Recommendation 12

HM Government · verbatim extract Accepted in Part

The government partially agrees with recommendation 12. The government agrees with the importance of delivering a coherent transition plan. We committed in our manifesto to securing a long-term future for the North Sea. Following the consultation, “Building the North Sea’s energy future” we published our government response - the North Sea Future Plan - in November. This sets out pragmatic steps to secure and renew the North Sea’s place as Britain’s powerhouse that will both protect good jobs in our oil and gas heartlands and build the next generation of good jobs. The North Sea is one of Britain’s greatest industrial success stories, with world-renowned offshore expertise that has powered the country for over 60 years. But declining oil and gas reserves and 70,000 jobs lost in the last decade means there is an urgent need to act now to manage the declining North Sea basin and retain its world-class offshore expertise. After years of inaction, we are taking pragmatic steps that will ensure existing oil and gas production continues as an essential part of our energy mix for decades to come – while actively scaling up clean energy industries here in the North Sea. The North Sea Future Plan sets out a clear path to grow clean energy industries, support the management of existing oil and gas fields for their lifespan, and help North Sea workers and communities make the transition. As part of this Plan, we have also set out a suite of measures to help the oil and gas workforce transition into new sectors, set out in the response to recommendation 13. These measures build upon the package of support set out in the Clean Energy Jobs Plan, set out in the response to recommendation 18. As part of the Clean Energy Jobs Plan we will monitor clean energy jobs and skills trends from publication and provide regular updates in delivering the objectives of the Jobs Plan. We are determined to maintain momentum. That is why the Plan includes a commitment to set up a minister-led delivery board to oversee the progress, coordination and long-term planning of the North Sea’s industrial transition. The new North Sea Future Board will be made up of experts from the oil and gas industry, renewable industries, trade unions and local government. It will include representation from geographical areas affected by the North Sea’s energy transition, including the northeast of Scotland, who will be able to speak directly to the challenges faced by these communities. The Board will meet for the first time in early 2026. One of the Board’s objectives will be to review progress against the actions in the North Sea Future Plan. Conclusion 13 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 particular, we welcome the establishment of the Oil and Gas Transition Training Fund. Access to an effective training fund will serve as an incentive for workers to transition and shows that the Government is serious about supporting people into the jobs of the future. A Government-led training fund will also improve ministerial accountability and coordination of the North Sea energy transition at a national level. (Conclusion, Paragraph 98) The Oil and Gas Transition Training Fund is an important programme in helping to create a just, fair and prosperous transition for workers in the sector looking to retrain into new roles and for their communities. This will give our existing skilled workforce the opportunity to play a central role in future energy security through roles in clean energy industries. In future years, we will substantially scale up this work, with up to £18 million, jointly funded between the UK and Scottish governments, to extend and broaden the Oil and Gas Transition Training Fund from 2026–7 to 2028–9, providing thousands more of Scotland’s valued offshore oil and gas workers with access to bespoke careers advice and funding for the training they need to access roles in sustainable energy. Both governments will work with trade unions and industry to develop and promote this scheme and explore opportunities for additional private investment. In the North Sea Future Plan, we announced the North Sea Jobs Service, which will wrap around the Transition Training Fund to provide end-to- end career transition support for oil and gas workers looking to move into secure jobs in growing industries. It will work closely with industry to identify vacancies and match eligible workers to prospective employers.