The UK government has announced that whisky distilleries are set to benefit from £8.9m in government funding to help support green jobs, cutting emissions and support the path to net-zero carbon emissions.
The money comes from a £1m funding pot supporting green innovation, as well as further grants worth up to £3m, which will help fund decarbonisation projects and make their production processes more efficient, according to a Gov UK press release.
This funding may affect the whisky stock market, but like other green investments, time will tell how much of an effect it will have.
The first phase of the government’s funding involved providing Scottish distilleries with up to £75,000 in investment to help with research and development into reducing the need for fossil fuels.
Several distilleries have switched to low carbon hydrogen energy, green renewable sources or heat transfer systems that produce no greenhouse gases.
In 2018, whisky production produced approximately 530,000 tonnes of carbon dioxide, with the vast majority of these emissions the result of the vast amounts of heat needed for the distillation process.
This is close to the annual carbon dioxide emissions of Stirling.
With the distilleries industry growing by 20% in 2019 alone, it highlights the effect the whisky industry has on the environment and the potential to cut carbon emissions and boost the green credentials of one of Scotland’s most beloved exports.
Over 40,000 people are part of the Scotch whisky industry, with 7,000 jobs in rural areas of Scotland. Funding innovative green solutions could potentially bring low-carbon energy to some of the most remote parts of the UK.