The UK government will remove tariffs on 33 offshore wind-related industrial goods from April 1 through a new tariff measure, saving offshore wind energy manufacturers millions of dollars a year.

The measure will enable British manufacturers to produce components at a reduced cost and allow reinvestment for clean energy sector growth. This investment in the UK’s largest source of renewable energy is vital for addressing the climate crisis and building the UK’s energy security.

According to Lazard’s Levelized Cost of Energy, offshore wind is 40% cheaper to produce and maintain than new gas projects.

The government’s decision follows a record 8.4GW and £22bn ($29.5bn) of offshore wind investment secured in the AR7 CfD round. The round should provide enough clean energy to power the equivalent of over 12m homes. The round includes Berwick Bank in the North Sea, the first new Scottish project since 2022 and one of the world’s largest planned offshore wind projects.

The announcement directly delivers on the Trade Strategy commitment to ensure that the UK’s international trade and environmental objectives are mutually supportive by seeking outcomes, including internationally, that secure access to goods, services and technologies needed for the clean energy transition.

A new authorised use measure will conditionally reduce the import tariff paid at the border to zero. This conditionality will protect UK producers from being undercut by cheap imports in other sectors which may use similar goods.

An Authorised Use procedure permits UK-based traders to pay a reduced or zero rate of customs duty on imported goods, provided they are used for a specified purpose and processed within a certain period.

Eligible imports in this measure include items for the manufacture of cables, rotors, rotor blades, auxiliary and low-voltage systems used in both onshore and offshore substations or wind turbines, as specified under the Authorised Use procedure.