The Government has said it will not challenge judicial reviews brought against developments for the Rosebank and Jackdaw offshore oil and gas fields in the North Sea, in order to “save the taxpayer money”.
The move has been welcomed by climate action groups, despite the licences for drilling at the sites not being withdrawn.
The Rosebank oil field was approved by the previous government in September 2023. Located 80 miles west of Shetland, it is the UK’s largest untapped oil field and is estimated to contain up to 300 million barrels of oil.
The Jackdaw gas condensate field is being developed 155 miles east of Aberdeen and is expected to start production in 2025.
Sir Keir Starmer confirmed prior to the election that Labour would respect the Conservative government’s decision to approve the fields and would uphold existing oil and gas licences, whilst banning any new ones.
The new Government also said it would be consulting on the implementation of that manifesto position not to issue new oil and gas licences, in light of a Supreme Court ruling that has implications for the assessment of development consents.
The landmark Finch ruling requires regulators to consider the impact of burning oil and gas in the Environmental Impact Assessment for new projects.
Energy minister Michael Shanks said: “This Government is committed to making Britain a clean energy superpower, helping to meet our first mission to kick-start economic growth.
“While we make that transition the oil and gas industry will play an important role in the economy for decades to come.
“As we support the North Sea’s clean energy future, this Government is committed to protecting current and future generations of good jobs as we do so.
“We were elected with a mandate to deliver stability, certainty and growth. Every action we take will be in pursuit of that.
“We will consult at pace on new guidance that takes into account the Supreme Court’s ruling on Environmental Impact Assessments, to enable the industry to plan, secure jobs, and invest in our economy.”
Mel Evans, UK climate team leader at Greenpeace, said not defending legal action brought against the new oil and gas sites is “absolutely the right decision”.
They said: “These permits should never have been granted without being properly assessed for their impact on the climate, and following the Supreme Court ruling earlier this year, conceding these cases is the logical course of action.
“The two new fields combined would generate a vast amount of emissions while doing nothing to lower energy bills.
“The only real winners from giving them the greenlight would be multibillion-pound oil giants. Shell and Equinor should respect the Supreme Court’s decision and the Government’s position that their permits are illegal, and not waste time and money in greedy tactical legal battles.
“The Government must now make sure they prioritise public investment to support green jobs growth, that workers affected will be properly supported, and that the funding is ring-fenced for them to switch or retrain into sustainable jobs in renewable energy.”