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What North Sea policy would a British Labor government adopt?

Posted on by darion

Labour’s shadow energy secretary Ed Miliband (left) and leader Keir Starmer (right) have promised a windfall tax on North Sea fossil fuel producers to fund green policies. Credit: Ian Forsyth/Getty.

New analysis by Oil Change International shows that the climate policies contained in the manifesto of the Labor Party, which is expected to win the general election next Thursday, July 4, will see the UK replace Denmark as the leaders of the green transition from the European Maritime countries Northern.

The climate action organization says the fringe Green Party is leading on climate commitments while Labor is “showing promise,” according to an analysis of the manifestos of the UK’s main political parties published this week. Green energy transition policy has been a controversial topic in numerous pre-election debates in the UK.

But the report questions the Labour government’s funding for its green energy programme, echoing criticism that party leader Keir Starmer has faced for his decision to scrap the country’s $US28 billion ($35.5 billion) green energy policy.

In relation to the incumbent Conservative Party, the report said Prime Minister Rishi Sunak’s promises would “undermine the UK’s climate performance” through commitments to annual rounds of oil and gas licensing and “glaring discrepancies in key areas”.

Will Labor phase out fossil fuels? And how?

One of the Labor Party’s leading policies is the creation of Great British Energy, a public energy company.

GB Energy is participating in Starmer’s proposed Energy Independence Bill, which also takes into account Labour’s aim to decarbonise the UK’s electricity grid by 2030.

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Questions have been raised about the feasibility of the 2030 target and whether Labour will introduce a licensing ban, which has not yet found its way into the centre-left party’s manifesto.

Ed Miliband, the shadow energy secretary, has repeatedly promised that GB Energy will cut high bills for citizens and reduce Britain’s dependence on Russian oil.

Although Labor has promised a significant windfall tax on North Sea oil and gas producers, doubts remain about the funding, according to Rosemary Harris, senior campaigner at Oil Change International.

“In addition to what has already been identified as priorities, Labor must prioritize an early 2030s end date and deliver the level of investment needed to ensure a just transition for workers and communities across the UK,” Harris told Marine Technology.

“We risk an unfair transition unless Labour can abandon its self-imposed fiscal rules and commit the funds needed to build a clean energy industry and deliver well-paid, good quality jobs across the UK.”

Current energy secretary Claire Coutinho has described Labour’s climate commitments as “crazy” and “unattainable”.

Can the UK become a North Sea leader in green energy?

In March, Oil Change International named the UK the second worst North Sea country for phasing out fossil fuels.

Currently, the organization estimates that Denmark is the most supportive of the climate goals of the Paris Agreement, followed by Germany and the Netherlands.

The analysis found that Labour’s manifesto, if implemented, “would put the UK ahead of Denmark, currently the best-performing North Sea country”.

Oil Change International ranks Norway and the UK as the least aligned with the 2019 Paris Climate Agreement of the five major North Sea countries. Source: Oil Change International.

The UK and Norway are widely considered to be the most environmentally damaging of the five so-called North Sea countries due to both governments’ decisions to extend oil drilling for at least a decade beyond the 2050 net-zero emissions deadline.

Labor has promised to meet the 2050 deadline.

Starmer also plans to create a new “Clean Energy Alliance”, bringing together a coalition of countries to tackle climate change and increase the UK’s diplomatic influence on environmental issues.

All eyes will now turn to next Thursday’s election and the first 100 days of the UK’s new government. If Labour wins, will Starmer, Miliband and the rest deliver on their green energy promises?