The British Chambers of Commerce (BCC) is urging the formation of an independent task force to swiftly address the energy transition in the North Sea and protect tens of thousands of UK jobs.
This call follows the release of a new BCC report, which emphasises the need for a delicate balance to achieve Net Zero targets while safeguarding the substantial workforce in the oil and gas sector, along with thousands of other jobs connected to the industry across the UK.
The report acknowledges the importance of meeting the UK’s climate commitments but warns that current fiscal policies for the oil and gas sector could deter investment and compromise energy security.
The proposed independent taskforce should integrate the knowledge and expertise of all sectors affected by North Sea operations, including energy, economics, environmental protection, and labour unions. Its goal would be to provide the Government with recommendations for accelerating the North Sea’s energy transition while preserving jobs, skills, and employment. Importantly, the taskforce should also evaluate the long-term fiscal strategy for the industry.
The report advocates for a “national conversation” regarding the North Sea as a “critical asset,” noting that recent estimates indicate 200,000 direct and indirect jobs in the UK depend on the oil and gas industry. It concludes by emphasising the need for “strong dialogue” and “collaboration” among all stakeholders.
Shevaun Haviland, Director General of the British Chambers of Commerce said, “The imperative for Net Zero is ratcheting up daily as fresh evidence of the damage caused by climate change emerges. But it’s equally important that we manage this process to avoid catastrophic harm to our economy and workforce. We need an effective energy transition that does not cut adrift the tens of thousands of highly skilled people across the UK who rely on the sector for their livelihoods.”
He added, “It must also balance the diversity of our power supplies so that the UK’s energy security is not put at risk, and we do not become over-reliant on imported fuels. This means having a clear and integrated plan in place as soon as possible. Politicians cannot keep kicking the can down the road. It is in everyone’s interests to get round the table and find pragmatic solutions.”
There also needs to be transparent discussions about how this transition will be funded. Reducing capital and investment allowances will erode business confidence in the sector, threatening the success of the transition.
If private investment is jeopardised, then the repurposing of infrastructure and the future pathway becomes uncertain. “We are therefore calling for the establishment of an independent task force to further our research and support the new Government. A partnership approach can create a future for the North Sea which preserves the investment and skills needed for the green economy and safeguards thousands of jobs,” Haviland said.
The Government’s recent announcement to consult on new environmental guidelines for the oil and gas sector presents an opportunity for all stakeholders to contribute to a fair and just future.