Britain Unveils New Guidance for North Sea Oil and Gas Future

Britain has published new environmental guidance aimed at reshaping the future of two extensive North Sea oil and gas fields, operated by companies such as Shell and Equinor. This long-awaited document outlines how greenhouse gas emissions, specifically downstream or Scope 3 emissions, should be factored into government extraction approvals.

Following a significant Supreme Court ruling last year, the guidance was mandated by the government. The ruling criticized planning authorities for failing to consider climate-warming emissions when approving oil wells. This new direction, according to Energy Department Minister Michael Shanks, provides clarity to the North Sea oil and gas industry while aiding Britain's transition towards a cleaner energy future.

The guidance applies to existing licenses like Shell's Jackdaw and Equinor's Rosebank projects, with new applications required for final approval by Energy Minister Ed Miliband. Environmental groups like Uplift and Greenpeace highlight the guidance as a necessary step to hold companies accountable for their ecological impact, as it also aligns with Britain's 2050 net-zero climate ambitions.

(With inputs from agencies.)