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  5. Net zero legislation

Net zero legislation

5 minute read • Last updated: 25 February 2025

Scotland has set an ambitious target to reach net zero emissions by 2045. The Scottish Government’s legislation regarding net zero is designed to help Scotland meet its climate targets while ensuring that all industries, including tourism, contribute to the country’s sustainable future. 

As a tourism business owner understanding these regulations is essential to ensuring your operations comply with the country’s regulatory framework.

Learn about the key facts of the net zero legislation and what it means for tourism industry at large and see how your business can comply and thrive as Scotland transforms into a low-carbon country.

In this article:

  • Key aspects of Scottish net zero legislation
  • How does this impact my business
  • What are the benefits?
  • How to prepare

Key aspects of Scottish net zero legislation

Balmacara Estate

Climate Change (Scotland) Act 2009 (Updated in 2019)

  • Net zero by 2045 – this landmark legislation commits Scotland to achieving net zero greenhouse gas emissions by 2045.
  • Sectoral Plans and Carbon Budgets – the Scottish Government has set carbon budgets for specific periods, with detailed sectoral plans for how industries, including tourism, will reduce emissions. These plans are reviewed regularly to track progress and adjust strategies.

Learn more about becoming a sustainable business in Scotland.

Energy Efficiency Scotland Programme

These regulations aim to increase energy efficiency across all sectors. For tourism businesses, this will include regulations on improving the energy efficiency of buildings, using renewable energy, and encouraging low-carbon technologies.

Read the Energy Efficiency Scotland Route Map.

Low Carbon Transport Policy

The transition to low-carbon transport involves promoting EVs, public transport, cycling, and walking. Tourism businesses involved in transportation, such as car rental, coach services, or taxis, will be directly impacted by these changes.

Read more about the Low Carbon Transport Policy.

Circular Economy and Waste Management Policies

A circular economy approach aims to reduce waste, increase recycling, and promote sustainability across industries. Tourism businesses will have to be proactive about their waste reduction, sustainable sourcing, and resource efficiency.

Read the Circular Economy and Waste Route Map to 2030 consultation document.

Read more about managing waste. 

How does this impact my business

The Scottish Government’s net zero legislation has several implications for tourism businesses, ranging from the need for compliance with new regulations to business growth opportunities resulting from adopting sustainable practices. 

  • Compliance with emission reduction targets

    • Tourism businesses will need to monitor and reduce their carbon emissions in line with national targets. While large companies may face stricter reporting requirements, smaller businesses will also be encouraged to adopt sustainable practices. 
    • Compliance will involve measuring carbon footprints, tracking emissions from energy use, waste, travel, and transport, and setting reduction targets. 

  • Operational changes

    • Energy Efficiency and low carbon heat – businesses will need to improve the energy efficiency of their operations, from upgrading heating and cooling systems to moving towards using renewable energy sources like solar or wind power. 
    • Low Carbon Transport – businesses which rely on or provide transport services (shuttle services, tours, car rentals, etc.) will be encouraged to adopt low carbon transport options and work towards electric vehicles. 
    • Waste Management – regulations will require tourism businesses to reduce, recycle, and manage waste more efficiently. This includes eliminating single-use plastics, reducing food waste, and promoting reuse, repair and recycling initiatives. 

  • Financing and reporting

    • Businesses will have to factor in sustainability into their financial management. This might involve investing in energy-saving technologies, adopting sustainable sourcing practices, or purchasing carbon credits. 
    • Businesses may be required to report on their emissions and sustainability progress. This could become part of government-regulated climate reporting requirements for the tourism sector. 

  • Supply chain consideration

    • Larger businesses must report their own emissions and expect their suppliers to do the same and will sometimes ask them to provide a climate action plan. Small and medium enterprises (SMEs) also need to measure and reduce emissions throughout their supply chain to stay competitive and compliant. 
    • By documenting net zero strategies and reporting progress which consider the entire supply chains of their operations, businesses appear more attractive to investors and lenders, demonstrating strong risk management and sustainability credentials. 

What are the benefits?

  • Appeal to customers and visitors

    As sustainability is becoming more of a priority for visitors, businesses that actively align with net zero legislation are more likely to attract this growing market.  

  • Save money

    Energy-efficient measures and waste reduction can lead to significant long-term savings. For instance, energy-efficient lighting, heating systems, and waste reduction practices can lower operational costs. 

  • Building business resilience

    • Acting on net zero commitments strengthens your business’s investment prospect and more likely to be attractive to investors and insurers, as stakeholders increasingly reward sustainability. 
    • By staying agile in response to changing climate legislation, your business model is more likely to survive and remain resilient to future national or global changes. 

  • Government support and incentives

    • The Scottish Government provides funding and incentives to help businesses transition to a low-carbon economy. These include grants, tax reliefs, and subsidies for adopting renewable energy sources or electric vehicles. 
    • Tourism businesses involved in community-based sustainability projects may also be eligible for government-backed initiatives to support responsible tourism. 

  • Enhanced brand reputation

    Compliance with net zero legislation will enhance your business reputation as a sustainable operator. This can differentiate your business in a competitive marketplace, improve brand loyalty, and attract customers who admire environmental responsibility. 

How to prepare

  • Assess your current carbon footprint

    Conduct a comprehensive assessment of your business’s carbon footprint. This includes evaluating energy use, transportation, waste management, and how you go about sourcing your energy and resources. Understanding where your emissions come from will help you identify key areas for improvement. 

  • Set clear sustainable goals

    Establish measurable sustainability goals for your business. This can include reducing energy consumption, switching to renewable energy, implementing a waste reduction program, and introducing low-carbon transport options for your customers. 

  • Adopt sustainable practices

    • Energy efficiency – upgrade to energy-efficient appliances and lighting, switch to renewable energy providers, and enhance building insulation.
    • Waste management – implement recycling programs, reduce plastic waste, and minimise food waste.
    • Transportation – switch to electric vehicles, offer green transport options for visitors, or facilitate cycling or walking.

  • Stay informed with industry initiatives

    These include the Glasgow Declaration on Climate Action in Tourism, Destination Net Zero, Climate Action Planning Guide and Outlook2030. 

  • Invest in staff training

    Ensure your staff are properly educated in sustainability practices and understand the importance of the net zero transition. Offering training on sustainability, waste reduction, and energy efficiency can improve your business's overall performance. 

  • Monitor and track progress

    • Track your emission reductions and sustainability achievements. Certain reporting rules apply to larger companies or specific sectors. Reporting your progress publicly or industry bodies not only helps ensure compliance but shows you’re serious about being sustainable.
    • Most SMEs aren’t legally required to report their sustainability performance directly to an authority. But voluntary reporting by smaller SMEs can still be part your best practice and help demonstrate a commitment to environmental responsibility and improve your reputation. Doing so will also put you ahead of any legislation changes that may change.

Measure your climate impact

Measure your emissions with the Climate Impact Guide. See what data to gather, and how to use the insights for a more sustainable business model.

How to measure your climate impact

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