The Labour government has launched a consultation to transform the North Sea into a clean energy hub securing jobs for oil and gas workers while ramping up investment in renewables.
The plan aims to make the North Sea a global leader in offshore wind carbon capture and hydrogen while ensuring a fair transition for workers in the oil and gas industry.
The consultation explores how to retrain and redeploy skilled workers into new industries as fossil fuel production is gradually phased down.
Labour estimates that offshore renewables could support between 70,000 and 138,000 jobs by 2030 with carbon capture alone adding £5 billion per year to the UK economy by 2050.
Oil and gas production will continue to play an important role and, as the world embraces the drive to clean energy, the North Sea can power our Plan for Change and clean energy future in the decades ahead.
This consultation is about a dialogue with North Sea communities – businesses, trade unions, workers, environmental groups and communities – to develop a plan that enables us to take advantage of the tremendous opportunities of the years ahead.”
Ed Miliband
The government says this shift will protect long-term employment and investment while reducing the UK’s reliance on volatile global energy markets.
To drive this transformation it is reviewing the role of the North Sea Transition Authority. The regulator currently oversees oil and gas but could soon take on a broader remit managing offshore hydrogen and carbon storage, as part of the shift to clean energy.
The aim is to create a regulatory framework that supports a stable transition and attracts investment into new sectors.
At the same time the Treasury has confirmed that the Energy Profits Levy will end in 2030.
A new tax regime is under consultation designed to ensure a fair return to the public during price spikes while giving businesses clarity on long-term investment conditions.
Labour insists this is not about shutting down oil and gas overnight.
Existing fields will continue operating for their full lifespan and their infrastructure will be repurposed where possible for clean energy projects. However, there will be no new exploration licences in line with climate science.
The move follows a series of major clean energy investments including £55.7 million for the Port of Cromarty Firth to support floating offshore wind.
It also builds on the launch of Great British Energy in Aberdeen and the creation of a National Wealth Fund designed to unlock billions in private investment.
With the government pumping £21.7 billion into carbon capture and hydrogen over the next 25 years, it is clear Labour is betting big on the North Sea’s clean energy future.
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