Trade body Oil and Gas UK (OGUK) has restated the importance of Westminster following through on its promises of a “transformational” sector deal.
It follows Boris Johnson’s announcement earlier today of new emissions targets, which are designed to make the UK a forerunner in efforts to tackle climate change.
The government’s plan commits to reducing the carbon emissions by at least 68% by 2030, based on 1990 levels – a faster rate than any other major economy.
However, the new targets underline the “scale of the challenge ahead” and underpin the “critical need” for dedicated support, according to OGUK.
A sector deal formed part of the Conservative’s manifesto pledge during the 2019 general election just over a year ago.
It’s understood formal proposals were submitted in September, with bosses previously stating they were hopeful it would be agreed by the end of 2020.
The deal aims to facilitate a green recovery in the North Sea, helping to fuel the energy transition and moving the oil and gas industry away from its reliance on fossil fuels.
Deirdre Michie, OGUK chief executive, said: “The Prime Minister’s ambitious emissions announcement today reinforces the significance of securing a transformational sector deal for our changing sector.
“The UK offshore oil and gas industry has a vital role to play in supporting the UK to achieve the targets set out today. Through continuing to reduce our own carbon emissions, and by tapping into the expertise within our supply chain to develop solutions, we can help meet the country’s climate goals through developing critical solutions including carbon capture and storage and hydrogen at scale.
“This will help to unlock the full potential of this industry, including its world-class supply chain to deliver a green recovery which delivers our climate goals, supports jobs and enables our energy communities to adapt and thrive.
“We continue to work collaboratively with the UK Government on proposals for the North Sea Transition deal, creating a clear pathway to becoming a net-zero basin, whilst protecting domestic energy supplies, jobs and communities in a low carbon economy.”