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Policy

Energy efficiency

Directorate
Energy and Climate Change Directorate
Part of
Energy, Environment and climate change, Housing
Policy actions  7 of 7

Scottish Industrial Energy Transformation Fund (SIETF)

Background

In October 2018, UK Government announced plans, as part of the Industrial Strategy, to establish an Industrial Energy Transformation Fund providing up to £315 million until at least 2024. This is part of a package of support for decarbonising energy-intensive industries (EII) alongside the Industrial Clusters Mission, and Climate Change Agreements.

In spring 2020, Scottish Ministers opted to deliver a separate IETF in Scotland over a similar timeframe. In September 2020, the Programme for Government announced that £34 million would be made available for capital projects over the next 5 years, an additional £8 million to the budget transfer from UK Government.

The importance of shared objectives to meet climate change targets will ensure that we work closely with other UK administrations on the SIETF. Yet a distinct fund allows flexibility towards the specific characteristics of Scotland’s industrial manufacturing base, supporting industry to go further and faster in the transition to a low carbon future.

About the SIETF

As well as an environmental necessity, industrial decarbonisation is an economic opportunity – to grow our existing energy intensive sectors and to attract the manufacturing industries of the future. However, engagement with industry leaders has shown that there are significant barriers to attracting the necessary investment – particularly long payback periods – whilst sites must remain internationally competitive.

Via match-funding, the SIETF  incentivises investment in existing sectors, building on their considerable strengths. SIETF-supported projects demonstrate government and industry are taking steps together to deliver against climate change plan targets by co-investing to decarbonise the industrial sites that local jobs and communities depend upon. Technological investment will also support inclusive growth, aligned to the global Sustainable Development Goals.

See case studies of projects funded to date.

For industrial sites in England, Wales and Northern Ireland, refer to the Industrial Energy Transformation Fund managed by the UK Government.

Next steps

Our September 2023 Programme for Government reiterates our commitment to work with industry to accelerate decarbonisation and create energy transition opportunities via the SIETF, and we welcome the UK Government’s decision to grow IETF by £185m.

The SIETF programme is under review and is not currently accepting applications prior to Scottish Ministers decision on extending the fund.

Closed invitations

The third call for projects for the Scottish Industrial Energy Transformation fund (archive link) closed in November 2022. The second call for projects of the Scottish Industrial Energy Transformation Fund 2021 has also now closed and can be viewed in the archive.

Scottish Industrial Energy Transformation Fund 2020 competitions can also be viewed in the archive:

Contact

Please email enquiries to SIETF@gov.scot.

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