The Just Transition Fund for the North East and Moray will help finance organisations, businesses, communities and individuals to transition to net zero, creating jobs in low carbon industries and contributing to the region’s future prosperity.

This financial year, £20 million will be made available. Of that, £1m will be available to directly fund communities through a participatory budgeting mechanism – which means communities can design and vote on their favourite just transition projects.

It follows extensive engagement across the region with partners including local authorities, private sector, enterprise agencies, trade unions and community organisations to design the Fund and understand how to deliver the most impact.

The 10-year, £500m Just Transition Fund is part of the Bute House Agreement and a Programme for Government commitment for 2021-22.

Richard Lochhead, minister for just transition, employment and fair work, said: “It is vital that, as Scotland transitions its society and economy towards a low-carbon, net zero future, no individual, community or region is left behind. A just transition is about ensuring that this economic transformation is managed fairly for workers in existing industries.

“I have said from the outset that my priority is to listen carefully to the people and sectors most impacted, ensuring our approach to a just transition is co-designed.”

He added: “That is why I am pleased to be announcing the Fund will open following an extensive period of conversation with our partners in the region. It is their input that has helped shape the Fund’s design, with a more innovative approach and a variety of funding streams.

“We will continue this approach as we move from co-design towards co-delivering a just transition.

“I hope there will be a lot of interest in this first year of the Fund and look forward to working together to support and accelerate the energy transition, create good, green jobs, and maximise the North East and Moray’s future economic potential.”