A Scottish court has invalidated Britain's approvals for two major North Sea oil and gas projects, delivering a significant victory to environmental groups and raising uncertainty over future fossil fuel developments in the UK.
The Court of Session in Edinburgh found that the government had unlawfully granted approval for Shell's Jackdaw gas field and Equinor's Rosebank oil and gas field by failing to consider the emissions generated when the extracted fuels are burned—known as downstream emissions. The ruling follows legal challenges from Greenpeace and Uplift, which argued the approval process did not align with climate obligations.
Judge Andrew Stewart stated that the public interest in lawful decision-making and addressing climate change outweighed the private interests of developers. While the companies can continue working on the projects, Stewart ruled that no oil or gas can be extracted until the government reassesses its decision.
The Reaction
A Shell spokesperson welcomed the decision, emphasizing that the ruling allows the projects to move forward while new approvals are sought. “Swift government action is needed so that we and other North Sea operators can make informed decisions about critical UK energy infrastructure,” the statement said.
Equinor also responded positively, saying it was pleased it could continue progressing with Rosebank while awaiting fresh approvals.
The UK government, which had already stopped defending the legal challenges, announced it would issue new guidance in the spring to help developers seek fresh approvals under revised rules. A Department for Energy Security and Net Zero spokesperson reaffirmed the government’s commitment to a fair and orderly transition for the North Sea, balancing climate obligations with energy security and economic growth.
The court’s decision is the latest in a series of legal battles over fossil fuel projects, following a landmark UK Supreme Court ruling that planning authorities must consider the impact of burning fossil fuels, not just their extraction.
Greenpeace celebrated the verdict as a historic win. "The era of governments rubber-stamping new drilling projects while ignoring their climate impacts is over," said Philip Evans, a senior campaigner for the organization.
Uplift’s executive director, Tessa Khan, urged the government to reject efforts to push the Rosebank project forward, arguing it would contradict the UK’s clean energy ambitions.
Historical Context: Decline in North Sea Production
The ruling comes amid broader debates about the future of North Sea fossil fuel production. The UK Continental Shelf (UKCS) has been a significant source of the nation's oil and gas, with cumulative production reaching approximately 46.4 billion barrels of oil equivalent (boe) by the end of 2021. However, production has been on a declining trend since its peak in the late 1990s and early 2000s, when output reached around 4.4 million boe per day. By 2024, production had decreased to about 1 million boe per day and is projected to decline further to approximately 660,000 boe per day by 2029, according to statistics from the North Sea Transition Authority.
Despite legal setbacks, Shell, Equinor, and their partner Ithaca Energy maintain that the Jackdaw and Rosebank projects are vital for the UK's energy security and economy. Delays, they warn, could result in significant financial losses and job cuts.
(Reuters + Staff)