SNP ministers have shifted tact from “funding to financing” green policies by learning more heaving on private sector cash to ensure Scotland meets its net zero targets.

This week, Finance Secretary Kate Forbes outlined indicative spending plans for the remainder of the parliamentary term, with a focus on increased funding for health and social security.

Net Zero Strategy Michael Matheson said on Friday the Government face a “challenging” fiscal situation due to rising inflation and energy prices increasing the cost of living, adding that they will “redouble our focus on efficiency, structural change and collaboration”.

The push for net zero was also given a funding increase, from £1.6 billion to almost £2.1 billion by the end of the parliament in 2026.

But the review said the Scottish Government would move from a public funding model to one that is reliant more on private investment.

In April, Nicola Sturgeon told The Herald that she has appealed to financial institutions in the City of London to help play a part in funding the key Scottish Government policy.

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In their resource spending review, Scottish Government officials said: “To harness this investment effectively and maximise the impact of collective action to address the climate crisis, activity to move from a funding to financing policy model will be scaled up to ensure that future climate change policy leverages private sector investment and action, better amplifying the impact of public investment.”

The blueprint insists that the strategy is “a shared responsibility” across all parts of the public sector.

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It adds: “To deliver on our future plans in a greener and fairer way will require action and investment from all parts of government, but government cannot and should not do everything on its own.

“As part of the spending review, we have completed a significant amount of internal and external engagement.

"Going forward, active collaboration and partnership with national and regional partners across the private, public and third sectors will be crucial for realising Scotland’s ambitions to become a wellbeing economy - thriving across economic, social and environmental outcomes.”

The review also pledges cash for low carbon heating, woodland creation, active travel and peatland restoration, along with funding for a just transition.

Mr Matheson said: “This spending review comes at a critical point in the global challenge to address the climate crisis.

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“Tangible global action is becoming ever more urgent, and Scotland is committed to playing its part with some of the most ambitious, legally-binding targets in the world.

“That is why our future spending plans prioritise investment in the package of measures to tackle climate change and deliver a just transition – as set out in our updated climate change plan.”

He added: “But, as the Finance Secretary set out earlier this week, the challenging fiscal environment in the coming years means we must redouble our focus on efficiency, structural change and collaboration.

“That is why I am committed to ensuring we maximise every penny of public investment, working collaboratively with the private sector and our communities to accelerate delivery of public policies that will reduce emissions, build resilience to the impacts which are locked in, tackle biodiversity loss and help to create a fairer, greener society.”

The Scottish Government has already sought to harness private investment in green energy, with the ScotWind leasing round allowing major firms to build offshore wind farms off the coast, raising £700 million for the public purse with ministers claiming up to £25 billion in benefits could be seen in the Scottish supply chain.