Offshore wind - strategic compensation policy: strategic environmental assessment

2 Strategic Compensation Policy

2.1 Overview of the Strategic Compensation Policy

2.1.1 The policy under assessment is the Strategic Compensation Policy for Offshore Wind (hereafter referred to as the ‘Strategic Compensation Policy’). Once adopted, this policy will be applicable to any relevant future offshore wind projects and associated offshore transmission infrastructure^[33].

2.1.2 The UK Energy Act 2023^[34] includes a provision which gives the opportunity for strategic compensation to be applied where an offshore development for electricity generation is anticipated to have adverse environmental effects on the national site network and marine protected areas^[35]. These compensatory measures will be requirements for specific projects.

2.1.3 In the context of this policy, strategic compensation is defined as a strategic approach to the delivery of environmental compensation of adverse impacts on protected habitats and species from offshore wind plans and projects in order to maximise environmental benefit, nature restoration and enhancement opportunities and to achieve economies of scale.

2.1.4 The Strategic Compensation Policy will enable the strategic compensation approach to be applied to both plan and project-level compensation requirements.

2.1.5 There is a need to set out the Scottish Government policy on strategic compensation to allow the consent process to move forward in a timely manner. The policy will support developers and delivery partners to meet legal obligations under the Habitats Regulations^[36], the Marine (Scotland) Act 2010^[37], and the Marine and Coastal Access Act 2009^[38] whilst supporting Scottish biodiversity and climate change targets.

2.1.6 The spatial scope of the policy is the Scottish inshore region (0 – 12 NM) and the Scottish offshore region (12 – 200 NM). The geographical scope of the policy extends up to Mean High Water (MHW) springs, and therefore also include intertidal elements. Regions where protection continues on land (e.g., seabird colony SPAs) are also in the scope of the policy, and therefore this SEA.

2.1.7 It is recognised that whilst the spatial extent of the policy relates to the above, compensation measures could come forward beyond these areas. For example, compensation measures could take place on land, or outside of Scotland/Scottish waters. It should be noted that the Strategic Compensation Policy does not identify specific spatial locations or details of compensatory measures. It is therefore only possible to undertake an SEA at this stage involving a preliminary consideration of the types of impacts that could arise from the Strategic Compensation Policy.

2.1.8 The policy includes core principles regarding:

• Defining ‘the network’;
• Overall coherence;
• Selecting measures; and
• Additionality.

2.1.9 Principles regarding implementation and monitoring measures are also included in the policy relating to:

• Timing of measures;
• Monitoring of measures; and
• Adaptive management.

2.2 Relationship with the existing legislation

2.2.1 The Habitats Regulations, under specific circumstances, provide for a derogation to be applied when it is considered that a plan or project must proceed despite a conclusion that it would have an adverse effect on site integrity. In these circumstances compensatory measures to address the environmental impacts must be taken. The following key regulations are currently in force (as amended):

• The Conservation of Habitats and Species Regulations 2017 (apply to s.36 consent applications – see Section 2.2.7);
• The Conservation (Natural Habitats, &c.) Regulations 1994 as amended (apply to marine licence applications in relation to devolved matters in Scottish territorial waters); and
• The Conservation of Offshore Marine Habitats and Species Regulations 2017 (referred to below as the “OMRs 2017”) (apply to marine licence and s.36 consent applications within Scotland’s offshore region beyond 12 NM.

2.2.2 Similarly, under the Marine (Scotland) Act 2010^[39], and the Marine and Coastal Access Act 2009^[40], there are specific circumstances where Measures of Equivalent Environmental Benefit (MEEB) must be secured to address environmental impacts.

2.2.3 As outlined in Section 2.1.1 the UK Energy Act 2023 includes a provision which gives the opportunity for strategic compensation to be applied where an offshore development for electricity generation is anticipated to have adverse environmental effects on the national site network and marine protected areas. The Strategic Compensation Policy will help to facilitate the implementation of these requirements.

2.2.4 To facilitate the sustainable development of offshore wind, Scottish Government implemented in 2020 the Sectoral Marine Plan for offshore wind energy^[41]. Sectoral Marine Planning has been developed in Scotland to meet with the requirements of EU, UK and Scottish legal and policy instruments^[42]. Scottish Government is delivering an updated Sectoral Marine Plan for offshore wind energy (SMP-OWE), which will provide the planning framework for both ScotWind and Innovation and Targeted Oil and Gas (INTOG) lease rounds.

2.2.5 Grid infrastructure and strategic planning of the transmission infrastructure required to support the SMP-OWE (i.e. offshore transmission infrastructure components, subsea transmission cables, landfall and transition pit, and onshore substations) form part of the National Energy System Operator’s (NESO) Holistic Network Design (HND)^[43] and HND Follow Up Exercise (HND-FUE)^[44] strategic-level work.

2.2.6 In terms of consenting of offshore wind developments, marine licensing under the 2010 Marine Scotland Act (s.27) and the 2009 Marine and Coastal Access Act (s.69) requires that in determining an application, regard must be had to the need to:

• Protect the environment;
• Protect human health; and
• Prevent interference with legitimate uses of the sea.

2.2.7 The Scottish Ministers also have executively devolved powers in relation to applications for consent under s.36 of the Electricity Act 1989 throughout Scotland’s entire marine region (inshore and offshore).

2.2.8 Marine planning contributes to sustainable development and use of marine resources. The National Marine Plan ^[45] outlines that consideration should be given to opportunities to enhance biodiversity and associated ecosystem services, including recovery and/or enhancement of degraded habitats or species populations. GEN9 (Natural Heritage) of Scotland’s National Marine Plan also outlines that development and use of the marine environment must protect and, where appropriate, enhance the health of the marine area⁴⁵. An updated National Marine Plan 2 (NMP2) is currently under development^[46] and expected to be adopted in 2027.

2.2.9 The National Marine Plan 2: Planning Position Statement^[47] sets out the work to date carried out by the Scottish Government in line with legislative requirements and other policy commitments.

2.2.10 The position statement sets out how NMP2 will adopt a blue economy approach and consider the environment, social wellbeing and the economy together, with NMP2 objectives mapped out against the blue economy outcomes and designed to further sustainable development and support a just transition.

2.2.11 NMP2 will continue to support sectoral planning for marine renewables and reference any updated offshore wind policy statements. Following feedback from stakeholders, the NMP2 will also consider how the agreed approach to strategic compensation will interact with other planning policies. For example, by enabling the use of marine space for compensatory measures should this be necessary.

2.3 Policy context for the Strategic Compensation Policy

2.3.1 The 2005 Act and 2004 Regulations requires Responsible Authorities to identify the plan’s broader policy context, particularly any relevant environmental protection objectives that will influence the plan’s development and implementation. In terms of the immediate policy context for the Strategic Compensation Policy, these are set out in Section 1.1.

2.3.2 The following paragraphs set out the broader policy context in which the Strategic Compensation Policy sits, beginning with a summary of relevant marine policies and followed by an overview of policies relating to the SEA topics that have been scoped into the assessment, specifically Biodiversity, Flora and Fauna; Soil (benthic (seabed) substrates and habitats); Water; Climatic Factors; Cultural Heritage; and Landscape/Seascape^[48].

General marine policy

2.3.3 At an international level, the OSPAR Convention for the Protection of the Marine Environment of the North-East Atlantic integrated and updated the 1972 Oslo and 1974 Paris Conventions on land-generated sources of marine pollution^[49]. Specifically, it added an annex covering the protection and conservation of marine ecosystems and biodiversity^[50].

2.3.4 The EU Marine Strategy Framework Directive (MSFD) obligates Member States to develop adaptive management strategies to bring their marine environments to Good Environmental Status, as well as to safeguard the marine resources that underlie key economic and social activities^[51]. It allocates responsibility for the marine environment via a regional approach that in the case of the UK, makes use of the existing cooperative framework of the OSPAR Convention^[52]. Following the UK’s departure from the EU, the UK reports progress towards Good Environmental Status through its Marine Strategy^[53].

2.3.5 At a UK level, the Marine Strategy Regulations (2010) require the UK to take the necessary measures to achieve or maintain Good Environmental Status (GES) through the development of a UK Marine Strategy. It sets out the UK level policy framework for the delivery of the vision of clean, healthy, safe, productive, and biologically diverse oceans and seas. However, GES has not been achieved for 11 out of the 15 indicators^[54].

2.3.6 The Marine and Coastal Access Act 2009 devolved new marine planning and conservation powers to Scottish Ministers in the offshore region (12 – 200 NM), in addition to providing a framework for cooperative management of the marine environment between Scottish Ministers and UK Government^[55].

2.3.7 At a national level, the Marine (Scotland) Act 2010 strives to help balance competing demands on Scotland’s inshore seas^[56]. It introduced a duty to protect and enhance the marine natural and historic environment while at the same time streamlining the marine planning and licensing system. It also contains measures intended to boost growth in areas such as marine renewables.

2.3.8 Scotland’s National Marine Plan fulfils joint requirements under the Marine (Scotland) Act 2010 and Marine and Coastal Access Act 2009 to prepare marine plans, providing a cohesive approach to the management of both inshore and offshore waters^[57]. It enacts the principles of EU Directive 2014/89/EU^[58] on maritime spatial planning, which recognise that a comprehensive and consistent approach to maritime planning can prevent conflicts between sectors, increase cross-border cooperation, and protect the environment by identifying potential impacts early and pursuing opportunities for multiple uses of space^[59]. The National Marine Plan also seeks to promote development in a way that is compatible with the protection and enhancement of the marine environment^[60]

2.3.9 In the Programme for Government 2022-2023, Scottish Ministers committed to begin the process of developing a new National Marine Plan for Scotland, to address the global climate and nature crises, by carefully managing increased competition for space and resources in the marine environment^[61]. In the Programme for Government 2024 to 2025 Scottish ministers reaffirmed their commitment to continue developing a new national marine plan^[62].

2.3.10 In the context of offshore wind, the existing National Marine Plan lists several objectives and policies to serve as considerations in marine planning and decision making^[63]. Among these are the sustainable development of offshore wind in the most suitable locations; consideration of Regional Location Guidance and the Pentland Firth and Orkney Waters Marine Spatial Plans; and the sustainable development and expansion of test and demonstration facilities for offshore wind and marine renewable devices^[64] (Renewable Policies 1-3). These objectives and policies will be considered in decision making alongside general planning principles and policies contained in the National Marine Plan. These include principles such as ‘achieving a sustainable economy’ and ‘living within environmental limits’.

2.3.11 Alongside the National Marine Plan, there are 11 Scottish Marine Regions (which extend out to 12 NM). Regional marine plans are currently in the process of being prepared by three Regional Marine Planning Partnerships. Regional marine plans are themselves not required to be developed, but where they exist they need to be developed in conformity with the National Marine Plan (unless relevant considerations indicate otherwise). With regard to offshore wind, regional marine plans are also required to take into account the Plan Options identified via the sectoral marine planning process, as well as co-ordination with the Crown Estate Scotland (CES) leasing regime and grid requirements and initiatives^[65].

2.3.12 The National Planning Framework 4 (NPF4) is the national spatial strategy for Scotland^[66]. It sets out spatial principles, regional priorities, national developments and national planning policy. It should be read as a whole and replaces NPF3 and Scottish Planning Policy. National developments are significant developments of national importance that will help to deliver the spatial strategy for Scotland. National Development 3 supports renewable electricity generation, repowering, and expansion of the electricity grid.

2.3.13 In order to make Scotland a global leader in marine management, the Blue Economy Vision was released in 2022, which recognises that Scotland’s seas and waters have a key role to play in contributing to the nation’s future economic prosperity, especially in remote, rural and island communities, and that a healthy marine environment is essential to supporting this ambition^[67]. The Vision identifies six outcomes acting as focal points to ensure the marine environment supports ecosystem health, improved livelihoods, economic prosperity, social inclusion and wellbeing. These outcomes are as follows:

• Scotland’s marine ecosystems are healthy and functioning;
• Scotland’s blue economy is resilient to climate change, contributing to climate mitigation and adaptation;
• Established and emerging marine sectors are innovative, entrepreneurial, productive and internationally competitive;
• Scotland is a global leader in healthy, quality, sustainably harvested and farmed Blue Foods;
• Thriving, resilient, regenerated, healthy communities have more equal access to the benefits that ocean resources provide; and
• Scotland is an ocean literate and aware nation.

Biodiversity, Flora and Fauna

2.3.14 At an international level, the UN Convention on Biological Diversity (CBD), signed by 150 government leaders at the 1992 Rio Earth Summit, is dedicated to promoting sustainable development^[68]. The Conference of the Parties is the governing body of the Convention, and advances implementation of the Convention through the decisions it takes at its periodic meetings^[69]. The 15^th meeting of the Conference of the Parties (COP 15) to the CBD has been held in K^unming, China in two parts. Part one took place virtually between 11 and 15 October 2021^[70]. Part two was an in-person meeting in Canada in December 2022. The first part of COP15 addressed agenda items considered essential for the continuation of the operations of the Convention and the Protocols^[71]. It included meetings about administrative matters and technical issues related to the CBD programmes, as well as the development of the Post-2020 Global Biodiversity Framework which aims to put nature on a path to recover by 2030. The Framework comprises 21 targets and 10 ‘milestones’ proposed for 2030, en route to ‘living in harmony with nature’ by 2050^[72]. The second part of COP15 addressed the following^[73]:

• Adoption of an equitable and comprehensive framework matched by the resources needed for implementation;
• Clear targets to address overexploitation, pollution, fragmentation and unsustainable agricultural practices;
• A plan that safeguards the rights of indigenous peoples and recognizes their contributions as stewards of nature; and
• Finance for biodiversity and alignment of financial flows with nature to drive finances toward sustainable investments and away from environmentally harmful ones.

2.3.15 COP 16 took place in Cali, Columbia, in October 2024, which led to an agreement on the expanded role of indigenous peoples and local communities in protecting biodiversity. COP 16 resumed on 25 to 27 February 2025 to discuss biodiversity finance and the monitoring framework for the Kumming-Montreal Global Biodiversity Framework (KMGBF)^[74].

2.3.16 The 29^th session of the United Nation’s COP (COP 29) was held from 11 to 22 November in Baku, Azerbaijan^[75].

2.3.17 The OSPAR Convention for the Protection of the Marine Environment of the North East Atlantic is an important driver in the protection and conservation of marine ecosystems and biodiversity, including the establishment of an ecologically coherent network of MPAs in the North East Atlantic^[76]. The OSPAR List of Threatened and/or Declining Species and Habitats identifies species and habitats that are considered to be priorities for protection. The Northeast Atlantic Environment Strategy 2030 has been adopted by OSPAR^[77] which sets out strategic objectives to help to achieve Good Environmental Status in the marine environment.

2.3.18 Following the UK’s exit from the EU, the requirements of the Habitats Directive (92/43/EEC)^[78] and the Birds Directive (2009/147/EC)^[79] are a part of UK domestic legislation, namely the Habitats Regulations^[80] as amended by the Conservation of Habitats and Species (Amendment) (EU Exit) Regulations 2019^[81],[82]. These requirements focus on the maintenance and enhancement of biodiversity, with an emphasis on protecting rare and endangered wild species and natural habitats of European significance. The UK site network^[83] comprises terrestrial and marine Special Areas of Conservation (SACs) and Special Protection Areas (SPAs). Many of the terrestrial sites are also underpinned by a Site of Special Scientific Interest (SSSI) designation^[84].

2.3.19 At the national level, the Marine (Scotland) Act 2010^[85] and the Marine and Coastal Access Act 2009^[86] gives Scottish Ministers powers to designate MPAs in Scottish territorial and offshore waters, respectively.

2.3.20 The 2020 Challenge for Scotland’s Biodiversity^[87] is Scotland’s response to the international United Nations (UN) Aichi Targets for 2020^[88] and the EU Biodiversity Strategy to 2020^[89]. The 2020 Challenge supplements the 2004 Scottish Biodiversity Strategy^[90] and together they comprise the overall Scottish Biodiversity Strategy^[91]. Key aims include preserving and restoring the health of Scotland’s ecosystems at a catchment-scale and promoting climate change resilience.

2.3.21 In 2020, Scottish Government published a Scottish Biodiversity Strategy Post-2020: Statement of Intent which sets the direction for a new biodiversity strategy which will respond to the increased urgency for action to tackle the twin challenges of biodiversity loss and climate change^[92]. A consultation on the new Scottish Biodiversity Strategy consultation opened on 20 June 2022 and closed on 12 September 2022^[93]. The Scottish Biodiversity Strategy to 2045 was subsequently published on 27 November 2024^[94]. This Strategy sets out the Scottish Government’s ambition for Scotland to end biodiversity loss and be nature positive by 2030, and to have restored and regenerated biodiversity across the country by 2045. The Strategy will drive the transformation needed to manage and restore terrestrial, freshwater and marine biodiversity resources in Scotland, as well as providing a framework for prioritising and coordinating actions and investments.

2.3.22 The draft Scottish Seabird Conservation Action Plan has been created through the recognition that many of Scotland’s internationally important seabird populations are at risk from a range of pressures, including climate change and avian influenza. Focusing on 22 species of seabird, the vision is that by 2045, Scotland’s seabird colonies are thriving and showing improved resilience to climate change with increases in abundance and breeding success since 2023 studies. This will be carried out through partnership delivery of ambitious, effective and adaptive actions to address existing pressures and emerging threats in Scottish seas and coasts for seabirds. This will be supported by underpinning research, raising awareness and international collaboration^[95].

2.3.23 There is growing interest in active restoration projects in Scotland which can play an important role in contributing to a healthy marine environment as they aim to improve the quality, size or geographical distribution of habitats or species. Scottish Government is therefore developing a Marine and Coastal Restoration Plan^[96]. The plan will set out actions to support the acceleration of ecosystem restoration and regeneration in Scotland.

Soil

2.3.24 The topic of ‘Soil’ will be given consideration under the topic of ‘Biodiversity, Flora, and Fauna’. As such, soil policy and protection objectives relevant to the assessment are set out below.

2.3.25 EU Directive 2014/89/EU (the Maritime Spatial Planning Directive) consolidated and expanded upon the fundamental aspects of the Council Recommendation on Integrated Coastal Zone Management of 2002 and the Protocol to the Barcelona Convention on Integrated Coastal Zone Management of 2010^[97], obligating the development of coastal management strategies. It aims to coordinate the development and delivery of policies across a wide spectrum of both marine and terrestrial activities, including offshore wind energy, in a way that is mindful of the natural limits of the coastal environment^[98].

2.3.26 In Scotland, Integrated Coastal Zone Management is achieved via the work of Local Coastal Partnerships^[99],[100]. In addition, Marine Scotland Science is responsible for monitoring, research, and regulation of certain coastal activities.

2.3.27 At present, there is no legislative or policy tool developed specifically for the protection of soil^[101]. However, designations and their associated management agreements and operations often extend protection to soil as a means of enhancing the biodiversity, geodiversity, landform value, and cultural resources of the site^[102]. For example, marine geology forms part of the basis for the designation of MPAs within Scottish waters^[103]. Specifically, MPAs strive to protect rare and representative marine species, habitats, and geodiversity, the latter defined as the variety of landforms and natural processes that underpin the marine landscape.

2.3.28 The UK Marine Strategy covers 11 elements or descriptors, including sea-floor integrity (Descriptor 6 (D6)) comprising pelagic habitats and benthic habitats, and hydrographical conditions (D7)^[104]. In terms of benthic habitats, the high level objective for GES is to ensure the health of seabed habitats is not significantly adversely affected by human activities^[105]. In terms of hydrological conditions, the high level objective is that the nature and scale of any permanent changes to hydrographical conditions resulting from anthropogenic activities do not have significant long term impacts on UK habitats and species.

2.3.29 The Scottish Soil Framework places the sustainable management of soils within the context of the economic, social, and environmental needs of Scotland^[106]. The Framework identifies 13 key soil outcomes such as protecting soil biodiversity, reducing and remediating soil erosion, and tackling Green House Gas (GHG) emissions. The Framework also notes the impacts that rising sea levels and associated seasonal incursion by seawater could have on coastal soils.

Water

2.3.30 The topic of ‘Water’ will be given consideration under the topic of ‘Biodiversity, Flora, and Fauna’. As such, soil policy and protection objectives relevant to the assessment are set out below.

2.3.31 The International Convention for the Prevention of Pollution from Ships (MARPOL) regulates accidental and operational releases of pollutants into the marine environment by the shipping industry, including oil and other chemicals^[107].

2.3.32 The EU’s Water Framework Directive (2000/60/EC) (WFD) was introduced as a more comprehensive approach to managing and protecting Europe’s water bodies including rivers, lochs, transitional waters, coastal waters, and groundwater resources^[108]. It sets out a requirement for an assessment of both chemical and ecological status and has a goal of bringing all European waters to ‘good’ chemical and ecological status. Scotland fulfils its water protection obligations under the WFD primarily through the Water Environment and Water Services (Scotland) Act 2003^[109], which defines the establishment of River Basin Management Plans (RBMPs)^[110], and the Water Environment (Controlled Activities) (Scotland) Regulations 2011^[111]. Other relevant legislation includes the Pollution prevention and Control (Scotland) Regulations 2012, which applies specifically to pollution originating from industry discharges^[112].

2.3.33 The Marine Strategy Framework Directive which is reported in the UK through the UK Marine Strategy^[113] extends the requirements of the WFD into seas beyond 1 NM. The UK Marine Strategy covers 11 elements or descriptors, including eutrophication (D5), hydrographical conditions (D7) and contaminants (D8). In relation to eutrophication (D5), the high level objective for GES is to minimise human-induced eutrophication in UK marine waters^[114]. For hydrographic changes (D7), the GES objective is to ensure that the nature and scale of any permanent changes to hydrographical conditions resulting from anthropogenic activities do not have significant long-term impacts on UK habitats and species. For contaminants (D8), the GES objective is that concentrations of specified contaminants in water, sediment or marine biota, and their effects, are lower than thresholds that cause harm to sea life and are not increasing.

2.3.34 The EU Floods Directive (2007/60/EC)^[115] is implemented at the national level through the Flood Risk Management (Scotland) Act 2009^[116]. The Directive mandates the creation of flood risk management plans for all inland and coastal areas at risk of flooding, integrating their development and deployment with existing RBMPs. Flood risk management plans are designed to minimise negative impacts due to flooding on a range of receptors, including human health, the environment, and cultural heritage.

Climatic Factors

2.3.35 In November 2016, the United Nations Framework Convention on Climate Change (UNFCC) Paris Agreement came into force^[117]. The Paris Agreement is the first legally binding global climate deal and sets out aims to limit global warming to well below 2^oC as well as pursue further efforts to limit it to 1.5^oC. A further long term goal is to achieve net-zero levels of global greenhouse gas (GHG) emissions by the second half of this century. The Agreement also covers a range of other issues such as mitigation through reducing emissions, adaptation, and loss and damage.

2.3.36 The Climate Change Act 2008 is the basis for the UK’s approach to tackling and responding to climate change^[118]. It requires that emissions of carbon dioxide and other greenhouse gases are reduced and that climate change risks are adapted to. The Act also establishes the framework to deliver on these requirements. The Act supports the UK’s commitment to urgent international action to tackle climate change. The Climate Change Act commits the UK government by law to reducing greenhouse gas emissions by at least 100% of 1990 levels (net zero) by 2050. This includes reducing emissions from the devolved administrations (Scotland, Wales and Northern Ireland), which currently account for about 20% of the UK’s emissions. The Climate Change Act requires the government to set legally-binding ‘carbon budgets’ to act as stepping stones towards the 2050 target. All six carbon budgets have been put into law and run up to 2037. The UK is currently in the fourth carbon budget period (2023 to 2027)^{[119],[120],[121]}.

2.3.37 The Climate Change (Emissions Reduction Targets) (Scotland) Act 2019^[122] received Royal Assent on 31 October 2019. The Act amends the Climate Change (Scotland) Act 2009 setting targets to reduce Scotland’s emissions of all greenhouse gases to net-zero by 2045 at the latest, with interim targets for reductions of at least 56% by 2020, 75% by 2030, 90% by 2040^[123]. This act was updated in November 2024 and became the Climate Change (Emissions Reduction Targets) (Scotland) Act 2024, in which a framework for carbon budgeting was presented^[124]. An update to Scotland’s 2018-2032 Climate Change Plan was published in 2020^[125], which reflects the increased ambition of the new targets for Scotland. Achievement of these targets will require the expansion of renewable energy in Scotland, of which offshore wind is likely to form a significant contribution.

2.3.38 The British Energy Security Strategy sets out how Great Britain will accelerate the deployment of wind, new nuclear, solar and hydrogen, whilst supporting the production of domestic oil and gas in the nearer term – which could see 95% of electricity by 2030 being low carbon^[126]. The Strategy recognises the importance of accelerating the transition away from oil and gas which depends critically on the development and deployment of offshore wind farms. This Strategy has been built upon with the UK Government Clean Power 2030 Action Plan^[127], which sets a target that by 2030, Great Britain will generate enough clean power to meet our total annual electricity demand, backed up by unabated gas supply to be used only when essential.

2.3.39 The Marine (Scotland) Act 2010 specifies a duty for Ministers and the public sector to manage and progress actions within the marine environment in a way “best calculated to mitigate, and adapt to, climate change so far as is consistent with the proper exercise of that function”^[128]. Scotland’s National Marine Plan^[129] considers climate change in terms of how actions undertaken within the Plan can help to mitigate GHG emissions, in addition to how these actions also need to be adapted to take into account the effects of climate change. The Plan also stipulates that the development and use of the marine environment should not have a significant impact on the national status of PMFs, several of which are known for their role in carbon sequestration.

2.3.40 NPF4 contains a policy to tackle the climate and nature crisis (Policy 1) “To encourage, promote and facilitate development that addresses the global climate emergency and nature crisis” ^[130].

2.3.41 Climate Ready Scotland: climate change adaptation programme 2019-2024^[131], is a five year programme to prepare Scotland for the challenges it will face as the climate continues to change. One of the outcomes of the programme is that the coastal and marine environment is valued, enjoyed, protected, and enhanced, and has increased resilience to climate change.

2.3.42 The Scottish National Adaptation Plan 2024-2029 has been in development since 2022 and was published in 2024 and sets out the approach to adapt to the challenges of climate change across the next five years^[132]. Key priorities of the plan include building resilient regional partnerships, improving flood warnings for businesses, encouraging behavioural changes to help the community cope with availability challenges, and distribute agricultural funding on condition of implementing climate adaption.

2.3.43 The UK hosted the 26^th UN Climate Change Conference of the Parties (COP26) in Glasgow between 31 October and 13 November 2021^[133]. The COP26 summit brought parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change. The outcomes achieved are outlined in the COP26 Glasgow Climate Pact^[134].

2.3.44 The 29^th UN Climate Change Conference of the Parties (COP29) was held from November 11 to November 22 in Baku, Azerbaijan^[135], during which the UK announced its 2035 Nationally Determined Contribution emissions reduction target of at least 81% below 1990 levels, in line with the Climate Change Committee’s advice. Other key outcomes included the agreement to reach a climate finance goal of at least $300 billion per year from the developed world by 2035, and that progress towards mitigation and adaption was limited^[136].

Cultural Heritage

2.3.45 The United Nations Educational, Scientific and Cultural Organization (UNESCO) Convention on the Protection of the Underwater Cultural Heritage obligates signatories to take steps to preserve their underwater heritage both within territorial waters and as well as throughout their Exclusive Economic Zone^[137]. Article 5 refers to activities that could incidentally affect underwater cultural heritage, such as offshore wind energy generation.

2.3.46 The Joint Nautical Archaeology Policy Committee Code of Practice for Seabed Developers is a voluntary code of practice^[138]. It provides a framework that seabed developers can follow to ensure their activities are sympathetic to archaeological resources. Further sources of guidance include those that set out protocols to deal with the marine historic environment developed specifically for the offshore renewable energy sector^[139].

2.3.47 The Marine (Scotland) Act 2010 included an article on the establishment of historic Marine Protected Areas (MPAs) to safeguard a wide range of heritage assets at the coast edge, on the foreshore, and out to sea, including the remains of ships and aircraft lost at sea; harbours, lighthouses, and other structures relating to transport and trade by sea; and the remains of human settlements at the coastal fringe. They extend and replace the protection previously afforded to underwater heritage by the Protection of Wrecks Act 1973^[140].

2.3.48 The Ancient Monuments and Archaeological Areas Act 1979 provides for the protection of archaeological heritage, including the scheduling of ‘monuments’^[141]. The Act is primarily intended for terrestrial locations but includes provision to designate submarine sites. The 1979 Act was modified by the Historic Environment (Amendment) Scotland Act 2011^[142].

2.3.49 Our Place in Time – The Historic Environment Strategy for Scotland, published in 2014, lays out a 10-year vision for Scotland’s historic environment^[143]. The vision is founded upon the fundamental aims of understanding, protecting, and valuing our historic environment, ensuring it continues to benefit Scotland’s Our Place in Time – The Historic Environment Strategy for Scotland, published in 2014, lays out a 10 year vision for Scotland’s historic environment^[144]. Following this, Our Past, Our Future – The Historic Environment Strategy for Scotland, was published in 2023^[145] and set out the national mission to sustain and enhance Scotland’s historic environment over the period 2023 to 2028. The 2024 annual report presents the progress made so far through the strategy, which thus far has included obtaining funding, holding conferences and citizen science events, increasing engagement between stakeholder groups^[146].

2.3.50 The Historic Environment Policy for Scotland^[147] sets out an overarching framework for historic environment policy in Scotland. NPF4 also includes a policy “to protect and enhance historic environment assets and places, and to enable positive change as a catalyst for the regeneration of places”^[148].

Landscape/Seascape

2.3.51 The European Landscape Convention strives to promote landscape protection, management, and planning as well as achieve a more concerted approach to addressing landscape issues at the European scale^[149]. The Convention presents a highly inclusive definition of landscape, specifying that protection and enhancement activities should apply equally to both ‘outstanding’ as well as less remarkable or degraded landscapes. This definition encompasses natural, rural, urban, and peri-urban landscapes across land, marine, and inland water environments.

2.3.52 At a national level, the role of Scotland’s natural heritage and landscapes in informing land use planning is set out in NPF4 and specifically the Natural Places Policy (Policy 4) “to protect, restore and enhance natural assets making best use of nature-based solutions”^[150]. The Energy Policy (Policy 11) also states that project design and mitigation will need to demonstrate how significant landscape and visual impacts are addressed, recognising that such impacts are to be expected for some forms of renewable energy. Where impacts are localised and/or appropriate design mitigation has been applied, they will generally be considered to be acceptable. The vulnerability of landscapes to climate change is also noted.

2.3.53 NatureScot’s Landscape Policy Framework strives to ‘safeguard and enhance the distinct identity, the diverse character, and the special qualities of Scotland’s landscapes as a whole’^[151]. NPF4 gives significant protection to wild land areas^[152]. The National Marine Plan also sets out the consideration of wild land in addition to largely undeveloped coasts, noting that development should be considered in line with Scottish Planning Policy (which has now been replaced by NPF4) when planning for and taking decisions which may impact on such areas.

2.3.54 NatureScot has also produced guidance on ‘Siting and Designing Wind Farms in the Landscape’ that includes a section on coastal landscapes and the potential impact offshore wind farms may have on inland and offshore land and seascape character and views, including views from boats and ferries^[153]. It also states that existing landmarks like historical or navigational features (such as lighthouses), distinctive coastal landforms, coastal settlements, and areas valued for recreation should be avoided when selecting locations for wind energy development. Additional advice is provided by their ‘Offshore Renewables – guidance on assessing the impact on coastal landscape and seascape’ publication^[154].

2.4 Finalisation of the Strategic Compensation Policy

2.4.1 The draft Strategic Compensation Policy has been developed with input from stakeholders and are now subject to a formal consultation period together with this Environmental Report. Following the public consultation, a Post Adoption Statement will be produced, demonstrating:

• how environmental considerations have been integrated into the proposals;
• how the Environmental Report has been taken into account;
• how the views of the consultation authorities have been taken into account;
• how the results of the consultation have been taken into account;
• the reason for choosing the proposals, as adopted, in the light of other reasonable alternatives considered; and
• the measures that are to be taken to monitor the significant environmental effects of the Strategic Compensation Policy.

2.4.2 Following the consultation, the documents will be finalised and published. Scottish Government will then work with stakeholders to apply the Strategic Compensation Policy to relevant future offshore wind projects and associated offshore transmission infrastructure^[155].