Expertise
Offshore wind
Impact
Harmonising offshore wind’s approach to footprinting and climate action.
CHALLENGE
How can offshore wind accelerate the energy transition while keeping emissions in check?
Global climate targets cannot be met without stepping up renewable energy generation. Hailed as one of the cheapest and cleanest ways to generate electricity, offshore wind plays a pivotal part in the transition to renewables, with 2000 GW of offshore wind to be delivered by 2050. It means that the race is on to install an additional 70-80 GW per year from 2030 onwards.
Offshore wind farms already produce electricity with a significantly lower carbon footprint compared to fossil fuel-based energy sources. Offshore wind assets are, however, dependent on rare minerals, carbon-intensive materials and heavy transport, be it the steel for the foundations, the copper used within cables or the fuel consumption of vessels. Even as offshore wind leads the charge towards a world that runs entirely on clean energy, it must address the carbon-intensive aspects of its wind farms.
To decarbonise offshore wind assets, the industry needs to standardise the way it measures, reports and ultimately reduces emissions. Doing so will allow for more targeted action and create a more resilient industry.
SOLUTION
Establishing a collective voice for industry-wide action
Collaboration is key to driving change across the industry. In 2023, we launched the Sustainability Joint Industry Programme (Sustainability JIP), featuring 12 offshore wind developers that represent around a quarter of installed wind farm capacity. Building on the decarbonisation efforts at an individual offshore wind farm level, the Sustainability JIP aims to create a consistent approach to carbon accounting and supply chain engagement. In order to create carbon transparency and identify decarbonisation drivers, we:
Worked with developers to identify the challenges of applying footprint standards and their needs for industry-specific information. Building on the Greenhouse Gas Protocol standards, we developed clear criteria for the footprint boundaries, emissions metrics and life cycle stages of offshore wind farms.
Defined what high-quality carbon data should look like. To ensure realistic data demands, we engaged with industry suppliers to understand the type of data they can provide. These data expectations allow for consistency in carbon calculations and the exchange of carbon footprints.
Shared the industry-specific guidance for targeted consultation with industry stakeholders, including government representatives and industry leaders. From this, we rolled out guidance for assessing the product carbon footprint of an individual offshore wind farm. This standardised guidance explains how to account for emissions at each life cycle stage, from material extraction through to decommissioning.
The 'Offshore wind industry product carbon footprinting guidance' is available to all industry stakeholders who wish to measure the carbon impact of an offshore wind project or its components, including suppliers, academics, consultants and developers. With a consistent approach to carbon footprinting now established, the industry can explore a unified path to reducing emissions and reliance on virgin raw materials. To supercharge industry-wide action, we:
Analysed emission sources across a standard offshore wind farm’s life cycle. Steel alone, for example, accounts for 50% of emissions. It highlights the need for a shift to lower carbon materials, green fuel sources, and circular business models.
Examined sectoral pathways for raw materials (e.g., steel, copper, cast iron) and supporting industries (e.g., shipping), showing opportunities for cooperation with other industries that use these materials to signal demand.
Charted a decarbonisation pathway for offshore wind. It sets out short-term actions across materials, the supply chain, market interventions, business model innovation and maritime activities.
IMPACT
Accelerating industry-wide action through collaboration
Companies can do more collectively than individually. By bringing some of the industry’s largest developers together, the Sustainability JIP provides a platform for targeted climate action.
Here, the 'Offshore wind industry product carbon footprinting guidance' is a critical first step. It increases transparency on how carbon emission calculations should be carried out, allowing developers to better understand the carbon impact of their offshore wind projects and deliver on their commitments to lower emissions. This guidance, combined with the 'Offshore wind decarbonisation pathway', lays the groundwork for developers to:
Promote broader adoption across the industry. The twelve Sustainability JIP partners are set to adopt the new footprinting methodology for both current and future projects. This will create a ripple effect, encouraging suppliers to follow suit.
Foster carbon transparency. By adopting a shared footprinting methodology and terminology, the industry will provide investors with clearer insights into the expected carbon impact of offshore wind projects and meet future reporting requirements.
Quantify climate action. With a detailed product carbon footprint, developers can understand the carbon impact of their design or planning decisions, identify hotspots and look for areas to reduce emissions.
Decouple emissions from installed capacity. The decarbonisation pathway provides a clear roadmap for adopting low carbon processes and repurposing materials, emphasising the need for cross-industry collaboration between developers, governments, regulators, suppliers and financial institutions.
When it comes to decarbonisation, focus has to be on materiality, credibility and transparency. The Carbon Trust’s Sustainability Joint Industry Programme is a perfect example of how collaboration can accelerate action, with a group of competitors finding their shared values and ambition, to come together as a community and push for industry change. By working together to establish a common methodology, we can focus on carbon hotspots and carbon reduction in the most cost-effective way for energy consumers, investors and suppliers.
As our industry prepares for a massive and necessary build out of offshore wind farms, we must also pay attention to driving down emissions from supply chains and operations. This common methodology will help us do that as well as increasing transparency for governments, investors and suppliers, and enabling comparability across developers and assets.
The Carbon Trust’s Joint Industry Programme collaboration model enables an industry-driven approach to addressing common challenges. We are demonstrating that this model can be effectively applied to value chain decarbonisation, where collaboration among industry players is catalysing transformation through common standards and engagement with the market.
