Recommendation 6

Announcements by major oil and gas companies to prioritise share buybacks and dividends over investment in renewables, and to scale back on targets to reduce the impact of their operations on the climate in favour of extracting more fossil fuels, suggest that the industry has some way to go before it finds a good balance between prioritising profit and its responsibility to cut emissions. The investment relief included in the Energy Profits Levy means that taxpayers will effectively pay oil and gas companies to clean up their own operations. Taxpayer support for oil and gas companies should be contingent on these companies being transparent about their future investments in renewables and low-carbon technologies, and on evidence showing how their plans for decarbonisation are compliant with the country’s statutory carbon budgets and net zero target. (Paragraph 40) Retaining investment in low-carbon energy