Nature Positive Role of the Offshore Wind Sector

At COP28, over 130 countries committed to tripling renewables capacity by 2030. Clean energy deployment has the potential to achieve 90% of the carbon dioxide (CO2) reductions needed to meet the Paris Agreement’s goal of limiting warming to 1.5°C.34 Harnessing the ocean’s abundant renewable energy, of which offshore wind is the most mature technology, can play a pivotal role in this achievement. Offshore wind currently contributes to approximately 0.6% of the global power generation. It accounts for 7.5% of total wind energy, which accounts for 7.8% of total energy.35,36 However, forecasts show that onshore and offshore wind could generate more than one-third of total electricity needs by 2050, according to the International Energy Agency’s (IEA) net zero scenario.37,38 Offshore wind, being one of the lowest CO2-emitting energy sources,39 could be a major driving force in achieving the Paris Agreement’s goal, while also contributing to the Kunming-Montreal Global Biodiversity Framework. To achieve these climate and nature goals, offshore wind capacity must increase dramatically, providing jobs and benefits for local communities while safeguarding ecosystems. By 2030, offshore wind is projected to grow five-fold from the current 75 gigawatts (GW) to 380 GW and thirty-fold to 2,000 GW by 2050.40 Despite recent headwinds due to macroeconomic pressures and supply chain bottlenecks, offshore wind deployment is rising again in Europe and North America (though the US market is still nascent). Exploration and permitting have also accelerated in many emerging markets – notably Japan, South Korea, Australia, the Philippines, Viet Nam, Colombia and Brazil. Offshore wind developments have historically been concentrated in Europe’s North and Baltic Seas, accounting for 45.3% of global capacity.41 However, China has recently overtaken Europe as the largest offshore wind producer, representing 54.6% of global capacity.42 As well as potentially impacting marine and terrestrial habitats, the growth of offshore wind farms (and associated grid infrastructure) could drive resource extraction and pollution from upstream supply chain activities. This includes mining for rare earth minerals and metals that are essential for wind turbine components, as well as steel and concrete production. Offshore wind turbines, which must withstand harsh marine environments, are larger and heavier than their onshore counterparts, requiring more materials than many other clean energy technologies. The IEA points out that around 15.5 tonnes of critical minerals are needed for 1 megawatt (MW) of power generation by offshore wind, compared to 10 tonnes for onshore wind, 7 tonnes for solar and less than 3 tonnes for coal and gas.43 These facts emphasize the need to align energy production with the protection of biodiversity and marine ecosystems. With proper management, alongside government and corporate commitments to support biodiversity and ecosystem health, the risks from this expansion to the sea, land, habitats and species can be substantially minimized. Furthermore, active efforts from offshore wind developers and grid operators to restore and regenerate nature can deliver positive impacts.1.1 Sector overview By 2030, offshore wind capacity is projected to grow five-fold from the current 75 GW to 380 GW, and thirty- fold to 2000 GW by 2050. Definition of the offshore wind sector BOX 1 This report focuses on the offshore wind sector as a sub- sector of the Renewable Resources & Alternative Energy: Wind Technology & Project Developers industry outlined by the Sustainability Accounting Standards Board’s (SASB) Sustainable Industry Classification System (SICS).44 This comprises offshore wind development in all its phases: siting, designing and constructing offshore wind farms and related infrastructures; operations and maintenance; decommissioning/end of life; and the transmission and distribution of electricity generated by offshore wind. In addition, this report will consider the offshore wind sector’s upstream value chain, which encompasses industries such as mining and metals (for the supply of materials and rare earth metals for wind turbines), provision of machinery and transport equipment, provision of electrical equipment and components (cables and wires), marine transport, and ports and services. However, the analysis applies to these upstream activities only to the extent that they are directly linked to inputs and services for offshore wind, as well as to the engagement of offshore wind developers with upstream suppliers. For an in-depth analysis of nature-related impacts, dependencies and priority actions for the mining and metals and ports sectors, please refer to the Forum’s Nature Positive: Role of the Mining and Metals Sector report and Nature Positive: Role of the Port Sector report. The downstream market, which uses electricity produced by offshore wind, is currently outside the scope of this analysis.45 Nature Positive: Role of the Offshore Wind Sector 14