A court has ruled that the UK government unlawfully granted consent for two North Sea oil and gas fields, Rosebank and Jackdaw, requiring their owners to seek fresh approval before production can begin. The ruling follows a case brought by environmental campaign groups Uplift and Greenpeace at the Court of Session in Edinburgh.
In his written judgment, Lord Ericht stated that a more comprehensive environmental assessment was necessary, particularly regarding the climate impact of burning the extracted fossil fuels. He ruled that while development work on the fields may continue, no oil or gas can be extracted unless the UK government grants fresh approval.
Lord Ericht cited a public interest in ensuring decisions are made lawfully, given the effects of climate change, which he argued outweighed the interests of the developers. The ruling follows a landmark UK Supreme Court decision in June 2023, which established that environmental impact assessments must include downstream, or Scope 3, emissions—the carbon released when fossil fuels are burned.
The Rosebank and Jackdaw fields were approved by the UK government and the industry regulator, the North Sea Transition Authority (NSTA), in 2023 and 2022 respectively. However, Lord Ericht ruled that the Supreme Court’s decision in Finch v Surrey County Council should apply retrospectively, meaning both projects must now undergo a reassessment.
Energy Secretary Ed Miliband and the NSTA must now determine whether to grant fresh consent, taking into account downstream emissions, which were not originally included in the environmental impact assessments.
Environmental campaigners welcomed the ruling, arguing that the government should now refuse approval for both fields. Tessa Khan, executive director of Uplift, described the judgment as a “common sense decision”, adding: “The climate science is crystal clear that we cannot create new oil and gas fields if we are to stay within safe climate thresholds.”
Charlie Kronick of Greenpeace said that granting approval would be inconsistent with the UK’s national and international commitments to reduce carbon emissions. There is no way that we can meet those targets by approving new oil and gas,” he said.
Oil and gas companies involved in the projects argue that production should be allowed to proceed, citing UK energy security concerns.
Rosebank, located 80 miles west of Shetland, is the UK’s largest untapped oil field, estimated to contain between 300 million and 500 million barrels of oil. It is 80% owned by Norwegian state energy giant Equinor, with the remaining stake held by Aberdeen-based Ithaca Energy.
The plan for Rosebank involves transporting oil via tankers for international sale, with some gas being piped to Shetland. Meanwhile, Shell’s Jackdaw gas field, situated in the North Sea, was set to begin production in 2026, with Rosebank following in 2026/27.
A spokesperson for Shell called for swift government action to reapprove the Jackdaw project, saying: “Today’s ruling rightly allows work to progress on this nationally important energy project while new consents are sought.”
Equinor also welcomed the decision and said it would continue working with the government to secure approval.
“Rosebank is critical for the UK’s economic growth,” a spokesperson said, adding that the company was investing £2.2 billion in the project and that any delay could lead to job losses and reduced tax revenue.
The ruling places additional pressure on the UK government, which is currently reviewing how to calculate downstream emissions. A consultation on the matter was expected to conclude in spring 2024.
A Downing Street spokesperson said that the government was working quickly to update environmental guidance, aiming to balance industry stability with climate goals.
“This will help provide stability for industry, support our environmental goals and investment, protect jobs, and deliver economic growth,” the spokesperson said.
While acknowledging that oil and gas will remain part of the UK’s energy mix for decades, the government also highlighted its commitment to diversifying North Sea industries and managing existing fields responsibly.
During court proceedings, Shell’s legal team argued that quashing approval for Jackdaw could threaten the project’s overall viability, costing the company and its partners hundreds of millions of pounds and impacting UK energy security.
However, Lord Ericht ruled that the question before him was not whether the projects should proceed, but whether the original decisions were made lawfully. He rejected claims that the companies acted in good faith based on government guidance, stating: “Shell, Equinor, and Ithaca knew or ought to have known at the time that the consents were granted that the law was uncertain.”
The ruling comes at a time of heightened political uncertainty for the UK oil and gas sector. The US firm Apache recently announced plans to exit the North Sea by 2029, citing regulatory uncertainty and high taxation levels. Industry leaders argue that additional assessments for downstream emissions could increase project risks and deter future investment.
Despite these concerns, legal experts suggest that the UK government is likely to approve both projects once the revised environmental impact assessments are completed.
