As Scotland transitions towards a low-carbon economy, transition finance has a critical role to play in helping businesses diversify, invest in new technologies and support high-quality jobs and thriving communities.
The UK impact investing market is now worth £76.8 billion (2023), growing at over 10% annually and representing around 8% of the global market. For Scotland, this is a pivotal moment, with the scale of capital now available creating a real opportunity to accelerate the region’s transition.
Transition finance, as understood for this event, refers to the provision of capital that supports a company’s shift from a carbon-intensive industry to a cleaner, more sustainable one. It enables legacy businesses — such as those in Scotland’s oil and gas supply chain — to diversify and invest in renewables, carbon capture, hydrogen and other low-carbon solutions. For Scotland, this is not only about reducing carbon, but also about ensuring a just transition: reindustrialisation and thriving communities.
Against this backdrop, the Scottish National Investment Bank, the Impact Investing Institute, E-FWD powered by Energy Voice and Invest Aberdeen convened investors, industry leaders and strategic stakeholders from across Scotland’s energy and finance ecosystem to explore the role of impact investing in transition finance and how capital can support businesses through the shift to a more sustainable economy.
About the event
Held in Aberdeen on the eve of Offshore Europe, the event brought together over 50 investors, industry leaders and strategic stakeholders from across Scotland’s energy and finance ecosystem. The workshop explored the role of impact investing in transition finance and the barriers limiting investment and the opportunities for Scotland to lead in this space.
Five key insights emerged from the discussion:
- Catalytic capital is scarce — strong demand exists for early-stage and first-of-a-kind financing, but patient, risk-tolerant capital remains limited.
- Disconnect with Scottish supply chains — many local ventures remain excluded from mainstream finance despite their technical expertise and strategic role in the transition, often reflecting investor caution toward firms still serving high-emitting sectors. Bridging this gap is essential to build an investable pipeline.
- Impact must be holistic — transition finance should not only cut carbon, but also deliver positive outcomes for workers, communities and places, ensuring no region is left behind.
- Policy uncertainty constrains investment — shifting taxation, transmission charges and polarised Net Zero debates undermine investor confidence. Stability and predictability are essential for long-term capital flows.
- Proof points build momentum — examples like North Star show how catalytic investment can de-risk strategies, crowd in private finance and create jobs. More credible transition plans are needed across the market.
These insights informed the recommendations set out in the readout, covering opportunities for Scotland’s energy transition and the actions to mobilise investment at scale.
Event readout
Download the event readout to explore the insights and recommendations in more detail.
Continuing the conversation
This event formed part of Accelerating Scotland’s impact investing ecosystem, a three-part event series co-designed by the Scottish National Investment Bank and the Impact Investing Institute and aligned to the Bank’s missions of Net Zero, Place and Innovation.
Organisations interested in this work are invited to get in touch with Aisling McCaffrey.
Project lead
Senior Programme Manager, Just Transition