Oil and gas workers in Orkney and Shetland are being excluded from a £500 million Scottish Government fund designed to help communities adapt to the changing energy industry, prompting renewed calls for the islands to receive their share of future investment.
Highlands and Islands MSP Kristopher Leask is urging Scottish Ministers to extend the Just Transition Fund to both island groups, warning that declining employment in the oil and gas sector threatens jobs, families and local economies.
The call follows unanimous support at the Scottish Greens’ conference over the weekend for a motion brought forward by Shetland members, amid concerns about redundancies at the Sullom Voe Oil Terminal.
Established in 2022, the Scottish Government’s ten year fund is intended to support investment, employment, training and economic diversification as Scotland moves towards cleaner energy.
However, its geographical eligibility is restricted to Aberdeen, Aberdeenshire and Moray, leaving Orkney and Shetland outside the funding arrangements despite their longstanding involvement in the North Sea oil and gas industry.
The fund remains active, with up to £17 million made available for eligible projects during the 2026/27 financial year.
The Greens want the Scottish Government to recognise the importance of the oil terminals at Flotta in Orkney and Sullom Voe in Shetland when deciding where future economic support should be directed.
Kristopher Leask said:
“Orkney and Shetland have helped power Scotland’s energy needs for decades.
“The workers and communities who made that possible deserve investment in their future, yet they are being excluded from a fund designed to support precisely that.
“The redundancies at Sullom Voe underline why we cannot afford to wait.
“Behind every job loss is a household facing uncertainty, with consequences for local businesses, services and the wider island economy.
“There has been plenty of political noise about Rosebank and Jackdaw, but workers need more than a couple dozen jobs in a new gas field.
“They need a credible plan to transition a whole sector away from declining oil and gas.
“Orcadians and Shetlanders deserve secure, well-paid jobs that will sustain their communities for decades to come.
“Renewable energy and other sustainable industries offer enormous opportunities for our islands.
“Turning that potential into lasting local jobs requires investment in skills, infrastructure and businesses, with workers and trade unions at the heart of the decisions.
“In small island communities, losing skilled workers and young families can have a devastating impact.
“Ministers must act before more livelihoods are lost and more people feel they have to leave to find work.
“Our conference has unanimously backed the case for change.
“The Scottish Government must now bring Flotta in Orkney and Sullom Voe in Shetland into the Just Transition Fund and work with island communities to deliver the support they need.
“A just transition must reach every community that depends on oil and gas.
“Our islands cannot be left behind.”
The proposed expansion would require a change to the fund’s existing geographical arrangements, which currently direct investment towards projects benefiting the North East and Moray.
For island communities, the debate centres on whether the same financial support available to mainland energy workers should extend to those whose livelihoods depend on oil and gas infrastructure further north.
Alex Armitage, Green councillor for Shetland South, said:
“Scaling the North East’s £500m to the size of Shetland’s oil and gas workforce would be equivalent to around £20-30million. This could kickstart the development of existing and new industries that could sustain jobs, communities and our environment for many decades to come”
The £20 million to £30 million figure is an estimate proposed by the councillor rather than an allocation agreed by the Scottish Government.
The Scottish Government has maintained that its existing Just Transition Fund supports employment, skills and economic diversification in the North East and Moray, but the latest political intervention places renewed attention on whether island energy communities should also be eligible.
For workers in Orkney and Shetland, the central issue is whether investment in new industries will arrive early enough to provide alternatives as traditional oil and gas employment declines.
