This blog is one of a series that illustrates how climate change relates to policy areas covered by subject committees. The accompanying blog, The climate jigsaw part one: the general framework of devolution and climate change, provides an overview of the general division between devolved and reserved powers and responsibilities for the matters relevant to tackling climate change.
This blog covers some of the most significant sectors where action is needed to achieve emission reduction targets, providing an outline of how far these are governed by devolved or reserved powers. The similar complexities in the division of responsibilities for what is needed to provide effective adaptation to climate change are not discussed here and the aim is to give an overview of the general picture, not a comprehensive or fully detailed account.
These blogs have been produced by Professor Colin Reid, Emeritus Professor of Environmental Law, University of Dundee and current Adviser on environmental standards and regulation in a post-Brexit context to the Net Zero, Energy and Transport Committee, with contributions from the relevant SPICe researchers. As with all guest blogs, what follows are the views of the author and not those of SPICe, or of the Scottish Parliament.
Energy and electricity
Energy matters are notoriously complex from a devolution perspective, with a mix of powers that are reserved (e.g. offshore oil and gas) and devolved (most planning matters), areas where the two combine (e.g. planning controls (devolved) over potential sites for nuclear activity (reserved)) and topics within reserved matters where powers have been delegated to Scottish Ministers (e.g. consent for many individual projects under the Electricity Act 1989). The overall structure of the energy markets for suppliers and consumers, a significant factor for both energy projects and fuel poverty, is in the hands of the UK authorities.
The position has been summarised by the Scottish Ministers as:
“Certain aspects, such as energy efficiency and fuel poverty initiatives, and our positions with respect to granting consent and planning permission for nuclear power and unconventional oil and gas, are matters for the Scottish Government and Parliament, while others – such as market support for different forms of power generation, and regulation of the gas and electricity grids – are reserved to the UK Government.”
On many issues such as the expansion of electricity generation from renewables and the development of hydrogen systems the Scottish Government’s ambition is higher than that of the UK Government.
Marine projects are significant for energy supplies from both renewable and fossil fuel sources. Any subject-based reserved/devolved division still applies but the general position is that the UK Parliament legislates for Scotland’s offshore waters (i.e. more than 12 nautical miles from the shore or baseline), although certain matters in this area not involving oil and gas, defence or pollution from ships have been devolved. Marine planning matters in Scotland’s inshore waters (up to 12 nautical miles from the shore or baseline) are governed by the Marine (Scotland) Act 2010, an Act of the Scottish Parliament, and in its offshore waters by the Marine and Coastal Access Act 2009, an Act of the UK Parliament.
Electricity
Electricity is a reserved matter, including control of the grid and the structure of the electricity market and consumer pricing controls. Nevertheless, the UK Government has delegated power to issue consents for onshore generating projects and transmission lines to planning authorities (under 50 megawatts) and the Scottish Ministers (over 50 megawatts). Changes to the current approval procedures for infrastructure projects and related matters are included in the Planning and Infrastructure Bill currently being considered at Westminster.
Oil and Gas
The licensing and consent arrangements for oil and gas projects and pipelines are primarily reserved. Standards for the gas grid are also a reserved matter. The main powers over offshore developments lie with UK authorities, although elements of the land-based infrastructure are subject to devolved requirements for planning permission and environmental authorisations. The Scottish Government has devolved powers over onshore oil and gas (both conventional and unconventional) and the National Planning Framework 4 states that: “Development proposals that seek to explore, develop, and produce fossil fuels (excluding unconventional oil and gas) will not be supported other than in exceptional circumstances” and that “The Scottish Government does not support the development of unconventional oil and gas in Scotland.”
Nuclear
The regulation of nuclear power is a matter reserved for the UK Government, but since planning permission for any sites falls under devolved control, the Scottish Ministers have a de facto veto over any new developments and their current policy is against the development of any new nuclear stations. Environmental controls likewise fall under devolved authority.
Hydrogen
In the Draft Energy Strategy and Just Transition Plan the Scottish Government states that its plans “to accelerate the hydrogen economy in Scotland will require the Scottish Government and its agencies, working with industry and with the UK Government, to apply both devolved and reserved powers in alignment.” As with other energy sources, most of the direct regulatory controls on standards, network regulations etc. fall under reserved powers, but planning controls and elements of financial support are in the hands of devolved authorities, with the Hydrogen Action Plan noting the need for Scottish and UK Governments to work together.
Buildings
Energy Efficiency
Regulation of Energy Performance Certificates for residential and commercial buildings is devolved and proposals have been made for reforms in the near future, providing more information on energy efficiency and heating costs. It is envisaged, however, that aspects of this work will progress in line with developments south of the border, e.g. producing a Home Energy Model (HEM) calculation methodology and a new register that can interface with the UK Government’s systems.
New Buildings
Planning and building standards are matters mostly decided in Scotland. Most individual planning decisions are in the hands of local authorities, but Scottish Ministers can exercise considerable control through the National Planning Framework and their appeal and call-in powers. In terms of the construction process, the UK Government’s control over health and safety and product standards may be relevant at times, as is the fixed-term VAT relief for energy-saving supplies and works.
Heating
Heating of buildings is a major contributor to climate emissions and largely within Scottish Ministers’ control. There are already rules preventing the use in new buildings of heating systems producing high levels of emissions but more far-reaching plans for the Heat in Buildings Bill to ensure the presence of low-carbon heating systems when the ownership of existing buildings changes have been put on hold because of concerns over their effect on tackling fuel poverty. The Bill announced in the Programme for Government 2025-26 will set targets for installing clean heating systems by 2045.
There are some critical pieces of the heat decarbonisation puzzle which are not under the control of the Scottish Government, with the main stated obstacle to the initial proposals for the Heat in Buildings Bill being the economics of low carbon heat. As noted above, the design of the electricity and gas markets is controlled by the UK Government and GB-wide regulators, whilst the United Kingdom Internal Market Act may affect the effectiveness of any restrictions on the supply of particular sorts of heating equipment. In the recent statement to Parliament from the Acting Minister for Climate Action, on the Heat in Buildings Bill, ‘clarity on the future of the gas grid’, the ‘rebalancing of policy costs between gas and electricity’ and ‘reform of the electricity market’ were identified as three, crucial, reserved policy areas.
Heat networks
Legislation has been passed by the Scottish Parliament to establish a framework for regulating and encouraging heat networks, but this has to operate in conjunction with UK legislation.
Transport
Traffic and demand management
Road traffic is a major contributor to greenhouses gas emissions; domestic transport accounts for 28% of Scotland’s domestic emissions. The UK Government is in control of several key levers in relation to emissions from traffic, including fuel duty, vehicle excise duty, construction and use standards for vehicles and the rules limiting the future sales of petrol and diesel vehicles. Nevertheless, a wide range of tools to influence traffic and the demand between modes of transport is available in Scotland, although often requiring collaboration between the Scottish Government and local authorities. Support for public transport (e.g. concessionary travel on buses for various groups and the removal of peak fares on ScotRail services) shows how funding can be deployed to influence the demand for public transport.
The devolved planning system has a major part to play in reducing travel demand (e.g. the idea of 20-minute neighbourhoods) as does the location of health and educational services. More direct measures such as road pricing and the Workplace Parking Licensing schemes are available but have not been used to date. Scottish Ministers are responsible for national speed limits, and through Transport Scotland, for setting speed limits on individual trunk roads. Local authorities are responsible for setting speed limits on public roads within their area.
Electric vehicles
The construction and use standards for vehicles and the requirements for an increasing proportion of new vehicles to be electric are in the hands of UK authorities. Nevertheless, many of the planning, building standards and other controls relevant to the development of an effective network of charging points, a key factor in encouraging drivers to switch, are devolved and could be deployed to speed the enhancement of the network. The same applies for hydrogen fuel cell vehicles.
Railways
ScotRail and Caledonian Sleeper are, through Scottish Rail Holdings, owned and financially supported by Scottish Ministers. The strategic direction of Network Rail in Scotland is set and funded by Scottish Ministers through the ‘periodic review’ process. The UK Government is responsible for all daytime cross border passenger rail operators and retains control of rail related legislation. This is being updated to bring all British passenger railway operators into public ownership and to establish Great British Railways, which will own Britain’s mainline rail infrastructure and act as ‘a single guiding mind’ for the railway. The experiment with the abolition of peak-time fares shows how financial support can be used directly to promote lower carbon travel.
Aviation
The devolution of Air Departure Tax gives the Scottish Government a tool to influence demand for air travel (although of limited power given the risk of simply diverting traffic to English airports). At present, though, Scotland continues to participate in the GB-wide Air Passenger Duty system, due to concerns about the continuation under any new system of the current opt-out for services using Highlands and Islands Airports. Key developments on sustainable aviation fuel and the approval of aircraft design are subject to reserved powers and international coordination.
Shipping
The Scottish Government has effective control over Clyde and Hebrides and Northern Isles ferry service contracts within Scotland and has wide powers over ports, with plans in place to procure zero or lower emission vessels on these routes in the coming years. However, an industry-wide move towards low emissions vessels depends on international standards and the availability of suitable refuelling infrastructure at ports beyond Scotland and ultimately on the decisions of largely multinational shipping corporations. Even within Scotland, grid and fuel storage issues may affect refuelling possibilities.
Industry
Direct environmental controls on emissions fall largely within the scope of devolved power (in future falling under the Environmental Authorisations Regulations), but the regulation of important sectors such as chemicals is more complicated. Some matters such as product standards are largely reserved and for other areas, such as the regulation of chemicals under UK REACH, co-ordination across the UK is required, including to meet international obligations (e.g. the Stockholm Convention on Persistent Organic Pollutants).
Emissions reporting
Whereas the obligations on the public sector to report on their emissions and other activities relevant to climate change are determined by Scottish legislation, reporting by private companies falls within the reserved area of business associations and thus is governed by UK legislation.
Waste and circular economy
Waste management activities are regulated under Scottish provisions (scheduled to become integrated into the Environmental Authorisations Regulations), with planning controls on waste sites also being significant. The Circular Economy (Scotland) Act 2024 requires a strategy and targets in building towards a circular economy, but many of the powers, e.g. in relation to the disposal of unsold consumer goods, raise questions over the interaction with the United Kingdom Internal Market Act 2020.
Landfill and incineration
Planning and regulatory controls for landfill and incineration are devolved, with a ban on the landfill of municipal biodegradable waste due to take effect (after several delays) at the start of 2026; the possibility of extending this to other sources of waste is under consideration. The role of incineration is affected by developments at UK level in relation to its inclusion within the UK Emissions Trading Scheme and support for, and treatment of, carbon capture, utilisation and storage at waste to energy plants. The Landfill Tax is now a devolved tax but any significant divergence in the tax rates from those south of the border risks encouraging environmentally undesirable cross-border “waste tourism”, with waste being transported across the border to benefit from lower rates on its disposal.
Recycling
Although matters such as local collections and waste management are governed under Scottish powers, including the imposition of charges on single-use items, key elements such as the design and sale of products, e.g. banning single-use items or imposing requirements to make them easy to recycle, are largely affected by UK powers or the practical effects of the single market across the UK. Product design and trade descriptions are reserved whilst the United Kingdom Internal Market Act 2020 plays a major role in limiting the practical effectiveness of Scotland-only measures unless an exemption is agreed allowing divergence.
Initiatives have been able to progress either with special rules (e.g. for single-use plastics pending broad alignment across Great Britain) or through inter-governmental co-ordination (e.g. for single-use vapes), whilst the prolonged history of the deposit and return scheme for drinks containers highlights the complexities involved. Extended producer responsibility for products and packaging is an area largely of shared responsibility, with the power to legislate being in the hands of both Scottish Ministers and the UK Secretary of State (with the consent of Scottish Ministers).
Agriculture, forestry and land use
Most aspects of agriculture, forestry and land-use fall within devolved powers. Nevertheless, attempts to attract large-scale investment in natural capital projects (e.g. peatland restoration) and establish carbon markets based on land-uses are affected by the fact that many of the legal and financial vehicles for such investment are shaped by the reserved powers on financial services, markets and pension schemes.
Agriculture
The Scottish Government is working towards its vision for agriculture. As part of this, the Agriculture and Rural Communities (Scotland) Act 2024 will facilitate the move from Common Agricultural Policy style payments, to a four-tier payment structure. The aims of the Act include sustainable and regenerative agricultural practices, on-farm nature restoration, climate mitigation and adaptation amongst others.
The shape and extent of the changes to financial support for agriculture are gradually becoming clearer as part of the Scottish Government’s Agricultural Reform Route Map. These changes represent a more gradual transition away from the EU frameworks than in England. However, Scottish policies must operate within the limits of national and international subsidy controls and in the context of wider market conditions, which are affected by policy in other parts of the UK and potentially by the terms of international trade agreements made by the UK Government.
Forestry
Forestry is a devolved matter, overseen by Scottish Forestry and Forestry and Land Scotland, with the latter managing the substantial area of forestry in public ownership. The relevant regulatory powers (including the existing and forthcoming controls on deer numbers which affect the establishment of woodland in many areas) are in the hands of Scottish authorities, although forestry standards are endorsed by all the governments across the UK.
The Scottish authorities have considerable ability to devote financial support to forestry, although some measures with international aspects, e.g. import controls aimed at preventing the arrival of non-native pests and diseases, are a shared responsibility. The UK role in the regulation of financial markets and taxes is significant for the range of investment vehicles that can make the long-term investment in forestry attractive.
Peatland restoration
The capacity of healthy peatlands to capture and store carbon, and the emissions from degraded peatland, are significant factors in reaching Net Zero. The relevant regulatory powers are in the hands of Scottish Ministers (e.g. controls on muirburn). Finance has been allocated towards peatland restoration, but progress has not been as fast as hoped, for reasons linked to both the uptake of various schemes and capacity to implement them, including skills to undertake the necessary work. Despite being proposed by UK and Scottish governments several years ago, a ban on the sale of horticultural peat has not yet been introduced, with Internal Market implications being a consideration.
Biodiversity
Healthy natural habitats play a part in ensuring carbon storage and resilience in the face of climate threats. The relevant powers in relation to the designation and protection of specific sites for biodiversity are devolved as are those in relation to many of the main drivers of both degradation and restoration (e.g. development, agriculture, forestry).
Emissions trading
Many significant sources of greenhouse gas emissions are subject to the UK Emissions Trading Scheme (estimated at 28% of emissions in Scotland), requiring operators to acquire allowances that match the volume of emissions produced. The detailed rules are made by the UK Government, subject to consultation with Scottish Ministers. The success of this scheme in encouraging operators to reduce their emissions will have a major impact on the contribution that these operators make to overall emissions and hence what has to be achieved in other sectors to reach Net Zero overall. The recent UK-EU summit has proposed further work on linking the UK and EU Emissions Trading Schemes.
Negative Emissions Technologies
Since some greenhouse gas emissions are inevitable for the foreseeable future (often falling into the “hard to abate” category in climate reporting), in order to achieve Net Zero there will have to be actions taken to remove carbon from the atmosphere. Much of the contribution here can be expected to come from changes to land use (discussed above), with forestry, grassland and peatland already contributing as carbon sinks, but there is also scope for more direct approaches. Industrial plants aiming to make use of carbon capture and the proposed Acorn carbon transport and storage project, will be subject to devolved controls on planning and industrial emissions.
Although there is a desire to push ahead with such carbon capture, utilisation and storage projects, notably the Acorn project, the Scottish Government cannot proceed alone. The intellectual property, corporate taxation, elements of financial support and any offshore consents (e.g. where underground storage making use of exhausted offshore oil and gas reservoirs is contemplated) are all reserved matters. Developments may also be affected by the availability of significant financial support from the UK Government (under the “Track-2 process”).
Just Transition
The desire to seek a Just Transition towards Net Zero and away from industries dependent on fossil fuels engages governmental actions across the devolved/reserved boundary and financial commitments that likewise fall within Scottish and UK budgets. The Scottish Government is more advanced than other parts of the UK in its Just Transition thinking, with a draft Energy Strategy and Just Transition Plan and the activities of the Just Transition Commission, and the lack of equivalent high-level work in other parts of the UK can be viewed as a hindrance. Actions within devolved power which have been claimed as supporting the Just Transition include wider policy initiatives on energy and buildings; support for reskilling; concessionary bus travel; progress on heat policy; agricultural support measures; and partnerships to assist with the consequences of closures at Grangemouth.
Professor Colin Reid, Emeritus Professor, University of Dundee
Featured image by Walter Baxter on Geograph.