Scotland’s Just Transition won’t happen without philanthropy – here’s why

Scotland stands at a pivotal moment in its transition to a low‑carbon future. The country’s natural resources, engineering heritage and ambitious climate targets place it in a strong position to lead globally on renewable energy. Scotland has already reduced emissions by 51.3% from 1990 to 2023, the largest reduction of any UK nation, according to official statistics.

Yet our nation’s climate journey cannot simply be about turning the dial down on our carbon emissions. To achieve real, generational change, we need to ask ourselves big questions – who benefits, who participates and who gets to imagine what comes next? Green philanthropy -when used effectively – could ensure these questions are answered.

Across rural Scotland, the renewable sector has already begun to have an impact. Over the last 20 years community benefit funds from renewable projects have become a valuable, even critical, source of independent funding into some of Scotland’s communities. Community benefit donations for distribution through Foundation Scotland and with communities at the heart of decision making, totalled over £13,000,000 in 2025/26. These funds, when well‑designed and locally governed, offer more than a financial dividend. They are enabling communities to build more homes, deliver critical services, repurpose neglected assets and build new ones, restore nature, provide training and employment opportunities, operate community businesses, celebrate heritage and culture, invest in their young people… the list goes on.

But what about Scotland’s cities? According to governmental statistics, around four‑fifths of Scotland’s population lives in urban areas. And large settlements – particularly Glasgow and Aberdeen – carry the weight of industrial histories that shaped not only local identities but the national economy. As the age of fossil‑fuel recedes, these cities face a dilemma in trying to balance regeneration with the industries that once defined them.

Urban regeneration and the just transition do not necessarily go hand in hand. Ownership of land and buildings is often divided up across landlords, local authorities and corporate developers. Competing priorities – housing, tourism, heritage, net zero targets – can create a bureaucratic load that slows progress. We know that the climate emergency is already here and that quick and effective solutions need to be found. And what’s more, residents in these areas may have strong views for their neighbourhoods but lack the resources to bring them to life. This is where philanthropy can play a unique role.

There are already some fantastic, community led examples of sustainable urban regeneration in Scotland. In Edinburgh, Granton Project CIC, a well‑known Edinburgh market and events space, has regenerated the area around Granton Gasworks, using part of the former industrial area to become a street‑food market, events space, and cultural hub, contributing to the wider regeneration of the post-industrial Waterfront area. A blended model of funding through social investment, grants and private capital has enabled this transformation to take place. In Dundee, the V&A Dundee waterfront regeneration has been supported by private philanthropists, the local council and Scottish Government to create a new arts venue and green space for locals and visitors alike. These developments have shown that the just transition is not only about decarbonisation – it is about redefining what makes a city liveable, resilient and distinctive.

Philanthropy cannot replace public investment, nor should it attempt to. But it can act as a flexible, risk‑taking partner in the just transition. Unlike statutory funding, philanthropic money is not bound by electoral cycles or rigid programme criteria. It can move quickly, support experimentation and back ideas that fall outside conventional funding streams. It can help convene partners – residents, local authorities, renewable‑energy companies, designers, engineers, artists – and create the conditions for collaboration.

Crucially, philanthropy can help amplify the voices of civil society. Community organisations often have the deepest understanding of local needs and aspirations. They know which buildings matter, which green spaces are underused, which groups feel excluded and which ideas have genuine grassroots support. But they may lack the capacity to navigate complex planning systems or to secure early‑stage funding that can turn a concept into a viable project. Philanthropic support – whether through grants, technical assistance or convening power – can help bridge that gap.

Scotland and its third sector have an opportunity to lead by example. The country’s renewable‑energy sector is growing and Scotland is expected to more than double its renewable generation capacity by 2030, largely due to offshore wind expansion. Rural community benefit funds show what is possible when local people have a stake in the green economy. Urban regeneration projects demonstrate that long industrial forgotten assets can be transformed for a greener future. The challenge now is to connect these threads to ensure that every community, whether rural or urban, feels part of the transition and sees real benefits from it. Green philanthropy is not the whole solution, but it is a vital piece of the puzzle. Community foundations, charities and community interest companies can help ensure that the just transition is not something done to communities but something shaped with them.