By Noah Browning
LONDON, May 25 (Reuters) – The United Kingdom will not commit to halting new oil exploration in the North Sea, a government energy body told Reuters, despite a warning from the world’s top energy watchdog to rein in fossil fuels spending to achieve climate goals.
The UK is due to host the U.N. Climate Change Conference (COP26) in Glasgow, Scotland, in November and commissioned the International Energy Agency (IEA) to chart a path towards net-zero emissions by 2050.
The agency published its findings last week, but its recommendation that fossil fuel investment be halted sits uneasily with a deal the U.K. government reached in March to continue allowing North Seaoffshore oil licensing in exchange for pledges to cut emissions.
With around 160,000 people currently directly and indirectly employed in the UK offshore energy sector, it is being predicted that this could grow to 200,000 or even 220,000 in the best-case scenario.
The report also predicts that an estimated £170 billion could be invested in capital and operating activities in the UK offshore energy sector between 2021 and 2030 – with this taking in spending on oil and gas, offshore wind, CCUS and hydrogen.
But it warned that factors such as “reduced ambition” could see the workforce in the sector drop to 140,000 by 2030.
As a result, the report said: It is key that UK and devolved governments work together with the offshore energy sector to ensure the managed transition of skills and experience in a way that protects and sustains key UK energy jobs.