Alex Salmond: Globally, we need to make the transition from an economy which largely generates energy from fossil fuels to one based on renewable energy. The issues that Scotland and Abu Dhabi will work on together are among the key challenges that confront the world as it moves to a low carbon future: how to develop commercial onshore and offshore wind projects of scale; how to reduce the cost of offshore wind; the implementation of projects for carbon capture and storage; smart grids; power electronics; bio-energy; building technologies and solar power.

Both Abu Dhabi and Scotland know that countries which develop the low carbon technologies to power the planet in the future will gain significant economic benefits, whether it is from the sale of technology, the manufacture of turbines and machinery, or the export of clean electricity itself. The Framework for Action between Scottish Enterprise, Masdar, the 12 Scottish universities of the Energy Technology Partnership and the Masdar Institute for Science and Technology brings together a huge amount of accumulated expertise.

Masdar is a very attractive partner because its basic premise is to invest in and develop low carbon technologies and Scotland has massive investment opportunities, for example in offshore wind. Masdar is making significant investments in markets outside the UAE and is ambitious to invest further in the UK. Masdar, which has a number of investment funds which take shares in hi-tech companies, will consider potential investment opportunities in the Clean Technology sector in Scotland.

Both Abu Dhabi and Scotland are committed to using our existing expertise in the oil and gas industry to help us in the transition to a low-carbon economy, for example Scotland's North Sea experience can help cut the costs of offshore wind. Our partnership is also a wider statement of intent that it makes about the role that Scotland and Abu Dhabi intend to play in helping the world to meet its future energy needs.

Oilprice.com: If Scotland achieves its independence, in what areas are you looking to exert that independence? I have read that you will still keep the pound sterling as your currency, but that means that monetary policies will be set/heavily influenced by the Bank of England.

Alex Salmond: Scottish Ministers have outlined our intention to stay in a sterling zone with the rest of the UK, which would be in the best interests of the Scottish and UK economies. "The Bank of England has had operational independence from the UK Government since 1997 - a position we would support post independence.

The aim of monetary policy is to provide the overall stable macroeconomic framework that is conducive to growth. What independence would provide is access to the key levers - particularly fiscal policy - which would give the Scottish Government the ability to tailor a full range of policies to meet the specific needs of the Scottish economy. These levers could include the use of taxation and regulation to boost innovation, skills and attract investment.

Oilprice.com: Do you think that Scottish Independence will be contested in Europe? It could prove a troublesome issue for countries, for example, the regions of Catalonia or the Basque Country could decide to separate themselves and declare their independence from Spain.

Alex Salmond: An independent Scotland would inherit membership of the EU as a successor state, in the same way as the rest of the UK, and Scotland brings a great deal to the EU table. We are a leader in the field of climate change, we are natural-resource rich, we have 10% of Europe's coastline and 20% of Europe's seas and we enjoy vast renewables potential, including around a quarter of Europe's offshore wind and tidal energy resource, and as much as a tenth of Europe's wave power potential, and in the North Sea Western Europe's largest oil and natural gas reserves - crucial to the Commission's objectives for energy security of supply.

Scotland's constitutional position within the UK is very different from the Spanish context, but in any event Spain have already confirmed that they would have no objections to Scottish independence and membership of the EU. Spanish Foreign Minister Jose Manuel Garcia-Margallo, is quoted in the Spanish newspaper Diario Vasco on 24th February 2012 saying that "If in the UK both parties agree that this is consistent with their constitutional order, written or unwritten, Spain would have nothing to say, just that this does not affect us. No one would object to a consented independence of Scotland.

Oilprice.com: Is Scottish independence crucial to your renewable energy plans for the future?

Alex Salmond: The Scottish Government has a very strong vision of the opportunities that independence would bring to Scotland in the energy sector. We are aiming for a transformation - a re-industrialisation along the lines of a green economy. The Scottish Government strongly believes that the increasingly integrated EU energy market means it is in the shared interests of Scotland and the rest of the UK to continue with the GB-wide energy and electricity markets after Scottish independence.

This would be similar in principle to the many international sharing arrangements which already exist, for example the All-Islands Approach agreed by UK, Scottish and Irish governments. Scotland can continue to play a key role in ensuring security of supply for the UK. The costs of low carbon electricity generation, be it in Scotland, England, Wales or Northern Ireland, to allow us collectively to meet international obligations to reduce polluting emissions, would continue to be spread equally across the consumer base.

Oilprice.com: Subsidies for renewable energy programs are losing popularity in many countries as expensive startup costs and the shale gas revolution make these technologies economically unfeasible. How are you attracting investors to your various programs?

Alex Salmond: Scotland has a natural competitive advantage in the transition to the low carbon economy given our vast renewable energy resources and our history of technological innovation. We believe that our competitive advantage lies in being at the forefront of technological innovation: this is achievable for a small nation. We want to make Scotland the destination for international investment in low carbon, and for the development of the financial architecture for a global low carbon economy, by operating at the forefront of development of clean energy. You also have to provide investment certainty.

In 2009 the Scottish Parliament unanimously passed The Climate Change (Scotland) Act 2009. This groundbreaking piece of legislation sets a world-leading target of at least a 42% cut in national greenhouse gas emissions by 2020 compared to 1990. As well as having all-party support, the Scottish legislation received support from across Scottish civil society such as business organisations, trade unions and environmental groups.

The aim of the Act was to provide certainty for businesses and the public about Scotland's low carbon future. We have backed up the legislation with a comprehensive delivery framework. So business, and investors know that Scotland is serious about leading the low carbon transition and International energy companies are making Scotland their base for research and development in offshore wind and marine energy.

Climate change campaigner and Nobel Laureate Al Gore praised Scotland's commitment to renewables when he said: "Scotland has not only provided inspiring leadership, you are exploiting one of the greatest resources anywhere on the planet, with wind onshore and particularly offshore, all sorts of variety of windmills - and the new renewable technologies are especially important". So clearly, major international figures think we have the framework right in Scotland.

Oilprice.com: Given the SNP commitment to renewable energy independence would you be able to discuss the importance of wave and tidal power in the overall renewable matrix?

Alex Salmond: The Scottish Government sees wave and tidal as playing a central role in the energy mix given their ability to complement and balance other forms of renewable energy generation. In the short term our priority is to develop the industry through small arrays to meet as much as possible of the ambitious plans for over 1GW of wave and tidal in the Pentland Firth and Orkney waters by 2020.

We have also consented a 10 megawatt tidal power array in the Sound of Islay; this is the world's largest consented wave or tidal stream project. We have launched the Saltire Prize, Scotland's Pounds 10 million energy challenge to the world to push back the boundaries of marine energy innovation will accelerate the commercial development of wave and tidal technology.

Oilprice.com: Would Edinburgh join the EU? If so, what does that mean for its renewable energy targets?

Alex Salmond: Scotland is and will remain a member of the EU. We already have ambitious targets, above the EU target, so we will take those ambitions to the top table in Europe. Scotland has a target of delivering the equivalent of 100% of domestic electricity demand from renewables - far above the EU target of about 30% for the UK - we exceeded that last year.

Oilprice.com: Should you gain independence from the United Kingdom, do you believe North Sea oil will give Edinburgh enough cash to shield it from similar debt burdens plaguing the eurozone?

Alex Salmond: Scotland has had a lower fiscal deficit than the UK over the past five years as a whole. Scottish Ministers believe that with the additional economic levers that independence would provide, and the Pounds 1.5 trillion asset based provided by Scotland's remaining oil and gas reserves, an independent Scotland would stand on a strong financial footing.

An independent Scotland would establish a credible fiscal framework to ensure Scotland's public finances were put on a sustainable footing. In order to facilitate this process, the Scottish Government has recently established a Fiscal Commission Working Group (comprising of Professors Joseph Stiglitz; Andrew Hughes Hallett; Sir Jim Mirrlees; and Frances Ruane) to oversee the crucial work to assist in the design of a fiscal and macroeconomic framework for Scotland which entrenches financial responsibility.

Oilprice.com: A recent Citigroup research report estimated that to achieve your renewable energy goals you would need to invest between Pounds 6 billion to Pounds 7 billion a year. Where do you see this investment coming from? As green energy has not delivered good returns for investors in the past.

Alex Salmond: The Citigroup report was widely criticised by industry in Scotland and the proof is that investors are continuing to invest in Scotland. The UK Government estimates announcements more of renewables investment and jobs in 2011-12 in Scotland were Pounds 1.7 billion with 4411 jobs, with a potential Pounds 8bn and 3313 jobs in the pipeline - that's more investment in the pipeline than the rest of the UK put together - significantly more.

There have been a string of announcements by major domestic and international companies making significant investments in Scotland encouraged by our commitment to the low carbon revolution: Scottish and Southern Energy, Iberdrola Scottish Power, Gamesa, Mitsubishi, Samsung, Gaia Wind, Global Energy Group, Aquamarine Power. And we have seen substantial Pounds 7bn of investment in grid connections in Scotland being fasttracked by Ofgem in particular to strengthen the capacity to export green electricity to England - Scotland already exports around a fifth of our electricity generation. And of course we heard recent welcome news that the Green Investment Bank, with capital of Pounds 3bn, will have its HQ in Edinburgh.

Oilprice.com: Alex, thank you for taking the time to go through our questions.

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