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Greenpeace raises threat of new legal challenge to UK oil and gasfields

by Investor News Today
April 8, 2025
in Commodities
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Greenpeace raises threat of new legal challenge to UK oil and gasfields
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Greenpeace has raised the prospect of a contemporary authorized problem to 2 deliberate UK oil and gasfields after the federal government signalled assist for the tasks, regardless of a courtroom revoking their consent due to their potential local weather impression.  

The marketing campaign group has warned the vitality division that public feedback by the prime minister and the chancellor might be seen as prejudging any contemporary utility for consent for the Rosebank and Jackdaw tasks, leaving any new determination susceptible to authorized problem. 

In a letter seen by the Monetary Occasions, it famous that the minister deciding any utility should “not have a closed thoughts or look of a closed thoughts” and “be open to persuasion that the tasks mustn’t proceed” together with as a result of impression of their emissions. 

The letter highlights the fraught scenario going through the federal government because it tries to maneuver away from fossil fuels whereas sustaining some funding within the North Sea. In its election manifesto final yr, the Labour occasion mentioned it will not revoke current oil and gasoline licences however wouldn’t difficulty new ones for exploration. 

Rosebank, being developed by Norway’s Equinor and the UK’s Ithaca Power, is the UK’s largest undeveloped oil reserve, thought to include round 500mn barrels of oil. Jackdaw’s developer, Shell, says it might produce about 6 per cent of the North Sea’s gasoline output. 

Each tasks have been awarded licences and had additionally been granted consent by the UK’s North Sea regulator. However following authorized challenges from Greenpeace and Uplift, Scotland’s prime civil courtroom in January dominated the consents would have to be reconsidered to consider carbon dioxide emitted when the oil and gasoline is used. 

Lord Ericht’s ruling within the Courtroom of Session got here within the wake of the landmark Finch ruling in June 2024, when the UK’s Supreme Courtroom dominated that these so-called Scope 3 emissions wanted to be taken under consideration when granting planning permission. 

Rosebank and Jackdaw builders might want to apply once more for consent if they need the tasks to go forward, and authorities would wish to contemplate this according to the courts’ ruling. They haven’t but reapplied, as they await new planning steering from the federal government, however are anticipated to take action.  

Nonetheless, in an interview with the Solar on Sunday final month, Rachel Reeves, the chancellor, appeared to assist the tasks. “We mentioned in our manifesto that they’d go forward, that we’d honour current licences, and we’re dedicated to doing that, and go forward they may,” she mentioned.

The courtroom’s ruling offers solely with consents, not licences, which each tasks nonetheless have. Each are wanted for the tasks to go forward.

Really helpful

A North Sea oil and gas platform

In different feedback additionally highlighted by Greenpeace, Prime Minister Sir Keir Starmer instructed reporters: “I can’t pre-empt the choice however you realize we did say that the place licences have already been granted we wouldn’t intervene with them.”

In the meantime, the Monetary Occasions quoted a authorities ally” in February as saying “the brand new purposes should go the brand new regime however our place on current fields could be very clear: we assist them”.

Within the letter despatched by its authorized division, Greenpeace mentioned the chancellor’s feedback particularly “level in the direction of illegal predetermination, or a minimum of the looks of illegal predetermination on the a part of the Secretary of State”.

It has requested the federal government for all correspondence referring to the tasks since January 1 and says its “place is within the meantime absolutely reserved”. 

A spokesperson for Equinor mentioned the Rosebank challenge was “important to the UK’s financial development” and it “continued to work intently” with regulators and the enterprise division to progress the challenge. Shell and the North Sea Transition Authority regulator declined to remark. 

A authorities spokesperson mentioned: “We can not touch upon particular person tasks, nor can we prejudice future decision-making.

“We now have already consulted on steering so we are able to present certainty for business, assist our environmental objectives, defend jobs and ship financial development.

“We’ll reply to this session as quickly as doable and builders will have the ability to apply for consents beneath this revised regime.”

Local weather Capital

The place local weather change meets enterprise, markets and politics. Discover the FT’s protection right here.

Are you interested by the FT’s environmental sustainability commitments? Discover out extra about our science-based targets right here



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