New North Sea projects on hold as UK Government responds to court ruling
New North Sea oil and gas projects have been paced on hold this morning while the UK Government responds to a landmark court case on the environment.
Energy Minister Michael Shanks has announced plans to issue new guidance after the Supreme Court said that environmental impact assessments should take into account emissions from the burning of fossil fuels, and not just the production of them.
While insisting the government recognises the “proud history of the UK offshore industry” and the “brilliance of its workforce”, Mr Shanks has also confirmed that the government will launch a consultation on its manifesto pledge to end new North Sea licences altogether.
At 7am this morning, the government announced plans for new environmental guidance for oil and gas firms to provide “stability for industry, support investment, protect jobs, deliver economic growth, and meet its climate obligations, as the North Sea transitions to its clean energy future.”
The guidance is necessary in light of a Supreme Court ruling that has implications for the assessment of new development consents. The landmark Finch ruling requires regulators to consider the impact of burning oil and gas, scope three emissions, in the assessment for new projects.
Minister for Energy, Michael Shanks, said: “This government is committed to making Britain a clean energy superpower, helping to meet our first mission to kickstart economic growth. While we make that transition the oil and gas industry will play an important role in the economy for decades to come.
“As we support the North Sea’s clean energy future, this government is committed to protecting current and future generations of good jobs as we do so. We were elected with a mandate to deliver stability, certainty and growth.
“Every action we take will be in pursuit of that. We will consult at pace on new guidance that takes into account the Supreme Court’s ruling on Environmental Impact Assessments, to enable the industry to plan, secure jobs, and invest in our economy.”
The government said it will “engage with industry, workers, trade unions, and civil society will provide clarity and certainty for the industry and ensure a fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations.”
The government said it is acting “swiftly” so that decisions on oil and gas development consents can be made, adding: “The government recognises the proud history of the UK offshore industry and the brilliance of its workforce, particularly in Scotland and the Northeast of England, and the ongoing role of oil and gas in the country’s energy mix.
“Crucially, oil and gas production in the North Sea will be a key component of the UK energy landscape for decades to come as it transitions to our clean energy future in a way that protects jobs. The government believes that offshore workers will lead the world in the industries of the future.”
The government will not challenge the judicial reviews brought against development consent for the Jackdaw and Rosebank offshore oil and gas fields in the North Sea, a move they say will save the taxpayer money. This litigation does not mean the licences for Jackdaw and Rosebank have been withdrawn.
Mr Shanks confirmed the government will also consult later this year on the implementation of its manifesto position not to issue new oil and gas licences to explore new fields. Further details including the timings for consultation will be published in due course, but it will conclude by spring 2025.
Published: 29-08-2024