What North Sea policy would a British Labour government adopt?

The climate policies in the manifesto of the Labour Party, which is expected to win the general election next Thursday, July 4, will see the UK displace Denmark as the frontrunner for green transformation among North Sea states, according to new analysis by Oil Change International.

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 “worse the UK’s climate performance” through commitments to annual rounds of oil and gas licensing and “gross discrepancies in key areas”.

Will Labor phase out fossil fuels? And how?

One of the focal points of Labor’s policy is the creation of Great British Energy, a public energy company.

GB Energy is part of Starmer’s proposed Energy Independence Bill, which also includes Labour’s target to decarbonise the UK’s energy grid by 2030.

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.

Shadow Energy Secretary Ed Miliband has repeatedly promised that GB Energy would cut high bills for citizens and reduce the UK’s dependence on Russian oil.

Britain already has public ownership of energy – just by foreign governments.

It is time to take back control of our energy.

With Great British Energy, a new publicly owned company, Labour will make Britain a clean energy superpower. https://t.co/LkHLEWllGV

— Ed Miliband (@Ed_Miliband) June 24, 2024

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 necessary levels of investment needed to deliver a just transition for workers and communities across the UK,” Harris said in a conversation with Marine technology.

“We risk an unfair transition unless Labour abandons its self-imposed fiscal rules and commits the resources needed to build a clean energy sector and deliver well-paid, high-quality jobs across the UK.”

Labour’s mad 2030 energy policy is not only unachievable, it’s a threat to thousands of jobs and the UK's energy security.

Industry experts, academics and even the unions have warned of the harms their ideological approach would cause.

See for yourself👇🏾

— Claire Coutinho (@ClaireCoutinho) June 25, 2024

Current Energy Secretary Claire Coutinho has described Labour’s climate pledges as “crazy” and “unachievable”.

History continues

Could 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.

The organization currently 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”.

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 reach 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?

The article “What North Sea policies would a UK Labour government introduce?” was originally created and published by Energy Monitor, a brand of GlobalData.

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