Business Energy Broker
The UK Government has become the first G7 member to agree to an industry deal to protect 40,000 UK jobs during the net-zero transitions of the oil and gas sectors.
The North Sea deal will provide a way to protect high-skilled workers within the industry as they make the transitions to a low-carbon future to meet UK net-zero targets. This means supporting 40,000 jobs throughout the supply chain process. The UK has committed to this deal with an agreement from 24th March 2021.
This agreement will support existing companies to make the changes required to meet targets but will also attract new sectors to the UK with the correct business environments and standards, boosting the economy. The changes will see great long-term benefits for the UK and businesses based within.
By utilising the existing capabilities of the industry with infrastructure and private investment, jobs will be supported through exploring hydrogen production and offshore wind technologies. This will take a collaborative effort from both government and trade unions to deliver the agreement and revolutionise the industry in the North Sea.
The overall effects of the deal are expected to reduce emissions by 60 million tons by 2030, 15 million tons from the UK Continental Shelf (the area of water around the UK where they have mineral rights) from oil and gas. Figures show that this is the equivalent of emissions from 90% of UK homes being reduced.
Some of the milestones include emission reductions of 10% by 2025, 25% by 2027 and then 50% by 2030 which will be funded by the government-industry investments of £16 billion by this period. Investments will go to technologies such as hydrogen production to replace fossil-fuel-powered stations.
In addition to the North Sea Deal, the UK Government has also announced that it will no longer be supporting overseas fossil fuel projects as of 31st March 2021. This includes UK Export Finance support as well as other funding and promotions for all overseas fossil fuel projects. The Prime Minister announced this commitment late last year during the Climate Ambition Summit to stop taxpayer funds from contributing to unsustainable projects.
This is a strong message announcing that the UK is fully committed to its green future, the net-zero targets set for 2050 and becoming a global leader in renewable energy. Whilst these changes will affect the infrastructure of UK energy, the government is making commitments to ensure that workers and jobs can be adapted and supported to maintain the economy.
Anne-Marie Trevelyan, Energy Miniter, 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.”
Further announcements were made regarding businesses within all sectors needing to be prepared to address their climate-related risks and opportunities. This will allow the economy to maintain its competitiveness. The UK Government has also published its proposal for the UK’s most significant companies and firms, which combine £4 trillion turnovers, laying out how they are required to prepare.
More information is available by speaking to Jason Thackray on 0333 9000 246 or email :