.1) |
(97.3) |
(99.1) |
| Non-cash |
– |
– |
– |
| Capital |
180.2 |
175.0 |
175.0 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.17: Offshore Wind Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Offshore Wind |
– |
– |
6.2 |
| Total Offshore Wind |
– |
– |
6.2 |
| of which: |
| Fiscal Resource |
– |
– |
6.2 |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.18: Central Government Grants to Local Authorities Spending Plans (Level 3)
| Level 3 |
2021-22 Budget |
2022-23 Budget |
2023-24 Budget |
| £m |
£m |
£m |
| Cycling, Walking and Safer Routes |
23.9 |
23.9 |
23.9 |
| Support for Inter-Island Ferries |
19.2 |
19.2 |
19.2 |
| Regional Transport Partnerships |
15.3 |
15.3 |
15.3 |
| Total Central Gov. Grants to Local Authorities |
58.4 |
58.4 |
58.4 |
Net Zero, Energy and Transport intended contributions to the National Outcomes
Primary National Outcomes
- Economy
- Poverty
- Children and Young People
- Environment
Secondary National Outcomes
- International
- Communities
- Education
- Fair Work and Business
- Health
- Culture
- Human Rights
For further information on the purpose of the portfolio budget, and contributions to national outcomes (including impacts of spend on equality of outcome) please refer to the relevant portfolio annex in the published Equality and Fairer Scotland Budget Statement.
