Recommendations & Conclusions
42 items
1
Recommendation
4th Report - The future of Scotland’s o…
Accepted in Part
We are concerned that clean energy jobs are not being created at the pace or scale required to match the heavy job losses arising from the decline of the North Sea oil and gas sector. The scale-up of clean energy is progressing more slowly than the decline of the oil …
Government response. The government partially agrees, highlighting the Clean Energy Jobs Plan aims to nearly double clean energy jobs by 2030 with £63 billion capital funding. It also points to the North Sea Future Plan and Transitional Energy Certificates to ensure a …
Scotland Office
2
Conclusion
4th Report - The future of Scotland’s o…
Acknowledged
Such an approach is the minimum necessary for a smooth transition of workers, and to avoid the risk of harming UK tax revenues, economic activity, and employment in many Scottish communities, where the effects of the transition will be disproportionately felt. The loss of jobs abroad has detrimental impacts to …
Government response. The government states its commitment to achieving a fair and inclusive transition, outlining various existing strategies, plans, and investments like the Clean Power Action Plan, Clean Energy Industries Sector Plan, and UK Export Finance support. These initiatives aim to ensure …
Scotland Office
3
Conclusion
4th Report - The future of Scotland’s o…
Accepted in Part
We recognise that with time moving to clean energy improves the UK’s overall energy security. However, as fossil fuels are to continue to form part of the UK’s energy mix for decades to come, there are compelling arguments to meet as much of that need as possible from domestic sources. …
Government response. The government acknowledges the natural decline of the North Sea basin and rejects issuing new exploration licenses. However, it commits to managing existing fields for their lifespan and introducing new Transitional Energy Certificates to help ease the production decline and …
Scotland Office
4
Recommendation
4th Report - The future of Scotland’s o…
Accepted in Part
The Government should set out how it intends to address the issue of the North Sea oil and gas industry’s decline outstripping the scale-up of clean energy. We urge the Government to take a pragmatic approach to its licensing policy as an outcome of its consultation, Building the North Sea’s …
Government response. The government agreed to a pragmatic approach by introducing Transitional Energy Certificates, which will permit specific additional drilling activity, such as infill wells or tie-backs, in areas adjacent to existing fields to maximise their lifespan.
Scotland Office
5
Recommendation
4th Report - The future of Scotland’s o…
Accepted
We recognise that maximising economic return from clean energy investments requires supporting and expanding UK-based supply chains. (Conclusion, Paragraph 56) The Government should set out how it intends to increase the proportion of UK-based supply chains used by clean energy generators. (Recommendation, Paragraph 56) Tax and regulatory environment
Government response. The government agrees with the recommendation and outlines four new policy interventions from its North Sea Future Plan to support and expand UK-based supply chains. These include establishing a North Sea Future Board, developing guidance, a Basin Wide Plan, and …
Scotland Office
6
Conclusion
4th Report - The future of Scotland’s o…
Acknowledged
We welcome the Government’s acknowledgement that it now needs to take action on the oil and gas industry’s fiscal environment. However, a lack of clarity on the fiscal regime beyond 2030 has created uncertainty for industry in the North Sea. The Energy Profits Levy at its current rate of 38%, …
Government response. The government acknowledges the committee's concerns about fiscal uncertainty, outlining its plan to end the Energy Profits Levy by March 2030 or earlier via a price floor, and to replace it with a new Oil and Gas Price Mechanism for …
Scotland Office
7
Recommendation
4th Report - The future of Scotland’s o…
Accepted in Part
In its response to this report, the Government should commit to a publication date for the outcome of its consultation on the new fiscal regime. To provide much-needed clarity and confidence to the sector, the successor regime should be brought into effect as soon as possible, rather than replacing the …
Government response. The government partially agrees, providing significant detail on the new Oil and Gas Fiscal Regime (OGPM), including its 35% rate, activation thresholds from 2026/27, and commitment to legislate next year. However, it confirms the OGPM will replace the Energy Profits …
Scotland Office
8
Conclusion
4th Report - The future of Scotland’s o…
Accepted
We welcome the Government’s publication of updated guidance on environmental impact assessments for new oil and gas fields, providing greater certainty to the sector. Given that each application will be considered on a case-by-case basis and the Government has not shared how factors will be weighted in its assessment, transparency …
Government response. The government explains that each project is considered on its merits, with the Secretary of State balancing environmental effects against wider national benefits and objectives. It asserts that the existing EIA process already provides transparency through public notice and published …
Scotland Office
9
Recommendation
4th Report - The future of Scotland’s o…
Accepted in Part
We recommend that the Government commit to issuing an explanatory statement after assessing each application, setting out how it has balanced the environmental impact against the economic and energy security benefits of oil and gas fields in its assessment. A justification is vital to ensure the industry and wider public …
Government response. The government partially agrees, stating that once a decision is made, it will be published with reasons. However, it does not explicitly commit to a detailed explanatory statement outlining the balance between environmental, economic, and energy security factors for each …
Scotland Office
10
Conclusion
4th Report - The future of Scotland’s o…
Not Addressed
Given what is at stake if transition is mismanaged, we are disappointed that Unite the Union has been unable to share, as promised, its plan to create 35,000 energy transition jobs. The plan might have been a valuable and timely contribution to our inquiry and could have assisted us in …
Government response. The government outlines its own Clean Energy Jobs Plan and North Sea Future Plan, which aim to increase clean energy jobs and provide a fair transition for the oil and gas workforce, including engagement with trade unions. It does not …
Scotland Office
11
Conclusion
4th Report - The future of Scotland’s o…
Accepted
A coherent transition plan for the North Sea is urgently needed. While we recognise that the Government has been in power for 15 months, plans are not yet in place and the transition is already well underway. The Government’s consultation, Building the North Sea’s Energy Future, which commits to producing …
Government response. The government acknowledges the urgent need for a coherent transition plan and confirms the publication of its 'North Sea Future Plan' in November, further committing to establish a minister-led delivery board in early 2026 to oversee progress.
Scotland Office
12
Recommendation
4th Report - The future of Scotland’s o…
Accepted in Part
The Government should recognise the urgency of the need for a coherent plan for the North Sea by committing to dates for the publication of its consultation response and consequent transition plan. The transition plan should be long-term in scope, provide certainty to the sector, and speak directly to the …
Government response. The government partially agreed, stating it has published the 'North Sea Future Plan' and will establish a minister-led 'North Sea Future Board' by early 2026, with community representation, to oversee the transition. While committing to monitoring clean energy jobs, it …
Scotland Office
13
Conclusion
4th Report - The future of Scotland’s o…
Acknowledged
It is vital that the skills of workers who have made Scotland’s oil and gas industry successful are not lost. We welcome the efforts of both governments to support the development of clean energy jobs and the transfer of skills from the oil and gas sector to other industries. In …
Government response. The government acknowledges the importance of the Oil and Gas Transition Training Fund, announcing its extension and expansion with up to £18 million in joint UK and Scottish government funding from 2026-29. They also detail the new North Sea Jobs …
Scotland Office
14
Recommendation
4th Report - The future of Scotland’s o…
Accepted in Part
The forthcoming transition plan should set out how the UK and Scottish governments will work together to deliver the Oil and Gas Training Transition Fund. It should clarify the duration of the funding available and the degree of UK Government involvement in the scheme, to ensure sufficient accountability at a …
Government response. The government partially agrees, announcing the Oil and Gas Transition Training Fund will be extended until 2028-29 with up to £18m jointly funded by UK and Scottish governments, and opportunities for private investment will be explored. However, it explicitly rejects …
Scotland Office
15
Recommendation
4th Report - The future of Scotland’s o…
Accepted
There has been a failure of communication from consecutive governments to oil and gas workers about the transition and what they need to do to prepare and benefit from it. Government action is required to ensure the visibility and promotion of clean energy jobs, as well as to ensure existing …
Government response. The government outlined several specific actions to improve the visibility and promotion of clean energy jobs, including a UK-wide awareness campaign, a deep dive into priority occupations, the Destination Nuclear campaign with a careers portal, and recent clean energy jobs …
Scotland Office
16
Recommendation
4th Report - The future of Scotland’s o…
Accepted
As part of its North Sea transition plan, we recommend that the Government conduct a communications campaign about the scale of the energy transition and the employment opportunities available, directed at both oil and gas workers and new entrants to the sector. This should include information about skills transferability between …
Government response. The government agrees, committing to lead a UK-wide industry-led awareness and attraction campaign for clean energy jobs, launching next year. A strong communications approach will be embedded within the North Sea programme, with the North Sea Jobs Service providing job …
Scotland Office
17
Conclusion
4th Report - The future of Scotland’s o…
Accepted
The Grangemouth case is the energy transition’s canary in a coalmine. It has illustrated the need for Government’s active stewardship in the energy transition. Petroineos advised the Committee that the UK and Scottish governments were aware of its plans to cease operations at the refinery five years ago. Both the …
Government response. The government agreed with the committee's conclusions regarding past failures at Grangemouth and detailed its subsequent actions, including a £100 million support package, a training guarantee, the Project Willow feasibility study, and a £14.5 million seed fund to transform the …
Scotland Office
18
Recommendation
4th Report - The future of Scotland’s o…
Accepted
In its response to this report, the Government should outline what has been learned from this case and what can be done to ensure that comparable industrial transitions will be better managed in future. Having consulted trade unions and communities during its consultation on Building the North Sea’s Energy Future, …
Government response. The government agrees with the recommendation, affirming its commitment to a fair and equitable transition for workers and communities. It will commence a "Future of Fuels programme" and launch a call for evidence to inform the UK's long-term strategy for …
Scotland Office
19
Conclusion
4th Report - The future of Scotland’s o…
Accepted
Continued momentum on the future of Grangemouth is vital. Project Willow must not be left to gather dust while jobs are at stake. We welcome the Scottish Government’s £25 million Just Transition Fund and the UK Government’s commitment of £200 million in ringfenced National Wealth Fund funding to leverage private …
Government response. The government agrees on maintaining momentum for Grangemouth, announcing £14.5 million in funding and describing the due diligence process undertaken by investment agencies. They commit to understanding and providing necessary policy or regulatory support as projects emerge to unlock investment.
Scotland Office
20
Recommendation
4th Report - The future of Scotland’s o…
Accepted in Part
The Government should explain in its response to this report how its taskforce on regulatory recommendations will feed into decisions taken by the National Wealth Fund. The Government should make clear the role and influence of the Grangemouth Investment Taskforce Board in relation to the allocation of the £200 million …
Government response. The government partially agrees, stating the National Wealth Fund (NWF) is part of the Investment Taskforce and will be aware of emerging projects and regulatory requests. The NWF's investment principles include supporting growth and clean energy missions, delivering financial returns, …
Scotland Office
1
Recommendation
1st Report - Clean Power by 2030: A fai…
The Clean Power by 2030 target is extremely ambitious, and we would suggest the Government must use all the levers it possesses if it is to achieve it. Maintaining public confidence and rebuilding political consensus around the pace, cost and implementation of the energy transition will be essential if the …
2
Conclusion
1st Report - Clean Power by 2030: A fai…
The risk of undermining confidence in the transition is especially acute for those Scottish communities being asked to host significant new energy infrastructure. In many cases, these communities—often in rural and remote Scotland—already feel disproportionately affected by the costs and impacts of the transition. These communities are also experiencing higher …
3
Conclusion
1st Report - Clean Power by 2030: A fai…
Great British Energy has important objectives and the backing of a substantial £8.3 billon capital funding allocation. However, the organisation remains in its infancy and is yet to become the fundamental driver of clean energy development it is envisioned to be. To a certain extent, this reflects the fact that …
4
Conclusion
1st Report - Clean Power by 2030: A fai…
If Great British Energy is to become the catalyst required to accelerate renewable generation and meet CP30, it must now move quickly beyond the initial start-up phase and scale up delivery. This will be especially important if it is to fully deploy its share of the £8.3 billion capital allocation …
5
Recommendation
1st Report - Clean Power by 2030: A fai…
The Government’s intention to take a more direct role in determining Great British Energy’s investment in Scotland, rather than allocating funding through existing Scottish Government programmes and public bodies, presents a potential risk of duplication and inefficiency. In its response to this report, the Government should set out how it …
6
Recommendation
1st Report - Clean Power by 2030: A fai…
Given Great British Energy’s core objective is to increase public ownership of clean power, transparency is essential. In its response to this report, the Government should clarify how much of Great British Energy’s £8.3 billion capital allocation has been spent to date and on which projects. It should also set …
7
Conclusion
1st Report - Clean Power by 2030: A fai…
Scotland currently faces higher-than-average standing charges, largely reflecting the higher costs of transporting power to rural areas compared with large population centres. The burden of higher standing charges is particularly acute for Scotland’s remote and island communities, who also experience higher levels of fuel poverty and, in many cases, are …
8
Recommendation
1st Report - Clean Power by 2030: A fai…
Following the outcome of Ofgem’s imminent review of energy system costs, the Government should introduce a standing charge that applies consistently to all regions, which would lead to a fairer system for consumers across Great Britain, including in Scotland. (Recommendation, Paragraph 44)
9
Conclusion
1st Report - Clean Power by 2030: A fai…
Successive administrations have chronically underinvested in the electricity grid. As a result, grid capacity has not kept pace with the expansion of renewables across the UK system. This causes the perverse outcome 51 of Scottish windfarms being switched off—sometimes more frequently than they are generating—while a fossil fuel power station …
10
Conclusion
1st Report - Clean Power by 2030: A fai…
Grid capacity is one of the biggest barriers to achieving Clean Power by
11
Conclusion
1st Report - Clean Power by 2030: A fai…
We welcome the Government’s commitment to introduce a mandatory community benefits scheme for new generation infrastructure. However, we remain concerned that the pace of implementation is too slow, with any scheme not expected to take effect until the end of 2027 at the earliest. Many developments—particularly across Scotland’s Highlands and …
12
Recommendation
1st Report - Clean Power by 2030: A fai…
Meaningful community benefit extends far beyond financial payments. Housing availability, access to skills training, and the creation of long-term local jobs are equally important. This is especially true in rural and remote Scotland, where the coming of renewable energy provides an opportunity to leave a transformative legacy of housing, skills …
13
Conclusion
1st Report - Clean Power by 2030: A fai…
This should include a requirement that companies undertaking major infrastructure projects in rural areas construct worker accommodation to a standard suitable for retention as permanent community housing once the project is complete. (Recommendation, Paragraph 86) 52
14
Recommendation
1st Report - Clean Power by 2030: A fai…
While it is important to safeguard the commercial viability of renewable schemes, the Government must ensure that the minimum compensation provided through its mandatory community benefit scheme reflects fair compensation for communities hosting these schemes. The UK Government’s proposed £5,000 per MW community benefit contribution is insufficient, and does not …
15
Recommendation
1st Report - Clean Power by 2030: A fai…
In its response to this report, the Government should set out its rationale for its proposed £5,000 per MW benefit contribution, and what insight it has taken from ten years’ experience of the Scottish Government’s voluntary community benefits guidance, which initially set minimum compensation at the same level. (Recommendation, Paragraph …
16
Recommendation
1st Report - Clean Power by 2030: A fai…
When determining the minimum compensation offered through its mandatory community benefits scheme, the Government should give careful consideration to the Highland Council’s position that £12,500 is a fair and proportionate level of compensation; this reflects the Council’s first-hand experience of clean energy deployment, as well as the lived experience of …
17
Conclusion
1st Report - Clean Power by 2030: A fai…
The mandatory community benefits scheme should also provide clear expectations on the delivery of non-financial benefits, while ensuring sufficient flexibility to reflect local needs. Given the scale of development currently underway, the scheme should be introduced sooner than the end of 2027. (Recommendation, Paragraph 90)
18
Conclusion
1st Report - Clean Power by 2030: A fai…
We would encourage the Government to use its existing powers under the Infrastructure Act 2015 to make shared ownership offers by developers of all new renewable energy projects. This would ensure community groups are able to take advantage of the opportunity of an ownership stake. (Recommendation, Paragraph 91) Community ownership …
19
Conclusion
1st Report - Clean Power by 2030: A fai…
We welcome the Government’s ambition to accelerate community and locally owned clean energy through the Local Power Plan, delivered jointly with Great British Energy. However, it is disappointing that Scotland is disproportionately disadvantaged from benefitting from the Plan by its current Transmission Impact Assessment thresholds, which restrict opportunities for new …
20
Recommendation
1st Report - Clean Power by 2030: A fai…
The Government should set out the concrete steps it is taking to address this imbalance and to ensure Scotland can access the full benefits of the Local Power Plan, including grid connection. (Recommendation, Paragraph 116)
21
Conclusion
1st Report - Clean Power by 2030: A fai…
Repowering offers a timely opportunity for communities to expand community-owned energy while rebalancing some of the unfair outcomes of the transition. As both the UK and Scottish Governments support the expansion of community energy projects, closer coordination is needed to reduce barriers to decommissioning and repowering. We welcome the Scottish …
22
Recommendation
1st Report - Clean Power by 2030: A fai…
The UK Government should learn from the Scottish Government’s evaluation of its pilot, so that lessons can be learned for possible implementation in other parts of the UK. In its response to this report, the UK Government should set out how, through the Local Power Plan, it will remove barriers …