The North Sea Transition Taskforce has urged the government to take immediate action in establishing a long-term, integrated plan to ensure a just energy transition.
Its latest report highlights the opportunity to secure the future of the North Sea is rapidly closing – but decisive action now could drive economic growth, create green jobs, strengthen energy security – and position the UK as a leader in climate action.
The Taskforce, an independent body supported by the British Chambers of Commerce, has gathered input from supply chain businesses, academic institutions, environmental groups, trade unions and a range of other stakeholders, including industry bodies, NGOs, government agencies and current operators.
Their findings emphasise the urgent need to manage the shift from an oil and gas-dominated North Sea towards a future based on commercially viable renewable energy.
A successful transition would accelerate progress toward net zero, support the UK’s industrial strategy and safeguard jobs in the sector.
However, failure to act could lead to a rapid decline in existing infrastructure, damage to a world-leading supply chain and job losses across communities that rely on the industry.
Tricky balance
At present, the report says there is a significant risk oil and gas production will decline faster than expected, while renewable energy projects will take longer to become fully operational.
If this imbalance is not addressed, the industry may struggle to transition at all.
The North Sea is a tremendous asset for the UK. A successfully managed transition as the oil and gas basin matures to a renewables future is in the UK’s national interest, vital for good quality jobs, revenues to the public purse, energy security and the achievement of net zero.
Philip Rycroft, Chair
Mr Rycroft warned that confidence in the sector is waning and that government intervention is necessary to restore investor trust.
To prevent this, the Taskforce has put forward a series of recommendations.
It argues for the creation of a government-led North Sea Transition Committee, chaired by a minister, to oversee the transition and ensure coordination across government departments and industry.
It also recommends expanding the remit of the North Sea Transition Authority (NSTA) to take a more active role in implementing these changes.
Tax regime change
It calls for the replacement of the Energy Profits Levy, or windfall tax, with a more proportionate tax regime that encourages investment rather than discouraging it.
A long-term framework for investment in renewable energy is also essential to ensure that projects are developed at the necessary scale and speed.
The report urges the government to establish a clear regulatory framework for exploration, provide clarity on spatial planning, and assess the skills and workforce requirements for a successful transition.
Shevaun Haviland, Director General of the British Chambers of Commerce added: “The North Sea is a national asset which deserves national action. There is a delicate balancing act that must be carried out to secure its future.”
The Taskforce’s report underscores the importance of acting now to preserve the North Sea’s role in the UK’s energy landscape.
With geopolitical uncertainties increasing, a well-planned transition will provide a stable, reliable source of renewable energy and economic security for the country.
The cost of failure, it warns, is simply too high to ignore.
