PA MediaThe UK government will not fight a legal challenge against the decision to grant consent to drill in untapped oil fields off Shetland and Aberdeen.
Greenpeace and Uplift jointly brought judicial reviews in an attempt to stop the development of the Rosebank and Jackdaw fields.
It comes after the Supreme Court ruled that a UK council should have considered the climate impact of new oil wells – setting a precedent for all regulators.
This litigation does not mean the licences for Jackdaw and Rosebank have been withdrawn.
Energy Minister Michael Shanks said: “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.”
The UK government is planning to consult later this year on its manifesto position not to issue new oil and gas licences to explore new fields.
Greenpeace said the licences should not have been granted without being “properly assessed” for their climate impact.
Mel Evans, Greenpeace UK climate team leader, said: “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 multi-billion-pound oil giants.”
The Supreme Court ruled in June that the way fossil fuels are used – known as scope 3 emissions – have to be considered when environmental impact assessments are being carried out.
The decision could still be challenged by oil companies.
Industry body Offshore Energies UK urged the government to conduct its consultation “at pace”, warning that uncertainty “further impacts investor confidence”.
A spokesperson added: “We remain absolutely committed to operations in the North Sea that meet the UK’s net zero ambitions and support energy security.”
‘Climate denial’
The UK government has pledged that the oil and gas industry would play an important role in the economy “for decades” as the country transitions to a “clean energy future”.
Rosebank off Shetland is Britain’s largest untapped oil field. It was granted consent in September last year.
Scotland’s then first minister Humza Yousaf said he was “disappointed” at the decision and accused Downing Street of “climate denial”.
Shell’s proposals to develop Jackdaw, east of Aberdeen, were approved in 2022 after initially being rejected on environmental grounds.
A spokesperson for the energy giant said it would carefully consider the implications of the government’s announcement.
They added: “We believe the Jackdaw field remains an important development for the UK, providing fuel to heat 1.4 million homes and supporting energy security, as other older gas fields reach the end of production.”
