Trade and Environmental Sustainability Structured Discussions (TESSD)

Communication from the United Kingdom

Revision

The following communication, dated 1 November 2024, is being circulated at the request of the delegation of the United Kingdom.

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offshore wind energy

Technical paper by the United Kingdom

1  Introduction

1.1  Executive summary

This evidence paper explores the goods and services associated with the production and trade in offshore wind (OSW) energy. This individual report follows on from the UK's earlier technical paper titled 'Building our evidence based around environmental goods' shared with TESSD in March 2023. The report aims to share additional evidence on barriers to trade and steps that can be taken for these to be overcome. The report outlines a number of key findings:

OSW has been identified as a key technology for achieving climate mitigation objectives. Over the past year there has been an increased focus on developing the OSW industry. However, the International Energy Association and the International Renewable Energy Association anticipate that OSW capacity will need to exceed 2000GW in 2050 from just over 60GW today to reach net zero. Whilst OSW contribution to climate mitigation is widely recognised, challenges remain relating to end-of-life disposal of turbine blades, which often end up in landfill.

OSW energy generation is associated with a wide variety of services, however regulatory barriers continue to restrict their delivery. Key services include engineering and construction, in addition to maintenance and repair services. Ancillary services such as research and development, financial services, insurance, and consultancy are additionally utilised. Key barriers include restrictions to services using electronic networks, challenges concerning the environmental services workforce (such as quotas, labour market test, limitation on duration of stay and citizenship requirements) and failure to recognise international qualifications.

Value chain diagrams can be used to visualise the input and intermediate goods involved in making final OSW goods. The report showcases a series of value-chain diagrams for an OSW farm, mapping out the services and material inputs required across the value chain. The diagrams have been further annotated with illustrative commodity codes. The diagrams intend to increase transparency around the processes involved in the development of UK OSW farms. In addition, the diagrams form the basis of the report's analysis of where tariff or non-tariff-based interventions to accelerate the trade of OSW could be most effective.

Tariff-barriers to trade of goods are identified throughout the OSW value chain, highlighting the importance of taking a value-chain led approach. Analysis of the value-chain diagrams enables identification of where higher tariffs may be affecting dissemination and uptake of OSW goods. High tariff rates apply to numerous input, intermediate and final goods across the offshore wind value chain. This analysis demonstrates the value of taking a value-chain led approach to analysis of tariff-barriers to environmental goods to ensure that any intervention to address tariff-barriers considers all stages of the value chain.

There are a number of broader challenges affecting trade of OSW goods, thereby posing a barrier to dissemination of OSW technologies. Whilst reduced tariff rates could reduce cost pressures across the OSW value-chain, it is critical to consider non-tariff measures alongside any adjustment to tariff rates. The following broader challenges facing trade in OSW have been identified:

1.2  The importance of offshore wind energy in achieving climate mitigation goals

The environmental benefits of wind energy are well understood. Reference is made below to several useful and credible resources which support this.

The UN Climate Technology Centre and Network (CTCN) clearly sets out that due to the renewable nature of wind energy, the large resource availability, and the relatively advanced nature of the technology, wind energy technologies have the potential to make a significant contribution to climate change mitigation efforts. The uptake of wind energy can displace generation from thermal power plants, which can prevent rises in CO2 emissions.[1]

Project Drawdown documents the impact that OSW energy solutions have according to growth in energy output and avoidance of GHG emissions worldwide:

"Offshore wind turbines growing from the current estimated 60 terawatt-hours, to 1,850.04–2,175.56 terawatt-hours by 2050, could avoid 10.22–9.89 gigatons of greenhouse gas emissions."

The International Energy Association (IEA) stress that while OSW represents a small fraction of current power generation, it is important to prioritise efforts in this area since improvements in technology and steep cost reductions make harnessing the near limitless potential of wind within our collective grasp. Indeed, the IEA have reported record growth in wind electricity production in 2021 (up 273TWh or 17%) – 55% higher than for 2020, and the highest growth among all renewable power technologies.[2]

Both the International Renewable Energy Association (IRENA) and the IEA have said they expect OSW capacity will need to exceed 2000 GW in 2050, from just over 60 GW today to achieve net zero. The Global Offshore Wind Alliance (GOWA), launched at COP27 in November 2022, have pledged to a rapid ramp up of OSW, aiming to accelerating growth to reach a total of at least  GW installed capacity by the end of 2030. This work includes active collaboration to remove barriers to the deployment of OSW in new and existing markets.[3]

The UNIDO ITPO Tokyo STePP platform describes the major features and advantages of a mid‑sized wind turbine.[4] A common problem for the deployment of wind energy in regions prone to periodic high wind conditions is that the turbines can become damaged during extreme weather events or other natural disasters. The platform documents a medium-sized turbine which is designed to be easily transportable, relatively simple to install, with strong lightning and earthquake protection, and resistant to extreme and unstable winds (beyond the requirements of the relevant IEC standard).

Similarly, the World Intellectual Property Organisation's (WIPO) Marketplace for Sustainable Technologies contains entries for typhoon-proof wind turbines[5], among a variety of other wind energy technologies.[6] This resource shows not only that there are a wide array of benefits to be realised from the uptake of these technologies, but also that these technologies frequently have a high Technology Readiness Level (TRL). This resource also documents a wide variety of cooperation types under which wind energy technology transfer is possible under voluntary but mutually agreed terms.

1.3  Lifecycle considerations for offshore wind turbines

The benefits to the environment from the uptake of wind energy are clear from the sources above. Industry is now homing in on the outstanding lifecycle challenges associated with select components to maximise the environmental compatibility of this technology. A selection of these challenges has been outlined below.

The disposal of turbine blades poses a challenge during the end-of-life stage of a turbine's lifecycle, with the average blade typically having a lifespan of 25-30 years.[7] Whilst 85-90 % of wind turbines' total mass can be recycled, this is not the case for the blades, which often end up in landfill.[8]^,[9] Turbine blades are made from reinforced fibres (typically glass or carbon fibres) and a polymer matrix. Whilst they are non-toxic and landfill safe, commercially viable recycling methods are limited.[10]

The majority of currently viable recycling methods are some form of 'down-cycling', where the new material produced is of lower quality than the original material. Many recycling methods that produce higher quality material involve much higher energy costs, however more research is needed for accurate life cycle assessment of these techniques.[11]^,[12]

New materials are under development which can be used for wind turbine blades that are more easily recycled into useful products, however it remains to be seen whether these materials will be economically viable at scale. In the meantime, the challenge remains regarding how current turbine blades are disposed of when they are decommissioned, with a predicted 43 million tonnes of blade waste being produced worldwide by 2050.[13]