The UK government has approved proposals to expand the Clean Industry Bonus (CIB) within the Contracts for Difference (CfD) scheme starting from Allocation Round 8 (AR8), aiming to strengthen labour standards and skills investment across the renewables sector.

The Department for Energy Security and Net Zero (DESNZ) confirmed that developers applying for the CIB will be required to sign up to an interim Fair Work Charter, which will become part of the minimum eligibility standards. The charter was first introduced in AR7 for fixed-bottom and floating offshore wind projects.

Suppliers included in CfD bids will also be required to commit to the charter, although exemptions will be available for small businesses and new facilities, according to government officials.

Alongside this, DESNZ will establish a third-party administered collaborative skills investment fund, ahead of a fully operational fund planned for 2027. The initiative is intended to support workforce development as the UK accelerates the deployment of renewable energy projects.

The government has also accepted proposals to extend the Clean Industry Bonus to onshore wind, although this will not take effect until Allocation Round 9 (AR9). From that round, eligible onshore wind projects will be able to access payments of up to £25m per GW. Projects entering the CfD auction without applying for the CIB will not be required to meet the associated minimum standards.

DESNZ said it received 48 responses during a consultation launched last August, and confirmed that legislation will be laid in Parliament to implement the necessary regulatory reforms.

Industry body RenewableUK welcomed the changes. Its director of renewable delivery, Scott Young, said the offshore wind sector is working closely with the government and trade unions to maximise the creation of high-quality, well-paid jobs.

“There are currently 40,000 people working in the sector, and we need to build on this by recruiting and retaining tens of thousands of skilled workers in the years ahead to design, construct and operate the UK’s vast pipeline of offshore wind farms,” Young added.