Department of Agriculture, Environment and Rural Affairs (DAERA) has recently opened a consultation on environmental compensatory measures for offshore wind projects in the Northern Ireland inshore region.
Proposed Amendment to Habitats Regulations
It proposes amending the Conservation (Natural Habitats, etc.) Regulations (Northern Ireland) 1995 under Energy Act 2023 s.293 to enable wider and strategic compensatory measures benefiting the UK marine protected area network.
It also aims to gather feedback on:
– a three-tier compensation hierarchy;
– use of the Marine Recovery Fund as a voluntary delivery mechanism; and
– requiring evidence, additionality, monitoring, adaptive management and periodic review of compensatory measures.
What is the three-tier compensation hierarchy?
The most interesting element for industry is the proposed three-tier compensation hierarchy:
First tier: like-for-like compensation. The starting point is to compensate for the same protected feature, habitat, species or ecological function affected by the project, as closely as possible.
Second tier: ecologically similar or related measures. Where like-for-like compensation is not feasible or would not deliver the best ecological outcome, the focus may shift to measures that benefit comparable features or ecological functions within the marine protected area network.
Third tier: wider strategic compensation. Where the first two tiers are not practical or effective, broader measures may be considered if they can deliver meaningful benefits for the coherence and resilience of the UK marine protected area network.
Compensation is often one of the most difficult parts of consenting major offshore infrastructure. It requires decision-makers to reconcile two important public interests: accelerating renewable energy deployment and maintaining robust protection for designated marine sites.
For developers:
The proposals could provide greater clarity on what evidence is needed, when wider compensation may be acceptable, and how delivery mechanisms such as the Marine Recovery Fund might be used.
For regulators and nature conservation bodies:
The key questions will be whether compensation is genuinely additional, evidence-based, monitored, enforceable and capable of adaptive management over time.
For Northern Ireland:
Offshore wind is central to decarbonisation and energy security, but the consenting regime will need to be legally robust, environmentally credible and practically workable.
A more strategic approach to compensation may help unlock delivery, but only if it commands confidence from developers, statutory advisers, environmental organisations and coastal communities.
The consultation closes on 21 September 2026.
For legal guidance and advice on how this consultation may apply to your business, please contact Maria O’Loan or another member of our Planning and Environment team.
While great care has been taken in the preparation of the content of this article, it does not purport to be a comprehensive statement of the relevant law and full professional advice should be taken before any action is taken in reliance on any item covered.
