Britain's New Environmental Guidance: A Turning Point for North Sea Oil and Gas

Britain unveiled new environmental guidelines that could shape the development of two major North Sea oil and gas fields by companies such as Shell and Equinor. The guidance emphasizes the consideration of downstream emissions, a move expected to affect future approvals for fossil fuel extraction projects.

The Department for Energy Security and Net Zero announced that the guidelines ensure the acknowledgment of fossil fuel extraction's environmental impact in decision-making. This directive follows a Supreme Court ruling that planning authorities must consider climate-warming emissions impacts when approving oil projects.

Energy department minister Michael Shanks described the new guidance as a step toward a sustainable transition to cleaner energy in the North Sea. Though Britain won't issue new oil and gas licenses, the guidelines apply to existing projects like Shell's Jackdaw and Equinor's Rosebank, affecting ongoing court decisions and the country's energy strategy.

(With inputs from agencies.)