Scotland is preparing to commit more than £5 billion to climate action under its draft 2026–27 budget, setting out what ministers describe as a record level of investment to cut emissions and restore nature.
The funding package, confirmed by climate action and energy secretary Gillian Martin ahead of the Scottish Renewables Offshore Wind Conference, is aimed at accelerating the transition to net zero while supporting jobs, lowering energy bills and strengthening communities.
Ministers say the spending responds to what they describe as the twin crises of climate change and biodiversity loss, with major investment planned for low-carbon infrastructure, renewable energy and nature recovery.
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Of the total £5 billion allocation, £2.9 billion will be capital funding, accounting for 41% of the Scottish Government’s proposed capital budget. Priority areas include renewable power, energy efficiency and sustainable transport, all intended to reduce greenhouse gas emissions and improve long-term resilience.
Renewable energy, particularly offshore wind, is expected to receive a significant share of the funding, with ministers viewing the sector as central to both decarbonisation and future economic growth. The budget also places an emphasis on a just transition, with green job creation and wider community benefits highlighted as key outcomes.
Plans include further investment in energy-efficient affordable housing to tackle fuel poverty and reduce household bills, alongside expanded support for public transport and active travel. Funding will be directed towards making walking, wheeling and cycling more accessible for shorter journeys.
Nature restoration forms a major part of the programme, with money earmarked for woodland creation and peatland restoration to store carbon and protect habitats. Community-led climate initiatives will also be expanded, supporting local projects such as flood prevention, repair schemes and community energy generation.
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.
“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.”
Additional funding will support low-carbon heating, sustainable transport and climate resilience overseas, with ministers arguing the package positions Scotland to cut emissions while building a more sustainable and inclusive economy.
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