By Elishya Perera
LONDON (CU)_The United Kingdom became the first G7 country to agree on a landmark deal to support the oil and gas industry’s transition to a low carbon future. The British government says that the high-skilled workers of the industry will not be left behind.
The government said on Wednesday (24 March) that the North Sea Transition Deal will support workers, businesses and the supply chain of the oil and gas sector, by utilising the industry’s existing skills, capabilities, infrastructure and private investment to exploit new technology, including carbon capture usage and storage, hydrogen production and offshore wind.
“Today, we are sending a clear message around the world that the UK will be a nation of clean energy as we build back better and greener from the pandemic,” Business and Energy Secretary Kwasi Kwarteng said.
“We will not leave oil and gas workers behind in the United Kingdom’s irreversible shift away from fossil fuels,” he added.
The Department of Business and Energy said in a statement that through the deal, the government will work together with the oil and gas sector, as well as trade unions, over the next decade and beyond, to deliver the skills, innovation and infrastructure required to decarbonise production in the North Sea.
It added that the agreement would not only assist existing companies to decarbonise, but will also create a favourable business environment to attract new industrial sectors, thereby developing new export opportunities and securing new high-value jobs.
The Deal specifies early reductions in offshore production emissions of 50 per cent by 2030, against a 2018 baseline, in order to meet the industry’s aim of achieving a net zero target by 2050. Moreover, joint investment by the government and the oil and gas sector will increase up to £16 billion by 2030 to reduce carbon emissions.
“An orderly transition is crucial to maintaining our energy security of supply, supporting high-value jobs, and safeguarding the expertise necessary to achieve a lower carbon future,” the department said.
Accordingly, the government will introduce a new “Climate Compatibility Checkpoint”, which would ensure that all oil and gas licences issued in the future will be in line with the country’s climate objectives, including net-zero emissions by 2050.
The Department also said that in a further move to support renewable energy and green technology, the British government will no longer provide support for the fossil fuel energy sector overseas from 31 March 2021. This will include international aid funding, export finance support and trade promotion for new crude oil, natural gas and thermal coal projects – with very limited exceptions.
