Guidance offers greater clarity to offshore oil and gas developers.
New guidance provides clarity on how the global environmental impacts of proposed oil and gas projects in licensed fields should be assessed, following Supreme Court ruling.
Offshore developers will now be able to submit their applications for consent to develop already-licensed oil and gas fields.
Follows the Spending Review announcement of £9.4 billion for carbon capture and storage projects, including Acorn in Aberdeenshire, in a major step forward for the government's plan to put the North Sea at the heart of Britain's clean energy future.
Offshore oil and gas developers to benefit from greater clarity and stability, as new guidance responds to last year's landmark Supreme Court ruling for the North Sea.
The government has acted decisively to respond to the independent Supreme Court, which ruled before this government took office that the global environmental effects of burning oil and gas are an inevitable consequence of extraction projects. This ruling means that North Sea operators for the first time are required to consider the impact of burning the extracted oil and gas in environmental impact assessments.
The new guidance, published today (19 June), will ensure the full effects of fossil fuel extraction on the environment are recognised in consenting decisions. It sets out how environmental impacts of oil and gas should be assessed, providing a clear way forward for the industry.
Offshore developers will now be able to submit their applications for consent to extract oil and gas in already-licensed fields, a process which has been on pause since the Finch Supreme Court judgment. When deciding on an application, the Energy Secretary will consider the significance of a project's environmental impact, while taking into account and balancing relevant factors on a case-by-case basis - such as the potential economic impact and other implications of the project.
The publication brings greater clarity for Britain's oil and gas sector, as the government continues its work with the industry to build a clean energy future for the North Sea. It comes as last week's Spending Review confirmed £9.4 billion for carbon capture and storage projects - marking a major step forward in the government's mission to make the UK a clean energy superpower that will drive economic growth, create jobs and deliver the government's Plan for Change.
Energy Minister Michael Shanks said:
This new guidance offers clarity on the way forward for the North Sea oil and gas industry, following last year's Supreme Court ruling.
It marks a step forward in ensuring the full implications of oil and gas extraction are considered for potential projects and that we ensure a managed, prosperous, and orderly transition to the North Sea's clean energy future, in line with the science.
We are working with industry, trade unions, local communities and environmental groups to ensure the North Sea and its workers are at the heart of Britain's clean energy future for decades to come - supporting well-paid, skilled jobs, driving growth and boosting our energy security.
The new guidance is aimed at applications for projects in North Sea oil and gas fields that are already licensed.
Today's publication follows decisive action from the government to consult on the required changes - hearing from the industry, NGOs, trade unions, academia and members of the public - in light of the Court's ruling a year ago this week.
The update follows news last week that the government will provide around £200 million to progress the Acorn project in Aberdeenshire, subject to business case, as part of the £9.4 billion commitment in the Spending Review for carbon capture and storage projects across the UK. Industry predicts the Acorn project will support approximately 15,000 jobs at peak construction - bolstering the region's proud energy history and delivering on the Plan for Change.
The investment is just one part of the government's plan to bring growth, jobs and investment to the North Sea. Later this year, the government will respond to its consultation on how to support a successful clean energy transition for the North Sea and its workers - and on the commitment not to issue new licences to explore new oil and gas fields.
Support to help oil and gas workers maximise the opportunities of the clean energy transition is already underway. Earlier this year, the government confirmed Aberdeen as one of four key growth regions for clean energy - alongside Cheshire, Lincolnshire and Pembrokeshire - and launched pilots to help workers in these areas access jobs in new clean energy industries.
Oil and gas workers will also get help to move into these sectors, thanks to a new energy 'skills passport' launched this year - led by Offshore Energies UK and RenewableUK, and backed by UK and Scottish Governments. This tool will support workers into careers in offshore wind initially, before being expanded to other renewables roles later this year.
Notes:
The guidance published today on assessing effects of downstream scope 3 emissions on climate is supplementary to existing guidance on Environmental Impact Assessments for oil and gas extraction projects.
This guidance is intended to assist developers in understanding the Environmental Impact Assessment process. It is not intended to provide a definitive statement of the law or to constitute legal advice.
Developers remain responsible for ensuring that their environmental statements are prepared by competent experts and should seek technical and legal advice as necessary.
The government's response to the consultation on the guidance for assessing effects of downstream scope 3 emissions on climate has also been published on gov.uk.
Offshore developers will now be able to submit their applications for consent to extract oil and gas in already-licensed fields. There is no change to the legislation and the process remains the same. Environmental statements are subject to public notice requirements for 30 days. The Energy Secretary may request further information if required in order for a decision to be reached and such further information may be subject to a further public notice period. The Energy Secretary will then make a decision on whether or not to agree to the grant of consent, once all the relevant information has been provided. This means the government does not anticipate taking any decisions until Autumn at the earliest, on applications received following the new guidance.
