A TOTAL of £154m will be spent over the next three years with the aim of making Scotland a "zero waste society", John Swinney announced.
Local authorities will also receive £126m to improve flood defences, while a further £45m will also be spent on new woodlands to absorb CO2 emissions.
A sustainable development and climate change fund worth £30 million will also be set up.
Mr Swinney also announced the setting up of a Saltire Prize fund worth £2m to encourage innovation in renewable generation.
The announcement was welcomed by Richard Lochhead, the Cabinet Secretary for Rural Affairs and the Environment.
He said: "Our spending and actions will reduce the impact we have on our local and global environment and it will protect and enhance Scotland's unique environment."
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