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In December 2020 the Scottish Government and Skills Development Scotland published the Climate Emergency Skills Action Plan (CESAP) setting out the actions required to ensure Scotland’s labour market is able to effectively support the transition to net zero. As a priority action identified in the CESAP, the first phase of the Green Jobs Workforce Academy administered by Skills Development Scotland, launched on the 23 August to help individuals of all ages identify and access relevant green jobs and training. The Academy will continue to provide training opportunities for green careers throughout 2022-23.

In addition to the work taking place through the CESAP, financial support has also been made available through the National Transition Training Fund (NTTF) and the North East Economic Recovery and Skills Fund (NEERSF).

While both NTTF and NEERSF are short-term funding programmes, we offer long-term support through skills programmes including: the Individual Training Account (ITA) scheme, which provides people who are unemployed or in low paid work with the opportunity to access £200 towards training; and the Flexible Workforce Development Fund (FDWF), which supports employers in delivering upskilling and retraining opportunities for their existing employees.

The Scottish Government recognises the important role upskilling and retraining interventions play in improving productivity and business competitiveness, and is committed to providing relevant support for businesses of all sizes in doing so. This is particularly the case in regard to our transition to net zero emissions.

In December 2020 the Scottish Government and Skills Development Scotland published the Climate Emergency Skills Action Plan (CESAP) setting out the actions required to ensure Scotland’s labour market is able to effectively support the transition to net zero. Through CESAP, the Green Jobs Workforce Academy administered by Skills Development Scotland, launched on the 23 August to help workers identify and access relevant green jobs and training.

In addition, the National Transition Training Fund is supporting a number of work-based training opportunities/funding streams to support net zero, including:

• Training support for those businesses receiving Green Jobs Fund grants to enable necessary workforce upskilling;
• Support for a range of projects being delivered as part of the Green Skills Workforce Academy, including awareness for SMEs and work placements through Naturescot;
• Funding for the delivery of Passivhaus design and insulation through the Construction Scotland Innovation Centre;
• Energy Skills Partnership delivery through colleges of courses to support net zero including heat pump fitting.

Regulations made using Covid-19 legislation must be reviewed at least every 21 days by Scottish Ministers. This review process ensures that the measures they provide continue to be necessary and proportionate.

Any new or revised regulations are set out to the Scottish Parliament in plenary and are considered by the Parliament's Delegated Powers and Law Reform Committee and the Covid-19 Committee Recovery Committee.

Regulations made under Covid-19 legislation are considered through the Four Harms approach which draws on evidence and analysis to assess both current and future direct and indirect health impacts and the social and economic impacts of the pandemic and of proposed regulations. This approach is underpinned by Scotland’s Strategic Framework which sets out our approach to managing the pandemic.

Scottish Ministers also produce a report to Parliament every two months with regard to the status and operation of the Scottish and UK Coronavirus Acts – confirming that they have undertaken a review of whether the provisions continue to be necessary and proportionate.

The costs associated with The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2021, which we withdrew in February 2021, are set out in the draft Business and Regulatory Impact Assessment published in December 2020.

The costs associated with The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 are set out in our updated Business and Regulatory Impact Assessment which we published in November 2021.

Economic impact studies by BiGGAR Economics for Airbnb, and Frontline Consultants for the Association of Scotland's Self-caterers are discussed in Section G of our Business and Regulatory Impact Assessment which we published in November 2021.

All decisions made in the development of measures under the Covid-19 emergency powers have included careful assessment of the necessity and potential impacts of the powers and their compatibility with the Convention rights set out in the Human Rights Act 1998.

Appropriate impact assessments are carried out as part of this process and are reported to the Scottish Parliament.

The Scottish Government continues to closely monitor the impact of Brexit on businesses, jobs and the wider economy.

The latest Business Impact and Conditions (BICS) survey for December shows that Brexit is having a visible impact on Scottish businesses, with 49% of all manufacturing businesses reporting higher costs due to increased paperwork and 57% facing higher transportation costs.

Early trade statistics indicate that Scottish trade with the EU in 2021 was 24% lower compared to 2019 levels. New customs regulations from the 1st January 2021 are likely to further increase barriers for Scottish businesses importing from the EU.

The latest BICS survey also indicates that Brexit has exacerbated the current labour market shortages as Scottish businesses struggle to hire workers from the EU. In manufacturing and the accommodation and food sectors around 25% of businesses with unfilled vacancies cite a reduced number of EU applicants as a cause of difficulties in hiring.

In the long run, forecasts by the Office of Budgetary Responsibility indicate that Brexit will be more detrimental to the UK’s productivity than the pandemic, causing an estimated 4% fall in productivity compared to 2% for the pandemic.

The Scottish Government is committed to working with local authorities, including by funding in key areas for public sector climate action through a mix of competitive and other funding programmes. Inviting bids from local authorities enables us to identify relevant projects, and to offer access to financial and other support tolocal authorities working in these areas . Combined, our funds represent a comprehensive package of support for local authority climate action.

Some examples of our strong climate funding offer to local authorities include: non-competitive funding for investment in electric vehicle charging infrastructure and decarbonisation of public sector fleets to all of Scotland's local authorities, with over £65 million of funding awarded over the last decade, competitive funds like the £200 million Green Growth Accelerator programme, an outcomes-based funding model for local authorities, and our Switched on Towns and Cities Programme, which has awarded over £14 million of funding to five projects (/local authorities) to support decarbonisation of transport.

We strongly support the Scottish Parliament’s Net Zero, Energy and Transport Committee’s ongoing Inquiry into the Role of Local Government and its Cross-Sectoral Partners in Financing and Delivering a Net- Zero Scotland. The findings of the inquiry will be a valuable contribution to how we can further develop our relationship with and support towards local governments.

The Scottish Government continues to support public sector leadership on the climate emergency through ongoing engagement with key bodies such as the Sustainable Scotland Network, Scottish Leaders Forum, Environment and Economy Leadership Group and the Scottish Cities Alliance. Such engagement allows the Scottish Government to discuss the sector priorities and challenges in achieving our shared net zero ambitions, implementing the updated Climate Change Plan and any support needed for the reduction of carbon emissions across all 32 of Scotland’s local authorities.

Since 2015-16, around 180 listed Scottish public bodies, including all local authorities, have been required to report annually on compliance with their statutory climate change duties. The Scottish Government funds the Sustainable Scotland Network (SSN) to produce an annual analysis of the submitted reports, which shows progress on emissions reduction. This includes analysis of progress across a number of areas of public sector climate action, including on transport fuel, electricity and waste reduction. Reported emissions from the public sector continue to decrease, with Scope 1 and Scope 2 emissions down 28.5% since mandatory reporting began in 2015-16.

The Scottish Government regularly engages with local authorities and the wider public sector, including through COSLA and the Sustainable Scotland Network (SSN), where current opportunities and challenges within local authority climate action are frequently discussed. Scottish Government officials also engage with the Improvement Service on the capacity needs of local authorities in delivering net zero.

Since 2015-16, around 180 listed Scottish public bodies have been required to report annually on compliance with their statutory climate change duties. To assess progress on emissions reduction, the Scottish Government funds SSN to produce an annual analysis of the submitted reports. New regulations, which came into force on 9 November 2020, require Scottish public bodies from November 2022 to report, where applicable, how they will aligns spending plans and use of resources to contribute to delivering their emissions reduction targets.