Government ‘will not bring abrupt end’ to North Sea oil and gas

Business Secretary Kwasi Kwarteng has rejected calls to bring an end to new licences for North Sea oil and gas as part of efforts to fight climate change.

The government announced a North Sea transition deal with the offshore oil and gas sector last month with targets, and public and private investment, to reduce emissions over the next decade.

Ministers also said they would introduce a “climate compatibility checkpoint” so future oil and gas licences that are awarded are aligned with wider climate objectives, which require cutting UK emissions to “net-zero” by 2050.

The deal was criticised by environmental campaigners for not ruling out new licences for oil and gas, with green groups warning fossil fuels needed to be curbed to meet targets to tackle climate change.

The UK’s net-zero law requires the country to cut domestic greenhouse gas emissions to as close to zero as possible, and take steps such as planting trees to absorb any remaining pollution.

Quizzed yesterday on judging new licensing rounds in the context of climate action by the parliamentary Business, Energy and Industrial Strategy committee, Mr Kwarteng said it did not make sense to end the industry, having secured the deal.

He said: “I don’t see a world in which a British government essentially by signing off legislation is going to put an abrupt end to what are really important jobs and very skilled people and a very large industry, I don’t see that.”

A North Sea transition deal was announced in March.