Source reNews - UK unveils 'shop local' offshore wind bonus

Offshore wind developers are set to be encouraged to invest in the UK’s industrial centers, coastal regions, and oil and gas communities under a new strategy introduced by Prime Minister Keir Starmer at the World Leaders Summit during COP.

The new initiative, called the Clean Industry Bonus, will offer an estimated £27 million per gigawatt of offshore wind projects. If developers aim to generate between 7GW and 8GW, the budget could reach as high as £200 million, according to government projections.

This bonus aims to foster a supportive environment for clean energy industries to thrive in the UK and beyond, rewarding companies that prioritize environmentally friendly suppliers, according to officials in London.

The initiative is intended to stimulate private investment in regions across Scotland, Wales, and the North East and North West, supporting sustainable production of offshore wind blades, cables, and ports.

Prime Minister Starmer stated: “Our mission to make Britain a clean energy superpower will energize our industrial heartlands and remove obstacles to growth in our hard-working towns and cities.”

“This will enhance our national security, protecting our children and grandchildren from the climate crisis and securing their future prosperity,” he added.

"By taking decisive action now, the UK has a unique opportunity to lead the global transition to future industries — partnering with businesses to build real energy security, reduce energy costs, and expand UK-based jobs and supply chains."

"However, we cannot do it alone. At COP, I will work with other nations to advance the global clean energy transition to address the root causes of climate change.”

Dan McGrail, Chief Executive of RenewableUK, commended the Prime Minister’s approach, noting that with strong incentives, the UK could attract hundreds of millions in offshore wind manufacturing investment.

“The offshore wind industry already supports around 32,000 jobs in the UK, predominantly in coastal towns like Hull, Grimsby, and Lowestoft, but this number could rise significantly in the near future,” McGrail said.

"Earlier this year, the offshore wind sector released an Industrial Growth Plan estimating that the UK could triple its supply chain over the next decade."

McGrail emphasized that the Clean Industry Bonus should be a foundational element of an industrial strategy for offshore wind, encouraging the government to continue developing this initiative alongside other key policies, such as grant programs to keep the UK competitive with European counterparts.

“Now is the ideal time to introduce the Clean Industry Bonus, as companies in the offshore wind supply chain consider new investments to meet growing global demand. Enhancing our industrial capacity now will strengthen the UK’s position to export high-value products and services in the years to come.”

During COP, the Prime Minister is expected to advocate for global cooperation in supporting the green transition. He is anticipated to emphasize that a stable climate and healthy ecosystems are essential for the global economy.

Starmer is also expected to highlight the importance of substantial climate financing to avert severe climate impacts, asserting that public funding alone will not meet the needs of developing countries and that innovation is essential to unlock billions in private finance.

To support this goal, the UK will use the summit to unveil the new CIF Capital Market Mechanism on the London Stock Exchange. This financial mechanism aims to mobilize up to $75 billion in climate financing for developing countries over the next decade.

The listing in London underscores confidence in the UK economy and establishes the city as a hub for green finance, officials added, showcasing the UK as a desirable destination for future-focused investments.

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