Offshore wind - strategic compensation policy: consultation analysis report

1 Introduction

1.1 Purpose of the Consultation Analysis Report

1.1.1 The purpose of this Consultation Analysis Report is to summarise the responses to the consultation on the Strategic Compensation Policy for Offshore Wind^[1] (hereafter referred to as the Strategic Compensation Policy), as expressed formally through the public consultation. The consultation ran for a period of 6 weeks from 22 July 2025 to 1 September 2025.

1.1.2 This report has been prepared by ABPmer on behalf of Scottish Government and provides an independent analysis of responses to the public consultation on the Strategic Compensation Policy.

1.2 Background to the Strategic Compensation Policy for Offshore Wind

1.2.1 Globally, twin reinforcing crises are being faced; climate change acts as a contributor to biodiversity loss, and biodiversity loss will exacerbate the climate crisis. The Scottish Government has set out its commitment to addressing these twin crises in two plans: the Scottish Biodiversity Strategy and Scotland’s Climate Change Plan.

1.2.2 Scotland holds an abundance of renewable energy resources and a key component for meeting Scotland’s net zero targets is further offshore wind development. Seabed leasing rounds for offshore windfarms were launched by Crown Estate Scotland (CES) in 2022 and 2023, known as ScotWind and Innovation and Targeted Oil and Gas (INTOG). Scottish Government’s Offshore Wind Directorate (OWD) is updating the Sectoral Marine Plan for Offshore Wind Energy (SMP-OWE)^[2] to take account of these leased capacities and to set out a strategic framework for delivery of offshore wind in Scotland.

1.2.3 To help address the global climate emergency and nature crisis, the Strategic Compensation Policy is being developed by the Scottish Government to introduce amendments to the process for how compensatory measures can be identified and implemented under the Habitats Regulations for offshore wind plans and projects in Scottish waters.

1.2.4 The proposals aim to provide new opportunities for investment to conserve Scotland’s marine environment by enabling a more flexible approach to the requirements for compensation. It also aims to unlock barriers to offshore wind deployment in Scotland, and the climate and economic benefits offshore wind brings.

1.2.5 The policy will be delivered in Scotland through secondary legislation via an Environmental Assessment Reform Scottish Statutory Instrument (EAR SSI) and associated guidance. The EAR SSI will be applicable to the Scottish inshore region (0-12 nautical miles (NM)). Associated guidance will apply across the Scottish inshore and offshore regions (beyond 12 NM).

1.2.6 The UK Government consulted on reforms to environmental compensation for offshore wind^[3]. A separate Consultation Analysis Report was undertaken for the UK Government consultation. The UK Government reforms will be delivered through a Statutory Instrument (SI) and associated guidance. The UK Government SI will apply in the Scottish offshore region (beyond 12 NM).

1.2.7 A collaborative approach between both governments has been taken to the development of the policies underpinning both the UK Government SI and the Scottish Government EAR SSI, to ensure consistency across the various consenting regimes.

1.2.8 A Strategic Environmental Assessment (SEA) and a partial Business and Regulatory Impact Assessment (BRIA) have been completed. This was to assess the potential impacts of the Strategic Compensation Policy on the environment and businesses and regulatory processes.

1.2.9 Further information on Strategic Compensation Policy is presented in the policy document itself^[4].

1.3 The consultation

1.3.1 The Scottish Government is committed to a thorough and inclusive consultation process enabling engagement with users of the shared marine space to listen to and understand their views and feedback. Consultation on the Strategic Compensation Policy followed both the National Standards for Community Engagement^[5] and the Government Consultation Principles^[6].

1.3.2 The Strategic Compensation Policy consultation was published on 22 July 2025 and ran to 1 September 2025, a total of 6 weeks.

1.3.3 The purpose of the consultation was to collect and understand the views of individuals and organisations on the proposed Habitats Regulations reform and underlying policy approaches. Scottish Government will use the responses to inform the final design of secondary legislation and associated guidance.

1.3.4 The Strategic Compensation Policy was accompanied by two supporting documents:

• SEA; and
• BRIA.

1.3.5 The consultation contained 17 questions, 14 on the Strategic Compensation Policy and a further three questions on the supporting assessments. The consultation questions were primarily qualitative with unique (free text) responses, with 13 of the questions also containing a ‘yes’, ‘no’, or ‘I don’t know’ option to accompany the free text. These are referred to as ‘short answer responses’ throughout this report, with free text responses referred to as ‘long answer responses’.

1.3.6 The Strategic Compensation document and supporting documents were made available on the Scottish Government website and supported by two online events in August 2025. Further details regarding these events is provided in Appendix B of this report.

1.3.7 Only written responses submitted online, by email or by post, with a completed Respondent Information Form, were included for analysis and reporting.