Scotland’s Just Transition Commission will today set out key lessons from Shetland’s experience of the energy transition which it believes can help shape fairer outcomes for communities across the country.
In a new report to be launched in Lerwick on Tuesday morning, the commission is expected to say a new statutory right for communities to have a share in renewables developments can “super-charge the creation of community wealth”.
It is understood the commission will say Shetland’s experience managing the development of oil and gas infrastructure at Sullom Voe from the 1970s, combined with the rapid expansion of wind energy over the past decade, “provides significant learnings for the whole country”.
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Shetland’s local authority secured special powers 50 years ago to negotiate with oil companies following the discovery of oil near the islands, including an ability to act as a port authority, establishing a charitable trust and charging “disturbance payments” to reflect the impact of the industry on the local area.
The commission is an independent expert advisory group with members drawn from business, industry, trade unions, environmental and community groups, and academia.
It aims to ensure the benefits and burdens of the major changes involved in Scotland’s net zero transition are shared as fairly as possible, and is tasked by the Scottish Government to produce an annual assessment of progress towards a just transition to a low carbon economy.
Satwat Rehman, co-chair of the commission, said: “Speaking to people in Shetland, we have seen again how a striking feature of the climate transition is the way that exciting new renewable energy projects sit alongside people that are struggling to pay for basic needs, and communities with concerns about the long-term sustainability of local economies.
“Our message today as a commission is that there is more that government can do to support communities and local authorities in navigating the big changes under way across the country.
“Shetland teaches us that with the right powers and enough capacity, local communities are best placed to build long-term, shared prosperity and tackle inequalities.”
Prof Dave Reay, co-chair of the commission, said: “The commission’s report sets out a number of practical measures to support local communities, like Shetland, in making the most of the opportunities the transition to a low carbon economy brings for economic and social renewal.
“Our conversations left us with a sense that Shetland has a number of distinctive assets that will help shape its transition for the better.
“It has a small, close-knit community with lots of relevant expertise, and it is relatively easy to bring people together for meaningful social dialogue on important questions.
“There’s also a common belief that if we can find the right process, new forms of economic activity can help to make a better and fairer place.”
Tom Wills, director of Lerwick-based research consultancy Voar and co-author of the research report, said: “Shetland’s strong winds, prime development sites and capable workforce make the islands an attractive location for new energy projects.
“Locals are however concerned that while further large-scale development seems guaranteed, a fair share for the community is not.
“Despite hosting oil and gas terminals and the UK’s most productive onshore wind farm, Shetland suffers from high inequality and fuel poverty.
“More jobs and economic activity won’t fix this because Shetland already has low unemployment and relies on fly-in workers.
“A fair energy transition means retaining a fair share of resource value. Our research has explored the opportunities and barriers to greater community ownership, participation and benefit from energy projects.
“As new energy developments accelerate, we have found that government at all levels – UK, Scottish and local – could be doing more to ensure communities are not left behind.”
