Chamber and committees

Yes, Ben.

What about policy makers? Is there anything that they could or should be doing to facilitate this?

You have touched on a few bits around this, but is the volume of private capital the type of capital that is willing to invest in the long term? Is it maybe even patient capital? Some of the up-and-coming industries that will support us in the future are still developing and are still years away from reaching a point where they are going to be making the contribution we hope for. Is it the wrong kind of capital that is sitting there waiting?

The Scottish National Investment Bank has three missions that guide investment decisions. Importantly, one of them is about supporting a just transition to net zero. Can you talk me through your approach to the allocation of resources and investment decisions on that? How do you scrutinise a project, and how do you satisfy yourself that it will support a just transition? What is your understanding of “just” in a just transition? David, I will come to you first, or is it Mark?

Derek, what about you?

You have not mentioned the constraints and barriers that would affect your ability to invest and engage. Can you elaborate a little bit on that?

Good morning, and welcome to the eighth meeting in 2023 of the Economy and Fair Work Committee. Apologies have been received from Claire Baker, Maggie Chapman and Colin Smyth.

Our first item of business is the fourth evidence session of our inquiry into a just transition for the Grangemouth area. Today’s session will focus on how innovation and just transition can be supported by partnership working across national bodies. I welcome Derek Shaw, director of innovation and place at Scottish Enterprise. From the Scottish National Investment Bank, I welcome Mark Munro, interim head of investment origination, and David Ritchie, executive director for partnerships and engagement. As always, I ask members and witnesses to keep their questions and answers as concise as possible.

My first question is straightforward. How do the Scottish National Investment Bank and Scottish Enterprise support the decarbonisation of industry in Scotland, particularly in Grangemouth? What constraints and barriers do you face? Derek, please start off on that.

You mentioned carbon capture, which is a hugely expensive and as yet slightly untried technology. What sort of investment are you putting into that?

I also asked about constraints and barriers. Where do you perceive those to be?

One of the discussions that we have had over time around this table has been the definition of a just transition. Your quotation is virtually the Scottish Government’s interpretation of it, which is fine, but how do you, as a bank, define that and make it part of what you are doing? Just transition means different things to different people, as we have found. How do you weave it into your investment decisions?