The Scottish and UK governments have agreed to establish two green freeports in Scotland.

The special economic zones, offering tax breaks and lower business tariffs, are being promoted by the UK government as part of its “levelling-up” agenda.

A bidding process will begin in the spring and it is hoped the new sites will open in 2023.

Ministers from both the Scottish and UK governments will have a say in the assessment and selection process.

The governments were previously unable to agree plans to establish freeports north of the border, after a number of sites (8) were announced for England.

Scottish ministers later said they would pursue an alternative “green freeport” model, with additional standards around jobs and climate targets.

The UK government has committed funding of £52m to the project and bidders will have to pledge to reach net zero by 2045.

Under the UK government’s model, freeports are centred around at least one air, rail or sea port, but can extend up to 28 miles (45km) beyond.

Forth Ports – which owns and operates seven ports on the east coast of Scotland – said it would be bidding to create a Firth of Forth green freeport.

While other bidders have not yet been announced, in July last year the Scottish government named nine areas being considered – Shetland, Orkney, Aberdeen with Peterhead, Montrose, Dundee, Cairnryan, the Firth of Forth and Glasgow city region. A Cromarty Firth consortium is also understood to be interested.

Commenting on the landmark deal has been agreed between the UK and Scottish governments to collaborate and deliver 2 Green Freeports in Scotland, Dr Liz Cameron CBE, Chief Executive of the Scottish Chambers of Commerce said:

“It is great news for Scottish Business that the UK and Scottish Governments have reached agreement on the creation of two new Green Freeports for Scotland.

“These new sites will provide Scotland with another tool in the toolkit that will help businesses unlock productivity, create new jobs and grow our economy.

“It’s important now that both Government’s act swiftly to progress the bidding process and that the successful sites are operational at the earliest opportunity.”