The drive for net zero cannot be “in isolation from the hydrocarbon sector”, the head of the CBI (Confederation of British Industry) will say today.
Rain Newton-Smith is due to speak at the group’s annual lunch in Edinburgh, alongside First Minister John Swinney, where she will laud the oil and gas industry as “the bridge” to net zero.
But the business boss will also lament government action which has hit the fossil fuels industry.
The speech comes at a time when the idea of net zero is becoming unpopular with the Conservatives and a surging Reform UK – which has made opposing them a key plank of their offering to the public.
“Despite the voices being raised against net zero, the fact is Scotland is sitting on a goldmine of green energy,” Newton-Smith is expected to say.
“The numbers don’t lie. The opportunities are there.
“Since 2022, Scotland’s net-zero sector has grown 20% and created 16,000 more jobs while average UK growth has near-flatlined.
“So, let me be crystal clear. Business is behind net zero. Business is invested in our energy transition. And we’re behind the plans to go further.
“But we can’t see net zero in isolation from the hydrocarbon sector.
“Especially in Scotland. Oil and gas are still tens of thousands of jobs here. From the latest data it still makes up over 10% of Scotland’s GDP.
“It will still be a part of the energy mix and the bridge to net zero, for some time yet. The infrastructure, the investment, the skills and knowledge of these industries will be mission critical for the transition.
“But too often, they have been left out of the picture, hit by repeated tax changes and uncertainty.
“On one hand, we need clear timelines and funding for net-zero commitments government has already made, like the Acorn project for carbon capture in Aberdeenshire.
“But, on the other, we need a holistic view, that includes oil, gas and chemicals – in a just transition.”
The CBI chief will also hit out at UK government plans to reform workers’ rights and call for an industrial strategy for Scotland as she pushes for a “mindset shift” in the UK.
“We must start working together. We must start connecting the dots,” she will say.
“We must start listening to the signals across our economy.
“Well, at the CBI, that’s been pretty much our bread and butter for the last 60 years.
“So to government, Westminster, to Holyrood, to business, to all of you. We are ready to serve now.”
