Invest for the future: set up a Sustainable Wealth Fund

Chapter 4.2.1 Strategic approaches

Invest for the future: set up a Sustainable Wealth Fund

The Scottish and/or UK Government should explore, develop and implement new funds to ensure a share of revenues from the transition to renewables are invested for climate action both in the near – and longer-terms, including examination of proposals for a Sustainable Wealth Fund or Future Generations Fund.

International

UK Govt

Scottish Govt

Local Authorities

Emissions reduction

Behaviour change

The Royal Scottish Geographical Society has suggested the creation of a Sustainable Wealth Fund or Future Generations Fund in Scotland, mirroring the $1trillion+ fund in Norway generated from oil revenues. Tax revenues from renewables could flow into this Scottish fund, and then be used to support climate action now and for future generations.

Fossil fuel heavy industries – oil, aviation, cement, etc – would be challenged to “kick-start” the fund with voluntary contributions in the short term. These contributions could also be generated through one-off or on-going fiscal measures, although there are opportunities to funnel new renewable monies such as those from geothermal licensing, offshore wind and solar farms in order to keep adding to the fund, in the way Norway did with its oil revenues and the UK did not.

The UK Labour Government has launched a National Wealth Fund, aiming to use an initial allocation of £7.3bn of public funding to bring in private investment for clean energy, food security and climate change projects.

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