Tories Propose Ending Net Zero Requirements for North Sea Oil

The Conservative Party, led by Kemi Badenoch, has announced plans to eliminate all net zero requirements for oil and gas companies operating in the North Sea if they secure election victory. Badenoch is set to formally unveil this strategy during a speech in Aberdeen on Tuesday, emphasizing a shift towards “maximising extraction” of resources, aiming to ensure that “all our oil and gas” are extracted from the region.

This proposal aligns with similar sentiments expressed by Reform UK, which advocates for increased fossil fuel extraction in the North Sea. In contrast, the current Labour Government has pledged to ban new exploration licenses, arguing that a “fair and orderly transition” away from fossil fuels will “drive growth.” A government spokesperson warned that exploring new fields would not alleviate energy bills or enhance security, but rather “accelerate the worsening climate crisis.”

Badenoch’s announcement marks a significant departure from traditional Conservative climate policy. Earlier this year, she stated that achieving net zero by 2050 would be “impossible.” Previous UK governments have committed to this target, which was enshrined in law under former Prime Minister Theresa May in 2019. The aim is to reduce carbon emissions to a level that balances emissions produced and removed, in accordance with the 2015 Paris Climate Agreement.

The Conservative leader argues that the obligations to pursue net zero hinder oil and gas production in the North Sea, adversely affecting the economy. She proposes to remove the necessity for companies to cut emissions or invest in technologies such as carbon capture and storage. Badenoch criticized the current approach, describing it as “absurd” that the UK would leave “vital resources untapped” while neighboring countries like Norway continue extraction from the same seabed.

In 2023, former Prime Minister Rishi Sunak granted 100 new licenses for drilling in the North Sea, asserting that this decision was “entirely consistent” with net zero commitments. Meanwhile, Reform UK has expressed intentions to abolish the net zero initiative altogether if they come to power.

The Labour Government maintains that it has made the “biggest ever investment in offshore wind” and established three pioneering carbon capture and storage clusters. These facilities aim to capture carbon dioxide (CO2) produced by industrial activities and power stations, preventing its release into the atmosphere. The captured CO2 is then transported and stored deep underground, a process regarded by the International Energy Agency and the Climate Change Committee as crucial for achieving targets to reduce greenhouse gas emissions.

As the political landscape shifts, the debate over energy policy in the UK is likely to intensify, with implications for both economic growth and environmental sustainability.