Harnessing our natural capital is the challenge

Scotland is at a pivotal point in its journey to net zero. Our natural assets are not only central to our identity, but also our prosperity. The country’s natural capital sector supports £40.1 billion of economic output and creates around 260,000 jobs, equivalent to 14.4 per cent of the country’s total output.

Delivering the next wave of economic opportunity depends on how well Scotland connects communities, infrastructure and skills into investable projects that deliver results. It depends on market confidence, clear community benefit models and collaboration between landowners, renewable energy developers, advisers, policymakers, funders, investors and infrastructure organisations. Now is a crucial time to bring decision makers together, share the outcomes of real projects and address the challenges that are holding back progre

Interest in Scotland’s natural capital has grown, particularly as net zero targets become a focus across both the public and private sectors. Peatland restoration, woodland creation and wider carbon markets are firmly on the radar for investors and landowners. However, while the direction of travel is clear, the route to delivery is still evolving.

Our natural assets are not only central to our identity, but also our prosperity, says Chris Kerr

Natural capital is a key element in the sectors that Scotland wants to grow, such as renewable energy, infrastructure, tourism, food and drink, and emerging industries that rely on power and land, assuming those industries can recruit and train the right people. When natural assets are invested in, and cared for, properly, they can attract capital and create high quality jobs across regions.

At the same time, Scotland faces some challenges that could slow progress at the risk of missed investment, delayed projects and communities feeling that change is happening to them rather than with them. What links all of these challenges is the need for clear communication and strong collaboration. The sector is still maturing, and progress will rely on stakeholders learning from each other and building more consistent approaches.

There are various themes shaping Scotland’s natural capital and energy transition agenda.

Investment in place and communities will be central to supporting housing, skills, education and social impact, alongside models for community benefit. The economic benefit here is growth that is locally rooted, where communities can see the value and take part in the delivery.

Natural capital and carbon credits continue to raise ongoing questions around valuation, investment barriers and how natural capital strategies align with land use and estate planning.

Grid and utility infrastructure will play an important role in enabling the energy transition, including the constraints and challenges around delivery at pace.

Notwithstanding some recent high-profile disappointments, offshore wind remains a major economic opportunity, with significant implications for ports, supply chains and regional investment.

The development of data centres is strengthening the link between digital growth, access to power and land and how Scotland positions itself competitively.

Repowering existing wind sites presents an opportunity to increase output, while managing legal complexity and renewed community engagement.

These, and other themes, will be debated at Harper Macleod’s Natural Futures Summit, bringing together industry voices to share insights on what’s next for Scotland’s natural capital economy.

If you are involved in land, energy, infrastructure, investment, policy, advisory services or community development, register your interest now and be part of the conversation shaping Scotland’s

Chris Kerr is lead partner for Highlands, Islands and Moray at Harper Macleod. Find out more about the event at this link.