Editor
The UK authorities won’t battle a authorized problem in opposition to the choice to grant consent to drill in untapped oil fields off Shetland and Aberdeen.
Greenpeace and Uplift collectively introduced judicial critiques in an try to cease the event of the Rosebank and Jackdaw fields.
It comes after the Supreme Court dominated {that a} UK council ought to have thought-about the local weather influence of recent oil wells – setting a precedent for all regulators.
The authorities’s choice doesn’t imply the licences for Jackdaw and Rosebank have been withdrawn.
But if the judicial assessment backs the environmental teams, their operators would wish to resubmit environmental assessments.
This would create extra delay and extra prices for Rosebank’s homeowners, Equinor and Ithaca Energy, and Jackdaw’s proprietor, Shell.
The UK authorities has pledged that oil and fuel would play an vital position within the economic system “for many years to come back” because the UK transitions to scrub vitality.
It is planning to seek the advice of later this yr on its manifesto place to not subject new oil and fuel licences to discover new fields.
Energy Minister Michael Shanks mentioned: “We will seek the advice of at tempo on new steering that takes into consideration the Supreme Court’s ruling on Environmental Impact Assessments, to allow the business to plan, safe jobs, and spend money on our economic system.”
Environmental teams welcomed the federal government’s choice.
Greenpeace mentioned the licences mustn’t have been granted with out being “correctly assessed” for his or her local weather influence.
Mel Evans, Greenpeace UK local weather staff chief, mentioned: “Following the Supreme Court ruling earlier this yr, conceding these circumstances is the logical plan of action.
“The two new fields mixed would generate an enormous quantity of emissions whereas doing nothing to decrease vitality payments.
“The solely actual winners from giving them the greenlight can be multi-billion-pound oil giants.”
The Supreme Court dominated in June that the best way fossil fuels are used – referred to as Scope 3 emissions – must be thought-about when environmental influence assessments are being carried out.
The choice might nonetheless be challenged by oil firms.
Industry physique Offshore Energies UK urged the federal government to conduct its session “at tempo”, warning that uncertainty “additional impacts investor confidence”.
A spokesperson added: “We stay completely dedicated to operations within the North Sea that meet the UK’s web zero ambitions and help vitality safety.”
Rosebank off Shetland, owned by Norwegian vitality large Equinor and British agency Ithaca Energy, is the UK’s largest untapped oil discipline. Consent for drilling there was granted in September final yr.
Scotland’s then first minister Humza Yousaf mentioned he was “disillusioned” on the choice and accused Downing Street of “local weather denial”.
Shell’s proposals to develop Jackdaw, east of Aberdeen, had been authorised in 2022 after initially being rejected on environmental grounds.
A spokesperson for the vitality large mentioned it might rigorously think about the implications of the federal government’s announcement.
They added: “We imagine the Jackdaw discipline stays an vital improvement for the UK, offering gas to warmth 1.4 million houses and supporting vitality safety, as different older fuel fields attain the tip of manufacturing.”
In its draft vitality technique, revealed final yr, the Scottish authorities confirmed a “presumption in opposition to” any new oil and fuel exploration.
But First Minister John Swinney mentioned in June that North Sea oil and fuel would nonetheless be wanted “for a time frame” to assist the nation meet its net-zero emissions goal by 2045.
First issues first. This doesn’t imply the tip for both the Jackdaw or Rosebank fields. But it’s one other important victory for environmental teams.
They key to that is whether or not the emissions from consuming the oil and fuel being produced is taken into account in environmental influence assessments.
Historically these Scope 3 emissions are disregarded, however the Supreme Court modified that.
The judicial assessment is in opposition to assessments for beforehand authorised consents at two of probably the most distinguished future North Sea developments.
If the courtroom guidelines in favour of the inexperienced foyer, the operators must resubmit their environmental influence assessments which must be thought-about afresh.
The regulators might then persist with their weapons and approve it once more. But this creates extra delay and important extra prices – which environmentalists hope will make fossil fuels much less interesting to buyers.
