Industry welcomes UK government’s decision to not fight oil field legal challenges

Although the decision is ‘significant’ there is still no guarantee the development won’t go ahead

oil rig

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Michael Nelson

The UK government has decided not to challenge the judicial reviews brought against development consent for the Jackdaw and Rosebank offshore oil and gas fields in the North Sea, in what is being dubbed “a welcome signal of intent” for the UK’s clean energy transition.

The news comes after a Supreme Court ruling requiring regulators to consider the impact of burning oil and gas, as well as Scope 3 emissions, in the Environmental Impact Assessment for new projects.

Although the government stressed that the litigation does not mean the licences for Jackdaw and Rosebank have been withdrawn, if the judicial review finds in favour of the environment groups who brought the case – Greenpeace and Uplift – then the companies behind the proposed oilfields would need to submit new Environmental Impact Assessments, increasing costs significantly and further delaying development.

The government also said it would consult on the implementation of its manifesto position not to issue new oil and gas licences to explore new fields, aiming to conclude its consultation by spring 2025.

Last year, the previous Conservative-led UK government approved planning for the Rosebank oilfield – the largest untapped oil field in the North Sea – to the dismay of James Alexander, CEO of the UK Sustainable Investment and Finance Association.

On the current government’s position, Alexander said: “It has been made clear by climate scientists for years now that the development of new oil and gas fields is antithetical to avoiding 1.5 degrees of global warming. As long as a large portion of the UK’s energy mix comes from oil and gas traded on the global market, we will continue to be exposed to price shocks linked to conflicts and geopolitical shifts beyond our control.

“It is now evident that quickly transitioning to a vastly higher proportion of renewables in our energy mix would give the UK a competitive advantage when it comes to attracting investment. North Sea oil companies have consistently failed to invest in the transition towards renewables at the necessary scale and are increasingly the industries of the past.”

Meanwhile, Jake White, WWF’s head of legal advocacy, commented: “The UK government’s decision not to fight this legal challenge is hugely significant though there is still no guarantee the development of the Rosebank and Jackdaw oil fields won’t go ahead.

“Developing these oil fields would do nothing to reduce energy bills for struggling households while causing carbon emissions to skyrocket. We urge the UK government to reject any resubmission for production from the fields and to accelerate the rollout of clean, cheap British energy and home insulation – real solutions that will bring down bills and protect nature and the climate.”

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