KATE Forbes has confirmed that plans for a Scottish Government bond are ongoing and said it could help fund Scotland’s green transition.
Former first minister Humza Yousaf pledged to issue Scottish Government bonds for the first time during the SNP conference in October last year, claiming it would help raise Scotland’s profile and engagement with international investors to attract investment.
Bonds are the standard form of borrowing for governments and support spending including on major infrastructure projects, with buyers owed the value of the bond plus interest over a specific period of time.
The Deputy First Minister said issuing a Scottish bond is a “core part” of recommendations made by the government’s investor panel – which was set up to explore how to attract investment to Scotland and support the net zero transition.
“Obviously, it would be a means of engaging with the international market and potential investors, and that work is ongoing,” she said.
"[But] there's quite a bit of work that needs to be done before you get to actually issuing the bond. And I would certainly make no suggestion that it could ever have been done next week.”
When asked whether the Scottish Government bond could be a so-called “green bond,” meaning it would only raise money for climate and environmental projects, Kate Forbes told The National:
“It could be. That is something that we would work on. And, actually, considering where the opportunities are for Scotland, it is highly likely that nearly all the economic work we’re going to be doing is green.”
The Deputy First Minister was speaking during a visit to Flowcopter, a Midlothian company building heavy-lift drones which can be used by the wind farm industry.
The visit was part of the Government’s launch of its Green Industrial Strategy on Wednesday.
Delivered as part of the Programme for Government, it sets out five priority areas where efforts and resources will be concentrated with the goal of putting Scotland at the forefront of the net zero economy, including:
- Maximising Scotland’s wind economy
- Growing the hydrogen sector
- Developing the carbon capture, utilisation and storage sector
- Supporting green economy professional and financial services
- Attracting clean energy intensive industries such as datacentres
The Scottish Government also announced it will be hosting a wind investment forum next spring, working with the sector to develop hubs of hydrogen production and demand and working with public and private partners to drive investment in key projects.
