Record investment for climate action

28 Jan 2026 01:53 PM

Record funding of over £5 billion will support climate action and further develop Scotland’s renewable energy sector, creating green jobs and bringing benefits to communities, Climate Action and Energy Secretary Gillian Martin has said.

The major investment, unveiled in the draft Scottish budget for 2026-27, will help tackle the twin crises of climate change and biodiversity loss by funding policies and actions aimed at cutting green-house gas emissions further, enabling communities to become more resilient to the impacts of climate change and protecting and restoring nature.

Gillian Martin reiterated the government’s financial commitment ahead of addressing the Scottish Renewables Offshore Wind Conference where she is expected to confirm further new investment in the sector.

The £5 billion allocation for climate action in the draft Scottish Budget includes a total of £2.9 billion of capital funding– representing 41% of the Scottish Government’s total capital budget proposed for next year – and supports actions to:

• further develop Scotland’s renewable energy sector to ensure a fair and inclusive transition that creates more jobs and opportunities
• deliver more energy-efficient affordable homes to tackle fuel poverty and reduce energy bills
• invest in public and active travel projects, making it safer and easier for people to choose more sustainable ways of travelling for shorter journeys

Ms Martin said:

“This draft Budget for the next year demonstrates the Scottish Government’s continued commitment to achieving net zero by 2045 and tackling the twin crises of climate change and biodiversity loss.

“Done correctly, the transition to net zero can help to tackle poverty, restore nature, and improve health and well-being all while offering significant economic opportunities.

“Our record investment of more than £5 billion will help reduce household energy costs, support green jobs, restore nature and build healthy and resilient communities through the efforts set out in our draft Climate Change Plan. 

“Offshore wind will be a major part of delivering on our climate ambitions and represents a huge economic opportunity for all of Scotland, delivering jobs and attracting major investment across the country.”

The draft 2026-27 budget also proposes: 

• more than £335 million for heat in buildings programmes, supporting households and businesses to transition to low carbon heating systems
• £316 million in sustainable travel, low carbon and climate positive activities to support the switch to sustainable modes of transport and promote walking, wheeling and cycling for shorter journeys
• £26 million for nature restoration as well as £37.4 million for woodland creation and £28 million in peatland restoration, to help sequester carbon and protect habitats
• £22 million for domestic climate change – including £6 million to continue the national network of Community Climate Action Hubs which enable communities to develop local responses to climate change from flood mitigation, repair shops and local energy generation to food growing and tree planting
• £12 million to support vulnerable communities in the Global South who have done the least to cause the climate crisis but are feeling its effects most acutely – especially women and young people

Background

Scottish Budget 2026-27           

Scottish Budget 2026 to 2027: climate change taxonomy - gov.scot