The British government plans to ban new drilling licenses in the North Sea for companies whose applications are already being processed and has also withdrawn its support for a new coal mine in Cumbria.
Energy Secretary Ed Miliband is considering blocking some pending applications from an oil and gas licensing round that was opened at the end of 2022. This would be a step that goes beyond the industry’s expectations and could lead to a conflict with unions concerned about widespread job losses.
During the election campaign, the Labour Party had promised not to issue any new oil and gas licenses, but not to revoke existing licenses, in order to support their net-zero decarbonization plans.
Here is the translation of the heading to English:
"The decision to withdraw support for the Whitehaven coal mine has been celebrated by climate activists. The case was to be heard in the High Court next week, but the housing ministry stated that there had been a 'legal error' in approving the project in 2022.
The Ministry of Housing declined to comment.
The oil industry in the North Sea raised concerns about a potential ban on drilling applications that are already in the pipeline. An industry representative said the mood in the sector was "grim" and warned that the potential move risks accelerating the decline of the aging basin.
Approximately half a dozen applications from three companies that were submitted as part of the 33rd licensing round, which started last year, would be affected. The round has already led to the issuance of dozens of new licenses.
The Ministry for Energy Security and Net Zero Emissions denied a report that Miliband had already overruled his officials and ordered an "immediate ban on new drilling.
The government, however, did not deny that Miliband's ultimate intention is to not approve these license applications from the North Sea Transition Authority. Ministers are carefully reviewing the situation before making a final decision.
The Labour manifesto plans to issue no new licenses for drilling in new gas and oil fields in the North Sea. Instead, wind and solar energy should be rapidly expanded with the goal of reducing emissions from electricity generation to net zero by 2030.
This stance towards the North Sea has been criticized both by the fossil fuel industry and by the Unite and GMB unions, which traditionally support Labour and regularly make donations. Critics argue that the policy makes no economic sense, as the UK will continue to use large amounts of fossil fuels even while gradually transitioning to a low-carbon economy.
Fossil fuels accounted for 78.5 percent of the United Kingdom's energy mix in 2022, according to government reports.
The new government, however, wants to send a clear signal of its commitment to combating climate change. This week, planning rules for onshore wind turbines in England were also relaxed and the former CEO of the Climate Change Advisory Committee, Chris Stark, was recruited to advance renewable energy plans.
The Ministry of Energy Security declared: "As previously mentioned, we will not issue new licenses for the exploration of new fields. We will also not revoke existing oil and gas licenses, and we will manage existing fields throughout their entire lifespan.
We are working with the North Sea Transition Authority to ensure a fair and balanced transition in the North Sea.
