ETZ Ltd's flagship Supply Chain Pathway and Challenge Fund Programme has created more than 250 green jobs and leveraged millions in private capital, according to a new evaluation.

The assessment by Scottish consultancy Optimat reports that since its 2022 launch the initiative has delivered 267 green jobs and helped more than 50 companies pivot into the low-carbon energy market, with momentum projected to continue in the years ahead.

The programme, led by the not-for-profit ETZ Ltd and backed by the Scottish Government's Just Transition Fund, has unlocked £17 million in private sector investment—more than double the £7.5m in public money allocated in 2022 to run the grant element of the four-year scheme.

Optimat's 10-year outlook indicates the Challenge Fund will generate over 500 additional full-time equivalent posts, taking total green job creation to just under 800, and contribute more than £300m in Gross Value Added to the Scottish economy.

Cabinet Secretary for Climate Action and Energy, Gillian Martin said: "The ETZ Supply Chain Pathway and Challenge Fund is a critical means of supporting energy supply chain companies, especially SMEs, ensuring they have the tools to succeed in an increasingly competitive global market.

"I am delighted at the strong job creation and economic impact emerging from the evaluation. This report is a welcome assessment of the impact of the Just Transition Fund, and a strong case study of the benefits of public and private partnership more broadly.

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"Our ongoing support for the Challenge Fund will allow us to deliver more jobs and help our companies diversify and compete, ensuring the full potential of this investment is realised."

The findings coincide with the finalisation of the latest round of awards for the 2025–26 Challenge Fund cohort.

To build on the programme's success, the Scottish Government has committed an additional £3m through the Just Transition Fund to support high-growth potential firms across North East Scotland's energy sector.

The enhanced fund offers grants from £50,000 to £500,000 to accelerate innovation and speed market entry, while backing business growth and safeguarding and creating jobs across both emerging and established low-carbon industries.

Eligible projects include new technology development, industrial facility build-out, investment in manufacturing capability and automation, equipment installation, and upgrades to existing infrastructure, including digital systems.

The fund is primarily targeted at SMEs in Aberdeen City, Aberdeenshire and Moray that currently serve the energy supply chain and want to diversify into new or existing commercial opportunities within the low-carbon sector.

Maggie McGinlay, Chief Executive of ETZ Ltd, said: "This evaluation is evidence not just of the success of ETZ's Supply Chain Pathway and Challenge Fund Programme, but more crucially of the level of ambition and entrepreneurship that exists within businesses in the energy sector who are looking to transition into low carbon opportunities.

"The figures underscore just how powerful public money can be in unlocking long-term private sector investment; it is industry collaboration like this that will be so vital to delivering a just transition.

"By supporting innovation and strengthening supply chain capability, we are not only accelerating business growth in the North East energy sector but also generating meaningful economic returns across Scotland".

Steven Simpson, Managing Director, Safelift, said: "The support from the ETZ Challenge Fund has been crucial for us. It wasn't just about the capital to build a new first-class fabrication facility; it was also the catalyst that accelerated our offering into the renewables marketplace.

"Because of this investment we've been able to move at a far greater pace, already landing our largest project to date for a major European offshore wind farm, a massive boost for our team. We've improved our procedures, upgraded our workspace, and most importantly, we're bringing in new talent and apprentices to build a future.

"This funding has essentially helped further anchor us in the North East of Scotland. It gives us the confidence to shout about our global ambitions while staying hugely committed to our local supply chain and the community that supports us."