Prime Minister Keir Starmer has unveiled the Clean Industry Bonus at the COP World Leaders Summit, an incentive aimed at drawing offshore wind investment into the UK's industrial regions, coastal communities, and former oil and gas hubs. This initiative will offer £27 million per gigawatt (GW) of new offshore wind capacity, with a provisional budget of up to £200 million if 7-8 GW of projects apply.
The Clean Industry Bonus aims to foster sustainable industry growth by encouraging cleaner energy investments in Scotland, Wales, the North East, and North West, regions where it will also support local manufacturing of wind turbine components, such as blades and cables, and development of ports. Starmer emphasized the potential of this initiative to make the UK a leader in renewable energy and strengthen the nation's energy security. “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,” he said, underscoring the initiative's role in economic growth and climate protection.
RenewableUK's Chief Executive, Dan McGrail, highlighted the opportunity for significant manufacturing investment and job growth, noting that with the right incentives, the UK's offshore wind industry, which already employs 32,000 people, could expand its supply chain threefold over the next decade. He also called for the Clean Industry Bonus to be incorporated into a broader industrial strategy for offshore wind, with matching grants to stay competitive with European counterparts.
McGrail stated, “The Clean Industry Bonus should be considered a key part of an industrial strategy for offshore wind, which the Government should continue to develop… 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.”
At COP, the Prime Minister is expected to advocate for climate financing, emphasizing the necessity of private capital in supporting the transition in developing countries. As part of this commitment, the UK will announce the CIF Capital Market Mechanism, listed on the London Stock Exchange, which aims to generate up to $75 billion over the next decade for climate initiatives in developing countries. This listing reflects confidence in the UK's economy and its position as a global green finance center.
The UK government sees this mechanism as a vital step to increase funding for climate action, showing London's appeal as a destination for green investment and reinforcing its role in the global push for sustainability and economic resilience.
