Ideas for Investment

We’re calling on the Scottish Government to adopt fair and feasible funding mechanisms to reverse cuts and boost investment in sustainable transport.

Read the latest report

The urgent need for investment in Scotland’s sustainable transport infrastructure has never been clearer.

Achieving ambitious climate targets requires unprecedented levels of investment and political will, which is harder than ever during a time of strained public finances.

As traditional revenue streams, like fuel duty decline, the status quo is no longer viable.

At the same time, transport must compete with other critical sectors, such as health and education, for limited public funds.

To address the twin challenges of a strained public purse and failure on climate, it is imperative to explore revenue-raising measures that not only strengthen Scotland’s finances but also facilitate the transition to a sustainable and equitable transport system.

The case for investment

Investment in sustainable transport is a climate imperative and an economic opportunity. It offers a multitude of benefits for:

The environment: Reducing emissions, combating air and noise pollution, and preserving ecosystems.
Public health: Improving air quality and encouraging active travel options like walking and cycling, which promote healthier lifestyles.
Economic growth: Creating jobs in the public transport sector and stimulating economic activity through enhanced connectivity.

What alternative options are available?

Our policy portfolio Ideas for Investment explores a range of innovative financial instruments and tax reforms to raise revenue and stimulate investment in sustainable transport. Our proposals include:

Implement parking fees and levies that incentivise the use of public transport alternatives

Develop a Scotland-specific road user charging system for electric vehicles to manage road usage and generate revenue

Replace Air Passenger Duty with a levy aimed at frequent flyers to reduce aviation emissions and fund sustainable travel initiatives

Establish a fund sourced from offshore wind revenues to finance long-term transport infrastructure investments

Utilise the increase in land values driven by new transport infrastructure to finance future projects through collaborative agreements with the private sector

Introduce regulated debt instruments issued by local authorities to fund sustainable transport projects directly

Our recommendations

Our report outlines actionable steps for both Scottish Local Authorities and Ministers to plug gaps in funding for active travel and public transport.

We’re calling on local authorities to:

Implement Workplace Parking Levies (WPL) in cities and high-employment areas
Explore partnerships for local climate bonds to fund public transport improvements
Collaborate with the private sector on land value capture strategies to finance new transport infrastructure

Meanwhile, we’re pushing for Scottish Ministers to:

Review and amend existing legislation (e.g., Road Traffic Regulation Act 1984) to enhance local revenue generation capabilities
Reform aviation taxes by introducing a Frequent Flyer Levy to reduce emissions and raise funds for sustainable projects
Establish a sovereign wealth fund using offshore wind revenues to support sustainable transport investments
Develop a road user charging scheme tailored for Scotland’s needs, particularly with the rise of electric vehicles

Read more about the fairness and feasibility of each of our proposals in our report: