Contracts for Difference: reforms to the Clean Industry Bonus, Allocation Round 8
We’re seeking views on regulatory reforms to the Clean Industry Bonus ahead of Allocation Round 8 of the Contracts for Difference scheme.
The government is proposing to bring in regulatory reforms to the Contracts for Difference (CfD), to be implemented from Allocation Round 8 (AR8) onwards.
The proposed reforms aim to support the UK’s clean energy superpower mission by improving the Clean Industry Bonus (CIB), which was introduced in Allocation Round 7 (AR7).
The response to the CIB in AR7 was strong, with an allocation of £544 million to support the development of more sustainable supply chains. Continuing this positive trajectory, the consultation seeks views on the proposed changes to support the delivery of the ‘Clean Energy Industries Sector Plan’.
This consultation sets out the proposed reforms for upcoming allocation rounds:
- introduce a new criterion aimed at strengthening workforce protection by encouraging developers and suppliers to commit to negotiations of a new offshore wind fair work charter to improve jobs in the industry
- introduce a new criterion aimed at increasing skills investment, either through a pooled fund targeting industry-wide needs or through project-level initiatives
- extending the CIB to onshore wind, recognising its vital role in delivering clean power and the opportunity to support investments in cleaner and shorter supply chains
- implementing technical improvements to ensure the scheme continues to function as effectively as possible
In addition, non-regulatory amendments will be made to the scheme through changes to the CIB Allocation Framework. These will be tested with industry, trade bodies, unions and other relevant stakeholders during Autumn 2025.
The consultation is necessary to understand views on the proposed reforms and how we can continue to improve the CIB for government, offshore and onshore wind developers, the wider supply chain and the workforce. We aim to publish a government response on proposed reforms in the autumn, considering responses to the consultation and further policy consideration, with legislation to follow.