UK Publishes Environment Guidance for North Sea Oil, Gas Projects

The UK government has introduced new environmental guidance for North Sea oil and gas projects, requiring that Environmental Impact Assessments (EIAs) include downstream, or Scope 3, emissions from burning extracted fossil fuels, not just emissions from production. This guidance follows a 2023 Supreme Court ruling mandating that planning authorities consider the full climate impact of fossil fuel extraction when granting approvals. The new rules allow previously halted projects, such as Shell's Jackdaw and Equinor's Rosebank fields, to reapply for consent, though final approval remains subject to case-by-case evaluation by the Energy Secretary. Energy Minister Michael Shanks emphasized that the guidance provides clarity and supports a managed transition towards a cleaner energy future while balancing economic and environmental considerations. Environmental groups have welcomed the move as a necessary step toward meeting the UK’s net-zero climate targets by 2050. The guidance also aligns with broader UK investments in carbon capture and storage initiatives in the North Sea.