Home » Marine Energy Wales’ Consultation Response to ‘Contracts for Difference: Reforms to The Clean Industry Bonus, Allocation Round 8’

We recently submitted a response to the UK Government’s consultation on reforms to Allocation Round 8.

Our Position on the Consultation

Marine Energy Wales supports the UK Government’s ambition to strengthen workforce protections and align skills development with the growth of offshore renewables. We welcome the use of the Clean Industry Bonus (CIB) to incentivise fair work, skills investment, and supply chain resilience.

However, we caution against rigid, one-size-fits-all measures. Emerging technologies such as floating offshore wind and tidal stream face high capital costs and early-stage risks. Policies must therefore be proportionate, flexible, and designed to attract broad participation across the supply chain – from Tier 1 developers to SMEs and new entrants – without undermining investment or competitiveness.

In this response, we:

  • Support a staged approach to fair work – using AR8 for early commitments and AR9 for full charter adoption, with clear milestones.
  • Advocate for proportionate supplier obligations – requiring Tier 1 firms to lead while supporting SMEs and new entrants to engage over time.
  • Caution against unintended consequences – such as excessive burdens on smaller firms, regional imbalances, or policies that deter early-stage FLOW projects.
  • Emphasise transparency and predictability – including statutory allocation timelines, early visibility of budgets, and regulatory flexibility for external risks such as grid or consenting delays.
  • Highlight the strategic importance of tidal stream – calling for its inclusion in the CIB to accelerate cost reduction, drive UK supply chain growth, and deliver coastal community benefits.

Our recommendations aim to ensure that the CIB framework supports sustainable workforce growth, regional fairness, and supports the sustainable growth of the industry in Wales and the Celtic Sea.