This guide explores the benefits of funding net zero projects from community benefit income. Community benefit income might be available from a fund provided by a commercial wind farm, a community investment in a renewable project or a community owned project. This guide highlights three case studies from communities who have taken this approach, and outlines recommendations for getting the most out of your community benefit fund.
Community benefits are voluntary payments made by a developer to a community, or group of communities, near the location of renewable generation such as a wind farm. The Scottish Government, in its draft Energy Strategy and Just Transition Plan, sets the expectation that energy developers should offer meaningful community benefits in-line with its Good Practice Principles. There are at least 350 active funds in Scotland with more expected as a result of the Onshore Wind Sector Deal. The Community Benefits Register narrative report shows that a total of over £25 million has been committed in community benefits in the last year. You can find out more about community benefits on Local Energy Scotland’s website.
Scotland’s ambitious climate change legislation sets a target date for net zero emissions of all greenhouse gases by 2045. Net zero projects include any actions which aim to stop greenhouse gases being produced through human activity, for example, by transforming the way we heat our homes.
The three case studies in this guide are from both developing and operational projects that are using community benefit income to reduce climate emissions from local homes. We would love to hear about other examples of communities that are using community benefit or community income to help reduce carbon emissions and fuel poverty; if you have an example, please email us.
