Improving the Market Benefits for Lower-Carbon Industrial Production in Scotland

Abstract

This report investigates the potential for demand-side policy interventions to incentivise the decarbonisation of Scotland’s energy-intensive industries (EII). It provides an overview of the evidence relating to the design of demand-side policies to influence EII emissions. The report aims to identify and categorise the products currently manufactured by Scottish EII, understand the size and nature of these markets, summarise the main influences governing buyer decision-making in these markets, and identify relevant and impactful demand-side policy interventions for Scotland.

The report puts forward the following recommendations in order to influence market conditions and create benefits for lower-carbon industrial production in Scotland:

• Introduce basic reporting requirements and encourage voluntary emissions reporting for consumer-facing industries. • Review building regulations to ensure that lower-carbon products are used in construction. • Explore the potential for an incentive-based scoring system in public procurement. • Further investigate consumer behaviour and preferences for lower-carbon products manufactured by Scottish EII. • Influence and coordinate with other governments, particularly in areas where powers are not devolved.