In preparing this research, the Commission instructed Riyoko Shibe at the University of Glasgow. Their work has been informed by specialist input from a large number of people from within the Scottish Government and in our wider policy community.
The primary purpose of this research report is to support the Just Transition Commission by informing advice to government regarding the use of conditionalities on access to public support and finance to help achieve a just transition. The report is also intended to support policymakers in understanding different options and approaches to conditionalities. The research arises from the specific context of the situation at Grangemouth following the closure of the refinery in April 2025, in which the topic of conditionalities and the goal of a just transition has been prominent, but has yet to be clearly operationalised.
The report supports an enhanced understanding of the conditionality options that could be applied to the Grangemouth Just Transition Fund. It investigates proposals recommended by the Just Transition Commission and supported by the Scottish Government including commitments such as ensuring fair work for employees, and some level of community investment, with proposals including profit-sharing mechanisms and equity stakes.
The report assesses the current approach to conditionalities in Scotland, how this could be enhanced, and reviews risks and issues. It outlines examples of good practice in Scotland, the UK, and internationally. A toolkit of options is presented that relates to the context of industrial closure, decarbonisation and job losses, and the question of how best to redeploy existing skills. Though primarily related to Grangemouth, the findings are also applicable to the wider economic development of Scotland and the UK as we continue the transition to a low carbon economy.
