The Taskforce is an independent body, supported by the British Chambers of Commerce, which has brought together representatives from supply chain business, academia, environmental groups, and trade unions.
It also undertook a range of interviews with other interested parties, including industry bodies, NGOs, supply chain organisations, Government agencies, current operators and further trade unions.
Its report looks at managing the transition from a North Sea dominated by oil and gas production to one which successfully exploits its potential for commercially viable renewable energy.
Done well, a successful, just transition will hasten the journey towards net zero. It will also guarantee energy security, underpin the UK Government’s industrial strategy and protect the workforce linked to the North Sea.
Done badly, it risks a rapid erosion of its infrastructure, and damage to a world-leading supply chain and skilled workforce, to the detriment of economic activity in communities across the UK.
Currently there is a real risk of a faster than expected decline in oil and gas production, while wind and other renewable projects will take longer to fully develop.
If this gap is allowed to open, there will be no viable industry left to transition over, and the window of opportunity is closing fast.
The report makes a number of recommendations; calling on the Government to replace the Energy Profits Levy with a more proportionate tax regime, introduce a multi-annual framework to support the growth of renewables, set out a clear regulatory regime for exploration, provide clarity on spatial planning, and assess the skills and workforce landscape needed for a just transition.
It also calls for the creation of a government-led, cross-agency North Sea Transition Committee and expansion of the North Sea Transition Authority’s (NSTA) remit to coordinate the delivery of the plan.
“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. Getting this right should be a top priority for both the UK and Scottish governments.
“The North Sea Taskforce has established beyond doubt that there are widespread concerns that a gap is opening up between the North Sea as it is now and as it might be. Government needs to act now to restore investor confidence in the future of the North Sea, treat this as a national mission and put in place a long-term and coherent plan for a just transition.”
“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.
“But with the right approach it is possible to deliver economic growth, green jobs, energy security and climate leadership. This is not an either-or answer, it is perfectly possible to do all these things.
“The financial landscape that underpins the North Sea’s future is critical; it must support investment rather than draining it dry. Getting the response right will add value to supply chains across the UK and generate the expertise needed for future projects around our coastline.
“The geopolitical world around us is changing at a frightening rate. If we manage the transition well, it will provide a plentiful and reliable source of renewable energy and give the UK much greater security and economic stability.
“The cost of getting this wrong is too great to ignore. The Scottish and UK Governments must join forces and work to protect this hugely valuable resource for future generations.”
A copy of the full report can be found here.
