‘Important changes’ made to Scotland’s Just Transition Fund

Changes to a Scottish Government funding pot will see “wider support” available to local organisations  at the same time as “creating new jobs and fresh opportunities”, Scotland’s Climate Action Secretary has said.

Gillian Martin made the comments as she announced the latest round of cash awards from the Just Transition Fund (JTF).

She also spoke about “important changes” being made to the scheme that will for the first time allow community groups and social enterprises to get guaranteed support for larger projects from the JTF for the north-east and Moray.

The fund will also include new development grants which could see community and social enterprises get up to £3 million capital funding and £1 million of resource funding.

Meanwhile, up to £10 million could be available for large‑scale commercial projects which are focused on jobs, skills and economic transition.

Small and medium enterprises working in the oil and gas supply chain who are diversifying into low carbon work could get support of up to £3 million.

The fund was set up to help the economy of Scotland’s north-east with the move away from fossil fuels to greener alternatives.

Ms Martin said that since 2022 the scheme had “supported hundreds of jobs with more than £85 million investment into 28 projects across the north-east and Moray”.

She stated: “This year, we’re making important changes to the funding available based on advice from the Just Transition Commission and the Just Transition Lab.

“For the first time, community groups and social enterprises will be guaranteed support for larger projects, alongside our continued backing of the participatory budgeting fund which gives communities the power to directly decide how money should be spent in their areas to help address specific local needs.

“We’re also helping communities get ready for future funding by offering development grants.

“These will support groups who may not otherwise be able to benefit to build the skills and confidence they need to plan and apply for bigger projects in the years ahead.

“We’re also continuing to help the energy sector shift and grow, including funding to support businesses in the supply chain as they adapt.

“All of this means we can offer wider support to local organisations while creating new jobs and fresh opportunities for people across the north-east.”

Ms Martin added: “It’s vital that Scotland’s expertise, innovation and huge renewable energy potential not only help the planet, but also ensure a fair and inclusive transition for everyone in the north-east of Scotland.”

She spoke out while on a visit to Verlume Ltd, which received £2.5 million in 2025-26 from the fund to help it deliver a fully functional prototype of the world’s first subsea grid-forming battery system.

Verlume chief executive officer Richard Knox said the support had been “transformational ” for the company.

He said: “This project addresses one of the most pressing challenges facing renewable energy today, grid stability and wind curtailment, while demonstrating how offshore oil and gas expertise can be redeployed directly into the clean energy system.”

Professor Tavis Potts and Professor John Bone of the Just Transition Lab at Aberdeen University, a research initiative focused on leading a fair shift to net zero, said having ringfenced funding for community and social enterprise projects “is a major improvement” in the fund and “addresses a key shortcoming in previous rounds”.