Energy transition deal agreed
The UK Government and Oil and Gas industry have sorted a deal that they believe will help the UK reach net zero carbon emissions by 2050.
The UK government has today announced (Wednesday, 24 March) that it will deliver a transformational deal in partnership with the UK oil and gas industry to tackle climate change.
The deal is the first of its kind by any G7 country.
Developed in partnership with the leading representative body for the sector, OGUK, the North Sea Transition Deal outlines over 50 government and industry actions to accelerate moves towards the government’s target of net zero emissions by 2050.
Key commitments in the North Sea Transition Deal include:
The sector setting early targets to reduce emissions by 10% by 2025 and 25% by 2027 and has committed to cut emissions by 50% by 2030.
Joint government and oil and gas sector investment of up to ÂŁ16 billion by 2030 to reduce carbon emissions. This includes up to ÂŁ3 billion to replace fossil fuel-based power supplies on oil and gas platforms with renewable energy, up to ÂŁ3 billion on Carbon Capture Usage and Storage, and up to ÂŁ10 billion for hydrogen production.
By 2030, the sector will voluntarily commit to ensuring that 50% of its offshore decommissioning and new energy technology projects will be provided by local businesses, helping to anchor jobs to the UK.
The appointment of an Industry Supply Chain Champion who will support the coordination of local growth and job opportunities with other sectors, such as Carbon Capture Usage and Storage and offshore wind.
The deal will help to:
Unlock up to £16bn in investment over the next decade in crucial low carbon solutions including CCUS and hydrogen
Support the creation of up to 40,000 new energy jobs in industrial heartlands across the UK 
Cut UK emissions by 60 million tonnes, with 15 million tonnes of reductions from industry production by 2030 - the equivalent of annual emissions from 90% of the UK’s homes 
Boost the world-leading infrastructure - carbon capture - the Committee on Climate Change says is necessary to tackle climate change 
Kickstart hydrogen here in the UK, building a platform to provide an alternative for heating, heavy industry, and transport 
Ensure energy communities like Aberdeen and Teesside can successfully transition, retaining jobs and skills and creating a more diverse and inclusive workforce  
Reduce reliance on imported oil and gas – and be accountable for associated emissions
Dierdre Michie OBE is the Chief Executive of industry body Oil and Gas UK - she called the deal a "transformative partnership"
She said:
“It will unlock billions of pounds of investment and see government and industry work together to deliver a homegrown energy transition, realising innovative low carbon solutions that can be exported globally.
“The Deal will safeguard UK energy security, providing affordable energy to millions of households, secure tens of thousands of jobs in industrial heartlands across the country and support the UK economy. It is the first deal of its kind by any G7 country and a striking example of the UK showing global leadership on climate change ahead of COP26.”
Meanwhile Aberdeenshire West and Kincardine MP Andrew Bowie said:
"This deal has been a long time coming for me and my colleagues who have been working really hard to have this see the light of day.
"This is a plan that really matches the visionary agenda of Oil and Gas UK and the sector as a whole"
He continued:
"It delivers on our commitments to investing in the North East, it delivers on our commitment to making sure oil and gas has a future as we transition to net zero."
SNP MP Stephen Flynn who represents Aberdeen South welcomed the news, but did question if jobs could have been saved had it happened earlier, saying:
"It’s now over a year since the oil price collapsed and the fact it has taken this long for the UK Government to put forward these proposals is deeply regrettable – too many jobs have already been lost.
“As is always the case with such announcements the devil will be in the detail and it is very much my hope, and expectation, that this is new government money that will actually protect and create jobs here in Aberdeen, where it is most needed.
“This is particularly important in respect of both Carbon Capture and Storage and Hydrogen production – there has been noises that Teeside will be the lead beneficiary and that would be a betrayal of the North East of Scotland."