Offshore wind developers will be incentivised to invest in the UK’s industrial heartlands, coastal areas and oil and gas communities under a new strategy outlined by Prime Minister Keir Starmer at first day of the World Leaders Summit at COP.
The Clean Industry Bonus will come with a provisional £27 million per gigawatt of offshore wind projects. That means if between 7GW to 8GW of offshore wind apply, the budget could go up to £200m, according to the government.
The bonus will create the conditions for cleaner energy industries to thrive in the UK and elsewhere, while rewarding firms for investing in less polluting suppliers, said London.
It will help to crowd in private investment in hard-working communities across Scotland, Wales, the North East and North West, to build more sustainable offshore wind blades, cables and ports, added officials.
Prime Minister Keir Starmer said: ”Our mission to make Britain a clean energy superpower will fire up our industrial heartlands and break down barriers to growth in our hard-working towns and cities.
“It will strengthen our national security - protecting our children and grandchildren from the climate crisis, and impact this will have on their future prosperity.
“By acting decisively and early, the UK has an opportunity to lead the world in the industries of the future – working in partnership with business – creating real energy security, cutting energy bills and building jobs and supply chains in the UK.
“But we can’t move alone – and at COP I will lead efforts to protect Britain from climate change by also working with other countries to accelerate the global clean transition to tackle the causes at its root.”
RenewableUK Chief Executive Dan McGrail said the Prime Minister is right in recognising that, with the right incentives in place to make the UK competitive with other countries, the country has the potential to secure hundreds of millions of pounds in new offshore wind manufacturing investment.
“The offshore wind industry already employs around 32,000 people in the UK, mostly in coastal towns like Hull, Grimsby and Lowestoft, but we could see this figure increase substantially in the coming years,” he said.
“Earlier this year the offshore wind sector published an Industrial Growth Plan which estimated that the UK could treble the size of the sector’s supply chain over the next decade.
“The Clean Industries Bonus should be considered a key part of an industrial strategy for offshore wind, which the Government should continue to develop alongside its wider industrial strategy this spring, putting in place other core components like a programme of grants to match to those being offered by our European competitors.
“It’s the right time to introduce the Clean Industry Bonus, as offshore wind supply chain companies are actively considering new investments to service the rapidly expanding global market. Growing our industrial capability now will put the UK in a strong position to sell our high-value goods and services abroad in the coming years.”
The Prime Minister is expected to use the visit to COP make the case for supporting the global transition. In his address to other countries he will argue the global economy depends on nature and a stable climate that is under threat.
Climate finance at scale is critical to avoiding the worst consequences of climate change, he will say, but the UK is clear public finance alone cannot meet the growing needs of developing countries and innovation is essential to unlock billions in private finance.
This is why the UK will also use the summit to announce the launch of the new CIF Capital Market Mechanism on the London Stock Exchange.
This innovative new financial mechanism has the potential to mobilise up to $75 billion in additional climate capital for developing countries over the next decade.
Its listing in London shows the confidence in the UK economy and showcases the city as a green finance capital, and the UK as an attractive place to invest in the future, added London.