Scottish Marine Recovery Fund: consultation analysis report

2 Introduction

2.1 Purpose of the Consultation Analysis Report

2.1.1 The purpose of this Consultation Analysis Report is to summarise the responses to the consultation on the Scottish MRF. The consultation ran for a period of 6 weeks from 19 August 2025 to 30 September 2025.

2.1.2 This report has been prepared by ABPmer and Arup on behalf of Scottish Government and provides an independent analysis of responses to the public consultation on the Scottish MRF.

2.2 Background to the Scottish Marine Recovery Fund

2.2.1 The growth of the renewable energy sector, and the offshore wind sector in Scotland in particular is critical to delivering a net zero future, energy security and to capitalising on the opportunities of Scotland’s abundant renewable energy resources to deliver both economic and environmental benefits.

2.2.2 Scotland’s Offshore Wind Policy Statement^[3], published in 2020, set an ambition of 8-11 GW (gigawatts) of offshore wind development by 2030. In recognition of the significant project pipeline, and to underline the Scottish Government’s firm commitment to the offshore wind sector, the Scottish Government has consulted on proposals which would see Scotland’s offshore wind ambition increased to up to 40 GW by 2035-2040, in addition to our existing operational capacity.

2.2.3 To support the delivery of our offshore wind ambitions, it is essential to create the right enabling environment for accelerating development of offshore wind whilst also maximising the benefits for Scotland’s environment.

2.2.4 Offshore wind developers must apply to Scottish Ministers for consent to construct and operate offshore wind farms in Scottish waters. This application process requires Scottish Ministers to consider the adverse effects of any proposed development on protected sites, which include Special Areas of Conservation (SACs), Special Protection Areas (SPAs) and MPAs. If an adverse effect on the site integrity of a protected site(s) is considered likely, a development can be consented only where a derogation case is approved and appropriate compensatory measures are secured.

2.2.5 For offshore wind development in Scotland, this derogation process is anticipated to be triggered at the plan and project level largely due to adverse effects on protected seabird species.

2.2.6 The Energy Act 2023^[4] enables the UK Government to make provision for the establishment, operation and management of one or more MRFs, which would take payments from developers to fulfil environmental compensation requirements, by delivering strategic compensatory measures.

2.2.7 The MRF mechanism is an important part of the UK Government’s Offshore Wind Environmental Improvement Package (OWEIP) and in Scotland the Acceleration and Regulatory Reform of Offshore Wind (ARROW) programme, which support the growth of offshore wind by helping to de-risk and accelerate planning decisions while supporting positive investment to protect the marine environment.

2.2.8 The UK Government has recently consulted on its own MRF ^[5], which will be available for projects affecting protected sited in English, Welsh, and Northern Irish waters. The UK Government’s MRF Consultation closed on 12 May 2025.

2.2.9 The Scottish Government believes that a separate Scottish MRF would be more effective for meeting the unique needs of the Scottish offshore wind consenting process but supports the two MRFs working closely together as closely as possible. The Scottish Government published interim guidance ^[6] on the Scottish MRF for offshore wind developers on 8 July 2025.

2.2.10 The Scottish MRF and the UK Government MRF intend to operate under the following joint principles, which are to:

• deliver a more streamlined process for securing compensation required in respect of offshore wind developments and do so in a way that enables strategic environmental benefits to be delivered;
• be tailored to each nation’s unique constitutional, legal and sectoral needs, maximising their effectiveness and value; and
• work in close partnership, with opportunities to broadly align approaches being sought wherever possible and practicable.

2.2.11 The Scottish Government is now exploring the establishment of a Scottish MRF and sought views through this consultation on how such a fund should be operated and managed.

2.2.12 Ensuring there is an evidenced and diversified range of compensatory measures available for use by the Scottish MRF over time will be critical to maximising its useability.

2.2.13 Proposals for reform of environmental compensatory measures for offshore wind under the Energy Act 2023^[7], including potential changes to the Habitats Regulations^[8] and for the development of strategic compensation policy for offshore wind, were subject to separate consultation by the UK and Scottish Governments. These consultations were launched on 22 July 2025. The Scottish MRF Consultation, does not cover strategic compensation.

2.2.14 The UK Government’s Consultation on Environmental Compensatory Measures Reforms^[9] was open until 2 September 2025.

2.2.15 The consultation on the Scottish Government’s Strategic Compensation Policy for Offshore Wind^[10] was open until 1 September 2025.

2.3 The Consultation

2.3.1 The Scottish MRF consultation was published on 19 August 2025. The consultation ran until 30 September 2025, for a total of 6 weeks. The consultation paper and partial BRIA were made publicly available on the Scottish Government website.

2.3.2 The purpose of the consultation was to collect and understand the views of individuals and organisations on proposals for establishing a Scottish MRF and how it would be operated and managed. Responses to this consultation will inform the design of the Scottish MRF and the relevant UK legislation which will be required to establish the Scottish MRF.

2.3.3 The Scottish MRF consultation covered:

• the role of the Scottish MRF Operator;
• the proposed process for developers seeking to apply to the Scottish MRF;
• the interaction between the Scottish MRF and UK Government MRF, and how cross-border project impacts will be addressed;
• the proposed fee and costs structure for the Scottish MRF; and
• the proposed scope of the guidance for the Scottish MRF.

2.3.4 The consultation did not seek views on the following:

• the Scottish Government’s strategic compensation policy for offshore wind;
• the specific compensatory measures which could be made available for use by applicants through a Scottish MRF or what these measures could cost; and
• the operation of the UK Government MRF which is being established for England, Wales and Northern Ireland.

2.3.5 The partial BRIA was also consulted on as part of the consultation. The feedback received will be reflected in the final BRIA.

2.3.6 Two online consultation events were held as part of the consultation process. These events presented the Scottish MRF consultation and allowed attendees to ask questions. Further information on these events can be found in Appendix B.

2.3.7 Responses to the consultation could be submitted via the Scottish Government's consultation hub, Citizen Space^[11]. Where respondents could not respond via Citizen Space they could respond directly to the Scottish Government via email or post by completing the Respondent Information Form and consultation response.