SMI response to government proposals on reforms to Contracts for Difference

The Society of Maritime Industries (SMI) welcomes the government's proposals to reform Contracts for Difference (CfD), introducing a Sustainable Industry Reward (CfD SIR) for offshore wind projects. The aim is to encourage bids that invest in SMEs, deprived coastal areas, and environmentally-friendly supply chains.

In its response to the consultation, SMI emphasised the maritime sector's vital role in achieving net-zero emissions by 2050 and supported the need for CfD amendments to promote local content, level the playing field for UK firms, and emphasise the social value framework.

Whilst appreciative of the focus on coastal benefits, SMI urged the Government to recognise the vital link between offshore wind and the maritime sector, especially in delivering some of the key ambitions within the National Shipbuilding Strategy Refresh. To that end, SMI highlighted the UK's potential to meet the demand for building vessels required for building and maintaining offshore windfarms, creating skilled jobs and economic growth across the coast in the process.

SMI expressed its willingness to continue working with government to ensure legislation translates into increased low-carbon electricity generation, stimulating economic regeneration and turning coastal communities into economic hubs.

For further information, contact SMI's Policy and Research Manager, Giorgio Buttironi, at Giorgio.Buttironi(at)maritimeindustries.org.