Offshore wind - strategic compensation policy: consultation

Executive Summary

This consultation is seeking views on the Scottish Government’s Strategic Compensation Policy for Offshore Wind (referred to as the policy), which has been developed in accordance with Part 13 Chapter 1 of the UK Energy Act 2023, and which provides for reform to the Habitats Regulations^[1] as they apply to relevant offshore wind activities (as defined in the Energy Act 2023).

The policy is critical to delivering Scotland’s offshore wind ambitions, net zero and the UK Government’s Clean Power 2030 Action Plan (CP2030). It also has the potential to contribute to Scotland’s biodiversity objectives.

The purpose of the policy is to create a more flexible and pragmatic approach to environmental compensation (referred to as compensation) requirements under the Habitats Regulations for offshore wind, unlocking barriers to offshore wind and its associated benefits and providing new opportunities for positive investment in Scotland’s marine environment.

The policy aims to provide clarity on compensation requirements under the Habitats Regulations when an adverse effect on the site integrity (AEOSI) of a protected site(s) in the UK National Site Network^[2] (referred to as the protected site network) from offshore wind plan(s) or project(s) is deemed unavoidable.

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 12nm).

The UK Government is consulting on reforms to environmental compensation for offshore wind. 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 12nm).

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 a consistent approach across the various consenting regimes.

A Strategic Environmental Assessment (SEA) and a partial Business and Regulatory Impact Assessment (BRIA) have been completed to assess the potential impacts of this policy on the environment and on businesses and regulatory processes respectively and are also being consulted on.

The policies presented in this consultation have been informed by stakeholder engagement including a series of six Scottish Government workshops held in the summer of 2024. These workshops were attended by representatives from a varied group of stakeholders and gathered views on proposed policy options for development.

This policy will now be consulted on for a six-week period. The need for a shortened consultation period is due to the desire of the Scottish Government to match UK Government timelines to maintain our collaborative approach, enable co-ordinated stakeholder engagement and minimise a gap between the inshore and offshore legislation coming into force.

This consultation is an opportunity for stakeholders to provide views on the proposed reforms and underlying policy approaches. We will use the responses to inform the final design of the EAR SSI and associated guidance. We are not consulting on the specific drafting of the EAR SSI. We would like to hear from all stakeholders who have an interest in offshore wind development and the delivery of compensatory measures in the UK.

This consultation is not intended to seek views on Habitats Regulations for other marine industries. As set out in the Energy Act 2023, this consultation applies to relevant offshore wind activities only.

We intend to draft the EAR SSI and associated guidance as soon as possible after the consultation closes and we have analysed the responses.

Document Guide

Section 1 outlines the background to the policy and explains why reform is required to achieve our objectives.

Section 2 outlines the application of the policy within Scottish marine planning and consenting processes.

Section 3 outlines the detail of the proposed reforms, including the legislative changes required to deliver wider measures.

Section 4 clarifies other aspects which will be included in subsequent guidance.

Section 5 clarifies how wider measures, and strategic compensatory measures would be identified.

Section 6 provides detail on proposed monitoring and governance arrangements.