Delivering the Environment Strategy outcome on Scotland’s economy: evidence base and policy levers

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Introduction 1. The research project will support the development of the Environment Strategy for Scotland. In particular, it will provide the evidence base needed to inform the development of a ‘pathway’ for achieving one of the Strategy’s outcomes: ‘Our thriving, sustainable economy conserves and grows our natural assets’. As set out below, it will also inform the delivery of the National Strategy for Economic Transformation and its vision for a wellbeing economy. 2. The Environment Strategy creates an overarching framework for Scotland’s strategies and plans on the environment and climate change. It was a commitment in the 2019 Programme for Government and was placed on a statutory basis by the Continuity Act 2021, which requires Ministers to publish an ‘environmental policy strategy’ and to have due regard to it when developing policies. 3. The Scottish Government is taking a phased approach to developing the Environment Strategy. Its vision and outcomes were published in 2020, setting out long-term ambitions for restoring Scotland’s environment and playing our part in tackling the global climate and nature crises. An initial monitoring framework and website for tracking progress towards these outcomes were published in 2021. A report to update the Scottish Parliament on progress in developing the Strategy was published in March 2022. The next phase in developing the Strategy is to publish ‘outcome pathways’, identifying actions and priorities across government for achieving the Strategy’s outcomes. This research project will gather evidence to support the development of the pathway for the outcome on Scotland’s economy. Background & Context 4. The Environment Strategy vision publication recognised that playing Scotland’s role in tackling the global climate and nature crises will require transformative changes in our economy. 5. As highlighted in the 2021 Dasgupta Review on the Economics of Biodiversity, our economy is embedded in nature, not external to it. This means that our economy is fundamentally dependent on the natural world to supply the resources and services it needs and to assimilate its wastes, including greenhouse gas emissions. Following a rapid acceleration of consumption since the 1950s, the world’s economies are now stretching the planet’s regenerative capacity beyond sustainable limits, with our demands on nature far exceeding its supply. It is estimated that 1.6 Earths would be needed to sustain humanity’s current demands – or nearly 3 Earths if everyone lived as we do in Scotland. Environment Strategy ‘economy’ outcome 6. Achieving the Environment Strategy outcome ‘Our thriving, sustainable economy conserves and grows our natural assets ’ will mean transforming our economy so that it thrives within the planet’s sustainable limits.