For longer than half a century Scotland’s natural resources have been central to the UK’s energy and its wider economy, from coal mines in communities across the country to the 1970s discovery of oil in the North Sea. Today, as we face a global transition towards clean energy, the challenge for all political leaders is how to harness the potential of that transition. This is a pivotal moment for our country and our ambition must be to make Scotland a world leader in clean energy – unlocking the vast potential of our climate, geography and expertise, as well as our skilled workforce.
We are blessed with remarkable renewable energy resources – from onshore and offshore wind to tidal, hydroelectric and solar power. Yet, despite all this potential, Scotland has been held back by missed opportunities and a lack of strategic planning.
The SNP government once promised Scotland would become “the Saudi Arabia of renewables”, but instead, almost two decades later, Scotland has been left with an industrial desert. The transition offered by projects like ScotWind has been squandered, with the revenue generated used to fill budget gaps rather than invest in infrastructure.
At a time when other nations have surged ahead, investing in renewable industries and modernising their energy systems, Scotland has been left behind when it should have been leading. Jobs have been lost or gone overseas, energy development has been stifled, and the number of active energy businesses in Scotland is now at a ten-year low. The consequence of 14 years of Conservative government has been stark – like the Tory government of the 1980s, it failed to support industries and stood by while our manufacturing base withered.
But SNP government failure and lack of vision over the past 17 years has also prevented Scotland from fully capitalising on our energy potential, leaving our people without a stake in the massive investments being made.
Last month, I had the privilege of travelling to Stuttgart to meet with EnBW – a clean technology company almost entirely owned by the state of Baden-Württemberg. The story of EnBW is not just a story of business success but one of social and environmental success, too. While other nations have invested in the renewable energy space and been dynamic and innovative in modernising their energy systems, Scotland has missed key opportunities. That’s why we need change and this is the moment we can start to realise our true potential. With the election of a UK Labour government, we are committed to resetting the relationships with Europe and other global partners, encouraging investment into Scotland and the UK.
But we need change in Scotland, too. Scotland must be seen as an attractive place to do business – welcoming investment with open arms, breaking down barriers to growth and providing the long-term certainty investors need. We need a Scottish Labour government that uses its strategic influence and convening power while partnering with businesses. We need to be deal-makers, breaking down obstacles and delivering the speed and certainty required for large-scale investment. We need government, businesses and communities working together to ensure Scotland flourishes.
While we will be campaigning for change in 2026, we are not wasting any time in ensuring a UK Labour government is also playing its full part. GB Energy, our publicly owned energy company headquartered in Aberdeen, represents a fundamental strategic shift in how we approach energy in the UK. For the first time, the government and people of Scotland will have a direct stake in our energy system.
This stake is critical: it means the government has skin in the game, ensuring long-term stability. It also means communities benefit directly. By giving local areas a stake in energy projects, we ensure not just more jobs, lower bills and energy security, but also returns that can be reinvested into vital local services, ensuring that no part of Scotland is left behind.
Partnerships will be at the heart of this transformation. We will work with businesses through co-investment models to attract and direct investment where it is most needed. This will not be about quick, easy wins – it’s about planning for the medium and long term. Major job growth will come not just from building renewable energy projects but from creating and strengthening the supply chains that support them. Investments in infrastructure, like our ports, will be an early priority to position Scotland as a global clean-energy hub. And a Scottish Labour government, if elected in 2026, will ensure that we match our social policy outcomes with our economic and energy strategies. It is not enough to simply increase clean energy generation; we must take bold steps to reduce overall energy consumption across Scotland.
That’s why housing will be a central pillar of our strategy. We need a large-scale programme of retrofitting existing homes to reduce energy usage, making heating them more efficient and affordable for families. At the same time, we will ensure that we have a major programme for new homes built to high environmental standards, cutting down energy use at the source and making homes fit for the future. This approach is not limited to residential buildings. A Scottish Labour government will expand this vision to industrial sites, where we must make it financially viable for businesses to invest in energy-efficient infrastructure. We need to look at how we can provide the necessary support that incentivises companies to modernise their operations in ways that benefit the environment and also their own bottom line.
Scottish Labour will lead this transformation, ensuring that this comprehensive strategy results in shared prosperity across Scotland. We will give communities and individuals a direct stake in the energy they produce, creating a system in which every Scot benefits from the natural resources we are blessed with. We will build an economy that is sustainable, fair and inclusive, planning not just for the immediate future but for the long term, where generations to come will inherit a greener, more prosperous nation.
Through long-term planning and forging partnerships with businesses, we will create a Scotland of opportunity. With Scottish Labour at the helm, we will ensure that the promise of clean energy brings real benefits to every part of the country, from reducing household bills to securing high-quality jobs in growing industries.
The Holyrood elections in 2026 represent a critical moment for Scotland. A Scottish Labour government is committed to delivering the vision of a fairer, brighter and greener Scotland – where everyone, from families to businesses, shares in the opportunities our renewable future offers. We will lead the way in creating a Scotland where no one is left behind and where the benefits of clean energy are felt by all.
This article first appeared in our print Spotlight report on Sustainability, first published on 8 November. Read it here.
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