The Scottish Government has announced a landmark investment of more than £5 billion for climate action and renewable energy in its draft 2026-27 Budget.

Climate Action and Energy Secretary Gillian Martin confirmed the record funding, which is aimed at tackling the twin crises of climate change and biodiversity loss while creating green jobs across the country.

A significant portion of the package — £2.9 billion — consists of capital funding, representing 41% of the government's total capital budget for the coming year. The investment is designed to accelerate Scotland's progress toward net zero by 2045, with a focus on enhancing community resilience and protecting natural habitats.

The funding allocation includes specific measures to:

• Expand the renewable energy sector to ensure a fair transition and new employment.

• Deliver energy-efficient, affordable housing to reduce bills and combat fuel poverty.

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• Support sustainable public and active travel projects for shorter journeys.

Speaking ahead of the Scottish Renewables Offshore Wind Conference in Glasgow, Gillian Martin TD said: "This draft Budget for the next year demonstrates the Scottish Government's continued commitment to achieving net zero by 2045 and tackling the twin crises of climate change and biodiversity loss. Done correctly, the transition to net zero can help to tackle poverty, restore nature, and improve health and well-being all while offering significant economic opportunities.

"Our record investment of more than £5 billion will help reduce household energy costs, support green jobs, restore nature and build healthy and resilient communities through the efforts set out in our draft Climate Change Plan. Offshore wind will be a major part of delivering on our climate ambitions and represents a huge economic opportunity for all of Scotland, delivering jobs and attracting major investment across the country."

The draft 2026-27 Budget also outlines several targeted spending streams:

• Heat in Buildings: Over £335 million to help homes and businesses transition to low-carbon heating.

• Sustainable Travel: £316 million for walking, wheeling, and cycling initiatives.

• Nature and Forestry: Over £90 million combined for nature restoration, woodland creation, and peatland recovery.

• Community Action: £22 million for domestic climate change initiatives, including the national network of Community Climate Action Hubs.

• Global Climate Justice: £12 million to support vulnerable communities in the Global South.

Ms Martin is expected to confirm additional sector-specific investments during the conference, further solidifying Scotland's position as a leader in offshore wind development.