THE Scottish Government has been urged to harness the money generated by large-scale renewables projects and other big developments, such as AI data centres, to benefit all Scots.
Community organisations and campaigners wrote to Scottish energy minister Stephen Gethins on Friday about the creation of a Scottish Community Wealth Fund to secure more wealth from large-scale projects to finance projects that benefit local communities.
Members of the Scottish Community Coalition on Energy (SCCE) and Stop Climate Chaos Scotland (SCCS) said a properly structured and community-centred wealth fund would have a transformational impact for communities and local economies across Scotland.
“It would improve public support for the transition to clean energy and build more resilient and fair economic development,” Josh Doble, director of Community Land Scotland, a partner of the SCCE, said.
“Those most impacted by renewable developments on their doorstep would receive the largest share of payouts through existing local funds and access to the national fund, but all communities would have the opportunity to access the national pot.”
The SCCE and SCCS do not support oil and gas development in the North Sea, but argued that if any new fields are to be licensed, then they should contribute to the national wealth fund.
“Similarly, we do not support the mass expansion of data centres around Scotland without a clear strategic plan for their development and robust environmental impact assessments,” the letter said.
“However, any data centres that are approved should clearly be part of the financing mechanism for a national wealth fund, operating as our proposal does for onshore wind.
“This would ensure that local communities directly impacted by developments benefit from local funds, whilst an additional payment is taken for a strategic central fund.”
The calls come in the wake of a new report from Audit Scotland, assessing how the ScotWind offshore leasing round and the cash it raised have been managed.
ScotWind is money that energy companies paid to Crown Estate Scotland for the right to build and operate offshore wind farms in parts of the Scottish coastal seabed.
The project generated £755 million, and Audit Scotland’s recent report said the Scottish Government must tell the public how it will use the money.
Ministers have already taken £96m of ScotWind funds but the public spending watchdog said it is not clear how the money had been used to support the transition to net zero, “nor is it clear how the Scottish Government intends to use remaining ScotWind funds” worth £507m “over the course of the Parliament”.
Amanda Grimm, advocacy lead for the Stop Climate Chaos Scotland coalition, said Scottish ministers should “stop raiding” the ScotWind bank account and set up a “strong, dedicated wealth fund that uses the millions raised from offshore wind farms to benefit all Scots”.
“We fully support the Scottish Government’s commitment to creating a wealth fund using offshore wind revenue, and it should be similar to Norway’s sovereign oil wealth fund,” Grimm said.
“Some of this should be invested for future generations, but a portion must be used to benefit communities living today.”
She added: “We recommend that the fund should support projects like community-owned wind turbines, community-operated bus services or community-owned pubs, hubs and office spaces, which all plough profits back into their villages, towns and cities, creating wealth and opportunities for local people.”
Following the Audit Scotland report, Gethins described the ScotWind scheme as a “success story” that is delivering jobs and investment across the country.
“I recognise the importance of providing clarity on how offshore wind revenues will be managed, and we will continue to do so through our annual budget setting process,” he said.
The Scottish Government has already committed to establishing a ScotWind Wealth Fund by the end of the current parliamentary term, but campaigners said details of how it will work and what and who it will support are yet to be decided.
A Scottish Government spokesperson said: “Offshore wind offers a major opportunity to grow our local, regional, and national economies in a sustainable way, create high-quality green jobs, reinvigorate island and coastal areas, and deliver lasting benefits for communities.
“We are currently reviewing the good practice principles for community benefits from offshore renewable energy developments following a public consultation, with the aim of reflecting the distinct context of offshore developments and the need to provide tailored advice for developers and communities.
“We will also be working on the programme for government commitment to deliver a ScotWind Wealth Fund by the end of this parliament, ensuring investment that brings a fair return to the public purse.”
