Plans to develop the UK’s largest untapped oilfield, Rosebank, have hit a legal snag, as a Scottish court has deemed the previous government’s approval as “unlawful.” The court ruling also affects the smaller Jackdaw gas project. Climate activists are hailing this decision as a significant win in the fight against fossil fuel projects that ignore downstream emissions.
Victory for Climate Advocates
The legal battle, initiated by Greenpeace and Uplift, gained momentum after a landmark Supreme Court ruling in June highlighted the importance of considering downstream emissions in project assessments. This ruling has since led to the downfall of several fossil fuel projects, including the West Cumbria coal mine. The new Labour government, elected on a climate-focused platform, must now reassess the environmental impact of these projects in light of the court’s decision.
Dr. Ewan Gibbs, an energy historian at Glasgow University, notes that the decision to green-light Rosebank and Jackdaw is now a political one for the Labour government. Despite the UK’s heavy reliance on oil and gas for energy, the projects would not significantly reduce imports. Campaigners, including Greenpeace, are lauding this ruling as a historic step towards holding governments accountable for their climate policies.
Implications for Oil and Gas Industry
Developers Shell, Equinor, and Ithaca Energy, who were behind the Rosebank and Jackdaw projects, have accepted the court’s ruling on the legality of their approvals. While they argue that the projects should proceed due to their advanced stages, the court has halted extraction activities pending a fresh assessment that considers downstream emissions. The companies are allowed to continue site development but cannot extract oil and gas until new consents are obtained.
Rosebank, which holds an estimated 300 million barrels of oil for export, is crucial for the UK’s economic growth, with significant investment benefiting local businesses. Equinor, the primary developer of Rosebank, is awaiting new consents while continuing with project progression. The government’s energy department plans to issue updated environmental assessment guidelines in the spring, allowing companies to reapply for permissions under the revised terms. This move aligns with the government’s commitment to a clean energy transition in the North Sea while ensuring energy security, lower bills, and job creation.
In response to the court’s decision, a spokesperson for Shell emphasized the need for swift government action to support the development of vital UK energy infrastructure. While the legal battle over Rosebank and Jackdaw underscores the growing importance of considering downstream emissions in energy projects, it also highlights the challenges and complexities of transitioning to a cleaner energy future.
