Scotland’s energy minister has come under fire after failing to set a date for the set-up of a ScotWind Wealth Fund, a scheme that would ringfence income from offshore wind farm leasing for public benefit.
Campaigners are calling for Scotland to make the most of the green power boom. They say investing in renewables and increasing community and public ownership of power schemes can bring energy security, good jobs, wealth and a healthier planet.
As many as 25,000 extra jobs could be created, according to a Transition Economics report, but only if ministers increase support and back local manufacturing for the growing offshore wind sector. The calls come amid a continuing decline in oil and gas jobs as North Sea fields are drilled dry, with analysis suggesting around 93% of reserves have already been burned.
Fraser Sutherland, coalition manager for SCCS, said:
“Extracting new fossil fuels would be staggeringly harmful and irresponsible, further fuelling climate breakdown and the knock-on disruption to people’s lives and livelihoods.
Producing more oil and gas will also do nothing to bring down household bills or guarantee energy supplies, with both the cost and availability of fuel dependent on volatile international markets. It’s time to redouble our focus on home-grown renewable power, which can be harnessed to directly benefit the Scottish people while also tackling climate change.
To get maximum bang for our bucks, the Scottish Government must invest in community, municipal and state ownership of green energy projects, establish manufacturing and supply chains in Scotland and help create and sustain quality futureproof jobs. This will help lower bills, increase energy security, provide safer long-term employment and boost local and nationwide wealth.
Scotland’s leaders should stand up for the interests of ordinary Scots and people across our shared world by opposing new oil and gas fields in the North Sea, including Rosebank and Jackdaw.“
He added:
“With its vast renewable energy resources and skilled workforce, Scotland has everything needed to build a thriving and long-lasting industry that could generate wealth, support communities and help the country achieve its climate targets.
But it’s currently not happening. Despite plans for a massive rollout of offshore wind, Scotland lacks manufacturers. And those that exist are missing out because promises from developers to ‘buy Scottish’ are not being enforced.
Ministers must step up. Instead of handing out public loans to overseas firms to set up in Scotland, the country should invest directly by taking public stakes in all new offshore wind farms and key manufacturers. Rules to ensure developers buy locally should also be put in place.”
Liz Murray, from Community Energy Scotland, said:
“We welcome the commitment to set up a ScotWind Wealth Fund, to share the profits from wind farms in Scottish waters. That verbal commitment now needs to turn into concrete allocation of ScotWind lease money to this new fund.
These profits are available right now, and if that fund was solely used on community wealth-building projects, especially supporting community ownership of energy, it would be a transformative investment.
Community ownership of energy gives local people a direct stake in the energy transition, creating reliable income that can support action on fuel poverty, housing, transport and local services, and give resilience to energy price shocks. That’s a huge opportunity that needs to be taken right now.
Warm words from the Scottish Government need to become solid financial commitments.”
Liam Hainey, spokesperson for the Our Power campaign, said:
“The renewables industry is booming but as things stand it’s private corporations rather than Scottish communities who are feeling the benefit.
We have a chance to build a thriving offshore wind manufacturing industry but, despite a skilled workforce, Scotland doesn’t have enough manufacturers to meet demand. By taking a stake in offshore wind manufacturers, the Scottish Government can support Scottish suppliers and guarantee good pay and union rights.
“Creating a publicly owned manufacturing firm to deliver key components could also ensure that profits are returned to the public purse.
We’ve got everything we need to win big from the shift to renewables but right now we’re missing out – if the transition is to reach its full potential then that needs to change.”
Mr Sutherland added: “This summer has shown the devastating impacts of climate change across the UK. Wildfires. Drought. Crop failure. Extreme heat.
The effects of planetary warming are already damaging people’s homes, farmers’ fields and transport infrastructure. Tragically, it is also killing people, at home and worldwide.
Thousands of people are dead or missing in Nepal after melting glaciers caused catastrophic flash floods, and more that 10,000 lives have been lost in Europe this summer due to heatwaves, wildfires and infrastructure failures. Meanwhile, around 2,800 extra deaths were caused by extreme heat in England and Wales in May and June alone.
Scotland must stand against new oil and gas and get on with scaling up clean home-grown renewable energy.
The Scottish Government must lead the way.”
BACKGROUND
Recent reports from the CBI show that Net-Zero-related industries are already worth more than £10 billion to the Scottish economy, supporting 105,000 jobs.
The cost of not addressing climate change could top £25 billion a year by 2030 for the UK (according to Verdant think tank) and up to 20% of GDP annually by 2050 for the Scottish economy (according to a report by the Royal Scottish Geographical Society).
Between 2013 and 2019, UK net oil and gas production rose by 19%, net oil production by 29%, and net gas production by 7%; the direct workforce fell by 17%, and the direct and indirect workforce fell by 35%. So even with rising production, jobs are declining. And production can’t rise forever, as 93% of reserves have been burned.
See this recent Resolution Foundation report for more details: https://www.resolutionfoundation.org/publications/second-wind/
