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We will work collaboratively with partners, communities and other stakeholders to take forward the ten-year £500m Just Transition Fund for the North East and Moray. The delivery of the Fund will exemplify our co-design and co-delivery approach that will be supported by a programme of broad engagement in the area. This Fund is a new commitment which will require detailed policy design work and implementation planning. We will provide further information on the process in due course.

The Just Transition Fund will support and accelerate energy transition, create good, green jobs and maximise the region’s future economic potential. We are determined to tackle climate emergency and mitigate the impacts of the transition on communities across Scotland, and we will work at pace to deliver our sectoral plans for a just transition.

The Scottish Government and Scottish Green Party: Shared Policy Programme sets out that we will phase out the need to install new or replacement fossil fuel boilers in off-gas grid homes from 2025 and in on-gas grid areas from 2030, subject to technological developments and decisions by the UK Government in reserved areas.

The Shared Policy Programme also commits to introducing primary legislation, subject to consultation and to limits on devolved competence, that provides a regulatory framework for zero emissions heating (and energy efficiency), and underpinning powers to support this transition and ambitious programme.

The exact operation of the proposed regulations, and any ensuing obligations on current users of gas boilers, is still to be determined but to ensure that the approach is fair, and to avoid unintended consequences, this will be subject to a detailed consultation in 2022.

As set out in our draft Heat in Buildings Strategy - partial Business and Regulatory Impact Assessment, the estimated average capital cost of converting a home from a fossil fuel boiler to an equivalent zero emission system such as an air source heat pump is just over £12,000. These estimates are sourced from research commissioned by the Climate Change Committee to inform its Sixth Carbon Budget. The cost for an individual dwelling can differ from this average depending on building type, existing levels of energy efficiency and type of heating system being replaced.

The Scottish Government has committed to introducing regulations for zero emissions heat from 2025, subject to confirmation of devolved competence, technological developments, and action by the UK Government in reserved areas. We will consult in further detail in 2022, but it is envisaged that any such regulations will apply to building owners.

The Scottish Government provides a range of financial support to households to help meet the costs of changing from fossil fuel systems to low and zero emissions alternatives. If they meet certain eligibility criteria, households may be able to access fully-funded support through Warmer Homes Scotland, or local authority-led Area-Based Schemes. For other households interest-free Home Energy Scotland Loans with up to 75% cashback grants are available. However, due to the higher unit cost of electricity compared to fossil fuels such as natural gas, urgent decisions are needed by the UK Government to ensure zero emissions running costs are comparable to fossil fuel heating. These include urgent action on energy prices which must be rebalanced.

A number of our existing commitments already contribute towards this goal and will ensure that we deliver a just transition, with economic and social opportunity shared across the country.

For example, the recent Programme for Government outlined our commitment to help three islands become fully carbon neutral by 2040. We are currently engaging with stakeholders to ensure the voices of islanders are heard from outset. This builds on previous commitments, such as the Island Communities Fund, which has supported businesses and community groups to build sustainable island economies.

We are also investing at least £1.8 billion over this Parliament to decarbonise Scotland’s homes and buildings, helping us eradicate poor energy efficiency as a driver of fuel poverty. This commitment will benefit communities across the country, including rural communities where we know fuel poverty is a particular concern.

The Scottish Government funds the Energy Saving Trust to deliver a sustainable energy supply chain programme to help develop capacity amongst installers. This initiative provides support and training in low and zero emissions heating technology installations, webinars and events as well as support for training costs which we deliver in partnership with the Energy Skills Partnership.

Information about procurement opportunities related to our fuel poverty programmes is published on the Public Contracts Scotland website. The Scottish Government and local authorities responsible for delivery of our Area Based Schemes also participate in regular “Meet the Buyer” events organised by the Supplier Development Programme (SDP).

The construction of the A92/A96 Haudagain Improvement project is continuing to progress well. It remains that completion is anticipated in winter 2021 as confirmed in the latest Infrastructure Investment Plan update published in June 2021.

This date is subject to any unforeseen circumstances such as the effects of exceptional weather.

This is a matter for Angus Council as the A90 Montrose link road is a local road project being taken forward by the Council.

In our draft Heat in Buildings Strategy we committed to developing and implementing a bespoke public engagement strategy for heat in buildings. This will have a focus on raising the profile of energy efficiency and zero emissions heating options so that people are aware of their benefits, as well as enabling people to actively participate in shaping the development of policy, incentives, and local level heat and energy efficiency planning; and promoting the support that is on offer to maximise take up.

Network Rail is currently assessing the options identified for delivering the required capacity enhancements and journey time savings between Aberdeen and the central belt. When the most effective options have been selected in alignment with available funding, it will then be possible to compile a detailed plan for delivering the project and to spend the remaining budget .

The Borderlands Inclusive Growth Deal includes a commitment to progress work to assess the benefits and challenges of extending the Borders Railway. The Deal also states that the Scottish Government will progress the evidence base for extending the Borders Railway from Tweedbank to Carlisle through the second Strategic Transport Projects Review (STPR2) process which is ongoing through Transport Scotland. This forms the strategic case for extending the Borders Railway from Tweedbank to Carlisle. STPR2 is being funded separately from the Deal and will report later this year. A decision on progressing feasibility work will be made following the conclusion of STPR2.