SCOTLAND is up for a £22 billion boost to its economy in its drive to meet net zero, a new report has found.
Ahead of COP27, the Royal Bank of Scotland (RBS) has released its study A Springboard to Sustainable Recovery, which has revealed a potential green economy boom.
The report found that to realise this potential windfall new businesses are needed to retrofit homes across the country as well as service Scotland’s renewable energy infrastructure.
READ MORE: Scotland pledges extra £5m for countries hardest hit by climate change
The largest source of potential revenue for Scottish small and medium-sized enterprises (SMEs) was the renewable energy sector, accounting for over half (53%) of the £22bn total.
However, the study found that to capitalise on the opportunity, the number of SMEs delivering renewable infrastructure will need to more than double (124% increase) by 2030.
Scotland’s buildings sector accounts for 44% of the revenue opportunity that could be realised through improvements to premises such as better insulation and the installation of heat pumps.
However, similar to the renewable electricity sector, current projections show the sector will be required to achieve a 109% growth rate in the number of SMEs in the market by 2030.
The report also stated there was an opportunity for Scottish businesses to access other markets with their low-carbon goods and services, with the investment required to decarbonise Europe in the next ten years around five times that required in the UK.
Commenting, Scottish Greens MSP Mark Ruskell said that hitting environmental targets was not just vital in tackling climate change but "also key to our economic recovery and ensuring a sustainable future that works for people and planet".
He added: "With Greens in government in Scotland we are taking a lot of important steps, with free bus travel for young people and extra investment in recycling, renewables and active travel. But we are being held back by a climate-wrecking Tory government that is committed to fossil fuels and the same disastrous policies that have already brought us to this point.
"With properly targeted investment and with the powers of independence, we can have a green new deal that revitalises and rejuvenates communities that have been hammered by Brexit and the financial chaos of the Tories."
Alison Rose, chief executive officer at the Royal Bank of Scotland, said: “The imperative to tackle climate change – still the biggest single issue facing humanity – is more pressing than ever. But in the context of a turbulent macroeconomic environment, with the prospect of a recession in the UK, and the increase cost of living due to rising prices, SMEs in Scotland face tighter case flows and fears for the future of their business.
“Yet against this backdrop, we find that Scottish SMEs are well placed and pivotal to drive the next decade of decarbonisation in the UK, and to harness growing revenue opportunities. This creates opportunities for business of all shapes and sizes, and at Royal Bank of Scotland we will do everything we can to help Scottish businesses access that opportunity.”
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