- The consultation will put the North Sea at the heart of Britain’s clean energy future
- It will engage with the industry on how to manage existing fields
- HM Treasure and HMRC has confirmed the Energy Profits Levi will end in 2030
The government has launched a consultation that could put the North Sea at the heart of Britain’s clean energy future, in a bid to drive economic growth and deliver its Plan for Change.
The move is designed to support private investment into the technology that will deliver the next generation of jobs for North Sea workers. It will also aim to invest in local communities, cut carbon emissions and help the UK become energy secure.
The consultation sets out the next steps in the government’s ongoing objective for the North Sea to make it an example of an offshore clean energy industry. It will also build on the UK’s world-class oil and gas heritage.
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In addition to maintaining existing oil and gas fields, and continuing ongoing domestic products, energy secretary Ed Miliband, said the government wants to boost the economy through the expansion of clean technologies.
Miliband said this strategy would protect the UK’s energy security, but added that to do so the government had to help the oil and gas industries “take advantage of a clean energy future”.
Separately, HM Treasure and HM Revenue and Customs (HMRC) have confirmed the Energy Profits Levy, a temporary levy on the profits of oil and gas firms, will end in 2030.
The government will now consult with the sector and other stakeholders to develop a system that protects jobs and consumers from price volatility.
It will also ensure that the oil and gas industry has the long-term certainty it needs on the future fiscal landscape, helping to support investment and protect businesses and jobs, now and for the future.
“The government is committed to working with the industry, communities, trade unions and wider organisations to develop a plan that will ensure a phased transition for the North Sea – creating tens of thousands more jobs in offshore renewables estimated by 2030,” Miliband said.
The consultation also includes delivering the government’s commitment not to issue new licences to explore new oil and gas fields in the UK, in line with the science of what’s required to keep global warming to 1.5 degrees.
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It will also engage with industry on how to manage existing fields, which will continue to contribute during the clean energy transition for the entirety of their lifespan.
This consultation comes after the government has backed new investment into Scotland’s clean energy future, awarding £55.7m to the Port of Cromarty Firth. This secures critical facilities needed for the rapid development of new floating offshore wind farms and ensures they are built from the UK.
The ultimate aim is for the UK to take back control of its energy and protect both family and national finances from fossil fuel price spikes, Miliband claims.
“Oil and gas production will continue to play an important role and, as the world embraces the drive to clean energy, the North Sea can power our Plan for Change and clean energy future in the decades ahead,” Miliband said.
“This consultation is about a dialogue with North Sea communities – businesses, trade unions, workers, environmental groups and communities – to develop a plan that enables us to take advantage of the tremendous opportunities of the years ahead.”
