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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 19 December 2025
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Displaying 1640 contributions

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Net Zero, Energy and Transport Committee

Role of Local Government in Delivering Net Zero

Meeting date: 21 June 2022

Fiona Hyslop

John Cunningham can perhaps give us a view from the Western Isles on his experience of leveraging private finance into nature-based solutions.

Net Zero, Energy and Transport Committee

Role of Local Government in Delivering Net Zero

Meeting date: 21 June 2022

Fiona Hyslop

Thank you very much. I will pass back to the convener.

Net Zero, Energy and Transport Committee

Role of Local Government in Delivering Net Zero

Meeting date: 21 June 2022

Fiona Hyslop

Thank you. I think that the committee is looking forward to visiting Linlithgow, my home town, which did a community bond on solar panels, although it was on a very small scale.

I will move on to Ben Howarth. Investors are looking at rewards. I suppose that that is about the mechanisms and the financial packages and products that would be helpful to bridge the gap between clear demand for net zero investment and supply of that investment.

You also talked about standardisation, which gives some comfort to investors. What would they be looking for, exactly? You talked about low-level long-term rewards and returns to your investors. What shape would that take and what policies and mechanisms need to be put in place at local authority or Scottish Government level to enable those products to be developed? Are there existing products that you would like to use for investment?

Net Zero, Energy and Transport Committee

Role of Local Government in Delivering Net Zero

Meeting date: 21 June 2022

Fiona Hyslop

I will change tack slightly. I was struck by what Julie Waldron said about needing a nature-based equivalent of Sustrans or heritage conservation areas. City deals are another mechanism that is bringing together public and private finance in strategic planning. Some city deals have been established for some time. Are the city deals adequately aligned with nature restoration goals and use of natural infrastructure to achieve net zero, or do we need to look again at some of the city deals through a net zero lens?

Net Zero, Energy and Transport Committee

Role of Local Government in Delivering Net Zero

Meeting date: 21 June 2022

Fiona Hyslop

I want to talk about private sector finance. I will put my first question to Nick Halfhide.

How well does the public sector currently leverage support and finance from the private sector for nature restoration and nature-based solutions? What are the key barriers and hurdles to achieving that? What returns is the private sector looking for from nature-based solutions?

Net Zero, Energy and Transport Committee

Role of Local Government in Delivering Net Zero

Meeting date: 21 June 2022

Fiona Hyslop

Professor Parsons, do you have any comments on leveraging private finance?

Net Zero, Energy and Transport Committee

Role of Local Government in Delivering Net Zero

Meeting date: 21 June 2022

Fiona Hyslop

Given that financial regulation is reserved to Westminster, we can encourage mobilisation on a regulation system that will meet net zero. Within Scotland, we can look at standardisation of infrastructure products, in particular. That is really important.

Emma Harvey raised the issue of what standardisation would look like. I invite Jeremy Gorelick to give us an indication of that. If you cannot do that just now, it would be helpful if you could follow up in writing. We need to think about how we get appropriate investments for investors at the right time. I was very taken by your remark that they must be investor ready. Can you tell us a bit more about what you think is required as regards standardisation of an asset?

Net Zero, Energy and Transport Committee

Role of Local Government in Delivering Net Zero

Meeting date: 21 June 2022

Fiona Hyslop

It is an interesting perspective that the city deals are more focused on net zero than they are on the biodiversity crisis and nature solutions. Knowing the Lothian area, as I do, I think that an equivalent of Sustrans for nature would be a way to channel funding. There is public funding, but projects do not necessarily get the private funding that we think is needed. That is the gap.

Net Zero, Energy and Transport Committee

Role of Local Government in Delivering Net Zero

Meeting date: 21 June 2022

Fiona Hyslop

With regard to use of that mechanism, there has been recently been the islands deal.

Thank you for that. I am conscious of the time, convener, so I will pass back to you.

Net Zero, Energy and Transport Committee

Role of Local Government in Delivering Net Zero

Meeting date: 21 June 2022

Fiona Hyslop

Thank you for joining us this morning. I will come to Jeremy Gorelick first. One of the challenges seems to be that the amount of due diligence and financial readiness required for an investment of £1 million involves the same effort as that needed for a package of £100 million. There seems to be a gap between the propositions at a local level and the desirability for investors, and one of the potential jobs of Government is to facilitate that.

The First Minister of Scotland will be chairing a proposed investor group, which will marshal the investors. I declare an interest because I launched it in 2020, but we have a green investment portfolio, which is currently worth £1 billion and involves 10 projects, with the promise of an increase to £3 billion. Those are the investable propositions. Earlier, you talked about some of the projects being at the concept or feasibility stage, and the need for an agreed mechanism so that there is almost an authority to invest because they have hit certain benchmarks to make them investable. Scotland is a country of 5 million people and has a devolved Administration. Could the role of national Government be to help local authorities to get to that stage of investability?