The Scottish road to net zero: Corporate welfare and assetization cascades

As climate change mitigation efforts intensify, land-based solutions such as carbon sequestration and biodiversity enhancement are emerging as a key strategy requiring substantial financial investment. This paper examines the current Scottish approach to achieving net zero, highlighting the role of corporate welfare in shaping market development. Using interviews and document analysis in a process tracing design, the study shows how the private sector plays a key role in leading and shaping climate change mitigation efforts such as voluntary carbon codes and public programs to fund them. It introduces the concept of assetization cascades to capture how corporate welfare initiatives support and drive the creation of new natural capital assets by drawing in more actors that engage in assetization. The findings contribute to the literature on corporate welfare, assetization and the evolving role of the state in climate governance.