The CCC was commenting on the government’s proposed ‘Climate Compatibility Checkpoint’ for oil and gas licensing in the North Sea. 

Central to the CCC’s advice against new UK oil and gas exploration is the organisation’s inconclusive findings on the net impact on global emissions that this would have. Although UK extraction has a relatively low carbon footprint, particularly for gas, the CCC is unable to find a definitive emissions advantage from new oil and gas production. 

However, the letter says that the best way to protect UK consumers from volatile energy prices is to reduce fossil fuel consumption by improving energy efficiency, transitioning to renewable sources of power and electrifying energy use in transport, industry and heating. It adds that, since oil and gas prices are set internationally, licensing new production will have ‘at most, a marginal effect on the prices faced by UK consumers in future.’

In the letter, the CCC states that since mature renewables such as wind and solar were already cost-competitive with gas-fired electricity generation before the recent spike in gas prices, decarbonisation of the electricity supply would significantly reduce energy bills for consumers.

Moreover, considering historical timelines, exploration from new North Sea licenses would be unlikely to lead to new production until the 2030s, 2040s, or even post-2050. UK oil and gas consumption is also expected to decline substantially in the coming decades, leading the CCC to warn against stranded assets if exploration continues. 

To prevent this and to reinforce its net zero targets in line with the Paris Agreement, the CCC concludes that it ‘would support a tighter limit on production, with stringent tests and a presumption against exploration. An end to UK exploration would send a clear signal to investors and consumers that the UK is committed to the 1.5°C global temperature goal. That would also help the UK in its diplomatic efforts to strengthen climate ambition internationally.’