It accounts for more than half of Scotland’s land mass yet only holds under a tenth of the population, but it could also lead the way to Net Zero for the country while creating jobs and wealth for the area.

A new report from the Highlands and Islands Enterprise (HIE) published this week outlines significant economic opportunities that could be created by reducing greenhouse gas emissions in the area.

Entitled ‘Baselining Inventory for Greenhouse Gas Emissions in the Highlands and Islands’, the report provides the first-ever emissions profile for the whole region.

With 2019 being used as the baseline year for the research, due to it being the most recent that excludes impacts from the Covid-19 pandemic, it shows that the Highlands and Islands account for 15 per cent of Scotland’s annual C02 emissions.

However, locals want to see that reduced further to help Scotland reach its Net Zero targets, and bring some improvements to the area in the process.

While emissions in the area declined by 20 per cent between 2005 and 2019, the rate of decline for the whole of Scotland was 33 per cent. The report cites several significant opportunities to address this in ways that will also benefit the region’s economy.

Although the emissions are significantly lower per square kilometre compared to the rest of Scotland, those behind the study want to reduce them further. They say transitioning to more renewable energy is the obvious way to speed this up, but also say the report highlights other key areas.

Improving energy efficiency in domestic and commercial properties, Peatland restoration and afforestation are all highlighted in the report.

It shows that the area has a higher proportion of domestic dwellings in severely exposed locations compared with the rest of the country.

The report proposes improving energy efficiency in those buildings and homes could present a substantial economic opportunity, particularly for the construction sector to retrofit and improve them.

The Highlands and Islands is also home to 76 per cent of Scotland’s peatlands with more than half the land covered by peat and peaty soils. It also hosts around half the country’s woodland and forestry, and the report highlights the potential to extend this, by focusing solely on land with limited agricultural value.

The report illustrates the significant gains that could result from accelerating peatland restoration across the region.

Council Leader for the region Raymond Bremner says focussing on these initiatives would improve job opportunities and feed into the local economy.

He said: "Addressing the climate emergency and advancing towards a net zero economy is central to our vision for the Highlands and Islands.

“The 'Baselining Inventory for Greenhouse Gas Emissions' report provides a crucial emissions profile for our region, highlighting significant economic opportunities in reducing our carbon footprint.

“The findings reveal key areas for action, particularly in agriculture, land use, and renewable energy. By focusing on these sectors, we can drive both environmental and economic benefits, enhancing our role in Scotland's climate strategy.

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“Improving energy efficiency and expanding renewable energy capacity present substantial opportunities for innovation and job creation. Additionally, peatland restoration and afforestation can help us achieve significant carbon sequestration.”

“This report emphasizes the need for a coordinated regional approach. Highland Council is committed to collaborating with HIE and other partners to implement these insights, ensuring our transition to net zero is both just and economically beneficial.

“We look forward to integrating these findings into our plans and taking decisive steps towards a sustainable future for our communities."

The study was commissioned by Highlands and Islands Enterprise (HIE) in collaboration with the Highlands and Islands Regional Economic Partnership (HIREP). The findings will be used to inform policy and actions needed to reduce emissions in line with a just transition to a net zero economy.

The report also outlines several key climate statistics showing the region’s impact on Scotland’s emission output.

With 51 per cent of Scotland’s land mass and around 9 per cent of its population, the Highlands and Islands account for 15% (6,236 ktCO2e) of the country’s 42,469 ktCO2e annual emissions.

Per square kilometre, emissions are significantly lower than nationally (150 tCO2e vs 530) but per capita they’re significantly higher (12.7 tCO2e vs 7.8).

Nearly half (48%) of emissions in the region come from either agriculture (26%) or ‘land use, land use change and forestry’ (LULUCF) (22%). The report stresses that only by reducing these can the region make a substantial shift in its emissions profile.

The Lack of trees and degradation of peatland mean emissions are notably high in some of the island areas, such as Na h-Eileanan Siar and Shetland, where LULUCF makes the greatest contribution to emissions.

In Highland, LULUCF, agriculture and transport are the key emitters, while agriculture is the biggest contributor in Argyll and Bute, and Orkney.

In Moray, industry is the greatest contributor, closely followed by agriculture. However, effective land use and land management is having a positive effect in Argyll and Bute and Moray, where the scale of forestry plantations is counteracting emissions from other sources.

The region accounts for more than half (52% or 6,513MW) of Scotland’s current renewable energy capacity, but this could increase to five times that amount if all activity currently progressing is realised, with new developments continuing to be announced.

While offshore wind is expected to increase to a far greater scale than other technologies, the HIE believes the opportunities presented by peatland restoration, afforestation, and improving energy efficiency are significant and not to be ignored.

Keith Masson, HIE’s head of net zero transition, said: “Tackling the climate emergency and bringing about a just transition to net zero is key to our five-year strategy published last year and to the Highlands and Islands Regional Economic Partnership’s (HIREP) draft Regional Economic Strategy.

“To address the challenges of reducing emissions while capitalising on the associated economic opportunities requires a pan-regional and co-ordinated approach. Our goal is to work with our partners across the region to make sure this happens in a timely fashion.

“We’re delighted to be sharing this extremely useful baseline report. The findings will inform policies around mitigation and adaptation and will support the development of regional and local plans to reduce emissions and grow the economy.”