A major new green finance initiative aiming to mobilise up to £40 billion annually for net zero projects across Scotland has been officially launched.
Transition Finance Scotland (TFS), created in partnership with the Green Finance Institute (GFI), is set to be formally unveiled in Edinburgh on 19 June. The initiative brings together more than 40 organisations from across the financial, energy and public sectors to drive investment into critical decarbonisation efforts such as renewable energy, sustainable infrastructure and carbon capture.
The goal of TFS is to unlock barriers to investment by leveraging public sector capital to stimulate significantly greater private funding into the transition economy. It will focus on building sector-specific coalitions, identifying funding gaps, and developing innovative financial instruments to accelerate Scotland’s shift to net zero.
TFS will also work closely with both the Scottish and UK governments, as well as public finance bodies like GB Energy and the Scottish National Investment Bank, to support businesses and projects in attracting long-term capital.
Graeme Jones, former chief executive of Scottish Financial Enterprise and chair of the new organisation, said:
“Transition Finance Scotland brings together two of Scotland’s most valuable sectors – energy and finance – to help deliver significant new investment in net zero projects.
The scale of the challenge is significant, but so is the opportunity – not only to help accelerate the energy transition, but also to create jobs and economic growth across Scotland.”
The initiative has been developed on a pro bono basis by Edinburgh consultancy Alba Partners, alongside law firm Pinsent Masons, and will build on the GFI’s existing expertise in policy design, structured finance, and green project delivery.
Rhian-Mari Thomas OBE, chief executive of the Green Finance Institute, added:
“Scotland is uniquely positioned as a key player in the transition, with world-class financial services alongside legacy energy infrastructure and renewables.
We look forward to deploying our expertise and approach, partnering with key Scottish and global investors to unlock private capital at scale.”
By supporting projects in sectors such as offshore wind, sustainable construction, and climate tech, TFS hopes to create a pipeline of investable opportunities capable of delivering both environmental impact and economic return.
The move comes amid growing urgency for governments to scale climate finance and harness private sector involvement to meet ambitious carbon reduction targets, with Scotland aiming to become net zero by 2045.
