The 2022-23 budget provides more than £2 billion for measures that will accelerate a just transition to a Scotland which leads the way in ending climate change.

That includes £53 million to protect and restore the natural environment, including peatlands, and a further £69.5m to create and sustain woodlands and a further £336m invested in energy efficiency and low carbon and renewable heat to deliver warmer, greener homes.

This includes £160m of funding to support those least able to pay for home energy improvements, helping to cut emissions while tackling a major driver of fuel poverty and creating jobs across the country.

The Scottish Government also announced an investment of £53m for the energy transition and industrial decarbonisation projects while the first £20m allocation of the Just Transition Fund for the North East and Moray will be made – with impacted workers playing a key role in deciding how the funds are spent.

Almost £1.4bn will be spent to maintain, improve and decarbonise Scotland’s rail network. Free bus travel for young people will receive £110m, and £150m will be invested in active travel, such as walking and cycling. This will support efforts to cut car kilometres by 20% by 2030.

Michael Matheson, cabinet secretary for net-zero, energy and transport, said: “We are playing our part in tackling the global climate emergency head on. This budget carries forward the momentum created by COP26, with record investment in transforming Scotland into a net zero, climate resilient nation.

“We are prioritising investment in the natural environment, including our vital woodlands and peatlands. This is not just good for the planet, it will also support local jobs in the rural economy.

“We are also taking action to make our homes warmer and greener to help reduce emissions, while tackling fuel poverty and creating green jobs.”

He added: “The transition to net zero has to be made in a way that is fair and just, with no one left behind. Our Just Transition Fund will give communities impacted by the transition a real say in their future, and create new economic opportunities in which they can thrive.

“We have set a challenge of reducing the number of kilometres travelled by car in Scotland by 20% by 2030. Achieving this will require a big modal shift in how people travel and a greener, decarbonised public transport network as an attractive alternative.

“That’s why we are prioritising transport spending on public transport and active travel. By investing almost £1.4bn in 2022-23 to maintain, improve and decarbonise Scotland’s rail network and providing record investment for walking, wheeling and cycling of £150m next year.

“Bus services and users will benefit from £414m, which includes £110m for free concessionary bus travel for young people aged under 22, helping to establish and embed positive sustainable travel habits among our younger generations.”