Exclusive:Call for rural Scots to get fair share of the green revolution taking place in their backyards

Groundbreaking new rules should be brought in that would give communities more control over major green developments in their local area and rights to a share in the profits, a landmark new report recommends.

The proposal comes amid an ongoing boom in demand and prices for land in Scotland that shows little sign of slowing – largely driven by investors looking to capitalise on renewable energy generation, timber plantations and the emerging carbon trading market.

In a new paper, the charity Community Land Scotland (CLS) argues that a system of legally enforceable agreements is needed to ensure communities benefit properly from the likes of wind farms and natural carbon-capture schemes, which can be highly lucrative for owners and developers.

Such an initiative could be “transformational”, according to the charity, ensuring that the particular priorities of residents would be part of the conversation about potential developments from the outset and continue through the planning process and eventual management of successful projects.

It could also benefit landowners and developers, reducing potential conflict with neighbours.

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CLS contends that local people across Scotland’s rural areas have throughout history lost out when money-spinning economic developments have been set up in their area, despite being the most directly impacted.

Currently some projects provide community benefit funds to support local projects, but such arrangements are not compulsory.

The report describes how a new system of Thriving Community Partnership Agreements (TCPAs) could work.

TCPAs would be drawn up between developers and locals, giving high priority to the needs of inhabitants.

They would stipulate a “holistic” understanding of benefit, so potential rewards from a development could range from a set percentage of gross profits to land transfers or housing and service development, based on particular circumstances.

The agreements could also set a requirement for a new business venture such as a wind-farm to be part-owned by the community, securing longer-term income and guaranteeing a say in governance.

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The paper also recommends setting up local management boards to safeguard community interests into the future.

“In generations past, agreement between landowners, developers and the local people was never properly achieved with the coming of historic profitable developments that often dominated many rural estates, such as sheep, kelp, forestry and fish-farming,” said CLS chair Ailsa Raeburn.

“Those who have been able to own those assets have always taken nearly all the benefits.

“Existing models see local communities as a tick-box consideration with, at most, contributions to a community benefit fund – which is often a fraction of the money generated from the projects.

“We need to move beyond this model and have the community actively involved from the very start of any development process, deciding how everyone in the community can benefit comprehensively from what are often very profitable developments.

“Renewables, for example, have huge economic development potential for rural areas of Scotland if properly managed.

“We need an enforceable system that ensures the local people in these communities get a significant benefit with economic development locked into the local area, as well as securing returns for the landowners and development companies.”

Land in Scotland has been reaching unprecedented sale prices, even tracts once considered almost worthless.

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A recent report from the Scottish Land Commission found: “The natural capital and afforestation potential of land is an increasingly critical driver of demand due to timber prices, competitive forestry grants and carbon offset markets, particularly for hill ground and less productive grassland and marginal arable ground.”

According to research, estates host 57 per cent of Scotland’s renewable energy generating capacity.

Landowners have said they are willing to consider potential partnership opportunities but warned that payback is not always guaranteed.

“Using land to sequester carbon is and will be vital if Scotland is to achieve net-zero by 2045, and private investment in land management will play an important part in this ambition,” said Stephen Young, director of policy at Scottish Land & Estates.

“Any form of ‘green project’ does not come without risks, however, as we witnessed with forestry during Storm Arwen in 2021.

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“We are open-minded regarding new ideas on how to share benefits with communities but these would need to take into account the risks as well.

“There have been examples of formal and informal agreements between landowners and communities, and there is already dialogue with the Scottish Land Commission on this matter, but central to this should be how any agreement can maximise the viability of a carbon sequestration project for the long-term.”

Land in Scotland that was once considered low-value because of its unsuitability for livestock has been reaching unprecedented sale prices.

A recent report from the Scottish Land Commission found: “The natural capital and afforestation potential of land is an increasingly critical driver of demand due to timber prices, competitive forestry grants and carbon offset markets, particularly for hill ground and less productive grassland and marginal arable ground.”

A new Scottish Land Reform Bill is due to be introduced by the end of the year.

It aims to address long-standing concerns over the highly concentrated pattern of land ownership in many parts of rural Scotland and ensure that land is owned, managed and used in ways that align with green goals.

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The Scottish Government has said it is committed to ensuring “the best outcomes for people and nature” and will consider the CLS report.

A spokesperson said: “Our new Land Reform Bill will improve transparency of land ownership, help ensure large-scale land holdings deliver in the public interest, and empower communities by providing more opportunities to own land and have more say in how land in their area is used.

“Investing in our environment is also about investing in our communities.

“That’s why we published our interim principles for responsible investment, and are now developing a market framework that builds on that and reflects our vision of a values-led, high-integrity market that ensures local people can benefit.”