The UK has signed off the Marine Recovery Funds Regulations 2025, made on 24 November, laid on 25 November and entering into force on 17 December 2025. The rules create a government‑run route to fund nature recovery where offshore wind causes adverse effects, with the scheme applicable across England, Scotland, Wales and Northern Ireland.

Created under section 292 of the Energy Act 2023, Marine Recovery Funds (MRFs) allow developers to discharge compensation conditions by making payments into a pooled fund once the competent authority has determined the extent to which a payment will count. It is an optional route that sits after avoidance and mitigation requirements.

Transparency is baked in. The Secretary of State must publish a list of approved measures. Defra’s live “library” already names three strategic options: designation or extension of Marine Protected Areas for benthic impacts; offshore artificial nesting structures for kittiwake in English waters (Round 4 and earlier); and predator reduction at seabird colonies. Defra also plans to consult on compensatory MPAs before the end of 2026.

Accessing the fund will follow a published application pathway that can include an expression of interest, an initial agreement, a deposit or reservation fee, and the reservation of an approved measure. If approved, the government offers an MRF contract that sets the impacts, the compensation condition, the allocated measure and the expected outcomes.

Once a developer pays the full amount or the first instalment into an MRF, the Secretary of State becomes responsible for delivering the allocated measure. Payments out of the fund can cover developing new measures, delivering or acquiring approved measures, and the costs of monitoring and adaptation over time.

Monitoring is mandatory. During a defined monitoring period in each contract, government must track whether outcomes are being met. If not, it can adapt a measure, replace it, add another approved measure, or later decommission it-an outcomes‑focused approach designed to secure ecological gains rather than box‑ticking.

Governance is flexible. Ministers can establish funds for any UK territory (or a combination) and may delegate operation to Scottish, Welsh or Northern Irish public authorities with the consent of the relevant ministers. Before cancelling a delegation or closing a fund to new applicants, the Secretary of State must consult for at least 12 weeks.

Costs will be published. The Secretary of State can set fees linked to the estimated value of approved measures and may make some fees non‑refundable. Government must publish both the application procedure and fee information so projects can budget early and avoid delays.

The evidence base is strengthening in parallel. The Crown Estate’s Offshore Wind Evidence and Change programme is funding research to inform better decisions, while UK nature bodies have updated collision‑risk guidance for seabirds and backed lower‑noise approaches to unexploded ordnance clearance and turbine installation-key to reducing impacts before compensation is even considered.

What developers can do now: align derogation cases to Defra’s library; prepare expressions of interest and ring‑fence deposits; plan for potential non‑refundable fees; refresh collision‑risk modelling to current SNCB advice; and design clear monitoring baselines and metrics so MRF contracts can evidence outcomes over time. Interim guidance is available while the fund goes live.

For coastal communities and NGOs, the near‑term levers are scrutiny and input. Track the government’s published list of approved measures and engage with Defra’s promised consultation on compensatory MPAs by the end of 2026, making the case for projects that restore habitats and support local fisheries alongside biodiversity.

There are already real‑world examples of the kind of measures the library envisages. Ørsted’s nearshore artificial nesting structures for kittiwake off the Suffolk coast-developed for Hornsea Three-show how targeted interventions can increase breeding opportunities where natural sites are limited, complementing wider seabird recovery work.

Policy context matters. Government’s consultation outcome frames the MRF as a way to deliver industry‑funded, strategic compensation that supports the Clean Power Mission while improving certainty in consenting. The new regulations give that concept legal force and a practical delivery model from 17 December 2025.