The Scottish Government is to commit £25million to establish a "just transition fund" for Grangemouth in an effort to save some of the 400 jobs set to go this summer.
First Minister John Swinney said "constructive" talks took place between the UK and Scottish governments on Monday, and he has challenged UK ministers to match the funding and to back the Acorn Project in Aberdeenshire, which will help unlock new industries at the central belt refinery.
However, the Grangemouth funding - which is being drawn from ScotWind receipts - comes as spending on the North-east's Just Transition Fund was scaled back to under £16million for the coming year due to budget constraints, despite warnings that tens of thousands of jobs could be lost.
Mr Swinney announced the new Grangemouth funding in a statement to the Scottish Parliament yesterday. He said the government's budget would be amended to redirect funds raised by leasing the seabed around Scotland to wind farm developers.
He said any redundancy was a "matter of deep regret", adding: "That is particularly so given that this government believes that refining at Grangemouth should continue, that this closure is premature, and that it is detrimental to Scotland's transition to net zero."
He said the additional £25million for the Grangemouth just transition fund would take the Scottish Government's total investment for the site to £87million.
Meanwhile, with the North East Just Transition Fund now in its fourth year, only £75million of a promised £500million has been spent, while the scale and pace of progress towards net zero is behind where it needs to be to secure jobs and supply chain opportunities.
Aberdeen & Grampian Chamber Commerce (AGCC) has today written to the Scottish Government urging ministers to look at drawing further ScotWind funds to accelerate spending in the North-east.
AGCC Chief Executive Russell Borthwick said: "While we agree that the Scottish Government should be taking a proactive role in securing a future for the industrial cluster based around Grangemouth, creating a new Just Transition Fund for central Scotland while simultaneously and systematically eroding Just Transition funding for our region is extremely disappointing for communities and businesses across the North-east.
"The announcement of 400 job losses at Grangemouth is a bitter blow for Scottish industry, however these figures are dwarfed by the 50,000 jobs lost in Scotland’s oil and gas sector over the past decade, the large majority of these in the North-east of Scotland. Studies show that energy jobs in the North-east could decline further from 45,000 to just 28,000 by 2030 without the right support in place to drive our transition to net zero.
"The Scottish Government must not dilute its commitment to our region at this critical time. £15.9 million for 2025/26 is not enough to deliver the scale of projects our region needs to drive Scotland towards net zero over the year ahead. If there is funding to be drawn down from the proceeds of ScotWind, then perhaps you could consider allocating some of this resource to the Just Transition Fund for North-east Scotland and Moray?"