Introduction
It is well established that subnational investment has long been insufficient, significantly contributing to the shrinking capacity and capability of the local state in many areas throughout the UK (
Gray & Barford 2018). However, this paper argues that, as well as being insufficient, it has also been
inappropriate—especially when considered through the lens of Climate Emergency.
For over a decade, subnational investment has been grounded in an ethos of competition (
Institute for Government 2024), characterised by predominately economic framings (
Leaver & Williams 2014), and regional in focus (
Deas 2013;
Peacock & Pemberton 2024). This has served to reinforce existing inequalities, contributing towards the creation of ‘winners’ and ‘losers’, local authorities whose capability to accelerate climate action at local levels diverges significantly (
Garvey et al. 2023,
2024). Take the ‘City Deals’, for example: a significant subnational investment programme worth billions of pounds (
UK Government 2013). The Deals were rolled out over a period when mainstream political parties publicly acknowledged the threat of climate change, and the subsequent need for action. They also coincided with a period of significant public support for climate action initiatives (
BBC 2021). However, despite this, evidence suggests that climate action priorities were (disappointingly) low and unevenly distributed throughout the programme (
Smith et al. 2021). Why? Evidence points towards the following reasons:
The predominately economic framing made it more difficult to negotiate for socially and environmentally just forms of growth (
Beel et al. 2018).
The regional spatial fix (clusters of adjacent local authorities forced to collaborate in the bid), bypassed the ‘local’ scale where civil society organisations and communities operate, thus marginalising a whole ecosystem of actors who are integral to local climate action (
Beel et al. 2018).
Local authorities possess divergent capabilities and place attributes conducive to coordinating and delivering climate action; thus, the (competitive) deal-making ethos underpinning the programme favoured the actors who were already best placed to negotiate for the inclusion of Net Zero initiatives (for example, actors who were able to take advantage of geographic specificities/natural resources, existing knowledge, or material assets etc.) (
Smith et al. 2021).
In the context of Climate Emergency, this is clearly problematic: without embedding Net Zero into all aspects of subnational decision-making and investment, it is difficult to envision a scenario whereby central government is able to meet its legally binding climate targets, let alone in an equitable manner. Moreover, evidence suggests that local authorities have much to bring to the table (
Skidmore 2023). Research consistently highlights the value of their positionality (
Climate Change Committee 2020), situated between individuals, communities, and local businesses on the one hand, and public bodies, industry, and central government on the other. This positionality makes them uniquely suited to the role of intermediaries (
Masuda et al. 2022): to coordinate, and in some cases deliver, local climate action (
Karhinen et al. 2021). However, despite this recognition, along with evidence to suggest that local actors are indeed committed to achieving Net Zero, existing research points to a number of challenges, summarised by
McMillan et al. (2024) as pertaining to:
fostering buy-in from multiple stakeholders
creating locally appropriate pathways
creating shared knowledge bases, and
acting under uncertainty.
The aim of this discussion paper, then, is to explore
how future subnational investment could be transformed to direct action towards Net Zero in a more equitable manner that addresses the challenges as described. Drawing upon interviews, roundtable discussions, site visits, and existing SHAPE (Social Sciences, Humanities and the Arts for People and the Economy) literature, this paper explores this theme through a local authority case study with Aberdeen City Council (ACC). Supported by European Horizon (EU) funding and a proactive in-house workforce, ACC has begun to forge a locally appropriate pathway to Net Zero by piloting and adopting hydrogen as a local transport fuel (
Cassidy et al. 2024). Evidence suggests that, by embracing collaboration and innovation, ACC has found success acting under uncertainty, fostering buy-in from multiple stakeholders and creating shared knowledge bases. Clearly then, there is value in unpacking the successes of ACC to better understand the conditions that have enabled it to thrive as a local intermediary and place-leader on climate, coordinating and delivering action, despite the unconducive landscape described.
After introducing the Aberdeen case study, the discussion section will proceed to unpack its implications alongside wider literature, structuring analysis around the following key questions that have been informed by existing research (
McMillan et al. 2024):
How can subnational investment be transformed to better embed Net Zero in a manner that supports local authorities to coordinate—and sometimes deliver—climate action?
Is it reasonable to expect all local authorities to adopt the same roles and responsibilities for Net Zero?
How can pioneers support less experienced local actors, including other councils?
The paper will conclude by summarising its contribution and suggesting five guiding principles for subnational investment in the age of Climate Emergency.
Low carbon transport in Aberdeen
Aberdeen (and the North East of Scotland more broadly) has for decades been the European centre of the oil and gas industry. The fortunes of the local economy have historically been tied to the boom-and-bust cycles associated with the sector, suggesting that a just transition away from fossil fuels may pose a greater challenge for Aberdeen than for many other places throughout the UK (
Shapovalova et al. 2023). However, at the same time, the presence of the oil and gas industry within the city and surrounding area presents opportunities: specifically, a local population who are familiar with industrial scale energy infrastructure, a highly skilled workforce, and well-endowed private sector companies who are themselves subject to the Net Zero agenda and are assessing how they can decarbonise their own operations (
Shapovalova et al. 2023).
Recognising this imperative and its unique context, ACC has set about forging a locally appropriate pathway to Net Zero by piloting and adopting hydrogen as a local transport fuel for over ten years (
Cassidy et al. 2024;
Aberdeen City Council 2015), long before talk of
Scottish Government (2022) action plans or UK Government strategies (
DESNEZ 2021). Double-decker hydrogen buses (the first in the world) are the city’s poster child for energy transition, although the fleet also includes hydrogen-powered refuse collection vehicles, road sweepers, cargo bikes, and even a tractor (
Cassidy et al. 2024;
Aberdeen City Council 2024). The buses were procured through an EU Horizon-funded consortium approach which, grounded in an ethos of collaboration, helped to bring down costs significantly. Specifically, several partner cities from various EU countries participated in collective purchasing, which helped to drive down capital costs through greater economies of scale. Collaboration with partner towns and cities (nationally and internationally) also enabled learning, data and practice sharing, as well as early-stage optioneering trials. For example, sharing data in relation to the operation of hydrogen buses provided partners with a larger and more robust data set, thus better informing future decision-making and operational refinement. Collaboration at national and international scales also allowed for the development of new partnerships with technology providers. For example, ACC worked with a private sector firm based in England with expertise converting diesel vehicles to dual-fuel vehicles (that is, vehicles that can run on both diesel and hydrogen). This partnership allowed the council to rapidly retrofit its existing vehicle fleet in a way that reduces carbon emissions whilst also mitigating against the risk of hydrogen fuel shortages (in the absence of existing supply chains, the council had to invest in its own hydrogen production facilities and fuel stations). Owing to the success of the partnership to date, the private sector firm now offers hydrogen retrofit training opportunities for ACC mechanics and technicians, thereby providing an important pathway to begin upskilling the in-house workforce. The private sector firm is also considering opening up a new branch in the North East of Scotland as a direct consequence of the partnership.
In addition to collaboration across national and international scales, the Aberdeen case study also demonstrates the value of collaboration across local and regional scales, typified in this case by the Car Club scheme. The scheme allowed partners (for example, Sports Aberdeen and local charities) and residents to access hydrogen vehicles, raising awareness and providing opportunities for first-hand engagement with the technology. Access to European funding enabled ACC to offer commercially compelling opportunities for local and regional partners to sign up for the Car Club at little cost. Anecdotal evidence suggests that this initiative was very well received on the ground; however, the impact was somewhat limited by supply-side constraints (challenges with local hydrogen production; the Car Club vehicles are not dual-fuel). Whilst this initiative had some teething problems and cannot be sustained indefinitely (that is, ACC is in effect subsidising low-carbon vehicle use), it demonstrates how local authorities can support other local actors who are just beginning their Net Zero journey, by offering what are in essence novel opportunities for organisations and individuals to trial technologies that could in time form part of their own decarbonisation journeys.
Whilst it is often easy to identify a particularly charismatic individual who personifies a sense of leadership, the Aberdeen case study suggests that growing and maintaining a council’s leading role over the years involves a wider (and evolving) team of proactive, driven, and competent people. While there were undoubtedly leaders within the in-house ‘Projects Team’, their roles have shifted, with different members taking on leadership responsibilities in various contexts. Evidence suggests that individual contributions have been pivotal at specific moments. For example, the success of the current partnership with a private sector firm specialising in fleet retrofitting was largely attributed to a senior project officer who worked diligently to nurture and sustain this strategic relationship. Meanwhile, another senior project officer who was involved in the original JIVE (Joint Initiative for hydrogen Vehicles across Europe) hydrogen bus project played a crucial role in providing continuity, linking past achievements to present efforts.
Collectively then, the Projects Team propelled ACC’s hydrogen journey, despite a lack of signalling or direct support from Scottish and UK governments. Moreover, interviews revealed that, to begin with, not many people in the council knew or cared about hydrogen either. Rather, ‘through sheer determination within the team … and by doing more projects … [we] finally caught the attention of our local councillors, and now at Scottish Government and UK Government level’. Ultimately, then, the Projects Team did not just deliver the vision of someone else; they co-developed it, adapted it, and found new ways to sustain it. Critically, the team’s success extended beyond project delivery. It involved building and maintaining relationships, fostering consent, and aligning diverse interests across departments, services, and external stakeholders. Their efforts linked the council with communities, civil society organisations, private sector businesses, and different levels of government. The Aberdeen experience underscores that leadership in this context is best understood as a collective and dynamic endeavour, where the contributions of individuals are amplified through collaboration within a cohesive yet adaptable team.
Evidence from the Aberdeen case study also revealed how a local authority can act not just as intermediaries, but as place-leaders and early adopters of new (and not entirely mature) technologies, thus helping to seed wider Net Zero development. For example, several members of the in-house team have been ‘poached’ for their hydrogen knowledge by private sector firms who sought to leverage and redeploy ACC staff experience and expertise (either on projects within the North East or elsewhere in Scotland). Perhaps even more pertinently, by developing a local hydrogen infrastructure, ACC has nurtured a local context which is more conducive to industry investment in energy transition. This was exemplified by the recent announcement that BP will, in partnership with ACC, be opening a new hydrogen hub to dramatically increase production capacity in the area (
BP 2024). This notion of place-leadership was summarised by one interviewee (a member of the Projects Team) who suggested that:
We feel that maybe we’ve done our job, because it wouldn’t always be council led, and the private sector should be taking over, we should see that as a success.
In summary, Aberdeen’s experience suggests that local authorities, when supported by certain enabling conditions, have the potential to be intermediaries and place-leaders, coordinating and delivering climate action. Enabling conditions have included a funding framework (EU Horizon) which actively encouraged and supported collaboration across scales, along with an in-house team of proactive, driven, and competent people. Taken together, this appears to have enabled ACC to act in the face of uncertainty (despite a lack of signalling from UK and Scottish governments), identify and embark upon a locally appropriate decarbonisation pathway (that is, a hydrogen pathway; at the time unique in the UK), and over time foster buy-in from multiple stakeholders (across local, regional, and national scales), creating a shared knowledge base (with partner towns and cities).
Conclusions
The Aberdeen case study stands as a testament to the benefits of a more collaborative approach to Net Zero governance. Enabled by a funding framework which actively encouraged and supported collaboration across scales, along with an in-house team of proactive, driven, and competent people, ACC has forged a locally appropriate decarbonisation pathway, fostering buy-in from multiple stakeholders and creating shared knowledge bases—all whilst acting under uncertainty. Building on this experience, this paper proposes five guiding principles for subnational investment in the age of Climate Emergency:
1.
Nurture a culture of collaboration across scales and sectors.
2.
Strive for an equitable distribution of roles and responsibilities for Net Zero, supported by checks and balances.
3.
Embed mechanisms to facilitate accessible knowledge sharing.
4.
Encourage local actors to ‘fix space’, aligning resources and partnerships with local needs.
5.
Promote environmental and social aspirations to support just transition.
Far from being a regression, this reassessment is a critical step forward, acknowledging that business-as-usual governance is failing to address the Climate Emergency. By rethinking our foundational principles, we open the door to transformative change, ensuring that subnational investment aligns with both the strengths and the potential of local authorities and the urgency and scale of the challenges we face. These principles, while informed by Aberdeen’s unique journey, are not confined to its specific circumstances. Rather, they provide a framework that can support other local authorities in addressing their own challenges and leveraging their own unique attributes. To validate and refine these principles further, future studies should prioritise comparative research across a range of contexts, exploring how local conditions influence their application. Such studies will help identify opportunities to innovate further and ensure these principles drive meaningful change not only in cities like Aberdeen but across the broader spectrum of local authorities.