Climate / UK Government and oil industry agree green transition deal

The old and gas industry has until 2050 to meet net zero targets. Photo: BP

OIL and gas production in the North Sea will continue for decades to come while the UK government and the industry aim to achieve net zero emissions by 2050.

That is one of the main messages contained in the North Sea Transition Deal that will support the oil and gas sector towards a greener future while protecting jobs during a 30 year transition period.

Published on Wednesday, the deal has earmarked billions to help the industry decarbonise and create new high-skilled jobs in emerging technologies such as hydrogen production, carbon capture usage and storage, offshore wind and decommissioning.

The transition deal also pledges that any new oil exploration licences will only be granted if it is compatible with UK’s climate change objectives.


If the evidence suggests that a future licensing round would undermine the UK’s climate goals or delivery of net zero, it will not go ahead, the UK government said.

This very much chimes with comments made by Gunter Newcombe, the coordinator of Shetland’s own ambitious green energy project, who told Shetland News last month that it would be unlikely for any of the large West of Shetland exploration projects to get the go-ahead without a “net zero emission profile”.

Described as “transformational”, the Orion clean energy project aims to decarbonise offshore oil installations, produce large amounts of green hydrogen and ultimately supply Shetland and the nation with green energy.

Extracting oil and gas on the UK continental shelf is directly responsible for around 3.5 per cent of the UK’s greenhouse gas emissions.

As part of a package of measures, the sector has now committed to reduce emissions by 25 per cent by 2027 and by 50 per cent by 2030 – while supporting up to 40,000 jobs across the supply chain.

Become a supporter of Shetland News


Other measures are: –

  • joint government and oil and gas sector investment of up to £16 billion by 2030 to reduce carbon emissions. This includes up to £3 billion to replace fossil fuel-based power supplies on oil and gas platforms with renewable energy, up to £3 billion on carbon capture usage and storage, and up to £10 billion for hydrogen production;
  • by 2030, the sector will voluntarily commit to ensuring that 50 per cent of its offshore decommissioning and new energy technology projects will be provided by local businesses, helping to anchor jobs to the UK;
  • aims for the UK to develop 5GW of low carbon hydrogen production capacity by 2030 will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund.

Energy minister Anne-Marie Trevelyan said: “We need to urgently end our reliance on fossil fuels and through our pioneering North Sea Transition Deal we will do so without putting our economy and communities at risk.

“While the future oil and gas sector will look very different to how it does today, the industry, businesses and supply chains it supports will have a new mission to help the UK decarbonise and develop the clean technologies of the future, as we lead the green industrial revolution.

Chief executive of industry body Oil & Gas UK Deirdre Michie added: “The deal will safeguard UK energy security, providing affordable energy to millions of households, secure tens of thousands of jobs in industrial heartlands across the country and support the UK economy.

“It is the first deal of its kind by any G7 country and a striking example of the UK showing global leadership on climate change ahead of COP26.”

Become a supporter of Shetland News

Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.

Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.

Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has  over 600 supporters  who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.

Your contribution will ensure Shetland News can: -

  • Bring you the headlines as they happen;
  • Stay editorially independent;
  • Give a voice to the community;
  • Grow site traffic further;
  • Research and publish more in-depth news, including more Shetland Lives features.

If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.



Subscribe to a selection of different newsletters from Shetland News, varying from breaking news delivered on the minute, to a weekly round-up of the opinion posts. All delivered straight to your inbox.

Daily Briefing Newsletter Weekly Highlights Newsletter Opinion Newsletter Life in Shetland Newsletter

JavaScript Required

We're sorry, but Shetland News isn't fully functional without JavaScript enabled.
Head over to the help page for instructions on how to enable JavaScript on your browser.

Your Privacy

We use cookies on our site to improve your experience.
By using our service, you agree to our Privacy Policy and Cookie Policy.

Browser is out-of-date

Shetland News isn't fully functional with this version of .
Head over to the help page for instructions on updating your browser for more security, improved speed and the best overall experience on this site.

Interested in Notifications?

Get notifications from Shetland News for important and breaking news.
You can unsubscribe at any time.

Become a supporter of Shetland News

We're committed to ensuring everyone has equitable access to impartial, open and quality local journalism that benefits all residents.

By supporting Shetland News, you play a vital role in ensuring we remain a pivotal resource in supporting the community.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.