The £500m 10-year fund aims to speed up the energy transition in Aberdeen and the North East. Projects supported by the fund include skill passports for offshore energy workers, supply chain development, emerging technologies promotion, and investment in community projects like ecovillages and local climate assemblies.

The Scottish National Investment Bank (SNIB) will use the new funding to attract further private investment for energy transition projects in the region.

First Minister Humza Yousaf visited Aberdeen South Harbour to witness the progress of a £400m expansion project that will aid the North Sea Just Transition.

He said: “Delivering on our climate obligations is an absolute priority for this government — but so too is our unwavering commitment to ensuring the journey to net zero is fair and just for everyone.

“Scotland is an energy-rich nation and the oil and gas industry has made a vast contribution to our economy, while its workers are some of the most highly-skilled in the world.

“But Scotland’s oil and gas basin is now a mature resource and, as a responsible government, we must take action to ensure the sector, and the communities it supports, are supported in a transition to cleaner, greener energy system.

Mr Yousaf continued: “The North East has long been known as the oil and gas capital of Europe. It can now become the net zero capital of the world.

“Our draft Energy Strategy and Just Transition Plan sets out a very clear vision to capitalise on the enormous opportunities that a net zero energy system offers the industry, our economy and our climate.

“The Just Transition Fund for the North East and Moray is already helping communities seize these opportunities. By using a portion of the Fund to support the Scottish National Investment Bank, we can leverage further investment in the region to ensure a fair and just transition for the energy sector, and for the people of Scotland.”

The SNIB has already invested £35m in the South Harbour expansion, which will stimulate growth in offshore wind, hydrogen, and decommissioning sectors.

Willie Watt, chair of the Scottish National Investment Bank, said: “Investing in the transition to net zero is a core mission for the bank. Since our launch in November 2020 we have invested over £225m in businesses and projects supporting the move to net zero, and our capital has leveraged in more than £475m from other investors.

“We welcome this additional capital which, like the funds we have invested so far, we will invest on commercial terms and look to leverage additional private sector capital to support of the North East economy.”