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The £1m allocated to the project is to cover liabilities if awardees exercise their option to redeem their Peatland Carbon Units with Scottish Government rather than selling them on the open market.

There are no implications for the Peatland ACTION budget in the year 2026-2027 as a result of the carbon contracts pilot.

The recruitment of staff is an operational matter for the Scottish Fire and Rescue Service. There are challenges in recruiting and retaining on-call firefighters in some rural areas of Scotland and there are currently no on-call fire stations in Shetland with a full staffing complement. However, a full staffing complement is not required for an on-call fire appliance to be deployed because it can attend emergencies if there are 4 crew available at any given time. When an appliance is not available, a response will be provided from the next nearest available location.

The allocation of Scottish Fire and Rescue Service (SFRS) resources to respond to wildfires and indeed to respond to any emergency incident that requires its attendance, is an operational matter for SFRS.

Since the launch of its Wildfire Strategy in 2023, SFRS is investing £1.6 million in vehicles and operational equipment including Personal Protective Equipment (PPE). The provision of wildfire PPE has been focused on the specialist fire stations which deal with the majority of wildfire incidents. Firefighters from non-specialist wildfire stations who respond to support operations continue to wear standard structural PPE.

The Chief Fire Officer has provided assurances to the Scottish Government that firefighter safety is an absolute priority, that all specialist wildfire PPE and existing standard PPE in place is safe and that SFRS remains fully prepared and equipped to respond to wildfires.

The recruitment and retention of staff is a matter for the Scottish Fire and Rescue Service as the employer. There are currently six on call fire stations in the Argyll and Bute Council area with a full staffing complement. When an appliance is not available, a response will be provided from the next nearest available location.

The Scottish Government has a number of contingent liabilities, which are disclosed in its consolidated accounts each year. The Scottish Government seeks the prior approval of Parliament, via the Finance and Public Administration Committee, before entering into any specific contingent liability unless it arises in the normal course of business or the sum of the risk is £2.5m or less.

The Scottish Government seeks to manage the impact of contingent liabilities crystallising within existing departmental budgets, in line with portfolio accountabilities. Only where necessary would these be funded centrally.

The budget treatment of crystallised contingent liabilities depends on the nature of the underlying transaction, in line with HM Treasury’s Consolidated Budgeting Guidance and accounting regulations. At present based on the latest contingent liabilities, if these were to crystalise there would be more call on capital over resource budgets.

Scottish Government undertook a robust process to assess a total of 14 different possible blended finance mechanisms for peatland restoration. Officials used Green Book appraisal methods to filter this list and employed a wide range of evidence to select a preferred option.

As a part of the Carbon Contracts pilot, Scottish Government intends to spend up to a total of £1m in capital.

I refer the member to the answer to questions S6W-35362 and S6W-35361 on 24 June 2025. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at: https://www.parliament.scot/chamber-and-committees/written-questions-and-answers.

Scottish Government and NatureScot have engaged with a range of parties interested in taking part in the pilot. However, Scottish Government and NatureScot have not at this stage sought formal expressions of interest.