MSPs are demanding the Scottish Government answers questions to why funding from Just Transition Fund has been cut by three-quarters for 2024/25.
The £500m fund was established in 2021 to help the green economy in the North-east of Scotland.
The scheme allocated £20m in its first year (2022/23) and £50m in its second.
But the allocation has been cut to just £12m for the year ahead (2024/25), raising questions about the government's ambition to accelerate the decarbonisation of the region.
Report raises more questions
In a new report from MSPs on the Scottish parliament’s economy and fair work committee said: "Given the importance of public sector organisations and community-based projects and initiatives to achieving a just transition, the committee is extremely concerned that they may no longer have access to funding through the Just Transition Fund."
The report raised further questions about accessibility of funding for not-for-profit and community organisations.
MSPs have now called on the Scottish Government to "set out how it will address these concerns to ensure that these vital organisations, small businesses and community-based initiatives and projects will receive support".
Claire Baker, convener of the committee, said: “The North-east and Moray is home to Scotland’s oil and gas production.
"It is vital for the workers and communities based there that the shift away from fossil fuels to renewables happens in a way that benefits local communities, businesses and jobs. This is a just transition.
"Whilst there is clear ambition from the Scottish government to support the transition, with a 75% budget decrease in the allocation for the Just Transition Fund this year it is less clear to the committee how the necessary support will be funded in practice, and how communities will be able to stay actively involved."
The Scottish Government has yet to comment.