Offshore wind - strategic compensation policy: strategic environmental assessment - post adoption statement

1 Background to the Strategic Compensation Policy for Offshore Wind

1.1.1 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^[1] and Scotland’s Climate Change Plan^[2].

1.1.2 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)^[3] to take account of these leased capacities and to set out a strategic framework for delivery of offshore wind in Scotland.

1.1.3 To help address the global climate emergency and nature crisis, the Strategic Compensation Policy has been 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.

1.1.4 The policy aims 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.

1.1.5 The policy will be delivered in Scotland through secondary legislation via a Scottish Statutory Instrument (SSI) and associated guidance. The Offshore Wind Environmental Assessment Reform Scottish Statutory Instrument (OW 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).

1.1.6 The United Kingdom (UK) Government consulted on reforms to environmental compensation for offshore wind^[4]. 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).

1.1.7 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 OW EAR SSI, to ensure consistency across the various consenting regimes.