Chamber and committees

I understand. I see that the British Business Bank publishes a rate of return to demonstrate the taxpayers’ return on investment, with a targeted return on average capital employed of more than 2 per cent. Does your bank plan to do likewise?

Eilidh Mactaggart spoke about the policy decision not to invest in oil and gas. A huge amount of research and innovation is going on in the oil and gas sector in relation to the transition to renewables and reducing emissions, which seems to be on point with what the bank is all about. Might a policy of refusing to consider anything that relates to oil and gas have unintended consequences?

I will ask a few straight questions on the finances, because it is not my area of expertise at all.

The Scottish Parliament information centre briefing estimates that the set-up and operating costs between 2018 and 2023 will be £49.9 million. However, that was before Covid. What are the current estimated costs to fully establish the bank? What do you project to be the annual operating costs going forward? When is the bank expected to meet the operating costs from its revenue income?

My question is for Scottish Enterprise and is perhaps for Ewan Mearns. The north-east is going through a transitional time; The Press and Journal reported yesterday that Aberdeen is facing a

“challenge not like anything in its history”,

partly because of the energy transition and the oil and gas downturn. There are people who say that the north-east needs a dedicated enterprise agency that would focus solely on the needs of the north-east. What does Scottish Enterprise think about that proposition?

That would be great. I just really want to know whether £49.9 million is still the salient figure. To follow that up, obviously, there is a significant cost to the taxpayer. Is there any concern about a duplication of cost to the taxpayer, given that other agencies are involved in the area, as we heard about earlier this morning?

Good morning, Mr Sharma. You mentioned the nationally determined contributions and the need to mobilise international financial support to assist developing countries to make those NDCs following COP26. Regardless of whether the amount ultimately agreed is $100 billion or otherwise, how will that financial support be administered, allocated and shared with the countries that are most in need of support to achieve their targets?

Sticking with financing, my second question is about the UK Government’s financing to reach climate change targets. The Climate Change Committee has estimated that an extra £50 billion a year of capital expenditure will be needed from 2030. Does the UK Government take any view on whether that estimate is reasonable? In any event, will you help us understand how that will be financed?

Yes. It is a reference to the report from the Climate Change Committee.

Thank you for that full—and, to be honest, fascinating—answer.

Finally, on a slightly different topic and picking up on something that the director general mentioned earlier, the UK is the first G7 country to agree the North Sea transition deal, which I think is worth between £16 billion and £18 billion of leveraged private investment to support the oil and gas industry’s transition to clean and green energy as well as supporting jobs. As part of the deal, the sector has committed to cutting emissions by about 50 per cent by 2030 and the Government, the sector and the unions are going to work together on delivering the skills, innovation and infrastructure that will be needed to decarbonise North Sea production. The question, therefore, is: will COP26 have any impact on the transition deal or does it remain as is?

Last week, the committee discussed the just transition. We heard concerns that plans may not yet be sufficiently developed. You alluded to the announcement of £500 million over 10 years for a just transition fund, but we do not have any detail about that yet. What is the timescale for us to have details of the just transition plan and fund? When can we expect concrete plans to be in place? I presume that, until those plans are in place, the Scottish Government will not take decisions that would jeopardise jobs in the sector.