Climate Action and Energy Secretary Gillian Martin has unveiled the latest round of the Just Transition Fund (JTF), making up to £17 million available to drive green job creation and support the energy shift in the North East and Moray.

Since its inception in 2022, the JTF has already injected more than £85 million into 28 projects, bolstering sectors such as offshore wind and carbon capture.

This year's allocation introduces significant structural changes based on advice from the Just Transition Commission. For the first time, community organisations and social enterprises are eligible for a guaranteed share of the fund. The 2026/27 breakdown includes:

• £4 million for Communities & Social Enterprises: Comprising £3 million in capital and £1 million in resource funding, including "Participatory Budgeting" which allows residents to vote directly on how funds are spent.

• £10 million for Large-Scale Commercial Projects: Targeting jobs, skills, and economic transition with a minimum project value of £500,000.

-- Advertisement --

• £3 million for SME Diversification: Specifically for oil and gas supply chain businesses transitioning into low-carbon markets via the ETZ Supply Chain Challenge Fund.

• New Development Grants: Small grants designed to help groups scale up emerging ideas and build the capacity needed to apply for larger future projects.

The announcement was made during a visit to Verlume Ltd, a subsea battery specialist that previously received £2.5 million from the fund. Verlume is currently using the investment to deliver a prototype of the world's first subsea grid-forming battery system, a project that redeploys oil and gas expertise directly into renewable energy.

Gillian Martin said: "For the first time, community groups and social enterprises will be guaranteed support for larger projects. We're also helping communities get ready for future funding by offering development grants. This means we can offer wider support to local organisations while creating new jobs and fresh opportunities for people across the North East."

Richard Knox, CEO of Verlume, highlighted the industrial impact: "The Fund has helped secure and create high-value jobs while allowing us to extensively utilise Scottish suppliers across fabrication, engineering and specialist services, ensuring that the economic value of this project is distributed across the North East Scotland supply chain."

Professor Tavis Potts and Professor John Bone of the University of Aberdeen Just Transition Lab welcomed the shift toward community-centric funding, noting: "The ringfenced funding for community and social enterprise projects, including capital and resource costs, is a major improvement and addresses a key shortcoming in previous rounds."