The future of several oil and gas projects in the UK is uncertain after a landmark court ruling. Ministers are now reconsidering 13 licences for fossil fuel extraction, following a legal decision that found previous approvals unlawful for not considering the environmental impact of burning extracted fuels.
Court Ruling Challenges UK Oil and Gas Licences
A recent court case ruled that the licences for two major oil and gas fields, Rosebank and Jackdaw, were unlawfully granted because they failed to account for the emissions from burning the extracted fuels. This decision has put 13 more oil and gas licences under threat, as the government reviews new guidelines for fossil fuel extraction.
Cabinet Divided Over Oil and Gas Projects
Chancellor Rachel Reeves is looking for ways to allow these projects to continue, while Energy Secretary Ed Miliband, who has called Rosebank drilling “climate vandalism,” is leading a consultation on how to account for emissions in new projects. The outcome will determine if these projects, including the 13 licences currently at the consent stage, will proceed.
Emissions Accounting Becomes Key Factor
The consultation will focus on how companies account for “scope three emissions” – the greenhouse gases produced when fossil fuels are burned. This follows the court ruling that such emissions must be considered during project approvals. The new guidelines could prevent many of these projects from moving forward, especially those still in the application phase.
Opposition Within Labour Party
Several Labour MPs have voiced their opposition to allowing drilling at Rosebank. Energy Minister Michael Shanks confirmed that while existing licences will be honoured, new projects must meet strict climate tests, including those set by the Supreme Court.
Climate Activists Demand Licence Cancellations
Climate campaigners like Tessa Khan from Uplift and Alexander Kirk from Global Witness argue that any new fossil fuel projects would violate the UK’s climate goals. They insist that the government should cancel all new licences and focus on clean energy sources like wind and solar. Kirk highlighted the increasing climate disasters, from wildfires in Los Angeles to floods in the UK and Europe, as reasons to halt fossil fuel extraction.
Government’s Next Steps
The Department for Energy Security and Net Zero confirmed that the 13 licences awaiting consent are under review. The final guidance, once established, will determine if these projects can proceed or face cancellation, depending on their stage in the regulatory process.
The UK government is facing critical decisions on its energy future as climate concerns grow. With 13 oil and gas licences under review, the outcome of the ongoing consultation will shape the country’s commitment to its climate goals and influence its energy policy. Balancing economic interests with environmental responsibilities remains a key challenge for policymakers.
