Scotland faces the risk of being “bankrupt” if it fails to act urgently on climate change, according to a new report from the Royal Scottish Geographical Society (RSGS) set for release next week. The report’s stark warnings, previewed in an exclusive by The Herald, highlight the escalating economic and social costs of inaction, and call for a fundamental shift in the nation’s approach to climate adaptation and mitigation.
The RSGS report concludes that Scotland’s current trajectory could lead to financial ruin as climate impacts intensify. According to the exclusive in The Herald, the report states:
“If we do not act now, the costs of climate change will not just be environmental or social—they will be economic, and could leave Scotland effectively bankrupt.” (The Herald, as quoted in today’s report)
The report details how climate-related damages — ranging from flooding and coastal erosion to agricultural losses and infrastructure repair and the recent wildfires in Galloway — are already placing immense strain on public finances. Without decisive intervention, these costs are projected to escalate rapidly, overwhelming both local and national budgets.
The RSGS analysis draws on a combination of economic modelling, climate science, and case studies of recent extreme weather events in Scotland. The report highlights several key factors driving the risk of “bankruptcy”:
- Escalating Infrastructure Costs: The report notes that “the cost of repairing and upgrading Scotland’s infrastructure to withstand more frequent storms and flooding is rising exponentially”
- Agricultural and Economic Disruption: It warns that “Scotland’s agricultural sector is already seeing yields fall and costs rise due to unpredictable weather, threatening food security and rural livelihoods”
- Strain on Public Services: The RSGS finds that “public services are being stretched to breaking point by the need to respond to climate emergencies, diverting resources from other critical areas”
The RSGS report urges Scottish policymakers to treat climate adaptation and mitigation as a top economic priority. It calls for:
- Major investment in resilient infrastructure
- Accelerated transition to renewable energy
- Comprehensive support for affected communities and sectors
As the report’s authors warn:
“The choice is not between action and inaction, but between investing now or paying a much higher price later. The longer we delay, the greater the risk that Scotland’s finances—and its future—will be irreparably damaged.”
The RSGS report’s findings are expected to intensify pressure on the Scottish Government to accelerate its climate response and prioritise resilience in all areas of public policy.
