Recommendations & Conclusions
8 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
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
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
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
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
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
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