Energy challenge is laid down

● Smaller firms need to be made aware of renewables sector opportunities

Smaller North Sea oil and gas firms are “less developed in their thinking” around the energy transition and the need to diversify their business, according to a new energy sector report.

The Just Transition Commission’s interim report, released yesterday, said there was “a need for practical dialogue” with oil and gas companies to outline the potential negative impacts of climate change policy.

It added that small firms should also be made aware of “emerging economic opportunities” within clean energy.

Deirdre Michie, Oil and Gas UK chief executive, said that for diversification to a cleaner energy sector to happen at pace “it is essential companies of all sizes and scale are supported in taking the steps required to deliver the energy transition”.

She claimed the new report underlines that a “fair, inclusive and sustainable” transition is needed for the North Sea.

Ms Michie added: “These findings confirm the need for continued partnership with governments, regulators and our people to ensure we can continue to support the UK’s diverse energy needs, the communities we work in as well as wider society.”

But last night, the Just Transition Partnership, a separate pressure group made up of unions and climate groups, called for an “urgent ramping up” of policy by the Scottish Government.

Grahame Smith, Scottish Trades Union Congress (STUC) general secretary, said the report “sets out a much-needed challenge” to government and industry.

He added: “It is positive to see that in certain areas the commission is calling for action. The climate emergency is the biggest threat facing society and targets to cut emissions are only as good as the policy decisions which are made to deliver them.

“We will not succeed if justice for workers and communities is not at the core of our approach.”

Meanwhile, GMB Scotland secretary Gary Smith called on the commission to face up to the “hard truths” over job creation from the renewable energy sector.

He said it was “very hard not to be sceptical about the prospects for jobs” as the country moves towards a low carbon economy.

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