Angus MacDonald is the Liberal Democrat MP for Inverness, Skye and West Ross-shire.
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We've found 19 Parliamentary debates in which Angus MacDonald has spoken about climate-related matters.
Here are the relevant sections of their speeches.
12:34
Will the Minister acknowledge that the highlands and islands produce a disproportionately large amount of our renewable energy? Will he also acknowledge that last week’s Ofgem go-ahead for three pumped storage schemes will produce almost no jobs, no legacy housing and no community benefits, along with minimal, if any, advantage to the highlands of Scotland?
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13:33
This is the Committee’s second report on our inquiry into Great British Energy and the net zero transition. We launched the inquiry in November 2024, and it has been our longest-running piece of work to date. We have received more than 50 pieces of written evidence, held 11 oral evidence sessions and carried out numerous visits, both in Scotland and internationally. I thank all the stakeholders who have engaged with the inquiry. Last autumn, we published an interim report for the inquiry on the future of North sea oil and gas, and I commend that report to all hon. Members.
Throughout our inquiry, we had a clear consensus that the communities in Scotland that shoulder the greatest impact of the energy transition by hosting renewable energy infrastructure must also share in its benefits. As one of our expert witnesses put it, highland communities see that
Our report makes it clear that meaningful community benefit extends beyond financial payments, and that housing availability, access to skills training and the creation of long-term local jobs are just as important. If delivered successfully, the influx of vast amounts of renewable energy could provide an opportunity to leave a transformative legacy of housing, skills and quality employment. That would be especially valuable for communities in remote rural Scotland, which have seen little private or public sector investment.
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11:41
Scotland exports 10 to 12 times more electricity than it needs. The Department for Energy Security and Net Zero is doing a review of community benefits, and we are very concerned that that review will produce a poor outcome for the people of rural Scotland. Could the Secretary of State make representations on that?
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11:18
We are waiting for the Department for Energy Security and Net Zero to come up with the results of the community benefit consultation. The highlands only got £9 million of community benefit last year, and Scotland as a whole got less than £30 million. There are tens of thousands of jobs in renewables in the highlands, but they are not for locals; they are imported teams. Very often, offshore firms are doing the construction. We sell 10 times more electricity than we produce. Effectively, there is nothing in it for the people of rural Scotland to produce electricity. Does the Minister agree that the community benefit conclusion from DESNZ is crucial?
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To support the hon. Gentleman’s argument about the price of electricity, renewable energy is largely generated in Scotland, north Wales and south-west England. We have the highest level of fuel poverty, we have no mains gas, and the suffering caused to those rural areas is remarkable. Until that is improved, we are not in a position to move to an electricity-based economy.
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11:30
In the remote highlands and islands, where mains gas is not available, where we have the highest level of fuel poverty in Britain, where local households and businesses rely on heating oil and electricity, and where much of Britain’s renewable energy is generated, but to minimal local benefit, does the Minister accept the unfairness of a highlander having to pay a multiple of what those in cities pay for energy?
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16:24
Does the Minister really consider this a just transition? We have thousands of contractors arriving in the highlands. They stay in workers’ camps, and very few legacy houses are agreed. The companies are not employing local people, and this is all in an area with the greatest fuel poverty in Britain.
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14:49
Environmental tariffs are on the wrong energy source. They are on renewable energy and not on imported carbon fuel mains gas. That is just so wrong. The Government declared that they are a growth Government; we now know that they meant growth in costs rather than growth in revenue. The impact of the autumn Budget was a 2% increase in the cost of the public sector and a 2% reduction in the private sector. It seems that the hospitality sector is bearing the brunt of that.
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16:58
I hope this is not too much of a diversion, but the Minister will know that mains gas is 6p per kWh, largely imported and certainly a carbon fuel, while renewable energy is selling at 24p per kWh. We cannot get the public behind us as long as the environmental tariffs are on the renewable energy and not on the carbon fuel. May I have her opinion on that?
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14:42
I wonder whether I can make the case for real support from the Government for community benefit from renewable energy. It is being proposed at a fairly modest level by the Department for Energy Security and Net Zero, but it is one of the biggest opportunities for rural Britain to transform its economy.
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19:14
More fundamentally, why are rural communities, which already pay the highest energy prices in the country, expected to accept such a meagre offer? In our cities and major towns, such as Ashton-under-Lyne, households with access to mains gas pay around 6p per kWh for their energy. In contrast, those in rural areas, who are far more likely to be affected by these infrastructure developments, pay 24p per kWh for their electricity. How is it right that the very communities that live alongside renewable energy generation and face some of the highest rates of fuel poverty are expected to pay four times as much as those on mains gas?
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I thank my hon. Friend the Member for South Devon (Caroline Voaden) for securing the debate. My two main calls for Government support for rural communities are as follows. First, rural communities producing a substantial portion of our nation’s electricity should be paid 5% of revenue for all newly consented renewable energy generated onshore and offshore, as a community benefit. That would be transformational for the income of rural areas.
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10:54
Does my hon. Friend recognise the fact that we have major issues with environmental tariffs being placed on renewable energy but not on the carbon fuel of mains gas? That is really hitting the renewable energy industry and the cost for consumers.
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09:43
How can it be that households on renewable electricity pay four times as much as those who get fossil fuel gas? That is inappropriate, not least because the cost of electricity generation from onshore wind was one third of the cost of generating electricity from fossil fuels, yet electricity bills remain nearly four times the price of mains gas. To put that into perspective, my parliamentary flat in London, which runs on mains gas, costs 5.8p per kilowatt-hour to heat, while my home in the highlands costs 23.7p. That premium is paid not just in the highlands, but across the countryside and in rural Britain, and in high-rise properties throughout cities across Great Britain. It is an enormous and painful gap. We all believe that net zero is the way ahead—we all support that—but we do not think that the current pricing is just.
We have touched on the coupling of renewable energy and gas, and I do not think anybody would disagree that they need to be decoupled. I am sure that the Minister will talk about that. We have also touched on the environmental surcharges that are put on the electricity price, so 20% or more of an electricity bill, but just a fraction of a gas bill, is an environmental tariff. Ironically, it is people using renewable energy who are shouldering those environmental charges, not those using fossil fuels—mains gas.
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I will speak about the Crown Estate’s borrowing powers and the broadening of its investment scope. These changes are intended to enhance the Crown Estate’s capacity to support our ambitious goals for renewable energy, nature recovery and economic growth. The Bill is undoubtedly a significant step forward in enabling the Crown Estate to play a greater role in the transition towards net zero. I fully support its efforts and ambitions.
I want to focus on a critical element that is close to my heart, and perhaps even more familiar to my colleagues, as I bang on about it. That subject is, of course, community benefits. Those of us in remote and rural Britain pay far more for energy than those who can access mains gas, and we also have a much higher level of poverty; especially fuel poverty. Communities hosting renewable energy projects, and particularly those overlooking offshore wind farms, deserve to see tangible benefits from those developments. The Bill presents an opportunity to ensure that offshore wind farm projects—indeed, all renewable energy projects—not only meet our national and global ambitions but provide meaningful real-world advantages to the people most impacted by them.
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16:18
Funnily enough, as a Highland councillor, it is a subject that I have spent many years working on. Highland council—I know this does not relate to the Crown Estate in England and Wales—had £9.1 million of community benefits and Scotland as a whole had £23 million. This is an industry worth hundreds of billions of pounds across the whole of Britain, so we should have, say, 5% of that as community benefits, which would be transformational for Cornwall, Devon, Pembrokeshire and indeed Scotland. I encourage the House to consider how the Bill could establish a robust framework for community benefits that could serve as a model for renewable energy projects across the whole of the UK, working closely with the Scottish Crown Estate.
The Bill represents a vital step forward in enabling the UK to meet its net zero targets and enhance energy security. However, it is equally vital that we legislate to include statutory powers for the Crown Estate in England and Wales, and indeed in Scotland, to ensure that these transformative projects see their fair share of community benefits for communities.
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16:14
I invite hon. Members to refer to my entry in the Register of Members’ Financial Interests. I thank my hon. Friend the Member for South Cambridgeshire (Pippa Heylings) for her commitment to our essential amendments, both in Committee and here today. I also thank the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton), who has been incredibly supportive of our ambition for communities to benefit from renewable energy. I have one little correction: Tom Johnston, who invented the hydro boards, and the Labour Government did not actually put in place a proper system whereby local communities could benefit. They supplied a lot of power to the south and the cities, but it was of very little benefit to those of us living in the highlands, even then.
The Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), recently experienced a powerful story of community-driven energy on his visit to the island of Eigg. Just 25 years ago, Eigg’s residents, frustrated by years of poor management and a lack of investment, took matters into their hands and purchased their island. The Eigg buy-out succeeded in 1997, sparking what is now a beacon of self-sustained energy. Since then, Eigg has moved away from fossil fuels, becoming the world’s first island to generate 24-hour electricity from a variety of different renewables. This small community of just 110 people demonstrates the innovation and resilience that flourish when communities are empowered.
Eigg’s journey is a true example of prioritising community ownership and how that drives forward sustainability and local resilience. To paraphrase the Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), community involvement is critical, not a mere “nice to have”. If we are to build the infrastructure of the future, we must ensure that communities benefit directly. Community-driven projects are key to making that a reality, so let us follow Eigg’s lead and put the Government’s own words into action.
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14:30
That this House has considered community benefits from renewable energy projects.
The issue I have with these renewables projects, whether solar, wind, pumped storage or whatever, is that they are in rural areas. The locals suffer the visual impact, and we have all seen miles and miles of 200-metre-high wind turbines and field after field, sometimes of prime land, covered in solar panels. Villagers—people—have to face those industrial projects, and we really need to take them with us on this net zero journey.
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14:34
Those of us in the highlands, and indeed in many other parts of Britain, have long, dark, windy and cold winters. When many people open the curtains in the morning, they look out on to a wind farm selling cheap, green energy to the big cities. The remote highlands and islands, the Scottish Borders, Wales, Cumbria and the west country are among our poorest areas.
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14:41
Here is my financial proposal: 5% of revenue from all newly consented renewable energy, generated both onshore and offshore, should be paid to community energy funds. For onshore projects, two thirds of that should be paid to the affected council board, with one third paid to a council strategic fund. For offshore projects, all of that 5% of gross revenue should go to a council strategic fund. An existing renewables project should also pay money; I will explain that in a second.
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14:45
Let me plagiarise the Highland council report in order to provide some context. In 2023, in the highlands, local communities received approximately £9 million. That is below the expected commitment based on Crown Estate Scotland’s guidelines, which suggest that developers should contribute £5,000 per megawatt, equating to £13.9 million. The total income from wind generation in the highlands for 2023 was estimated to be around £590 million. That calculation is based on a potential production of 11.8 GW. If all renewables—including hydro, offshore wind and pumped storage—were included, the benefit increased to 5%, and the amount of renewable energy doubled by 2030 to 22 GW, which is likely, then the community benefit would rise well above £50 million per year. That is a heck of a lot of money to highland rural communities. What would that be across the UK? £500 million a year? £1 billion? £5 billion over 10 years? This is a proper levelling-up fund for rural communities.
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15:58
That this House has considered community benefits from renewable energy projects.
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15:18
We have talked about accommodation, and the Highland council, on which I was a councillor, has £1.2 billion of borrowing, yet 40% of our housing budget is spent on interest payments. That is a catastrophe. Basically, we cannot borrow any more money to build more housing. The utility companies that are building renewable energy projects across the whole of the highlands need to build properties that will remain there for generations rather than modular housing for the extent of the jobs or projects, and the same should go for the owners of fish farms. It would make a big difference if the private and public sectors worked together, because I fear that public sector housing will not be able to fill the gap.
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15:50
What can be done about this? I propose that 5% of revenue from all newly consented renewable energy generated both onshore and offshore should be paid to community benefit funds. For onshore projects, two thirds of that should be paid to the affected council ward, with one third paid to a council infrastructure fund; for offshore projects, all of that 5% of gross revenue should go to council infrastructure funds. Existing renewable projects over 1 MW should pay 2%, as per the split already outlined. For transmission lines and substations, the Irish have an excellent community benefit plan that we can learn from—I would like the energy Minister to listen to this, rather than do his emails. The Norwegians handled the revenue from the North sea oil boom well, and their sovereign wealth fund is now valued at $1.7 trillion. Britain saved nothing, and we are in real danger of repeating that mistake with the renewables bonanza.
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