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UK to review North Sea oil projects under tougher climate rules

23 Jun 2025 15:40 reported by Margaret Yeh

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In January, a Scottish court ruled that the approval of two North Sea projects, Shell’s Jackdaw and Rosebank, was unlawful and required reconsideration, prompting the companies to await new guidance before reapplying.

The UK's Department for Energy Security and Net Zero announced on June 19 that the environmental impact of emissions from using or burning the fuels in new projects' approval must be evaluated, and these so-called Scope 3 emissions (or downstream emissions) were not previously considered. The department stated that this measure aims to ensure that consenting decisions fully account for the environmental impacts of fossil fuel extraction.

The Labour government stated last year that it would stop issuing new oil and gas licences, but would allow those approved by the previous administration to remain in place. Even so, Energy Minister Ed Miliband is expected to make a final decision on whether the projects comply with the new guidance and the UK’s climate targets no earlier than this autumn.

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